Xtrackers World GTI UCITS ETF
| Issuer: Xtrackers |
| Asset Class: Equity |
| TER: 15bps |
| Trading Currency: USD |
| Pays Income: False |
| Listing Date: 13 Dec 2024 |
| Ticker: GTIL |
| ISIN: LU2859392081 |
This fund offers investors a comprehensive and diversified exposure to the global equity market, capturing the performance of large and mid-capitalization companies across both developed and emerging nations. By physically replicating its underlying index, the product holds the actual stocks of constituent companies, providing a transparent and direct investment. This structure makes it a suitable core holding for investors aiming to build a geographically diverse portfolio that reflects the breadth of the world's publicly traded markets, encompassing a wide array of sectors and industries.
The investment strategy is distinguished by its 'Global Transition Investment' (GTI) framework, which is embedded in the methodology of the benchmark it tracks. This approach incorporates specific exclusion criteria based on environmental and social considerations. The portfolio specifically screens out companies with significant business involvement in controversial activities such as the production of controversial weapons and tobacco. Furthermore, it avoids firms that derive substantial revenue from thermal coal extraction and power generation, as well as oil sands operations, aligning the investment with the broader shift away from carbon-intensive energy sources.
Consequently, this vehicle is designed for those who seek not only broad global market participation but also wish to align their investments with principles of sustainability and responsible business conduct. It provides a single, cost-effective solution for accessing a global portfolio that has been refined to reduce exposure to certain legacy industries facing potential regulatory and reputational risks. The fund's capitalising dividend policy means that any income generated by the underlying holdings is automatically reinvested, which can enhance the potential for long-term compound growth.
