EASG Profile
The Xtrackers MSCI EAFE ESG Leaders Equity ETF is designed to offer investors targeted exposure to large- and medium-capitalization companies in developed markets outside of the United States and Canada. The fund tracks the MSCI EAFE ESG Leaders Index, which consists of high-quality firms recognized for their strong environmental, social, and governance (ESG) practices. This index includes companies from developed markets in Europe, Australasia, and the Far East, reflecting a commitment to responsible investing and sustainability.
The fund’s investment strategy mandates that it allocate at least 80% of its total assets to the securities that make up the MSCI EAFE ESG Leaders Index. This allocation can include direct investments in stocks and depositary receipts representing these securities. By focusing on firms with leading ESG profiles, the ETF provides investors with exposure to companies that are not only financially robust but also aligned with sustainable and ethical business practices.
The MSCI EAFE ESG Leaders Index is constructed to emphasize companies that excel in managing ESG risks and opportunities, thus promoting long-term value creation. The index excludes companies that do not meet certain ESG criteria, thereby reflecting a commitment to corporate responsibility and environmental stewardship. This approach supports investors who seek to align their portfolios with broader sustainability goals while still accessing a diverse range of high-capitalization equities from developed international markets.
The Xtrackers MSCI EAFE ESG Leaders Equity ETF integrates advanced ESG screening methodologies into its investment process, providing a means for investors to participate in global equity markets with a focus on sustainability. This ETF offers a way to engage with international equities while adhering to ESG principles, appealing to those who wish to balance financial returns with social and environmental impact. Investors should be aware of the fund's focus on ESG criteria and its implications for portfolio diversification and risk.
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