MIDE Profile
The Xtrackers S&P MidCap 400 ESG ETF is designed to provide investors with exposure to mid-cap companies that meet specific environmental, social, and governance (ESG) criteria. The fund tracks an index that targets 75% of the float-adjusted market capitalization of each Global Industry Classification Standard (GICS) Industry Group within the S&P MidCap 400 Index, with an emphasis on ESG scores as the primary selection criterion. This focus on ESG allows the fund to align with growing investor demand for sustainable and responsible investment strategies, while still maintaining a diversified portfolio of mid-cap stocks.
Under normal circumstances, the Xtrackers S&P MidCap 400 ESG ETF invests at least 80% of its total assets in the component securities of its underlying index, though it typically allocates an even larger portion of its assets to these securities. This ensures that the fund closely mirrors the performance and composition of the index, which is constructed by selecting companies with high ESG ratings relative to their peers within each industry group. The funds commitment to ESG criteria provides investors with the opportunity to invest in companies that demonstrate strong sustainability practices and social responsibility, without sacrificing exposure to the mid-cap segment of the market.
The ETF is non-diversified, meaning that it may concentrate its investments in a smaller number of issuers compared to a diversified fund. This concentrated approach allows the Xtrackers S&P MidCap 400 ESG ETF to take meaningful positions in companies that excel in ESG performance, which can lead to stronger long-term returns driven by the increasing importance of sustainability in business practices. However, this concentration also introduces higher risk, as the funds performance can be more significantly impacted by the performance of its individual holdings.
As part of the broader Xtrackers suite of ETFs, the S&P MidCap 400 ESG ETF is managed with a focus on delivering both financial returns and positive environmental and social impact. The fund is particularly suited for investors who are looking to integrate ESG considerations into their portfolios while maintaining exposure to mid-sized companies with growth potential. By investing in this ETF, investors gain access to a carefully curated selection of mid-cap companies that are not only financially sound but also committed to sustainable and ethical business practices, aligning their investment goals with their values.
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