Xtrackers MSCI USA ESG

ETF description

This ETF provides exposure to a selection of U.S. companies that meet certain environmental, social, and governance (ESG) criteria. It aims to track the performance of an index that includes companies with strong ESG practices while excluding those involved in controversial activities or industries such as weapons, tobacco, or fossil fuels. This approach is intended to align with responsible investing principles.

The ETF may appeal to investors who want to invest in U.S. companies but prioritize sustainability and ethical considerations. By focusing on ESG factors, the fund seeks to include businesses that manage their environmental impact, treat employees and communities responsibly, and follow strong corporate governance practices.

Issuer details

Xtrackers is a large and established provider of high quality ETFs and exchange traded commodities (ETCs). It is the ETF and ETC segment of the German asset manager DWS.

Xtrackers ETFs are listed on eleven stock exchanges globally and have over £169.53bn (as at June 2024) in assets under management, making Xtrackers one of the largest providers of ETFs and ETCs by AUM.

Index details

The MSCI USA Low Carbon SRI Selection Index aims to reflect the performance of US large and mid‑cap stocks with high ESG characteristics and low carbon exposures, relative to their peers. Securities issued by entities failing to meet the following ESG standards are excluded: are associated with controversial, civilian and nuclear weapons and tobacco, are assigned an MSCI ESG Rating of 'CCC' or are unrated, derive revenues from thermal coal, oil sands extraction and military defence weapons, and any issuer with a ‘Red’ MSCI ESG Impact Monitor score of less than 1.