Xtrackers II EUR Corporate Bond Short Duration SRI PAB

ETF description

This ETF focuses on short‑term bonds issued by companies across various sectors in Europe. These bonds are selected based on a set of rules that include environmental, social, and governance (ESG) criteria, which means the companies behind them must meet certain standards related to sustainability and corporate responsibility. The bonds in the ETF have a relatively short time left until they are due to be repaid, which can make their prices less sensitive to changes in interest rates compared to longer‑term bonds.

This ETF may appeal to investors who are looking for lower exposure to interest rate movements, and who prefer to invest in companies that meet specific sustainability criteria.

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 Bloomberg MSCI Euro Corporate SRI 0 – 5 Year PAB Index aims to reflect the performance of EUR‑denominated investment grade corporate bonds with bond maturities between 1 month and up to but not including 5 years. Only bonds issued by companies with a MSCI ESG rating of BBB or above and a MSCI ESG Controversy score of 1 or above are included. The index monitors absolute greenhouse gas (‘GHG’) emissions by setting an initial 50% decarbonization of absolute GHG emissions relative to the parent universe followed by an annual 7% decarbonization trajectory of absolute GHG emissions. Bonds issued by companies involved in the following business lines/activities are excluded: Alcohol, Tobacco, Gambling, Adult Entertainment, Genetically Modified Organisms (GMO), Nuclear Power, Civilian Firearms, and certain Military Weapons as further described in the index exclusion rules.