Xtrackers S&P 500 Equal Weight ESG

ETF description

This ETF provides exposure to companies in the United States that meet specific environmental, social, and governance (ESG) criteria. It focuses on companies from the S&P 500 index, which represents a broad range of large and well‑established businesses across various industries. Unlike traditional approaches that weigh companies based on their market size, this ETF gives an equal weight to each company, ensuring that smaller firms are represented alongside larger ones in the portfolio.

The ETF is designed for investors who want to align their investments with ESG principles while maintaining exposure to the U.S. stock market. It may appeal to those who prefer a balanced approach that reduces the dominance of large companies in the portfolio, providing potentially greater diversification. The ESG focus excludes companies that do not meet certain sustainability or ethical standards, such as those involved in controversial industries or with poor environmental 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 S&P 500 Equal Weight ESG Index aims to reflect the performance of the following market:

̵ Targets 60% of the number of constituents of each GICS industry group of the S&P 500 Equal Weight Index, using the S&P Global ESG Scores. ̵ Applies exclusions based on companies’ involvement in specific business activities, violation of the principles of the United Nations’ Global Compact (UNGC), and ESG performance relative to GICS industry group. ̵ Stocks are equally weighted. ̵ Reviewed and reweighted on quarterly basis