Xtrackers US Green Infrastructure Select Equity ETF (UPGR)

Overview

The fund is dedicated to adopting a passive or indexing investment strategy, aiming to mirror the performance of its underlying index, minus any fees and expenses. This index is specially designed to include companies that are heavily involved in the green energy sector—ranging from the production, generation, to the distribution of renewable resources. Furthermore, it focuses on firms contributing to the development of sustainable infrastructure critical for the promotion of renewable energy usage. In its pursuit of such investment objectives, the fund distinguishes itself by not diversifying its holdings, implying a concentrated investment in the sector it seeks to represent.

Products and Services

Within its investment framework, the fund offers a distinct product based on the following approach:

• Passive Investment Approach: The fund employs a passive investment strategy aimed at tracking the performance of its underlying green energy index. This approach involves minimal trading, intending to replicate the index’s returns over time rather than outperforming the market through active management. It's designed for investors looking for exposure to the green energy sector in a cost-efficient manner.
• Focus on Green Energy and Sustainable Infrastructure: The investment focus is exclusively on companies that either produce, generate, or distribute green energy, or those engaged in establishing sustainable infrastructure. This includes firms innovating in renewable energy sources such as solar, wind, hydro, and other sustainable technologies. By investing in these areas, the fund supports the transition to a more sustainable energy future while offering investors the opportunity to contribute to this shift.
• Non-diversified Portfolio: Unlike many investment funds that spread their holdings across a wide range of industries and companies to mitigate risk, this fund takes a non-diversified approach. It concentrates its investments in the green energy sector, based on the belief in the potential for growth and impact within this area. This strategy allows for targeted exposure to renewable energy and sustainable infrastructure but also entails a higher degree of risk associated with the sector's specific fluctuations.
• Sustainability Criteria Compliance: The companies included in the underlying index are not just randomly selected; they must meet specific sustainability criteria. These criteria ensure that the investments align with certain environmental, social, and governance (ESG) standards, emphasizing the fund’s commitment to responsible investing. Investors in the fund are thus assured that their capital is allocated towards companies that adhere to high standards of sustainability and ethical practices.