Xtrackers ESG Emerging Markets Bond Quality Weighted 1D EUR Fund (XQUE)

Overview

The Xtrackers ESG Emerging Markets Bond Quality Weighted 1D EUR Fund is a pioneering exchange-traded fund (ETF) designed to provide investors with exposure to fixed income securities from emerging markets, with a strong emphasis on environmental, social, and governance (ESG) principles. This ETF is focused on selecting bonds issued by both governments and corporations in emerging markets that not only offer financial returns but also adhere to high ESG standards. By investing in such securities, the fund aims to support sustainable and ethical investment practices, making it an attractive option for investors looking to align their investment portfolios with their moral and sustainability objectives. The emphasis on ESG criteria also serves as a risk management tool, reducing the exposure to the inherent risks of emerging markets through a focus on quality and adherence to ESG practices. The fund plays a vital role in the financial market by offering investors access to a diversified portfolio of bonds that meet ESG standards, which is increasingly important to investors concerned with sustainable and responsible investing.

Products and Services

The Xtrackers ESG Emerging Markets Bond Quality Weighted 1D EUR Fund offers several key services and product features designed to meet the needs of ethically-minded investors and those seeking exposure to ESG-compliant fixed income securities in emerging markets:

• ESG-Focused Bond Selection: The fund carefully selects bonds that adhere to stringent environmental, social, and governance criteria, issued by governments and corporations in emerging markets. This approach ensures that investments contribute to positive social and environmental outcomes, in addition to seeking financial returns.
• Sustainable Investment Integration: By integrating sustainable investment practices into the portfolio management process, the fund aims to direct capital towards projects and organizations in emerging markets that are aligned with ESG standards. This not only supports ethical investment practices but also promotes sustainability and responsible governance among issuers.
• Access to Diversified ESG Bond Portfolios: Investors are provided with an opportunity to diversify their investment portfolios through access to a mix of fixed income securities from various emerging markets, all of which meet the fund’s ESG criteria. This diversification can help mitigate risk while also supporting sustainability goals.
• Risk Management through ESG and Quality Focus: The fund’s emphasis on high-quality bonds that meet ESG criteria serves as a risk management strategy. This approach aims to reduce the volatility and risks traditionally associated with investments in emerging markets, making it a safer option for investors interested in these regions.