👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

Xtrackers ETFs update ESG criteria and index names

Published 11/27/2024, 05:20 PM

LONDON - Xtrackers, an investment company with variable capital, has announced changes to the reference indices of three of its exchange-traded funds (ETFs), effective as of Monday. The ETFs affected are the Xtrackers MSCI AC Asia ex Japan ESG Swap UCITS ETF, Xtrackers MSCI EM Latin America ESG Swap UCITS ETF, and Xtrackers MSCI EM Europe, Middle East & Africa ESG Swap UCITS ETF.

The modifications, which were implemented following an ordinary index review by MSCI Limited on November 26, 2024, include renaming the reference indices and enhancing the Environmental, Social, and Governance (ESG) exclusion criteria.

The updated names of the indices reflect a shift from "Low Carbon SRI Leaders" to "Low Carbon SRI Selection Capped" for each respective ETF. Additionally, the ESG Exclusion Criteria now incorporate an oil & gas screen and an enhanced power generation screen, which will exclude companies involved in certain industries based on the value-based criteria and thresholds from the MSCI SRI Indexes methodology.

The new exclusion criteria are more extensive, including alcohol, tobacco, gambling, adult entertainment, genetically modified organisms, civilian firearms, oil & gas, nuclear weapons, thermal coal, fossil fuel, and fossil fuel-based power generation. Companies with any involvement in controversial weapons are also explicitly excluded.

Despite these changes, the investment objectives, policies, risk profiles, and fees of the Sub-Funds remain unchanged. The revised prospectus, reflecting these updates, will be made available on the Xtrackers website. Shareholders are advised to consult with their financial advisors for specific implications of these changes.

This announcement is based on a press release statement issued by Xtrackers and does not involve any UK sustainable investment labelling and disclosure requirements. For more information, shareholders and investors may contact the legal entities listed in the original press release or send an email to the provided address.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.