Xtrackers Emerging Markets Carbon Reduction and Climate Improvers ETF (EMCR)

Overview

The Xtrackers Emerging Markets Carbon Reduction and Climate Improvers ETF (XBEM) seeks to provide investment results that correspond generally to the performance, before fees and expenses, of the MSCI Emerging Markets Climate Change Select Index. It focuses on companies within emerging markets that exhibit lower carbon emissions and improved climate risk management.

Reputation and Reliability

DWS is a reputable global asset manager with a long history and a wide range of ETF offerings.

Management Expertise

DWS has a dedicated team of investment professionals with expertise in ESG and emerging market investing.

Goal

To track the MSCI Emerging Markets Climate Change Select Index, investing in emerging market companies with lower carbon emissions and better climate risk management.

Investment Approach and Strategy

Strategy: The ETF tracks a specific index (MSCI Emerging Markets Climate Change Select Index).

Composition The ETF primarily holds stocks of companies located in emerging markets.

Market Share: XBEM's market share within the emerging markets ESG ETF category is moderate, reflecting a niche offering.

Total Net Assets (AUM): 74000000

Key Competitors

• iShares ESG Aware MSCI EM ETF (ESGE)
• Vanguard FTSE Emerging Markets ETF (VWO)
• Schwab Emerging Markets Equity ETF (SCHE)

Competitive Landscape

The emerging markets ETF space is highly competitive, with large established ETFs dominating market share. XBEM distinguishes itself through its carbon reduction and climate focus, potentially attracting ESG-conscious investors. A disadvantage for XBEM is smaller AUM compared to larger ETFs like VWO and ESGE which could lead to liquidity concerns. Its competitive advantage is a very specific focus on carbon reduction compared to competitors which broad brush with ESG objectives.

Historical Performance: Historical performance data not directly available but can be derived from financial websites.

Benchmark Comparison: Performance should be compared against the MSCI Emerging Markets Climate Change Select Index.

Expense Ratio: 0.25

Average Trading Volume

The ETF's average trading volume is moderate, which can affect the ease of buying and selling shares.

Bid-Ask Spread

The bid-ask spread is typically tight, indicating relatively good liquidity but this can vary based on market conditions.

Market Environment Factors

Economic growth in emerging markets, government regulations on carbon emissions, and investor sentiment toward ESG investments all influence XBEM's performance.

Growth Trajectory

Growth is tied to increasing adoption of ESG investing and greater awareness of climate-related risks in emerging markets; holdings might change to reflect index methodology updates.

Competitive Edge

XBEM's competitive edge comes from its focused approach on carbon reduction and climate improvement within the emerging markets space. This targeted strategy appeals to environmentally conscious investors seeking to align their portfolios with sustainable practices. The fund employs a selection process based on measurable carbon emissions and climate risk management metrics, offering transparency and accountability. This specialized focus differentiates it from broader ESG-focused emerging market ETFs.

Volatility

XBEM's volatility is similar to that of other emerging market ETFs, reflecting the inherent risks of investing in developing economies.

Market Risk

The ETF is exposed to market risks specific to emerging markets, including currency fluctuations, political instability, and economic downturns.

Ideal Investor Profile

The ideal investor is someone who is focused on ESG investment within Emerging Markets and wants to invest in companies that have lower carbon emissions. Long-term investors who are environmentally conscious would likely invest in this fund.

Market Risk

The ETF is suitable for long-term investors with a focus on ESG and a tolerance for the volatility of emerging markets. It's ideal for long-term investors looking to incorporate environmental considerations into their portfolio.

XBEM offers targeted exposure to emerging market companies that demonstrate a commitment to carbon reduction and climate improvement. It's designed for ESG-focused investors seeking to align their portfolios with sustainability objectives within emerging markets. While offering niche climate focus, it competes in a highly competitive space against established broad emerging markets ETFs. Investors should consider the ETF's expense ratio, liquidity, and specific market risks before investing.

Data Sources:

• DWS Website (Xtrackers)
• ETF.com
• Morningstar

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Market conditions can change rapidly, and past performance is not indicative of future results. Please consult with a financial advisor before making any investment decisions.