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

Overview

The Xtrackers Emerging Markets Carbon Reduction and Climate Improvers ETF (XBEM) aims to provide investment results that correspond generally to the performance, before fees and expenses, of the Solactive ISS ESG Emerging Markets Carbon Reduction & Climate Improvers Index. It invests in companies within emerging markets that demonstrate leadership in carbon emissions reduction and climate risk management.

Reputation and Reliability

DWS is a reputable global asset manager with a long history of offering ETFs.

Management Expertise

DWS has a team of experienced investment professionals managing its ETF offerings, specializing in ESG and thematic investing.

Goal

The fund seeks to provide investment results that correspond generally to the performance, before fees and expenses, of the Solactive ISS ESG Emerging Markets Carbon Reduction & Climate Improvers Index.

Investment Approach and Strategy

Strategy: The ETF tracks the Solactive ISS ESG Emerging Markets Carbon Reduction & Climate Improvers Index.

Composition The ETF primarily holds stocks of companies in emerging markets that exhibit lower carbon emissions and better climate risk management practices relative to their peers.

Market Share: XBEM's market share within the emerging markets ESG-focused ETF segment is relatively small.

Total Net Assets (AUM): 33110000

Key Competitors

• iShares ESG Aware MSCI EM ETF (ESGE)
• Vanguard FTSE Emerging Markets ETF (VWO)
• iShares Core MSCI Emerging Markets ETF (IEMG)

Competitive Landscape

The competitive landscape in the emerging markets ETF segment is dominated by large, broad-market ETFs from issuers like Vanguard and iShares. XBEM differentiates itself by focusing on carbon reduction and climate improvement within emerging markets, appealing to investors seeking ESG-focused exposure, but faces stiff competition due to the significantly smaller AUM compared to its competitors. XBEM's advantage lies in its ESG focus, while its disadvantage is lower liquidity and smaller scale.

Historical Performance: Historical performance data is needed for specific numbers. Performance will vary based on market conditions.

Benchmark Comparison: Benchmark comparison will vary based on market conditions. Compare with Solactive ISS ESG Emerging Markets Carbon Reduction & Climate Improvers Index.

Expense Ratio: 0.0049

Average Trading Volume

The average trading volume for XBEM is relatively low, suggesting potentially wider bid-ask spreads and less liquidity compared to more popular ETFs.

Bid-Ask Spread

The bid-ask spread can fluctuate, but generally it is wider compared to more liquid ETFs, reflecting its lower trading volume.

Market Environment Factors

XBEM's performance is influenced by factors such as global economic growth, emerging market equities performance, investor sentiment towards ESG investments, and government regulations promoting climate-friendly practices.

Growth Trajectory

The growth trajectory of XBEM depends on increasing investor interest in ESG investing, particularly within emerging markets, and the ETF's ability to attract assets by demonstrating strong performance and positive impact.

Competitive Edge

XBEM's competitive edge lies in its specific focus on carbon reduction and climate improvement within the emerging markets. This niche focus allows it to cater to investors specifically seeking ESG-aligned investments in this geographic area. The ETF's methodology screens for companies demonstrating leadership in climate risk management, potentially leading to investments in more sustainable and resilient businesses. However, it faces challenges in competing with larger, more diversified emerging markets ETFs in terms of liquidity and AUM. This focused approach may appeal to a specific subset of ESG investors willing to accept potentially lower liquidity.

Volatility

XBEM's volatility will likely be similar to that of the broader emerging markets equity market, potentially higher than developed markets.

Market Risk

Specific risks include emerging market economic and political instability, currency fluctuations, and the possibility that the ETF's ESG criteria may limit investment opportunities or not accurately reflect actual company practices.

Ideal Investor Profile

The ideal investor for XBEM is one seeking exposure to emerging markets equities with a specific focus on companies demonstrating leadership in carbon reduction and climate improvement. This ETF is suitable for investors prioritizing ESG factors in their investment decisions.

Market Risk

XBEM is best suited for long-term investors who are comfortable with emerging market risk and are seeking ESG-aligned investments. It might not be suitable for active traders due to lower liquidity.

The Xtrackers Emerging Markets Carbon Reduction and Climate Improvers ETF (XBEM) provides targeted exposure to emerging market companies leading in carbon reduction and climate risk management, appealing to ESG-focused investors. While it offers a differentiated investment approach compared to broad emerging market ETFs, its smaller AUM and lower liquidity pose challenges. The ETF's performance is tied to emerging market equity trends and investor sentiment towards ESG factors. XBEM is a viable option for long-term investors prioritizing sustainability and environmental responsibility in their emerging market allocation.

Data Sources:

• DWS Website
• ETF.com
• Bloomberg

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor.