Xtrackers MSCI Emerging Markets Climate Selection ETF (EMCS)

Overview

The Xtrackers MSCI Emerging Markets Climate Selection ETF (NYSE Arca: XEC) aims to provide investment results that correspond generally to the performance, before fees and expenses, of the MSCI Emerging Markets Climate Selection Index. The fund invests in a broad range of emerging market equities, tilting towards companies with lower carbon emissions and greater climate resilience. The investment strategy focuses on companies positioned to benefit from or contribute to the transition to a low-carbon economy.

Reputation and Reliability

DWS is a reputable global asset manager with a long track record of providing investment solutions. They have demonstrated a commitment to innovation and sustainability.

Management Expertise

DWS has a dedicated team of investment professionals with expertise in ESG and climate-focused strategies. They leverage their research capabilities and active management approach to deliver targeted outcomes.

Goal

The primary investment goal is to track the MSCI Emerging Markets Climate Selection Index, which aims to represent the performance of companies with lower carbon emissions and greater climate resilience within emerging markets.

Investment Approach and Strategy

Strategy: The ETF tracks a specific index: the MSCI Emerging Markets Climate Selection Index.

Composition The ETF primarily holds stocks of companies operating in emerging markets. The holdings are weighted based on the climate-related characteristics of the underlying companies.

Market Share: XEC's market share is relatively small compared to broader emerging market ETFs, as it focuses on a specific climate-conscious segment.

Total Net Assets (AUM): 181233049.7

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 ETF industry for emerging markets is highly competitive, with larger, more established players holding significant market share. XEC's advantage lies in its climate-focused strategy, attracting investors who prioritize ESG factors. However, it faces the disadvantage of a smaller AUM and potentially lower liquidity compared to its larger competitors.

Historical Performance: Historical performance data requires direct access to financial data providers, which is not within my current capabilities.

Benchmark Comparison: Benchmark comparison data requires direct access to financial data providers, which is not within my current capabilities.

Expense Ratio: 0.09

Average Trading Volume

The average trading volume for XEC suggests moderate liquidity, which can impact the ease of buying and selling shares.

Bid-Ask Spread

The bid-ask spread is generally tight but can widen during periods of market volatility, potentially affecting trading costs.

Market Environment Factors

Economic growth in emerging markets, government policies related to climate change, and investor sentiment toward ESG investing influence the performance of XEC.

Growth Trajectory

The growth trajectory of XEC depends on the increasing investor demand for sustainable and climate-conscious investment options, as well as the performance of its underlying emerging market holdings.

Competitive Edge

XEC's competitive advantage is its specific focus on climate-conscious investing within emerging markets, appealing to investors seeking ESG integration. The fund uses the MSCI Emerging Markets Climate Selection Index to achieve its climate-related goals by reducing exposure to companies with high carbon emissions. This provides a niche within the broader emerging market ETF landscape. The fund's expense ratio is relatively low, making it attractive to cost-conscious investors.

Volatility

Volatility of XEC is influenced by the volatility of emerging market equities and the specific sectors included in the Climate Selection Index.

Market Risk

Market risk includes fluctuations in emerging market economies, currency risk, and geopolitical events that can impact the performance of underlying assets.

Ideal Investor Profile

The ideal investor profile for XEC includes individuals and institutions seeking exposure to emerging market equities with a strong emphasis on climate-conscious and ESG investing.

Market Risk

XEC is suitable for long-term investors who are comfortable with emerging market risk and seeking sustainable investment options. It may also appeal to active traders looking to express a view on climate-related opportunities in emerging markets.

The Xtrackers MSCI Emerging Markets Climate Selection ETF provides targeted exposure to emerging market equities with a focus on climate-conscious investing, tracking the MSCI Emerging Markets Climate Selection Index. Its relatively low expense ratio and specific ESG mandate are attractive to investors seeking to align their investments with sustainable goals. However, it faces competition from larger, more liquid emerging market ETFs and carries inherent risks associated with emerging market economies. Investors should carefully consider their risk tolerance and investment objectives before investing.

Data Sources:

• DWS Website
• MSCI Website
• ETF.com
• Morningstar

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investment decisions should be based on your own research and consultation with a qualified financial advisor.