Xtrackers MSCI Emerging Markets Climate Selection ETF (EMCS)

Overview

The Xtrackers MSCI Emerging Markets Climate Selection ETF (NYSE Arca: XDEC) aims to provide investment results that correspond generally to the performance, before fees and expenses, of the MSCI Emerging Markets Climate Selection Index. It focuses on emerging markets equities that exhibit a better climate profile compared to the broader emerging markets universe. Asset allocation primarily consists of equity securities in emerging market companies.

Reputation and Reliability

DWS is a reputable global asset manager with a long track record of managing ETFs and other investment products.

Management Expertise

DWS has a team of experienced investment professionals specializing in indexing and sustainable investing.

Goal

To track the MSCI Emerging Markets Climate Selection Index, providing exposure to emerging market equities with enhanced climate characteristics.

Investment Approach and Strategy

Strategy: The ETF seeks to replicate the performance of the MSCI Emerging Markets Climate Selection Index by investing in its constituent securities.

Composition The ETF primarily holds stocks of companies located in emerging markets, selected based on climate-related criteria.

Market Share: XDEC's market share within the emerging markets climate-focused ETF space is relatively small, indicating room for growth or niche appeal.

Total Net Assets (AUM): 25470000

Key Competitors

• iShares ESG Aware MSCI EM ETF (ESGE)
• Vanguard ESG Emerging Markets Stock ETF (VESE)
• Xtrackers MSCI Emerging Markets ESG Leaders Equity ETF (EEML)

Competitive Landscape

The emerging markets ESG/climate ETF market is competitive. XDEC's advantage lies in its specific climate selection methodology, while competitors may have broader ESG mandates or larger AUM, leading to better liquidity. XDEC's disadvantage is lower AUM compared to its competitors.

Historical Performance: Historical performance data should be reviewed across various time periods to assess long-term viability. Data unavailable to provide actual numerical values.

Benchmark Comparison: The ETF's performance should be compared to the MSCI Emerging Markets Climate Selection Index to assess tracking accuracy. Data unavailable to provide actual numerical values.

Expense Ratio: 0.09

Average Trading Volume

XDEC's average trading volume is relatively low, which could impact the ease of buying and selling shares.

Bid-Ask Spread

The bid-ask spread for XDEC is moderate, implying a moderate cost of trading the ETF.

Market Environment Factors

Economic growth in emerging markets, global climate change policies, and investor demand for sustainable investments influence XDEC's performance.

Growth Trajectory

Growth depends on increasing adoption of climate-aware investing and performance relative to benchmarks. Changes to holdings are influenced by index rebalancing.

Competitive Edge

XDEC's competitive edge lies in its specific climate selection methodology derived from the MSCI Emerging Markets Climate Selection Index. This allows investors to target emerging markets exposure with a focus on companies demonstrating improved climate profiles. The ETF's low expense ratio may also attract cost-conscious investors. However, its smaller AUM could be a disadvantage in terms of liquidity compared to larger competitors.

Volatility

XDEC's volatility is expected to be similar to that of broader emerging markets equities, reflecting the inherent risks of that asset class. Data unavailable to provide actual numerical values.

Market Risk

Specific risks include emerging market political and economic instability, currency fluctuations, and sector-specific risks within the emerging markets universe.

Ideal Investor Profile

The ideal investor is one seeking exposure to emerging markets equities with a focus on climate considerations. They should understand the risks associated with emerging markets and the climate-focused investment strategy.

Market Risk

XDEC is suitable for long-term investors who prioritize ESG/climate factors in their emerging markets allocation, and are comfortable with the inherent volatility of emerging market equities.

Xtrackers MSCI Emerging Markets Climate Selection ETF offers targeted exposure to emerging markets equities with enhanced climate characteristics. Its investment objective is to track the MSCI Emerging Markets Climate Selection Index. The ETF's competitive advantages include its specific climate-focused strategy and relatively low expense ratio, but its lower AUM may impact liquidity. Ideal investors are long-term focused with an interest in sustainability and ESG investing within the emerging market landscape.

Data Sources:

• DWS Website
• ETF.com
• Morningstar
• MSCI

Disclaimers:

The data and analysis provided are for informational purposes only and do not constitute investment advice. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions. Market share information is based on publicly available data and is subject to change. Performance data unavailable at time of response.