DBX ETF Trust - Xtrackers S&P MidCap 400 ESG ETF (MIDE)

Overview

The Xtrackers S&P MidCap 400 ESG ETF (MID) seeks investment results that correspond generally to the performance, before fees and expenses, of the S&P MidCap 400 ESG Index. It focuses on mid-capitalization U.S. companies with strong environmental, social, and governance (ESG) characteristics, aiming for sustainable investment growth.

Reputation and Reliability

DWS is a well-established global asset manager with a solid reputation and track record in offering diverse ETF solutions.

Management Expertise

DWS has a dedicated team of investment professionals experienced in managing ESG-focused ETFs and tracking indices effectively.

Goal

The ETF aims to provide investment results that closely track the S&P MidCap 400 ESG Index, offering exposure to mid-cap U.S. companies with strong ESG profiles.

Investment Approach and Strategy

Strategy: The ETF employs a passive management strategy, seeking to replicate the performance of the S&P MidCap 400 ESG Index.

Composition The ETF's assets consist primarily of stocks of mid-capitalization U.S. companies that meet specific ESG criteria.

Market Share: MID's market share in the mid-cap ESG ETF segment is moderate and growing.

Total Net Assets (AUM): 296300000

Key Competitors

• iShares ESG Aware MSCI USA ETF (ESGU)
• Vanguard ESG U.S. Stock ETF (ESGV)
• Nuveen ESG Mid-Cap ETF (NUMG)

Competitive Landscape

The mid-cap ESG ETF market is competitive, with several established players. MID competes with broader ESG ETFs and those focused on specific ESG factors. MID's competitive advantage lies in its focus solely on mid-cap stocks and S&P's ESG scoring methodology. It might face challenges due to lower AUM and trading volume compared to larger competitors.

Historical Performance: Historical performance data requires live data feed and depends on the date the report is generated.

Benchmark Comparison: The ETF's performance is designed to closely track the S&P MidCap 400 ESG Index, so any divergence would be due to tracking error and expense ratio.

Expense Ratio: 0.09

Average Trading Volume

The average trading volume of MID is moderate and subject to market conditions.

Bid-Ask Spread

The bid-ask spread for MID is generally tight, reflecting its decent liquidity but is subject to change with market conditions.

Market Environment Factors

MID is influenced by economic growth, interest rates, ESG trends, and investor sentiment towards sustainable investing.

Growth Trajectory

MID's growth trajectory depends on the increasing adoption of ESG investing, particularly among institutional investors, and the performance of mid-cap equities.

Competitive Edge

MID's competitive edge resides in its exclusive concentration on mid-cap stocks adhering to robust ESG standards, utilizing the well-regarded S&P ESG scoring system. This focused approach provides a distinct offering within the ESG investment landscape. MID's ties to DWS enhance its appeal, backed by a reputable brand. However, its success hinges on effectively marketing its specialization and maintaining competitive fees to draw in ESG-conscious investors.

Volatility

MID's volatility is similar to that of the broader mid-cap market and can be influenced by economic conditions and market sentiment.

Market Risk

MID faces market risk associated with mid-cap stocks, including economic downturns, sector-specific challenges, and changes in investor preferences.

Ideal Investor Profile

The ideal investor for MID is one seeking exposure to mid-cap U.S. equities with a focus on ESG factors, aligning their investments with their values.

Market Risk

MID is best suited for long-term investors looking for sustainable investment options and diversification within their portfolio.

The Xtrackers S&P MidCap 400 ESG ETF (MID) offers investors a way to invest in mid-cap U.S. companies with strong ESG characteristics by tracking the S&P MidCap 400 ESG Index. Its expense ratio is relatively low, which is appealing for a passive ESG investment vehicle. MID's performance should closely mirror its underlying index, which is dependent on the overall market conditions and the selection criteria of the index. While it has competitors, MID's niche focus on mid-caps and the S&P's scoring may offer distinct benefits. Investors considering MID should assess their risk tolerance, time horizon, and commitment to ESG principles to determine if it fits within their portfolio goals.

Data Sources:

• DWS Website
• ETF.com
• Morningstar

Disclaimers:

This analysis is based on available information and is not financial advice. Investment decisions should be made after consulting with a qualified financial advisor. Market data and performance are subject to change.