The Xtrackers MSCI World Quality UCITS ETF (XDEQ) is an Ireland-domiciled equity ETF managed by DWS through its Xtrackers platform. XDEQ is the ticker for the fund's GBP trading line on the London Stock Exchange.

The fund seeks to track the MSCI World Sector Neutral Quality Index, a benchmark comprising large- and mid-cap companies across developed markets that exhibit characteristics associated with the quality factor.

XDEQ follows a passive investment strategy and uses direct physical replication. Its portfolio provides exposure to companies across developed markets in North America, Europe, and Asia-Pacific selected according to the benchmark's methodology.

The MSCI World Sector Neutral Quality Index starts with the MSCI World Index universe and assigns companies a quality score based on three fundamental variables: high return on equity (ROE), low leverage, and low earnings variability.

Composition / Exposure Profile

XDEQ holds companies across different sectors of developed equity markets, including:

• Technology.

• Financials.

• Health care.

• Industrials.

• Consumer discretionary.

• Consumer staples.

• Communication services.

• Energy.

• Materials.

• Utilities.

• Real estate.

Geographic exposure spans multiple developed markets, with significant representation from the United States as well as countries across Europe and Asia-Pacific.

Because the benchmark uses a sector-neutral methodology, the strategy seeks to maintain a sector structure broadly aligned with the MSCI World rather than allowing its quality tilt to result primarily in excessive concentration in particular areas of the economy.

The quality-based selection process can cause XDEQ's portfolio and performance to differ from traditional market-cap-weighted indexes. The fund also remains exposed to broader equity-market risks, including changes in economic conditions, corporate earnings, interest rates, and company valuations.

Structure and Costs

The fund and share class have the U.S. dollar as their base currency. On the London Stock Exchange, XDEQ trades in British pounds. The trading currency does not change the portfolio's underlying economic exposure or provide currency hedging.

The ETF has an all-in fee of 0.25% per year, uses direct physical replication, and is domiciled in Ireland. It operates as part of Xtrackers (IE) plc under the UCITS framework.

XDEQ follows an accumulating income policy. Dividends received from portfolio companies are therefore reinvested within the fund rather than periodically distributed to shareholders.

History and Evolution of the ETF

The Xtrackers MSCI World Quality UCITS ETF 1C (XDEQ) was launched in 2014 to provide systematic exposure to the quality factor across developed equity markets.

Since its launch, the fund has maintained a passive strategy linked to the MSCI World Sector Neutral Quality Index, selecting companies based on measures related to profitability, leverage, and earnings stability.

Throughout its history, XDEQ's performance has reflected both movements across developed equity markets and the relative performance of companies exhibiting quality characteristics during different economic and financial market cycles.

Additional Information

Xtrackers MSCI World Quality UCITS ETF 1C (Ireland) is an exchange-traded fund (ETF), with assets under management totaling $2.86 billion.

Over the past 12 months, Xtrackers MSCI World Quality UCITS ETF 1C recorded a return of 14.90%, with its price trading between $1.17 and $92.64 during the same period.

The ETF is traded under the ticker XDEQ.