The Xtrackers MSCI Emerging Markets ESG UCITS ETF (XESE) is an Ireland-domiciled equity ETF managed by DWS through its Xtrackers platform. XESE represents the fund's GBP trading line on the London Stock Exchange.

The fund seeks to track the MSCI EM Low Carbon SRI Leaders Index, a benchmark comprising large- and mid-cap emerging market companies selected according to environmental, social, and governance (ESG) criteria and carbon-related characteristics.

XESE follows a passive investment strategy and uses physical replication through representative sampling. Its portfolio therefore invests directly in a selection of stocks designed to closely reflect the characteristics and performance of the benchmark.

The MSCI EM Low Carbon SRI Leaders Index is derived from the MSCI Emerging Markets Index. Its methodology seeks to select companies with comparatively stronger ESG performance and lower exposure to carbon-related risks relative to their peers, while also excluding companies involved in certain controversial business activities.

Composition / Exposure Profile

XESE holds companies across different areas of emerging market economies, including:

• Technology.

• Financials.

• Communication services.

• Consumer discretionary.

• Industrials.

• Health care.

• Consumer staples.

• Materials.

• Energy.

• Utilities.

• Real estate.

Geographic exposure spans emerging markets across Asia, Latin America, the Middle East, Africa, and other regions. Markets including Taiwan, South Korea, China, and India have significant representation in the investment universe, while Brazil, Saudi Arabia, South Africa, and Mexico can also be represented.

The ESG methodology differentiates XESE from a broad emerging markets ETF. In addition to considering environmental, social, and governance characteristics, the benchmark seeks to reduce exposure to companies facing greater risks from the transition to a low-carbon economy and applies exclusions related to certain controversial business activities.

Structure and Costs

The fund has the U.S. dollar as its base currency, while XESE trades in GBP on the London Stock Exchange. The trading currency does not change the portfolio's underlying economic exposure or provide currency hedging.

The ETF has a total expense ratio (TER) of 0.25% per year, uses physical replication through representative sampling, and is domiciled in Ireland under the UCITS framework.

The 1C share class 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 Emerging Markets ESG UCITS ETF 1C was launched in 2019 to provide emerging market equity exposure through a strategy incorporating ESG and carbon-related criteria.

Since its launch, the fund has maintained a passive strategy linked to the MSCI EM Low Carbon SRI Leaders Index, tracking companies selected from the large- and mid-cap emerging markets universe.

Throughout its history, XESE's performance has reflected both broader emerging equity market movements and the characteristics of its ESG methodology, as well as factors including economic growth, currency movements, global monetary conditions, and international capital flows.

Additional Information

Xtrackers MSCI Emerging Markets ESG UCITS ETF 1C (Ireland) is an exchange-traded fund (ETF), with assets under management totaling $1.37 billion.

Over the past 12 months, Xtrackers MSCI Emerging Markets ESG UCITS ETF 1C recorded a return of 9.17%, with its price trading between $60.50 and $94.25 during the same period.

The ETF is traded under the ticker XESE.