USCA
Xtrackers MSCI USA Climate Action Equity ETF
📎 Investment Objective
The Xtrackers MSCI USA Climate Action Equity ETF (USCA) seeks to track the performance of the MSCI USA Climate Action Index, which is designed to represent the performance of companies that have a lower carbon footprint and are positioned to benefit from the transition to a lower-carbon economy.
Overview
ETF tracking Xtrackers MSCI USA Climate Action Equity ETF
Performance
Price Chart
Investment Summary
📎 Investment Objective
The Xtrackers MSCI USA Climate Action Equity ETF (USCA) seeks to track the performance of the MSCI USA Climate Action Index, which is designed to represent the performance of companies that have a lower carbon footprint and are positioned to benefit from the transition to a lower-carbon economy.
🎯 Investment Strategy
The ETF invests in a portfolio of U.S. equities that are selected and weighted based on their carbon emissions, fossil fuel reserves, and involvement in clean technology. The goal is to provide exposure to companies that are taking steps to mitigate climate change risks and capitalize on opportunities in the transition to a more sustainable economy.
✨ Key Features
- Focuses on U.S. companies with lower carbon emissions and stronger climate action initiatives
- Tracks the MSCI USA Climate Action Index, which is designed to align with the goals of the Paris Agreement
- Employs an optimization process to balance climate considerations with broad market exposure
- Expense ratio of 0.00%, making it a low-cost option for climate-conscious investors
⚠️ Primary Risks
- Concentration risk as the fund is focused on a specific subset of the U.S. equity market
- Potential for underperformance compared to the broader market if climate-focused companies underperform
- Reliance on third-party index data and methodologies to determine portfolio composition
- Liquidity risk due to the fund's relatively small asset base
👤 Best For
This ETF may be suitable for investors seeking exposure to U.S. equities with a focus on companies taking action to address climate change. It may be of particular interest to environmentally conscious investors or those looking to align their portfolio with the transition to a low-carbon economy. However, investors should be aware of the potential for increased volatility and tracking error compared to a broader market index.