What are Xtrackers Core ETFs?
Xtrackers Core ETFs are a range of direct replication ETFs with all-in fees as low as 0.06% p.a. that offer access to the major equity and fixed income markets. They can form the core of your portfolio or serve as cost-effective components of a multi-asset portfolio.
Good to know
Xtrackers ETFs on core indices are also available on a sustainable basis, e.g. for the largest german share index with the DAX ESG Screened UCITS ETF 1D
Core ETFs - Your investment options with Xtrackers
Xtrackers Core ETFs on Equity Indices
Xtrackers Core ETFs on Bond Indices
Xtrackers Core ETFs Currency Hedged
How to diversify your portfolio? Discover the full range of Xtrackers Core ETFs now.
What does diversification mean?
Diversification is an important aspect of managing investment portfolios. It refers to the spreading of investments across different asset classes, industries and geographic regions in order to reduce portfolio risks. One way to achieve this is through the use of Exchange Traded Funds (ETFs).
There are a variety of ETFs available that specialize in different asset classes and sectors, including equities, bonds, commodities, real estate, etc. Investors can make a choice that suits their investment strategies and objectives, thus diversifying their portfolio. In summary, Xtrackers ETFs can offer a simple and cost-effective way to incorporate diversification into a portfolio. They allow investors to invest in a wide range of assets without having to buy each instrument outright. However, it is important to think carefully about the selection of ETFs and monitor risk carefully[1].
Xtrackers Core ETFs are characterized by three basic features:
Frequently asked questions on physical replication
Direct replication: What is it?
Xtrackers offers core ETFs that track the underlying index using the traditional direct or physical replication method (full replication). This strategy allows a comparatively accurate replication and completely dispenses with the use of derivative elements[2].
How transparent are direct replicating Xtrackers ETFs?
Publicly available information on direct, physically replicating Xtrackers ETFs, including the respective portfolio composition, is updated on a daily basis.
For the full range of directly replicating Xtrackers ETFs, please see our product overview
Xtrackers Core ETFs with physical replication Xtrackers Core ETFs with physical replicationDo Xtrackers direct replication ETFs engage in securities lending?
Xtrackers ETFs with direct, physical replication can use the instrument of securities lending. Xtrackers direct replication ETFs comply with the latest regulatory guidelines on securities lending and use a conservative securities lending policy. This includes the requirement that all securities lending revenues after costs are retained by the ETF. For the majority of Xtrackers direct replication ETFs this means 70% of the gross securities lending revenues are retained by the relevant ETF. Securities lending is also strictly controlled. For example, Xtrackers Exchange Traded Fund can currently lend out a maximum of 50% of their portfolio holdings at any point in time (as of February 2023).
Add the world’s most important markets to your portfolio
Xtrackers Core ETFs can be an efficient tool for investors who wish to diversify their portfolio at low overall costs. They can choose from a broad product range consisting of equities as well as fixed income ETFs.
It is important to note that no portfolio is suitable for every investor and that there is always an investment risk. Before building a diversified ETF portfolio, consider your financial goals, risk tolerance and investment time frame. An example of a diversified portfolio for a long-term investor might look like this, it does not represent investment advice and was not created for a specific investor risk profile.
Diversified portfolio (long-term investment)
Xtrackers Core ETFs: Product range
All Core ETFs
Core equity ETFs
Core fixed income ETFs
Government bonds Corporate bonds Investment Grade High Yield
Did you know?
The purpose of diversifying an investment portfolio can be traced back to the work of U.S. economist Harry M. Markowitz on modern portfolio theory, for which he received the Alfred Nobel Memorial Prize in Economic Sciences in 1990. The essence of his work is the observation that a diversification of investments can lead to lower investment risk with the same expected returns compared with individual investments.
Investing in Xtrackers Core ETFs: Opportunities & Risks
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Further Information
1. Investors should be aware that ETFs can also incur other costs besides the all-in fee. These can have a negative effect on the performance of their investment relative to the underlying index. Examples of this include brokerage and other transaction costs, financial transaction taxes or stamp duties as well as possible differences in the taxation of capital gains or dividends that are assumed in the respective underlying index, along with the actual taxation of capital gains or dividends in the ETF. The exact impact of these costs cannot be reliably estimated in advance, as it depends on many non-static factors. Investors are required to read the audited annual reports and the unaudited half-yearly reports, which contain further information.
2. A derivative is a financial contract whose value is based on or derived from a traditional security. Some exchange-traded funds (ETFs), including commodity ETFs or inverse ETFs, use derivatives to track the performance of their benchmarks.