Risk considerations

Investors should note that the Xtrackers ETFs & ETCs are not capital protected or guaranteed and investors in each Xtrackers ETF or ETC should be prepared and able to sustain losses up to the total capital invested. The value of an investment in an Xtrackers ETF or ETC may go down as well as up and past performance does not predict future returns. Investment in Xtrackers ETFs or ETCs involve risks. For a list of related risks please click on the Risks and Terms tab.

Xtrackers offers investors a range of 5 ETFs focusing on companies from the S&P 500 Index[1]. Whether physical or synthetic[2], with sustainability criteria or without, market capitalised or equally weighted, the Xtrackers' S&P 500 ETF product range is one of the broadest in Europe.

Today, more assets are invested in products based on the S&P Dow Jones indices (DJI) than any other index provider in the world[3]. According to S&P's annual survey, an estimated $15.6 trillion is indexed or linked to the S&P 500, with indexed assets accounting for approximately $7.1 trillion (as of 12/21[4]).

The S&P 500 ESG and S&P 500 Equal Weight ESG​ Indices: Increasing focus on sustainably managed US companies

The S&P 500 ESG Index and the S&P 500 Equal Weight ESG Index aim to track the performance of leading large-cap US equities representing all major US industries and which meet certain environmental, social and governance (ESG) criteria[5]. The ESG assessment is among other elements based on S&P Global ESG Research’s Corporate Sustainability Assessment (CSA[6]), an annual ESG analysis of over 11,000 companies used to categorise financially material sustainability information.

The S&P 500 ESG is a broad-based index that monitors and tracks the performance of stocks that reflect the ESG criteria. The index seeks to target 75% of the float-adjusted market capitalization of each Global Industry Classification Standard Industry Group (GICS Industry Group) within the Parent Index. The weighting of the stocks included is similar to that of the S&P 500, apart from that the S&P 500 ESG Index also takes sustainability aspects in the stock selection into account.

Similarly, the S&P 500 Equal Weight ESG Index seeks to measure the equally weighted performance of securities meeting sustainability criteria while maintaining similar overall industry group weights and covering 60% of the number of constituents of each Global Industry Classification Standard Industry Group (GICS Industry Group) as the S&P 500 Equal Weight Index.

A unified approach for S&P 500 ESG and S&P 500 Equal Weight (EW) ESG[7]


A_unified_approach_for_SuP.pngSource: S&P Global; as of: 31.10.2022.
Please see S&P ESG Index and S&P 500 Equal Weight ESG for further details.

Investments with ESG criteria: Facts & figures

A global survey[8] conducted in 2021 found:

Investment opportunities with S&P ESG indices and Xtrackers ETFs

Xtrackers (IE) Plc S&P 500 ESG UCITS ETF 1C Xtrackers (IE) Plc S&P 500 ESG Equal Weight UCITS ETF 1C
ISIN: IE0007ULOZS8 ISIN: IE0004MFRED4
Fund currency: USD Fund currency: USD
TER: 0.08% p.a. TER: 0.17% p.a.
Distribution: Capitalizing Distribution: Capitalizing
The fund aims to reflect the performance, before fees and expenses, of the S&P 500ESG Index which is designed to reflect the performance of the shares of large-capitalisation companies representing all major US industries and which meet certain, environmental, social and governance (ESG) criteria. The fund aims to reflect the performance, before fees and expenses, of the S&P 500Equal Weight ESG Index which is designed to reflect the equal weighted performance of the shares of large capitalisation companies representing all major US industries and which meet certain environmental, social and governance (ESG) criteria.

 

Our alternative non-ESG Xtrackers S&P 500 ETFs

Xtrackers ETF ISIN Ticker Fund currency TER p.a. Distribution
Xtrackers S&P 500 UCITS ETF 4C IE000Z9SJA06 XDPU USD 0.06% Capitalizing
Xtrackers S&P 500 Equal Weight UCITS ETF 1C IE00BLNMYC90 XDEW USD 0.20% Capitalizing
Xtrackers S&P 500 Swap UCITS ETF 1D LU2009147757 XSXD USD 0.07% Distributing

Opportunities & risks for investors

FAQ: S&P 500 ESG Index Series

What are the S&P 500 ESG scores?

How is a company's ESG score calculated?

Which companies are excluded?

What improvements in sustainability criteria does the S&P 500 ESG show compared to S&P 500?

Further information

1. The S&P 500 Index is part of the S&P Dow Jones Indices (S&P DJI), the largest global source of index-based market concepts, data and research. The S&P 500 is a stock market index that tracks the performance of the 500 largest listed companies in the USA.

2. In physical (or direct) replication, the ETF invests in almost all components of the index with the same weighting. Synthetic (or indirect) replication, on the other hand, uses swaps. A swap is an agreement between two partners, in this case between an index fund and one or more banks. Learn more

3. Source: S&P Global; as of: 31.10.2022.

4. https://www.spglobal.com/spdji/en/documents/index-news-and-announcements/spdji-indexed-asset-survey-2021.pdf

5. ESG criteria are intended to help investors assess the sustainability profile of a company. The term stands for Environment, Social and Governance. The selection process takes into account both exclusion criteria (e.g. companies with links to weapons or human rights violations) and selection criteria (e.g. companies that can be perceived as being among the most sustainable in their field and according to such ESG criteria)

6. CSA stands for the evaluation of a company's sustainability performance. This results in an overall ESG score (0-100 points): a weighted average score derived from the industry-specific assessment across ±20-25 governance, economic, environmental and social criteria. The annual assessment CSA has resulted in one of the world's most comprehensive databases of financially material sustainability information, which serves as the basis for the assessments underlying S&P DJI's ESG indices.

7. The 75% of companies with the best ESG score are considered for the index.

8. Source: statista.com. The data is based on an online survey of 325 institutional investors from 43 countries conducted by PwC.

9. Source: S&P Dow Jones Indices LLC | as of 31.12.2021

10. Source: S&P Dow Jones Indices

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