Xtrackers US Green Infrastructure Select Equity ETF (UPGR)

ETF Xtrackers US Green Infrastructure Select Equity ETF (SUSG) Overview

Profile:

SUSG is an actively managed ETF that invests in U.S. companies involved in the green infrastructure sector. This includes companies engaged in renewable energy, energy efficiency, water infrastructure, and waste management. The ETF employs a fundamental stock-picking approach and aims to outperform the S&P Global Clean Energy Index.

Objective:

The primary investment goal of SUSG is to provide long-term capital appreciation by investing in a portfolio of U.S. green infrastructure companies exhibiting strong growth potential.

Issuer:

SUSG is issued by DWS, a German asset management company with over 60 years of experience and over €925 billion in assets under management (as of November 15, 2023). DWS is a subsidiary of Deutsche Bank and has a strong reputation for ESG investing.

Financial Performance:

• 3-Year Annualized Return: 17.4%
• 5-Year Annualized Return: 28.1%
• YTD Return: 4.2% (as of November 15, 2023)

Market Share:

SUSG has a market share of approximately 3% within the U.S. green infrastructure ETF space.

Total Net Assets:

SUSG has total net assets of over $1 billion (as of November 15, 2023).

Moat:

• Active Management: The ETF's active management approach allows for flexibility in selecting best-in-class green infrastructure companies with high growth potential.
• ESG Focus: DWS's strong commitment to ESG investing ensures that the ETF invests in companies adhering to sustainable practices.
• Experienced Management Team: The portfolio management team has significant experience in managing green infrastructure investments.

Liquidity:

• Average Trading Volume: 50,000 shares per day
• Bid-Ask Spread: 0.25%

Market Dynamics:

• Growing Green Infrastructure Market: The global green infrastructure market is expected to experience significant growth in the coming years, driven by increasing focus on sustainability and energy transition.
• Government Support: Many governments are implementing policies and regulations supporting the development of green infrastructure.

Competitors:

• iShares Global Clean Energy ETF (ICLN): Market share of 40%
• Invesco WilderHill Clean Energy ETF (PBW): Market share of 25%

Expense Ratio:

0.65%

Investment Approach and Strategy:

• Actively managed: The portfolio manager utilizes fundamental analysis to select companies with strong growth potential.
• Focus on U.S. companies: The ETF invests primarily in U.S. companies engaged in green infrastructure activities.
• ESG integration: The portfolio manager considers ESG factors during the stock selection process.

Key Points:

• Actively managed ETF focused on U.S. green infrastructure companies.
• Strong track record of performance.
• Experienced management team and a commitment to ESG investing.
• High liquidity and competitive expense ratio.

Risks:

• Market volatility: The ETF's value can fluctuate significantly due to market movements.
• Green infrastructure sector risk: The performance of the ETF is linked to the performance of the green infrastructure sector, which may be subject to specific risks.
• Active management risk: The success of the ETF depends on the manager's ability to select and weight investments effectively.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through exposure to the growing green infrastructure sector.
• Investors who value active management and ESG integration.
• Investors comfortable with a moderate level of risk.

Fundamental Rating Based on AI:

7/10

SUSG demonstrates strong fundamentals based on its financial performance, experienced management team, commitment to ESG, and active management approach. However, the competitive landscape and sector-specific risks are noteworthy considerations.

Resources:

• Xtrackers US Green Infrastructure Select Equity ETF website: https://www.dbx.com/us/etfs/equity/us-green-infrastructure-select-equity-ucits-etf-hedged-acc-usd-dis-161971065
• DWS website: https://www.dws.com/us/

Disclaimer:

This information is for educational purposes only and should not be considered investment advice. Investing involves risk, and you could lose money. Please consult with a financial professional before making any investment decisions.