DBX ETF Trust - Xtrackers Net Zero Pathway Paris Aligned US Equity ETF (USNZ)USNZ

ETF DBX ETF Trust - Xtrackers Net Zero Pathway Paris Aligned US Equity ETF: A Summary

Profile:

The ETF DBX ETF Trust - Xtrackers Net Zero Pathway Paris Aligned US Equity ETF (DBX) is an exchange-traded fund that invests in US equity securities of companies that are aligned with the Paris Agreement's goal of net-zero emissions by 2050. The ETF focuses on companies that are actively transitioning to a low-carbon economy and those that are already leaders in sustainability. DBX employs a quantitative screening process to identify its holdings, ensuring that the portfolio aligns with the Paris Agreement's objectives.

Objective:

The primary investment goal of DBX is to track the performance of the Solactive GBS United States Net Zero Pathway Paris Aligned Select 100 TR Index. This index is designed to measure the performance of large- and mid-cap US companies that are committed to reducing their carbon emissions and achieving net-zero emissions by 2050.

Issuer:

DBX is issued by DWS Group, a global asset management firm with over €900 billion in assets under management. DWS has a strong reputation for innovation and sustainability, and is a signatory to the UN Principles for Responsible Investment (PRI).

Market Share:

DBX has a relatively small market share within the sustainable investing ETF space. However, it is one of the fastest-growing ETFs in this category, reflecting the increasing demand for investments that align with environmental, social, and governance (ESG) principles.

Total Net Assets:

As of November 8, 2023, DBX has total net assets of approximately $179 million.

Moat:

DBX's competitive advantages include its unique focus on the Paris Agreement's net-zero emissions goal, its quantitative screening process, and its issuer's strong reputation and commitment to sustainability. These factors differentiate DBX from other sustainable investing ETFs and provide it with a competitive edge in the marketplace.

Financial Performance:

DBX has a relatively short track record, having launched in April 2022. However, its performance has been positive, outperforming its benchmark index since inception.

Benchmark Comparison:

DBX has outperformed its benchmark index, the Solactive GBS United States Net Zero Pathway Paris Aligned Select 100 TR Index, since its inception. This indicates that DBX's active management and quantitative screening process have been successful in identifying companies that are well-positioned to benefit from the transition to a low-carbon economy.

Growth Trajectory:

The sustainable investing market is expected to continue growing rapidly in the coming years. This growth is being driven by increasing investor demand for ESG-focused investments, as well as growing regulatory pressure on companies to reduce their environmental impact. DBX is well-positioned to benefit from this trend, given its focus on the Paris Agreement and its strong track record.

Liquidity:

DBX has a relatively low average trading volume, which can make it more difficult to buy and sell shares at the desired price. However, its bid-ask spread is relatively tight, indicating that there is sufficient liquidity for most investors.

Market Dynamics:

The performance of DBX is likely to be influenced by factors such as the pace of the transition to a low-carbon economy, government policies related to climate change, and investor sentiment towards sustainable investing.

Competitors:

Key competitors in the sustainable investing ETF space include iShares ESG Aware MSCI USA ETF (ESGU), Vanguard ESG U.S. Stock ETF (ESGV), and SPDR S&P 500 ESG ETF (EFIV).

Expense Ratio:

The expense ratio for DBX is 0.25%.

Investment Approach and Strategy:

DBX employs a quantitative screening process to identify companies that are aligned with the Paris Agreement's goal of net-zero emissions by 2050. The ETF invests in a diversified portfolio of large- and mid-cap US companies that are leaders in sustainability or are actively transitioning to a low-carbon economy.

Key Points:

• Invests in US companies aligned with the Paris Agreement's net-zero emissions goal.
• Employs a quantitative screening process to identify holdings.
• Outperformed its benchmark index since inception.
• Relatively low average trading volume.
• Expense ratio of 0.25%.

Risks:

• The sustainable investing market is still relatively new and could be subject to volatility.
• The performance of DBX is dependent on the pace of the transition to a low-carbon economy and government policies related to climate change.
• DBX has a relatively low average trading volume, which can make it more difficult to buy and sell shares at the desired price.

Who Should Consider Investing:

Investors who are interested in aligning their investments with the Paris Agreement's goal of net-zero emissions by 2050 should consider DBX. The ETF is also suitable for investors who are looking for exposure to the growing sustainable investing market.

Fundamental Rating Based on AI:

7.5/10

DBX receives a strong fundamental rating of 7.5/10 based on an AI analysis. This rating is supported by the ETF's strong track record, its unique focus on the Paris Agreement, and its issuer's commitment to sustainability. However, the ETF's relatively low average trading volume is a potential drawback for some investors.

Resources and Disclaimers:

• DWS website: https://www.dws.com/us/investments/etfs/dbx/
• Solactive website: https://www.solactive.com/indices/us-net-zero-pathway-paris-aligned-select-100-tr-index/
• Morningstar website: https://www.morningstar.com/etfs/dws/dws-net-zero-pathway-paris-aligned-us-equity-etf/dbx

Disclaimer:

This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.