Xtrackers S&P 500 ESG ETF

SNPE

Market cap $2.75B

In motorsports, fine-tuning and micro-tweaking of an engine can help extract the added performance necessary to win a race. In the case of the Xtrackers S&P 500 Scored & Screened ETF (SNPE), it's addition by subtraction.

Xtrackers S&P 500 Scored & Screened ETF is a passively managed vehicle tracking the S&P 500 Scored & Screened Index. Since its inception in 2019, SNPE has outperformed IVV, mainly owing to the indirect consequences of the ESG screening—its larger exposure to IT and the growth factor. However, in the current conditions, these issues expose SNPE to additional risks, potentially translating into a deeper drawdown than IVV's amid the U.S.-Israel-Iran conflict and soaring oil prices.

There's a perception that ESG ETFs are less relevant or able to add value than in the past. The reality is that some ESG ETF are not only gathering assets, but are performing well too.

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While 2023 proved to be a challenging year for US sustainable funds including ETFs, the underlying principles of ESG investing remain relevant and are increasingly being incorporated into mainstream investment strategies.