Xtrackers MSCI USA Climate Action Equity ETF

USCA

Market cap $3.16B

DWS has operated in the ETF space via its Xtrackers family of funds in the US for nearly 20 years. It has flown under the radar compared to the largest ETF issuers.

Experts predict that the impact of climate change on everything from housing to public health will increase over time. A study by the Energy Policy Institute of the University of Chicago estimates that for every one degree Fahrenheit increase in average temperature, costs to the U.S. economy will increase by 0.7% of GDP.

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.

The Xtrackers MSCI USA Climate Action Equity ETF may not be a timely addition due to the new administration's stance on climate policies. The USCA ETF aims to track the MSCI USA Climate Action Index, focusing on companies leading in climate transition and excluding controversial sectors. The MSCI USA Climate Action Index has outperformed the MSCI USA index by 73bps annually, with comparable risk data.

The top holdings of many ESG funds may be surprisingly familiar.

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