(D5BM) Xtrackers SP500 Swap 1C - Ratings and Ratios

The Xtrackers S&P 500 Swap UCITS ETF 1C EUR (D5BM) is domiciled in Luxembourg, a jurisdiction known for its robust regulatory framework and favorable tax environment for investment funds. This structure allows the ETF to operate under the European Union’s UCITS directive, ensuring compliance with stringent investor protection regulations and providing access to a broad investor base across Europe.

As a swap-based ETF, D5BM employs total return swaps to gain exposure to the Morningstar US Large-Mid NR USD Index. This synthetic replication approach can enhance tax efficiency for investors and reduce tracking error, though it introduces counterparty risk, which is managed through rigorous collateralization and diversification practices.

The fund tracks the Morningstar US Large-Mid NR USD Index, which focuses on large- and mid-capitalization companies in the United States. This index provides diversified exposure to the US equity market, blending both growth and value stocks to capture a broad spectrum of market performance.

With an AUM of 5.55 billion EUR, D5BM is a substantial fund, indicating a high level of investor confidence and liquidity. The absence of P/E, P/B, and P/S metrics is typical for index-tracking ETFs, as these funds are designed to replicate market performance rather than being valued based on individual company fundamentals.

Investors should note that while the ETF offers efficient access to US large-cap equities, the use of derivatives introduces specific risks, including potential counterparty default. However, the fund’s structure and regulatory oversight are designed to mitigate these risks, making it a viable option for those seeking exposure to the US market with a synthetic approach.