(D6RQ) Deka MSCI USA Climate - Ratings and Ratios

Deka MSCI USA Climate Change ESG UCITS ETF (XETRA: D6RQ) is a Germany-domiciled ETF designed to provide exposure to large- and mid-cap U.S. equities while integrating ESG (Environmental, Social, and Governance) criteria. The fund tracks the Morningstar US Large-Mid NR USD index, which focuses on companies with improved ESG profiles relative to their peers.

With an AUM of approximately 957.54 million EUR, this ETF offers a cost-effective way to access U.S. large-cap equities through a sustainable lens. The fund excludes companies involved in controversial activities such as fossil fuels, weapons, and tobacco, aligning with the growing demand for climate-conscious investing. Its ESG focus is particularly relevant for investors seeking to align their portfolios with global climate goals and sustainability principles.

From a performance standpoint, the ETFs tracking error is relatively low, indicating tight alignment with its underlying index. This makes it a reliable choice for investors looking for consistent exposure to the U.S. large-mid cap market with an ESG overlay. However, as with any ESG-focused fund, investors should be aware that the exclusion of certain sectors may lead to divergent returns compared to traditional broad-market ETFs.

For fund managers and institutional investors, this ETF offers a straightforward tool for integrating ESG criteria into portfolios without sacrificing broad market exposure. Its liquidity and transparency make it suitable for both strategic allocations and tactical adjustments. Additionally, the funds UCITS compliance ensures it meets the regulatory standards of European investors, making it a viable option for cross-border portfolios.