(XDNY) Xtrackers MSCI Japan ESG - Ratings and Ratios

The Xtrackers MSCI Japan ESG Screened UCITS ETF 1D (XETRA: XDNY) is designed to track the performance of the JPX-Nikkei Index 400, a benchmark that includes 400 Japanese companies. These companies are selected based on specific criteria: they must have been listed for at least three years, have more assets than liabilities, no operating or overall deficit, and not be marked for delisting. The index is rebalanced annually and includes companies from the Tokyo Stock Exchanges First Section (large caps), Second Section (mid-caps), and Mothers section (high-growth and emerging stocks), as well as the JASDAQ stock exchange.

The ETF is domiciled in Ireland and is part of the Xtrackers suite of products, known for their transparency and cost-efficiency. With an AUM of approximately €18.37 billion, it is one of the larger ETFs tracking Japanese equities. The fund is listed on XETRA, making it accessible to European investors. The Morningstar Japan TME NR JPY index serves as its reference, ensuring that the ETF reflects the total return of the underlying securities in Japanese yen terms.

Investors should note that this ETF provides exposure to a broad range of Japanese companies, from large-cap firms in the First Section to smaller, growth-oriented companies in the Mothers section. The inclusion of JASDAQ-listed companies adds exposure to the Japanese venture and growth sectors. The funds ESG-screened approach ensures that it aligns with sustainability preferences, making it a compelling option for investors seeking both financial return and environmental, social, and governance alignment.

For fund managers and investors, the ETF offers a diversified portfolio of 400 companies, reducing single-stock risk. The annual rebalancing ensures that the index maintains its focus on companies with strong financial health and liquidity. Additionally, the ETFs structure as a UCITS-compliant fund provides regulatory oversight and investor protections under the European Unions Undertakings for Collective Investment in Transferable Securities framework.