USNZ ETF Holds $295.8M With 0.10% Fee
The Xtrackers Net Zero Pathway Paris Aligned US Equity ETF manages $295.82 million in assets. It charges an annual operating expense ratio of 0.10%.
The Xtrackers Net Zero Pathway Paris Aligned US Equity ETF holds $295.82 million in assets. This smart beta fund launched on June 28, 2022. It targets the Style Box All Cap Blend category. The fund is managed by Deutsche Bank AG. It seeks to track the Solactive ISS ESG United States Net Zero Pathway Enhanced Index. This index selects large and mid-capitalization US companies. Selection criteria include environmental, social, and governance standards.
The annual operating expense ratio is 0.10%. This places the fund among the least expensive options in its space. The 12-month trailing dividend yield stands at 0.94%. Smart beta strategies aim to beat market returns. They use non-cap weighted selection methods. These methods rely on fundamental characteristics. Not all such strategies have delivered superior results.
Top Holdings Dominate Portfolio
Nvidia Corp accounts for 9.67% of total assets. Apple Inc is the second largest holding. Microsoft Corp follows as the third largest position. The fund provides diversified exposure to minimize single stock risk. Investors can review these holdings daily. Transparency is a key feature of this product. The index focuses on US listed companies. It excludes firms that do not meet ESG criteria.
Low Cost Structure Benefits
Lower costs can improve net returns for investors. The 0.10% fee is significantly lower than many peers. Market cap weighted indexes offer a different approach. They replicate broader market segments efficiently. Smart beta funds attempt active outperformance. They select stocks based on risk return potential. The USNZ fund combines these methods. It uses ESG filters for stock selection.
Index Methodology Explained
The underlying index is named Solactive ISS ESG US NT ZR PATHWY ENH ID. It includes large and mid-cap US companies. These firms must meet specific sustainability criteria. The fund aims to match the performance of this index. It does so before fees and expenses. The strategy involves enhanced index tracking. This differs from pure passive replication. It seeks better risk adjusted returns.
