LONDON - Xtrackers (IE) PLC, an investment company, has informed shareholders of changes to the Environmental, Social, and Governance (ESG) exclusion criteria for two of its exchange-traded funds (ETFs), following an update by MSCI Limited, the index administrator. The changes took effect on Monday as part of a scheduled ordinary index review. The ETFs affected are the Xtrackers MSCI World High Dividend Yield ESG UCITS ETF and the Xtrackers MSCI USA High Dividend Yield ESG UCITS ETF. Both funds aim to track the performance of indices that have now implemented enhanced oil & gas and power generation screens. The updated ESG Exclusion Criteria will exclude companies that are unrated or lack coverage by MSCI ESG Research, have an MSCI ESG Rating of CCC, or are involved in controversial weapons and other specified controversial activities. Additionally, companies that fail to comply with the United Nations Global Compact principles or have certain environmental controversies will also be excluded. These changes align with the requirements of the Commission Delegated Regulation (EU) 2020/1818, known as PAB Exclusions. The ETFs' investment objectives, policies, risk profiles, and fees remain unchanged despite the updated criteria. Shareholders can access revised supplements for each fund reflecting the changes on the Xtrackers website and may obtain copies at the company's registered office or through foreign representatives. The company advises shareholders to consult with financial advisors for clarity on the changes or for specific tax implications. The announcement clarifies that these products are based overseas and are not subject to UK sustainable investment labelling and disclosure requirements. This information is based on a press release statement from Xtrackers (IE) PLC.

Xtrackers ETFs update ESG criteria following index review

Xtrackers (IE) PLC has informed shareholders of changes to the ESG exclusion criteria for two of its ETFs, following an update by MSCI Limited. The changes affect the Xtrackers MSCI World High Dividend Yield ESG UCITS ETF and the Xtrackers MSCI USA High Dividend Yield ESG UCITS ETF, with new exclusion criteria for companies based on their ESG ratings and involvement in controversial activities. These changes align with the Commission Delegated Regulation (EU) 2020/1818, known as PAB Exclusions.