Xtrackers MSCI USA Climate Action Equity ETF

The Xtrackers MSCI USA Climate Action Equity ETF is a climate-focused fund that has received a $2 billion investment from Ilmarinen, a Finnish pension insurance firm. The fund aims to provide investors with exposure to US large and mid-cap companies that are leading in their sectors on climate transition action. The index tracks the MSCI USA Climate Action Index, which applies a series of ESG screens to its parent index, the MSCI USA Index. Securities are excluded based on factors such as very high emissions intensity and not having Science Based Targets initiative-approved emissions reduction targets, as well as those with the lowest climate risk management scores in their GICS sector. Securities are then ranked for inclusion based on factors including emissions intensity, green business revenue, climate risk management score, and emission track record.