Xtrackers MSCI USA Climate Action Equity ETF

Xtrackers MSCI USA Climate Action Equity ETF (USCA), from Deutsche Bank, tracks the MSCI USA Climate Action Index. That index holds roughly half the large and mid-size US companies in each sector, chosen for how they are handling the shift to lower carbon emissions. It charges 0.07% a year, just under the 0.08% average for similar funds. It still resembles the broad market. Its largest holdings were NVIDIA, Apple and Microsoft as of August 31, 2026.

• Over the year to Oct 27, 2026, USCA returned +9.2%, 8th of 9 among similar funds.
• Its worst full calendar year was 2025 (+14.3%); its best was 2024 (+27.2%).
• The deepest fall in its price history was 19.1% (Feb 19, 2025 to Apr 8, 2025), recovered by Jun 30, 2025.

As of Aug 31, 2026, the fund held 391 securities; the ten largest made up 44.83% of assets.

By sector

• Over the three months to Aug 31, 2026, investors added a net $211.5M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: -2.05%, +0.93%, +2.98%.

USCA is an index fund that tracks the MSCI USA Climate Action Index. MSCI starts with its MSCI USA Index of large and mid-size US companies and removes several groups. These include companies with the most severe ESG (environmental, social and governance) controversies and those involved in tobacco, thermal coal mining, nuclear weapons, controversial weapons or oil sands. Also removed are heavy emitters and holders of large fossil fuel reserves that lack targets approved by the Science Based Targets initiative, and the bottom quarter of each sector on MSCI's Climate Risk Management Score.

MSCI ranks the remaining companies within each sector on four factors: emission intensity, revenue from green businesses, climate risk management and emissions track record. It keeps the top-ranked names until each sector has half as many companies as it has in the parent index. It then reweights the survivors to match the parent index, with company and sector weights allowed to differ by no more than 5%. That is why the biggest companies still dominate: NVIDIA was 9.4% of the fund as of August 31, 2026.

The fund aims to own every index stock in the same proportions. It held 391 stocks as of August 31, 2026, but it may hold a representative sample instead. It must keep at least 80% of assets in index stocks. Portfolio turnover, the share of holdings replaced over a year, was 12%.

• USCA charges 0.07% a year, versus an average of 0.08% for the similar funds below (3rd of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $7 in the first year and $90 over 10 years (assuming a 5% annual return).

It holds about 391 large and mid-size US stocks weighted much like the broad market, for a 0.07% expense ratio.

USCA could serve as the main US stock holding for investors who want a climate screen while staying close to the market. Its beta, a measure of how closely it moves with the market, was 1.01 over the year to October 27, 2026. Its record is short. It launched April 4, 2023, so it has no history from the 2008, 2020 or 2022 sell-offs. Its weakest calendar year, 2025, was still a 14.3% gain. Its deepest drop was 19.1%, from February 19 to April 8, 2025. It recovered by June 30, about 2.7 months later. Anyone forced to sell near the low would have locked in losses.

Income is modest: a 1.05% yield over the 12 months to October 27, 2026, paid quarterly. In the SEC's standard example, $10,000 invested would cost about $90 over 10 years. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.