Xtrackers Portfolio UCITS ETF

Fund commentary

Investment rationale

This fund is a multi-asset UCITS ETF designed to provide exposure to a balanced and diversified portfolio of equity and fixed income ETFs, with the objective of achieving positive mid- to long-term investment performance. It is classified as risk indicator 3 out of 7 and is designed for retail clients with basic knowledge and experience who are prepared to accept losses up to the total invested amount. The recommended holding period is 5 years, and the fund is stated to be suitable for general capital accumulation (growth). Its role in a portfolio is as a diversified core-style multi-asset allocation vehicle, distinctively implemented primarily through Xtrackers equity and bond ETFs with defined 30% to 70% ranges for each asset class.

Investment strategy

The fund is actively managed and is not managed in reference to a benchmark; its objective is to achieve a positive mid- to long-term investment performance through exposure to a balanced and diversified portfolio comprised primarily of ETFs linked to equities and fixed income. It mainly invests in ETFs issued by Xtrackers, Xtrackers (IE) plc, and Xtrackers II, and may also invest directly in transferable securities, money market instruments, other collective investment schemes, and other eligible assets. The ETFs generally provide exposure to shares of companies in developed and emerging markets, dividend yield strategies including real estate equity, and fixed income investments including government and corporate bonds, short-term tradable debt, and inflation-linked returns. At each quarterly asset selection date, the proposed allocation gives equity ETFs and fixed income ETFs each a 30% to 70% range, while actual investments may differ at the sub-portfolio manager’s discretion; the fund may use derivatives for risk management, cost reduction and improved results, may engage in secured securities lending, and the share class is capitalizing with returns reinvested.

Investment philosophy

• The fund invests primarily in a diversified portfolio of Xtrackers, Xtrackers II and Xtrackers (IE) plc ETFs linked to equities and fixed income, with the broader investment universe also allowing direct investment in transferable securities, money market instruments, other collective investment schemes and other eligible assets.

• The allocation process is aimed at creating a total return strategy that seeks capital appreciation from the selected exposures while limiting volatility; DWS Investments UK Limited appointed Index Capital GmbH as Allocation Agent to provide advisory services on the composition of the ETF portfolio.

• Proposed allocations are provided at least quarterly, and asset selection is scheduled on a quarterly basis, though the sub-portfolio manager has absolute discretion to implement the proposed allocation in whole or in part, so actual invested assets may differ from the proposal.

• At each quarterly selection date, the proposed allocation assigns 30% to 70% to equity ETFs and 30% to 70% to fixed income ETFs. The sub-portfolio manager may implement the proposal wholly or partly, so actual investments may differ.

• As of 31 August 2026 the largest holdings included Xtrackers MSCI AC World Screened UCITS ETF 1C (17.26%), Xtrackers MSCI USA UCITS ETF 1C (12.18%), Xtrackers iBoxx EUR Corporate Bond Yield Plus UCITS ETF 1D (9.83%), Xtrackers MSCI World Value UCITS ETF 1C (9.14%) and Xtrackers MSCI Emerging Markets UCITS ETF 1C (6.94%), showing a mix of global, US, emerging-market and corporate bond exposures.

The asset manager

The management company is DWS Investment S.A., a member of DWS Group, and the sub-portfolio manager is DWS Investments UK Limited. The fund is a sub-fund of Xtrackers, DWS’s global platform for ETF and ETC solutions. Xtrackers began in 2007 with ETFs tracking major leading indices and, as of 31 August 2026, had approximately EUR 348 billion in UCITS assets under management and around 300 products. Xtrackers products are listed on eleven exchanges worldwide, and the fund itself is domiciled in Luxembourg.

Strengths

The fund offers a packaged multi-asset allocation through a single UCITS ETF, combining equity and fixed income exposures via underlying Xtrackers ETFs. Its proposed allocation uses bands of 30% to 70% for both equity and fixed income at each quarterly selection date. The sub-portfolio manager retains discretion over implementation, so actual investments may differ. The fund is physically replicated, capitalizing, and listed on Borsa Italiana, BX Swiss and XETRA, providing exchange-traded access in EUR and CHF trading lines. It also combines active portfolio management with broad diversification across underlying regional equity and bond strategies, while charging an all-in fee of 0.70% per annum.

Risks

The fund has a summary risk indicator of 3 out of 7, described as a medium-low risk class, with potential losses from future performance rated at a medium-low level. The documents state that the value of an investment may fall as well as rise and investor capital may be at risk up to a total loss, reflecting exposure to market and economic conditions, sectors, geographical regions and political events through the underlying equity and bond ETFs. Bond exposures create credit risk and interest rate risk, including the possibility that issuers may fail to pay interest or principal and that rising interest rates will typically reduce bond values. Additional risks specifically named include currency risk for investors subscribing or settling in a different currency, derivatives risk, conflicts of interest risk, shares risk, exceptional circumstances risk and active fund risks; the fund may also suffer loss relating to cash and certain other assets in the event of depositary or credit institution issues.