(D6RP) Deka MSCI World Climate - Ratings and Ratios

The Deka MSCI World Climate Change ESG UCITS ETF is an exchange-traded fund listed on XETRA, tracking the Morningstar Global TME NR USD index. It is designed to provide investors with exposure to a broad range of global large-cap equities that are aligned with climate change and ESG (Environmental, Social, and Governance) considerations.

As a Global Large-Cap Blend Equity ETF, it invests in a diversified portfolio of stocks from developed markets worldwide, focusing on companies that demonstrate strong ESG practices and are positioned to benefit from the transition to a lower-carbon economy. The fund is managed by Deka, a German asset management company with a strong track record in investment management.

With Assets Under Management (AUM) of approximately €772.76 million, the ETF has achieved a significant scale, which can contribute to lower costs for investors and increased liquidity. The funds size and liquidity make it an attractive option for investors seeking to gain exposure to a diversified global equity portfolio with a climate change and ESG focus.

From a technical analysis perspective, the ETFs price is currently at €34.11, slightly below its 20-day Simple Moving Average (SMA) of €34.41, indicating a potential short-term downtrend. However, it remains above its 50-day SMA of €33.20, suggesting a longer-term uptrend is intact. The Average True Range (ATR) of 0.39 (or 1.15%) indicates moderate volatility, which is expected in a global equity ETF. Given the current technical setup and fundamental data, a potential forecast is that the ETF may experience a short-term correction before resuming its longer-term uptrend, driven by the ongoing transition to a more sustainable and climate-resilient global economy.

Based on the available data, a potential trading strategy could involve monitoring the ETFs price action around its SMAs and adjusting positions accordingly. For instance, a break above the 20-day SMA could be seen as a bullish signal, while a fall below the 50-day SMA might indicate a more significant correction is underway. Investors should also keep an eye on broader market trends, ESG-related regulatory developments, and climate change mitigation efforts, as these factors can significantly impact the ETFs performance.