(XB4D) Xtrackers II ESG EUR - Ratings and Ratios

The Xtrackers II ESG EUR Corporate Bond UCITS ETF1C (XETRA:XB4D) is an exchange-traded fund that tracks the Morningstar EZN Corp Bd GR EUR index, offering investors exposure to a diversified portfolio of EUR-denominated corporate bonds issued by companies that adhere to certain environmental, social, and governance (ESG) criteria.

As a Germany-originated ETF, XB4D is designed to provide investors with a cost-effective and transparent way to gain access to the EUR corporate bond market, with a focus on ESG considerations. The funds investment universe comprises a broad range of corporate bonds, allowing investors to tap into the credit markets while minimizing exposure to specific issuers or sectors.

Analyzing the funds recent price action, we observe a steady upward trend, with the last price of 7.05 being in close proximity to the 20-day simple moving average (SMA) of 7.02 and the 50-day SMA of 6.99. The 200-day SMA stands at 6.92, indicating a longer-term bullish trend. The average true range (ATR) of 0.01 (0.18%) suggests relatively low volatility, making XB4D an attractive option for investors seeking stable returns.

With assets under management (AUM) totaling 2658.85M EUR, XB4D demonstrates a significant presence in the ETF market, underscoring its liquidity and investor confidence. The funds size and scale enable it to benefit from economies of scale, potentially leading to lower costs for investors.

Based on the technical and fundamental data, our forecast suggests that XB4D will continue its upward trajectory, driven by the ongoing demand for ESG-compliant corporate bonds. We anticipate the funds price to reach 7.15 in the near term, representing a 1.4% increase from the current level. This projection is supported by the funds stable AUM, low volatility, and the overall bullish trend in the corporate bond market.

Investors should note that the Morningstar EZN Corp Bd GR EUR index is subject to changes in interest rates, credit spreads, and ESG-related market dynamics. As such, XB4Ds performance may be influenced by these factors, and investors should remain vigilant and adapt their strategies accordingly.