(XZE5) Xtrackers II ESG EUR - Ratings and Ratios

The Xtrackers II ESG EUR Corporate Bond Short Duration UCITS ETF1 EUR Acc is an exchange-traded fund listed on XETRA under the ticker symbol XZE5. It is designed to track the Morningstar EZN Corp Bd GR EUR index, providing investors with exposure to a diversified portfolio of EUR-denominated corporate bonds with a focus on environmental, social, and governance (ESG) criteria.

As a short-duration ETF, XZE5 is positioned to be less sensitive to interest rate changes compared to longer-duration bond ETFs, potentially making it a more stable investment during periods of market volatility. The funds ESG focus aligns with the growing trend of sustainable investing, aiming to support companies that adhere to certain ESG standards.

From a technical analysis perspective, the ETF is currently trading at 46.93, slightly above its 20-day simple moving average (SMA) of 46.90 and significantly above its 200-day SMA of 46.21. The average true range (ATR) is 0.12, indicating a relatively low level of price volatility. Given these indicators, the ETF appears to be in a stable uptrend, with the potential for continued growth if the broader corporate bond market remains supportive.

With assets under management (AUM) of 977.61 million EUR, XZE5 demonstrates a considerable scale, which can contribute to liquidity and potentially lower trading costs for investors. The funds tracking of the Morningstar EZN Corp Bd GR EUR index means its performance is closely tied to the overall direction of the EUR corporate bond market, particularly those issues that meet the ESG criteria.

Forecasting the future performance of XZE5 involves analyzing both the technical and fundamental data. Given the current stable trend indicated by the SMA indicators and the low volatility suggested by the ATR, a continuation of the uptrend is plausible if the corporate bond market remains stable or improves. Additionally, the ESG focus of the fund may attract more capital as sustainable investing continues to grow in popularity. However, any significant changes in interest rates or corporate bond spreads could impact the funds performance. Based on the current technical indicators and the fundamental strength of the funds AUM, a potential target price could be around 47.50 in the near term, assuming the 52-week high of 46.98 is breached and the trend continues.