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Is Xtrackers Net Zero Pathway Paris Aligned US Equity ETF (USNZ) a Strong ETF Right Now?
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The Xtrackers Net Zero Pathway Paris Aligned US Equity ETF (USNZ - Free Report) was launched on 06/28/2022, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - All Cap Blend category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Managed by Deutsche Bank Ag, USNZ has amassed assets over $289.73 million, making it one of the average sized ETFs in the Style Box - All Cap Blend. Before fees and expenses, USNZ seeks to match the performance of the SOLACTIVE ISS ESG US NT ZR PATHWY ENH ID.
The Solactive ISS ESG United States Net Zero Pathway Enhanced Index comprised of large and mid-capitalization companies in the United States that meet certain environmental, social and governance criteria.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.10% for USNZ, making it one of the least expensive products in the space.
It's 12-month trailing dividend yield comes in at 1.00%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Taking into account individual holdings, Nvidia Corp (NVDA.O) accounts for about 9.49% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
USNZ's top 10 holdings account for about 43.78% of its total assets under management.
Performance and Risk
So far this year, USNZ return is roughly 4.22%, and it's up approximately 26.96% in the last one year (as of 05/05/2026). During this past 52-week period, the fund has traded between $35.38 and $45.27.
The fund has a beta of 1.03 and standard deviation of 15.03% for the trailing three-year period. With about 308 holdings, it effectively diversifies company-specific risk .
Alternatives
Xtrackers Net Zero Pathway Paris Aligned US Equity ETF is an excellent option for investors seeking to outperform the Style Box - All Cap Blend segment of the market. There are other ETFs in the space which investors could consider as well.
Vanguard ESG U.S. Stock ETF Shares (ESGV) tracks FTSE US ALL CAP CHOICE INDEX and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index. Vanguard ESG U.S. Stock ETF Shares has $12.48 billion in assets, iShares ESG Aware MSCI USA ETF has $16.58 billion. ESGV has an expense ratio of 0.09% and ESGU changes 0.15%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Blend
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is Xtrackers Net Zero Pathway Paris Aligned US Equity ETF (USNZ) a Strong ETF Right Now?
The Xtrackers Net Zero Pathway Paris Aligned US Equity ETF (USNZ - Free Report) was launched on 06/28/2022, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - All Cap Blend category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Managed by Deutsche Bank Ag, USNZ has amassed assets over $289.73 million, making it one of the average sized ETFs in the Style Box - All Cap Blend. Before fees and expenses, USNZ seeks to match the performance of the SOLACTIVE ISS ESG US NT ZR PATHWY ENH ID.
The Solactive ISS ESG United States Net Zero Pathway Enhanced Index comprised of large and mid-capitalization companies in the United States that meet certain environmental, social and governance criteria.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.10% for USNZ, making it one of the least expensive products in the space.
It's 12-month trailing dividend yield comes in at 1.00%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Taking into account individual holdings, Nvidia Corp (NVDA.O) accounts for about 9.49% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
USNZ's top 10 holdings account for about 43.78% of its total assets under management.
Performance and Risk
So far this year, USNZ return is roughly 4.22%, and it's up approximately 26.96% in the last one year (as of 05/05/2026). During this past 52-week period, the fund has traded between $35.38 and $45.27.
The fund has a beta of 1.03 and standard deviation of 15.03% for the trailing three-year period. With about 308 holdings, it effectively diversifies company-specific risk .
Alternatives
Xtrackers Net Zero Pathway Paris Aligned US Equity ETF is an excellent option for investors seeking to outperform the Style Box - All Cap Blend segment of the market. There are other ETFs in the space which investors could consider as well.
Vanguard ESG U.S. Stock ETF Shares (ESGV) tracks FTSE US ALL CAP CHOICE INDEX and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index. Vanguard ESG U.S. Stock ETF Shares has $12.48 billion in assets, iShares ESG Aware MSCI USA ETF has $16.58 billion. ESGV has an expense ratio of 0.09% and ESGU changes 0.15%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Blend
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.