ETF Evaluator: Xtrackers Net Zero Pwy Par Alg US Eq ETF () Follow This ETF

Xtrackers Net Zero Pwy Par Alg US Eq ETF Overview

Xtrackers Net Zero Pwy Par Alg US Eq ETF (USNZ) is a passively managed U.S. Equity Large Blend exchange-traded fund (ETF). Xtrackers launched the ETF in 2022.

The investment seeks investment results that correspond generally to the performance, before fees and expenses, of the Solactive ISS ESG United States Net Zero Pathway Enhanced Index. The index is comprised of large and mid-capitalization companies in the United States that meet certain ESG criteria. The fund will normally invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in equity securities of issuers incorporated in the United States and as considered by the Advisor to be aligned with the Paris Agreement and consistent with the Net Zero Investment Framework. It is non-diversified.

About Xtrackers Net Zero Pwy Par Alg US Eq ETF (USNZ)

There are 4 members of the management team with an average tenure of 3.48 years: Patrick Dwyer (2022), Shlomo Bassous (2022), Daniel Park (2024) and Ashif Shaikh (2022). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: S&P 500 (TR) (1970) index with a weighting of 100% and Solactive ISS ESG US Net Zero Pathw USD index with a weighting of 100%. Xtrackers Net Zero Pwy Par Alg US Eq ETF has 311 securities in its portfolio. The top 10 holdings constitute 43.9% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a nondiversified fund. The ETF is considered to have an ESG focus with its investment selection and management.

Xtrackers Net Zero Pwy Par Alg US Eq ETF is part of the Equity global asset class and is within the U.S. Equity ETF group. Xtrackers Net Zero Pwy Par Alg US Eq ETF has 0.8% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 99.1% There is 0.8% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Xtrackers Net Zero Pwy Par Alg US Eq ETF has 0.2% of the portfolio in cash.

Assets Under Management

The fund has $290 million in total assets, which is below the $13 billion average for the Large Blend category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

USNZ Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Xtrackers Net Zero Pwy Par Alg US Eq ETF expense ratio is low compared to funds in the Large Blend category. Xtrackers Net Zero Pwy Par Alg US Eq ETF has an expense ratio of 0.10%, which is 76% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Xtrackers Net Zero Pwy Par Alg US Eq ETF has a portfolio turnover rate of 12%, which indicates that it holds its assets around / 0.1 years. By way of comparison, the average portfolio turnover is 158% for the Large Blend category.

Recently, in the month of July 2026, Xtrackers Net Zero Pwy Par Alg US Eq ETF returned 0.0%, which earned it a grade of C, as the Large Blend category had an average return of -0.8%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

Xtrackers Net Zero Pwy Par Alg US Eq ETF has a trailing yield of 0.96%, which is below the 1.16% category average. The fund normally distributes its income quarterly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Xtrackers Net Zero Pwy Par Alg US Eq ETF Grades

Year to date, the ETF has returned 9.7%, 0.2 percentage points better than the category, which translates into a grade of C. The fund has returned 19.6% over the past year (grade of B) and 18.2% over the past three years (grade of C).

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