Navigating Volatility with Xetra's New ETFs: Inflation, ESG, and Industrial Dividends

Investors navigating today's turbulent markets face a trifecta of challenges: persistent inflation, shifting geopolitical dynamics, and the urgent demand for sustainable growth. Against this backdrop, Xetra and Frankfurt Bourse have introduced a suite of ETFs and ETNs that offer strategic tools to hedge risks, capitalize on thematic trends, and maintain cost efficiency. Among the standout launches are the AXA IM Global Inflation-Linked Bond Opportunities UCITS ETF, Goldman Sachs' ESG-integrated active equity ETFs, and First Trust's industrial and dividend-focused funds. These products not only address critical market vulnerabilities but also exemplify the evolving role of ETFs as flexible, low-cost vehicles for diversified exposure.

Inflation Hedging: AXA's Active Bond ETF

The AXA IM Global Inflation-Linked Bond Opportunities UCITS ETF (ACPH) emerges as a potent tool for investors seeking to insulate portfolios from rising prices. With an expense ratio of just 0.20%, it offers active management of a portfolio tilted toward inflation-linked bonds from OECD countries, while maintaining flexibility to adjust allocations as economic conditions shift. Unlike passive bond ETFs that track static indices, AXA's actively managed approach allows dynamic rebalancing to capitalize on opportunities in both traditional and inflation-sensitive debt instruments.

This ETF's low cost is particularly advantageous in an environment where fixed-income returns are pressured by central bank rate hikes. reveals their resilience during periods of rising prices, making them a cornerstone for defensive portfolios.

ESG-Integrated Active Equity: Goldman Sachs' Sustainable Growth Play

The Goldman Sachs Alpha Enhanced Emerging Markets Equity Active UCITS ETF and its developed-market peers leverage ESG integration to identify companies positioned to thrive in a sustainability-driven economy. With a 0.30% expense ratio, these ETFs combine quantitative multi-factor models with active ESG screening, targeting firms that balance financial performance with environmental and social responsibility.

The emphasis on ESG is no longer optional: regulatory pressures, consumer preferences, and long-term risk mitigation are pushing ESG criteria to the core of investment decisions. Goldman's approach screens out companies violating UN principles or involved in controversial sectors while prioritizing those with robust governance and carbon-transition strategies.

underscores the shift toward sustainability, making these ETFs well-positioned to capture capital flows into ESG-aligned equities.

Industrial and Dividend Focus: First Trust's Sector Rotation Opportunity

First Trust's RBA American Industrial Renaissance UCITS ETF (IRFT) and Rising Dividend Achievers UCITS ETF (RDVY) offer exposure to secular trends in industrial innovation and dividend growth, respectively. The IRFT, with a 0.70% expense ratio, targets small- and mid-cap U.S. industrial firms and community banks, sectors poised to benefit from infrastructure spending and technological advancements. Its top holdings in companies like Dycom Industries (telecom infrastructure) and BWX Technologies (nuclear energy) reflect a focus on niche growth areas.

Meanwhile, the RDVY (0.50% expense ratio) tracks companies that have consistently raised dividends over multiple years, such as Meta Platforms and JP Morgan Chase. This strategy balances defensive income generation with growth potential in sectors like tech and finance.

illustrates the latter's ability to outpace broad-market income metrics while maintaining growth exposure.

Why These ETFs Excel in Volatile Markets

1. Cost Efficiency: All three strategies boast expense ratios well below industry averages, preserving more capital for investors in a low-return environment.
2. Active Management: Unlike passive ETFs, these products leverage human oversight to navigate market dislocations, such as sudden inflation spikes or geopolitical shocks.
3. Thematic Diversification: They address distinct yet complementary risks: inflation, sustainability, and sector-specific opportunities. Pairing AXA's bonds with Goldman's equities, for instance, creates a balanced portfolio with both defensive and growth elements.

Investment Advice

• Core Positioning: Use AXA's inflation-linked bond ETF as a ballast against rising prices, particularly in fixed-income allocations.
• Growth Exposure: Allocate to Goldman's ESG-active equity ETFs for sustainable growth, with a focus on emerging markets where ESG criteria are increasingly driving corporate behavior.
• Sector Rotation: Deploy First Trust's industrial and dividend funds to capitalize on infrastructure spending and the reliability of high-quality dividend payers.

Final Considerations

The ETFs highlighted here exemplify how innovation in structured products is democratizing access to sophisticated strategies. Their low costs, active management, and thematic focus make them ideal for investors seeking to navigate today's challenges without overcomplicating their portfolios. As markets remain volatile, these tools offer a disciplined way to hedge risks, pursue growth, and align investments with long-term sustainability goals.

In an era where every basis point matters, the combination of strategic exposure and cost efficiency provided by these Xetra-listed ETFs is hard to ignore.