DWS is building on its success in the area of responsible investing with the launch of a new range of environmental, social and governance (ESG) Xtrackers ETFs. The four new ETFs provide exposure to ESG-filtered equity indices tracking global, US, Japanese and European markets (see product table).(Source: Deutsche Bank Non-Financial Report 2017: https://responsibility.db.com/non-financial-report/2017/servicepages/downloads/files/dbcr2017_entire.pdf).

“Sustainability is one of our key values, which means we not only want to meet demand for responsible investing, we also aim to actively encourage it,” said Petra Pflaum, DWS Chief Investment Officer for Responsible Investments.

The new ETFs track indices that are part of the MSCI ESG Leaders Low Carbon ex Tobacco Involvement 5% series. The indices use extensive filtering based on MSCI ESG research, which means included companies meet strict ESG and low carbon requirements.

For example, for acquiring ESG-filtered global equity exposure the starting point is the MSCI Word Index comprising 1,648 companies (Source, MSCI Inc, 30 April, 2018). Two screening methodologies are applied to the companies in the index, one based on ESG requirements and one based on carbon emissions. Companies with exposure to nuclear power, controversial weapons or tobacco production are excluded, as are companies with excessive revenues (USD 1 billion or 50% of revenues) coming from areas such as alcohol, gambling or conventional weapons. Remaining companies are then given an ESG rating relative to peers, with those below a certain threshold excluded. A ‘controversies screen’ is also applied to exclude companies deemed to be involved in serious ESG controversies. The carbon emissions screening methodology is based on assessments of current emissions and potential emissions and is designed to filter out the most carbon intensive companies. The final ESG/low carbon MSCI World-derived index, which the Xtrackers ETF tracks, comprises 635 companies from the original 1,649, weighted by market capitalisation (Source: MSCI Inc, 30 April 2018).

At DWS the incorporation of ESG factors - beyond financial factors - is integrated into the investment decision making process for liquid and illiquid products. DWS manages over EUR 20 billion of dedicated ESG assets under management, including seven sustainable and impact funds investing in sectors such as clean energy, energy storage and water as well as real estate investments in certified green-labelled buildings.

The new Xtrackers ESG equity ETFs complement the existing Xtrackers II ESG EUR Corporate Bond UCITS ETF, which is also based on a comprehensive MSCI screening process.

Product Table 

Xtrackers ETF

TER

ISIN

BBG   Ticker

Fund   Currency

Xtrackers ESG MSCI World UCITS   ETF

0.20%

IE00BZ02LR44

 

XZW0

 

USD

Xtrackers ESG MSCI Japan UCITS   ETF

0.20%

IE00BG36TC12

 

XZMJ

 

USD

Xtrackers ESG MSCI USA UCITS ETF

0.15%

IE00BFMNPS42

 

XZMU

 

USD

Xtrackers ESG MSCI Europe UCITS ETF

0.20%

IE00BFMNHK08

 

XZEU

 

EUR

For further information please contact:

John Ferry
Phone: +44 (0) 7989726985
E-Mail: john.ferry@dws.com

DWS Group
DWS Group GmbH & Co. KGaA (DWS) is one of the world's leading asset managers with EUR676bn of assets under management (as of 31 Mar 2018). Building on more than 60 years of experience and a reputation for excellence in Germany and across Europe, DWS has come to be recognized by clients globally as a trusted source for integrated investment solutions, stability and innovation across a full spectrum of investment disciplines.

We offer individuals and institutions access to our strong investment capabilities across all major asset classes and solutions aligned to growth trends. Our diverse expertise in Active, Passive and Alternatives asset management – as well as our deep environmental, social and governance focus – complement each other when creating targeted solutions for our clients. Our expertise and on-the-ground-knowledge of our economists, research analysts and investment professionals are brought together in one consistent global CIO View, which guides our strategic investment approach.

DWS wants to innovate and shape the future of investing: with staff from 35 nationalities, speaking more than 75 languages rooted in 22 countries, we are local while being one global team.

Key risks

Investors should note that the Xtrackers UCITS ETFs are not capital protected or guaranteed and investors should be prepared and able to sustain losses of the capital invested up to a total loss.

Shares in Xtrackers UCITS ETFs which are purchased on the secondary market cannot usually be sold directly back to the relevant fund. Investors must purchase and redeem such shares on the secondary market with the assistance of an intermediary (e.g. a market maker or a stock broker) and may incur fees for doing so (as further described in the applicable prospectus). In addition, investors may pay more than the current net asset value of a share in a Xtrackers UCITS ETF when buying shares on the secondary market, and may receive less than the current net asset value when selling such shares on the secondary market.

Investments in funds involve numerous risks including, among others, general market risks, credit risks, foreign exchange risks, interest rate risks and liquidity risks. The value of an investment in a Xtrackers UCITS ETF may go down as well as up and investors may not get back the full amount of their original investment.

Important Notice

This press release has been issued in the UK and approved by Deutsche Asset Management (UK) Limited, a 100% subsidiary of DWS. Deutsche Asset Management (UK) Limited is authorised and regulated by the Financial Conduct Authority.

Any reference to  “DWS”, “Deutsche Asset Management” or “Deutsche AM” shall, unless otherwise required by the context, be understood as a reference to Deutsche Asset Management (UK) Limited including any of its parent companies, any of its or its parents affiliates or subsidiaries and, as the case may be, any investment companies promoted or managed by any of those entities.

Past performance is not a guide for future returns.

Xtrackers UCITS ETFs are all ETFs of one of the following platforms: Xtrackers, Xtrackers II or Xtrackers (IE) plc. Xtrackers, Xtrackers II and Xtrackers (IE) plc are undertakings for collective investment in transferable securities (UCITS) in accordance with the applicable laws and regulations and set up as open-ended investment companies with variable capital and segregated liability between their respective compartments.

Xtrackers and Xtrackers II are incorporated in the Grand Duchy of Luxembourg, are registered with the Luxembourg Trade and Companies’ Register under number B-119.899 (Xtrackers) and B-124.284 (Xtrackers II) respectively and have their registered office at 49, avenue J.F. Kennedy, L-1855 Luxembourg. Xtrackers (IE) plc is incorporated in Ireland with registered number 393802 and has its registered office at 78 Sir John Rogerson’s Quay, Dublin 2, Ireland.

Deutsche Asset Management S.A. acts as the management company of Xtrackers, Xtrackers II and Xtrackers (IE) plc.

The information contained in this document is provided for information purposes only. Any investment decision in relation to an Xtrackers ETF should be based solely on the latest version of the prospectus, the audited annual and, if more recent, un-audited semi-annual reports and the Key Investor Information Document (KIID), all of which are available in English upon request or on www.Xtrackers.com. In the case of any inconsistency with the prospectus, the latest version of the prospectus shall prevail.

© Deutsche Asset Management (UK) Limited 2018.

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