DWS expands responsible investment Xtrackers range with addition of emerging markets ESG equity ETF

• DWS launches Xtrackers ESG MSCI Emerging Markets UCITS ETF^[1]
• New ETF improves ESG and carbon metrics compared with MSCI Emerging Markets Index
• Listing today on the London Stock Exchange

 

DWS is expanding its responsible investment range with the addition of an Xtrackers exchange-traded fund (ETF) tracking an environmental, social and governance (ESG) version of MSCI’s emerging markets equity index.

The Xtrackers ESG MSCI Emerging Markets UCITS ETF tracks an index of companies meeting strict ESG criteria and low carbon requirements based on MSCI’s ESG research. The underlying index is part of the MSCI ESG Leaders Low Carbon ex Tobacco Involvement 5% Index series. The new ETF complements four other Xtrackers ETFs launched in June 2018, providing exposure to ESG-filtered equity indices tracking global, US, Japanese and European markets – which also use MSCI ESG Leaders Low Carbon ex Tobacco Involvement indices. It also complements Xtrackers II ESG EUR Corporate Bond UCITS ETF, providing ESG-tilted exposure to the euro-denominated corporate bond market.

“The expansion of our ESG Xtrackers range to cover emerging market equities will provide investors with an efficient new tool for taking exposure to this important area of the market,” said Manooj Mistry, DWS Head of Index Investing.

The new ETF’s underlying index methodology consists of a screen based on ESG requirements and another one based on carbon emissions. Companies with exposure to nuclear power, controversial weapons or tobacco production are excluded, as are companies with excessive revenues coming from areas such as alcohol, gambling or conventional weapons. The 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 Xtrackers ESG MSCI Emerging Markets UCITS ETF has an annual all-in fee of 0.25% and is a direct, physical replication ETF. It began trading on the London Stock Exchange this morning, 21 October 2019.

ETF	Annual All-in Fee (%)	ISIN	Fund Currency	BGG Code
LongNameSCIcon	0.25%	IE00BG370F43	USD	XZEM
LongNameSCIcon	0.20%	IE00BZ02LR44	USD	XZW0
LongNameSCIcon	0.20%	IE00BG36TC12	USD	XZMJ
LongNameSCIcon	0.20%	IE00BFMNHK08	EUR	XZEU
LongNameSCIcon	0.15%	IE00BFMNPS42	USD	XZMU
LongNameSCIcon	0.16%	LU0484968812	EUR	XB4F

  

DWS Group

DWS Group (DWS) is one of the world's leading asset managers with EUR 719 of assets under management (as of 30 June 2019). 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.

DWS Group (DWS) is one of the world's leading asset managers with EUR 704bn of assets under management (as of 31 March 2019). 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.

DWS wants to innovate and shape the future of investing: with approximately 3,600 employees in offices all over the world, 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 the 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 DWS Investments UK Limited. DWS Investments 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 DWS Investments 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.

DWS Investment 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.

© DWS Investments UK Limited 2019.