DWS extends ESG product range with short-duration corporate bond ETF

DWS launches Xtrackers II ESG EUR Corporate Bond Short Duration UCITS ETF
Fund meets demand for short-duration corporate bond exposure with ESG methodology
Listed on LSE and Xetra, and forthcoming on SIX

DWS has answered the demand for short duration corporate bond exposure and environmentally and socially responsible assets with its new Xtrackers II ESG EUR Corporate Bond Short Duration UCITS ETF. The Euro-denominated ETF tracks the Bloomberg Barclays MSCI Euro Corporate Sustainable & SRI 0-5 Year Index. It complements sister fund Xtrackers II ESG EUR Corporate Bond UCITS ETF, which is based on the same bond index family, and five equity ETFs based on MSCI ESG indices.

Simon Klein, Global Head of Passive Sales at DWS, said, “Our latest launch reflects DWS’s strong commitment to environmental and social responsibility. It builds on approximately EUR 4.7bn under management across our ESG ETFs globally, and our strong focus on corporate governance and on ESG thought leadership.”

Bloomberg Barclays MSCI Euro Corporate Sustainable & SRI 0-5 Year Index is a fixed- income benchmark tracking short-term, Euro-denominated, investment-grade corporate bonds with a minimum MSCI ESG Rating of BBB. The index also negatively screens business activities including controversial weapons, alcohol, tobacco, gambling, adult entertainment, genetically modified organisms (GMO), nuclear power and civilian firearms, as well as companies involved in severe controversies. It was created in October 2019 and is back-tested to 2013.

The Xtrackers II ESG EUR Corporate Bond Short Duration UCITS ETF is a direct, physical replication ETF. It has an all-in fee of 0.16%. It began trading on the London Stock Exchange on 28 July and Germany’s Xetra on 3 August, and will list on Switzerland’s SIX exchange in coming weeks.

Product Table

Name of ETF	BBG Code	ISIN	Listing Currency	Annual All-in Fee	UCITS Compliant
LongNameSCIcon	XZE5	LU2178481649	Euro	0.16%	Yes

DWS Group

DWS Group (DWS) is one of the world's leading asset managers with EUR 745bn of assets under management (as of 30 June 2020). 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 investment approach strategically.

DWS wants to innovate and shape the future of investing: with approximately 3,500 employees in offices all over the world, we are local while being one global team. We are investors – entrusted to build the best foundation for our clients’ future.

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” 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.

Risk considerations