DWS Europe-listed ESG Xtrackers exceed EUR 3 bn in assets
- Xtrackers ESG ETFs listed in Europe break EUR 3 bn in assets barrier
- Strong inflows amid sustained increased demand
Europe-listed environmental, social and governance (ESG) Xtrackers ETFs by DWS have broken through the EUR 3 billion in assets under management mark. As at October 15, 2020, assets invested in Xtrackers Europe-listed ESG ETFs reached EUR 3.33 billion on the back of strong inflows[1], including over EUR 2 billion in inflows this year[2].
“We’ve seen demand for ESG exposure soar this year, particularly from institutional investors looking to switch from traditional indices into ESG equivalents, and we had the right products in place to absorb that demand,” said Simon Klein, DWS’s Global Head of Passive Sales. “Clients have also been attracted by the carefully chosen indices some of our ESG ETFs use, which include an explicit carbon filter so as to ensure high environmental consciousness standards. We expect our offering to remain at the forefront of this expanding and important market segment.”
The Xtrackers equity ETFs tracking MSCI ESG indices benefit from extensive filtering, including, unusually, a carbon filter, based on MSCI ESG research. To create the MSCI World Low Carbon SRI Leaders Index[3], for example, two screening methodologies are applied to the MSCI Word Index of 1,607 companies[3]. The first is based on ESG requirements, while a carbon emissions screening methodology based on assessments of current and potential emissions is designed to filter out the most carbon intensive companies. Fixed income Xtrackers ESG ETFs use Bloomberg Barclays MSCI Sustainability and SRI screening methodologies, which positively screen issuers from existing parent indices based on MSCI ESG Ratings, and negatively screen issuers that may be involved in business lines or activities in conflict with investment policies, values or social norms.
Product Table
| Xtrackers ETF | Ticker | Index | Listing |
| Equities | |||
|---|---|---|---|
| MSCI World ESG UCITS ETF 1C ESG | XZW0 | MSCI World Low Carbon SRI Leaders Index | USD (LSE, SIX), EUR (Xetra, Borsa ltaliana), GBP (LSE) |
| MSCI World ESG UCITS ETF 2C EUR Hedged ESG | XZWE | MSCI World Low Carbon SRI Leaders Index | EUR (Xetra) |
| MSCI Emerging Markets ESG UCITS ETF 1C ESG | XZEM | MSCI Emerging Markets Low Carbon SRI Leaders Index | USD (LSE, SIX), EUR (Xetra, Borsa ltaliana), GBP (LSE) |
| MSCI Japan ESG UCITS ETF 1C ESG | XZMJ | MSCI Japan Low Carbon SRI Leaders Index | USD (LSE, SIX), EUR (Xetra, Borsa ltaliana), GBP (LSE) |
| MSCI Europe ESG UCITS ETF 1C ESG | XZEU | MSCI Europe Low Carbon SRI Leaders Index | EUR (Xetra, Borsa ltaliana), CHF (SIX), GBP (LSE) |
| MSCI USA ESG UCITS ETF 1C ESG | XZMU | MSCI USA Low Carbon SRI Leaders Index | USD (LSE, SIX), EUR (Xetra, Borsa ltaliana), GBP (LSE) |
| Fixed Income | |||
| EUR Corporate Bond SRI PAB UCITS ETF 1D ESG | XB4F | Bloomberg Barclays MSCI Euro Corporates Sustainable and SRI Index | EUR (Xetra, Borsa ltaliana), CHF (SIX) |
| EUR Corporate Bond Short Duration SRI PAB UCITS ETF 1C ESG | XZE5 | Bloomberg Barclays MSCI Euro Corporates Sustainable and SRI 0-5 Year Index | EUR (Xetra, Borsa ltaliana), CHF (SIX), GBP (LSE) |
| USD Corporate Bond SRI PAB UCITS ETF 1C ESG | XZBU | Bloomberg Barclays MSCI USD Liquid Investment Grade Corporates Sustainable and SRI Index | USD (LSE, SIX), EUR (Xetra, Borsa ltaliana), GBP (LSE) |
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.
© DWS Investments UK Limited 2020.