DWS expands Xtrackers S&P 500 offering with new ETFs considering Environmental, Social and Governance criteria
- New Xtrackers ETFs track S&P 500 ESG Index and Xtrackers S&P 500 Equal Weight ESG Index
- Expansion of successful Xtrackers S&P 500 ETF offering with more than €11 billion in assets under management
- Importance of U.S. equity ETFs with ESG criteria has grown strongly
DWS has launched two new Xtrackers ETFs that track the U.S. equity market based on the S&P 500 index while at the same time taking into account environmental and social standards as well as good corporate governance (ESG). DWS is thus expanding its successful range of Xtrackers S&P 500 ETFs, which manage more than €11 billion (as of Nov. 30, 2022). The Xtrackers S&P 500 Equal Weight UCITS ETF was the first ETF in Europe to track this index when it was launched in 2014.
The Xtrackers S&P 500 ESG UCITS ETF 1C ESG and the Xtrackers S&P 500 Equal Weight ESG UCITS ETF 1C ESG have been listed on Deutsche Boerse and the London Stock Exchange, with additional listings to follow. The S&P 500 Index tracks the 500 largest companies in the U.S. equity market by market capitalization and is one of the most important equity benchmarks in the world. The S&P 500 Equal Weight Index tracks the same companies, but weights all 500 index members equally at 0.2 percent each.
The newly launched Xtrackers ETFs track indices that consider additional criteria for selecting index members. The S&P 500 ESG Index and the S&P 500 Equal Weight ESG Index initially make a number of exclusions before selecting constituents with a consideration for E, S and G criteria. For example, companies that exceed revenue thresholds in activities related to thermal coal, tobacco and controversial weapons, among others are excluded. In addition, companies are excluded for violating international norms and standards, such as the UN Global Compact Principles. Finally, companies without an S&P DJI ESG score are excluded, as are those who fall within the worst 25% of ESG Scores from each global GICS Industry Group. In a second step, index members are listed according to their S&P DJI ESG Score. For the S&P DJI ESG Score, company data is collected and evaluated by S&P Global ESG Research on environmental, social, and corporate governance standards. Both the S&P 500 ESG Index and the S&P 500 Equal Weight ESG Index target a fixed percentage float-adjusted market capitalization (FMC) of the S&P 500 by using the S&P DJI ESG Scores. The S&P 500 ESG index targets 75% of the FMC of the S&P 500 and selects companies in each GICS industry group from the S&P 500 index with the best ESG Score, while for the S&P 500 Equal Weight ESG Index targets 60% FMC using the same process.
As a result, the S&P 500 ESG and S&P 500 Equal Weight ESG Indexes ultimately comprise around 300 stocks instead of the original 500 stocks. The index methodologies are designed to ensure that the ESG indexes achieve a similar industry or sector risk characteristics as the original index.
"The importance of ETFs that track the U.S. equity market in conjunction with transparent Environmental, Social and Governance criteria in a portfolio has grown significantly in recent years. We are pleased to further expand our Xtrackers offering for investors with attractive solutions," says Simon Klein, Global Head of Passive Sales, DWS.
Product information
| Xtrackers S&P 500 ESG UCITS ETF | Xtrackers S&P 500 Equal Weight UCITS ETF | |
|---|---|---|
| ISIN | IE0007ULOZS8 | IE0004MFRED4 |
| Ticker | XZSP | XZEW |
| TER p.a. | 0.08% | 0.17% |
| Underlying Index | S&P-500-ESG-Index | S&P-500-Equal-Weight-ESG-Index |
| Income treatment | Capitalizing | Capitalizing |
| Fund currency | USD | USD |
About DWS Group
DWS Group (DWS) is one of the world's leading asset managers with EUR 833bn of assets under management (as of 30 September 2022). Building on more than 60 years of experience, it has a reputation for excellence in Germany, Europe, the Americas and Asia. DWS is recognised 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 Chief Investment Office (CIO View), which guides our investment approach strategically.
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. We are investors – entrusted to build the best foundation for our clients’ future.
Key risks
- Investors should note that the Xtrackers UCITS ETFs and ETCs 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.
- Investments in ETC securities will not accrue any interest and performance is subject to the deduction of the product fee.
- Pricing of the ETC securities on the secondary market may be at a significant discount or premium compared to the Value per ETC Security (intrinsic value) published by the Issuer. Investments in Xtrackers ETCs involve numerous risks including but not limited to, general market risks relating to the relevant commodities, exchange rate risks, interest rate risks, inflationary risks, liquidity risks, and legal and regulatory risks.
- Movements in exchange rates can impact the value of your investment. If the currency of your country of residence is different from the currency in which the underlying investments of the fund are made, the value of your investment may increase or decrease subject to movements in exchange rates.
- For a full description of risk factors, please refer to the relevant prospectus.
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.
This information is intended for informational purposes only and does not constitute investment advice, recommendation, an offer or solicitation. 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.
S&P®, S&P 500®, The 500, US 500 are trademarks of S&P Dow Jones Indices LLC or its affiliates (collectively, “S&P DJI”), and have been licensed for use by DWS for use with the Xtrackers. DWS’ Xtrackers ETFs based on the S&P DJI Indices as their underlying interest are not sponsored, endorsed, sold or promoted by S&P DJI or any of their affiliates and S&P DJI makes no representations or recommendations concerning the advisability of investing in such ETFs.
© DWS Investments UK Limited 2022.