DWS offers further Xtrackers ETF aligned with Paris Climate Agreement

• Xtrackers Emerging Markets Net Zero Pathway Paris Aligned UCITS ETF 1C ESG​ provides exposure to emerging markets equity and aligns to the EU Paris Aligned Benchmark (PAB) regulations
• Climate-related metrics and targets of companies are decisive for overweighting and underweighting in the index
• DWS now offers six equity ETFs and four bond ETFs aligned with the Paris Climate Agreement

DWS has launched a new Xtrackers ETF based on emerging equity markets, with a focus on environmental, social and governance characteristics and also aligned with the goals of the 2015 Paris Climate Agreement. Including the new ETF, DWS has already launched six equity ETFs based on the same index methodology, providing exposure to the following equity markets: Global, USA, Europe, Eurozone, Japan and now also Emerging Markets. Additionally, in November 2022, DWS introduced four Xtrackers ETFs that track the corporate bond market in Euros and US dollars with different maturities and whose tracked indices are also aligned with the goals of the Paris Climate Agreement.

The Xtrackers Emerging Markets Net Zero Pathway Paris Aligned UCITS ETF 1C ESG is listed on Deutsche Boerse and the London Stock Exchange, with other exchanges to follow. The ETF aims to reduce emissions in line with the objectives of the Paris Climate Agreement, with the underlying index therefore corresponding to EU Paris Aligned Benchmark (PAB) regulations. Specifically, the ETF tracks the Solactive ISS ESG Emerging Markets Net Zero Pathway Index, which aims to achieve a 50 per cent reduction in carbon intensity compared to an equivalent non-ESG market index, in line with the goals of the Paris Climate Agreement, as well as a continuous reduction in carbon intensity of seven per cent per year.

"With the new ETF, we now offer a full range of products aligned with the Paris Climate Agreement - giving investors suitable solutions for both developed and emerging markets," said Simon Klein, Global Head of Passive Sales at DWS.

All Xtrackers equity ETFs in the Net Zero Pathway series are characterised by the fact that they are oriented towards the Paris Climate Agreement. They also take into account recommendations of the Institutional Investors Group on Climate Change (IIGCC)^[1], as defined in the corresponding "Net Zero Investment Framework Implementation Guide". This means that the indices do not weight the included index members solely on the basis of their carbon intensity, in accordance with the recommendations of the IIGCC.

An overweighting of companies in the indices is based on the extent to which they adopt science-based targets^[2], as defined by the initiative of the same name. Also relevant for the index weighting are the standards for climate reporting as defined by the Task Force on Climate-related Financial Disclosures (TCFD)^[3] and efforts to mitigate climate change.

Product Table

	Xtrackers Emerging Markets Net Zero Pathway Paris Aligned UCITS ETF
ISIN	IE000TZT8TI0
Ticker	XEMN
TER p.a.	0.20%
Underlying Index	Solactive ISS ESG Emerging Markets Net Zero Pathway Index
Income treatment	Capitalizing
Fund Currency	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.

© DWS Investments UK Limited 2022.