Risk considerations

Investors should note that the Xtrackers ETFs & ETCs are not capital protected or guaranteed and investors in each Xtrackers ETF or ETC should be prepared and able to sustain losses up to the total capital invested. The value of an investment in an Xtrackers ETF or ETC may go down as well as up and past performance does not predict future returns. Investment in Xtrackers ETFs or ETCs involve risks. For a list of related risks please click on the Risks and Terms tab.

DWS lowers fees for Xtrackers ETFs on China's government bonds and inflation-indexed bonds as well as for Gold ETC

  • Annual all-in fee reduced for two Xtrackers ETFs and one ETC
  • Cost advantages resulting from high inflows passed on to investors
  • Strong demand for gold investment products

DWS has further enhanced the attractiveness of its Xtrackers range by reducing the annual all-in fees for two exchange traded funds (ETFs) and one exchange traded commodity (ETC) as of the beginning of March.

The reductions (see table for details) stem from the cost advantages created by high inflows, which are effectively then passed on to investors. The Xtrackers II Eurozone Inflation-Linked Bond UCITS ETF tracks the euro-denominated inflation-linked bond market and has recorded inflows of EUR 225 million over the past twelve months. Currently, the ETF has assets under management of more than one billion euros[1]. Due to increased inflation expectations, the asset class of inflation-indexed bonds is currently very much in focus for investors.

The Xtrackers II Harvest China Government Bond UCITS ETF, which invests in Chinese government bonds, has registered inflows of around EUR 133 million in the past twelve months. The fund volume currently amounts to around EUR 280 million[2].The ETF tracks an index with an indicative yield-to-maturity of 2.9%. It is seen by defensive investors as an alternative to indices on US and Euro government bond markets.  

In addition, the annual all-in fee of the Xtrackers IE Physical Gold ETC Securities, which has seen inflows of around EUR 2.1 billion over the last twelve months, was reduced. The ETC currently has around EUR 2.6 billion in assets under management[3]. Increased geopolitical risks have historically led to stronger demand for gold investment products.

"We are increasing the attractiveness of these bond ETFs and gold ETC at a time when investors are using these exposures for portfolio adjustments amidst volatility rises," said Michael Mohr, Head of Passive Products at DWS.

Product Table

ETF name TER old TER new ISIN Bloomberg Ticker
Xtrackers II Harvest China Government Bond UCITS ETF 1D 0.35% 0.20% LU1094612022 CGB
Xtrackers II Eurozone Inflation-Linked Bond UCITS ETF 1C 0.20% 0.15% LU0290358224 XEIN
Xtrackers IE Physical Gold ETC Securities 0.15% 0.12% DE000A2T0VU5 XGDU


About DWS Group

DWS Group (DWS) is one of the world's leading asset managers with  EUR 928bn of assets under management (as of 31 December 2021). 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.

1. Source: DWS, March 7, 2022; LU0290358224

2. Source: DWS, March 7, 2022; LU1094612022

3. Source: DWS, March 7, 2022; DE000A2T0VU5


CIO View