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 makes Xtrackers bond ETF more attractive

  • ETF continues to track global market for fixed-rate investment grade government and corporate bonds
  • New underlying index excludes issuers with insufficient ESG ratings, from controversial sectors and related to fossil fuels
  • In addition, fees are lowered and index replication is switched to physical

DWS has made the Xtrackers II ESG Global Aggregate Bond UCITS ETF launched in 2014 more attractive for investors. The ETF (see table below for details) continues to offer broad coverage of all major bond segments with investment grade ratings from the leading rating agencies. However, due to an index change, comprehensive criteria for environmental and social standards as well as for good corporate governance (Environment, Social, Governance; ESG for short) are now additionally observed.

The "Bloomberg MSCI Global Aggregate Sustainable and SRI Currency Neutral" index excludes, for example, issuers that are active in controversial sectors such as alcohol, tobacco, military or civilian weapons or gambling and breach certain revenue thresholds. This also applies to issuers involved in the extraction or processing of coal, oil or gas. All issuers eligible for inclusion in the index must also have an MSCI ESG rating of "BBB" or higher. The underlying index with ESG criteria contains around 13,000 bonds, less than half as many as the previous "Bloomberg Global Aggregate Bond" index.

At the same time, index replication has been switched from synthetic to physical. DWS is thus following the preference of many investors who prefer a physical index replication. Also, the ETF's fees have been reduced in order to pass on to investors the cost advantages of high inflows in past years. Currently, the ETF has around EUR 570 million in assets.

"In our view, the Xtrackers II ESG Global Aggregate Bond UCITS ETF offers a very attractive combination for investors who want to track the entire investment-grade bond market with just one ETF, and at the same time stringently comply with sustainability criteria," says Simon Klein, Head of Passive Sales at DWS. "This is a very good example of how we continue to develop our ETFs to meet investor needs."

Product Table

Previous ETF name New ETF name Previous Index New Index
Xtrackers II Global Aggregate Bond Swap UCITS ETF Xtrackers II ESG Global Aggregate Bond UCITS ETF Bloomberg Global Aggregate Bond Bloomberg MSCI Global Aggregate Sustainable and SRI Currency Neutral
Share class ISIN TER
1D Xtrackers II ESG Global Aggregate Bond UCITS ETF 1D ESG 0.10% (old: 0.15%)
2C – USD Hedged Xtrackers II ESG Global Aggregate Bond UCITS ETF 2C USD Hedged ESG 0.15% (old: 0.20%)
3D - GBP Hedged Xtrackers II ESG Global Aggregate Bond UCITS ETF 3D GBP Hedged ESG 0.15% (old: 0.20%)
4C - CHF Hedged Xtrackers II ESG Global Aggregate Bond UCITS ETF 4C CHF Hedged ESG 0.15% (old: 0.20%)
5C - EUR Hedged Xtrackers II ESG Global Aggregate Bond UCITS ETF 5C EUR Hedged ESG 0.15% (old: 0.20%)


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.


CIO View