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 offers three more Xtrackers ETFs based on the Paris Climate Agreement

  • ETFs provide exposure to the US, European and Japanese equity markets and qualify as Article 9 funds under EU SFDR 
  • DWS now provides five ETFs oriented towards the Paris Climate Agreement and the recommendations of the IIGCC[1]
  • Climate indicators of companies are decisive for overweighting and underweighting in the index

DWS has launched three new Xtrackers ETFs providing exposure to US, European and Japanese equity markets with a focus on ESG (environmental, social and governance) and aligned with the objectives of the Paris Climate Agreement of 2015. It follows the launch in February this year of two ETFs that use the same index methodology and provide exposure to global equities and to the euro area equity market.

The Xtrackers USA Net Zero Pathway Paris Aligned UCITS ETF 1C ESG, the Xtrackers Europe Net Zero Pathway Paris Aligned UCITS ETF 1C ESG  and the Xtrackers Japan Net Zero Pathway Paris Aligned UCITS ETF 1C ESG qualify as Article 9 funds under the EU Sustainable Finance Disclosure Regulation (SFDR). The ETFs aim to reduce emissions in line with the objectives of the Paris Climate Agreement, with the underlying indices therefore corresponding to EU Paris Aligned Benchmark (PAB) regulations. The new ETFs are listed on Deutsche Boerse and the London Stock Exchange, with other exchanges to follow.

The ETFs track Solactive-ISSESG Net Zero Pathway indices, which target a 50% reduction in carbon intensity compared to the equivalent non-ESG market benchmark, as well as a continuous reduction in carbon intensity of 7% year-on-year.

"We see impact investing as one of the major future tasks for asset managers. With the new ETFs, we are expanding our range of climate agreement-oriented ETFs to include important investment regions with a view to performance potential and diversification," said Simon Klein, Global Head of Passive Sales at DWS. "The recent CREATE Report[2] Report has shown that institutional investors are looking for solutions to implement impact investing in their portfolios."

Notably, the Xtrackers Net Zero Pathway Paris Aligned ETFs not only align with the Paris Climate Agreement but go beyond it, by also taking into account recommendations of the Institutional Investors Group on Climate Change (IIGCC), as defined by its Net Zero Investment Framework Implementation Guide. This means the indices not only weight the index members according to their carbon intensity, as recommended by the IIGCC, but also by their commitment to Science Based Target Initiative (SBTI) and Task Force on Climate-related Financial Disclosures (TCFD) reporting standards, as well as measures of ‘green’ revenues.

Overweighting of companies in the indices is based on the extent of adoption of science-based targets, high standards for climate reporting and efforts to mitigate climate change. The indices also use criteria aligned with the United Nations Sustainable Development Goals (SDGs), both in terms of compliance with the principle of ‘Do no significant harm’ and the valuation of ‘green’ sales.

The three new ETFs have competitive annual all-in fees of 0.10% to 0.15% and are designed with the aim of achieving moderate tracking error compared with relevant traditional indices.

Product Table

ETF ISIN Ticker TER Underlying Index Use of Income Share class Currency
Xtrackers USA Net Zero Pathway Paris Aligned UCITS ETF 1C ESG IE0002ZM3JI1 XNUS 0.10% Solactive ISS ESG United States Net Zero Pathway Accumulating USD
Xtrackers Europe Net Zero Pathway Paris Aligned UCITS ETF 1C ESG IE0001JH5CB4 XEPA 0.15% Solactive ISS ESG Europe Net Zero Pathway Accumulating EUR
Xtrackers Japan Net Zero Pathway Paris Aligned UCITS ETF 1C ESG IE00074JLU02 XNJP 0.15% Solactive ISS ESG Japan Net Zero Pathway Accumulating USD

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. The Institutional Investors Group on Climate Change (IIGCC) is the European membership body for investor collaboration on climate change. Its mission is to support the investment community in driving significant progress towards net zero by 2030. https://www.iigcc.org/resource/net-zero-investment-framework-implementation-guide/

2. Download


CIO View