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.
10/24/2024
New Target Maturity ETFs track indices that include EUR corporate bonds with similar maturities in 2028, 2030, 2032 and 2034 respectively
Investors benefit from the possibility of regular distributions and a final distribution of the fund assets at the end of the term
For existing ETFs with fixed maturities, DWS now offers share classes in which profits are retained (accumulated).
DWS has expanded its range of Xtrackers ETFs, which allow investors to invest in a broadly diversified range of euro corporate bonds with similar maturities. The four new Xtrackers II Target Maturity EUR Corporate Bond UCITS ETFs with maturities until September 2028, 2030, 2032 and 2034 were listed on Deutsche Börse last week.
The products are designed in the same way as the Target Maturity ETFs launched in November 2023. They also enable regular quarterly distributions and the remaining fund assets are distributed on the maturity date. Their aim is to combine the advantages of fixed-interest securities with the characteristics of ETFs such as broad diversification, liquidity and ease of trading.
In addition, DWS has now launched additional accumulating share classes for the Target Maturity ETFs already offered with maturities until September 2027, 2029, 2031 and 2033. These were also listed on Deutsche Börse on 9 October 2024. (Product details in the table below).
Since mid-2023, investors have been increasingly demanding fixed-term euro bond ETFs. This product group recorded inflows of EUR 4 billion in Europe (source: DWS, as at 15 October 2024). Target maturity ETFs offer investors the opportunity to participate in the still higher interest rate level in the coming years compared to the zero interest rate phase until 2022. Specifically, the ETFs track the performance of various Bloomberg MSCI indices, each of which contains hundreds of euro corporate bonds with good to very good credit ratings according to leading rating agencies ("investment grade") that have similar maturity dates.
"Fixed income ETFs are playing an increasingly important role in many investment portfolios, says Simon Klein, Global Head of Xtrackers Sales at DWS. "With the significant expansion of our offering, we now provide investors with fixed-term ETFs with target dates between 2027 and 2034. These ETFs combine many of the features of a single bond, but have the diversification and liquidity characteristics of traditional bond ETFs."
| ETF name | ISIN | Utilisation of earnings | Ticker | TER p.a. |
|---|---|---|---|---|
| Xtrackers II Target Maturity Sept 2028 EUR Corporate Bond UCITS ETF 1D | LU2810185665 | Distributing | XB28 | 0.12% |
| Xtrackers II Target Maturity Sept 2030 EUR Corporate Bond UCITS ETF 1D | LU2809864296 | Distributing | XB30 | 0.12% |
| Xtrackers II Target Maturity Sept 2032 EUR Corporate Bond UCITS ETF 1D | LU2809864452 | Distributing | XB32 | 0.12% |
| Xtrackers II Target Maturity Sept 2034 EUR Corporate Bond UCITS ETF 1D | LU2809864619 | Distributing | XB34 | 0.12% |
| Xtrackers II Target Maturity Sept 2027 EUR Corporate Bond UCITS ETF 1C | LU2673522830 | Accumulating | XM27 | 0.12% |
| Xtrackers II Target Maturity Sept 2029 EUR Corporate Bond UCITS ETF 1C | LU2673522913 | Accumulating | XM29 | 0.12% |
| Xtrackers II Target Maturity Sept 2033 EUR Corporate Bond UCITS ETF 1C | LU2673523135 | Accumulating | XM31 | 0.12% |
| Xtrackers II Target Maturity Sept 2031 EUR Corporate Bond UCITS ETF 1C | LU2673523051 | Accumulating | XM33 | 0.12% |
DWS Group (DWS) with EUR 963bn of assets under management (as of 30 September 2024) aspires to be one of the world's leading asset managers. Building on more than 60 years of experience, it has a reputation for excellence in Germany, Europe, the Americas and Asia. DWS is recognized 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 liquid and illiquid asset classes as well as 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 CIO View, giving strategic guidance to our investment approach.
DWS wants to innovate and shape the future of investing. We understand that, both as a corporate as well as a trusted advisor to our clients, we have a crucial role in helping to navigate the transition to a more sustainable future. With approximately 4,700 employees in offices all over the world, we are local while being one global team. We are committed to acting on behalf of our clients and investing with their best interests at heart so that they can reach their financial goals, no matter what the future holds. With our entrepreneurial, collaborative spirit, we work every day to deliver outstanding investment results, in both good and challenging times to build the best foundation for our clients’ financial future.
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