DWS launches short duration US Treasuries ETF

New Xtrackers ETF provides exposure to short duration US Treasuries
Helps meet demand for fixed income exposure with little duration risk but better than money-market returns

DWS Xtrackers has launched an ETF providing ultra-short duration exposure to the US Treasuries market.

The Xtrackers US Treasuries Ultrashort Bond UCITS ETF has listed on the London Stock Exchange and Germany’s Xetra stock exchange, and provides US dollar ultra-short duration exposure. It is expected to appeal especially to institutional investors that require bond exposure but with very low duration risk (the risk of changes in borrowing rates negatively impacting the market value of a bond investment in the time before maturity).

Olivier Souliac, DWS’s Head of Passive Index Strategy & Analytics, commented: “We aim to offer our clients a full range of fixed income exposures to meet all their asset-allocation needs. This new ETF, which provides long US Treasury bond exposure but with ultrashort duration risk, provides investors with a low interest rate risk but improved yield alternative to cash.”

The ETF tracks the FTSE US Treasury Short Duration Index, which references 67 fixed- rate and floating rate US Treasury Securities and T-Bills and has a yield-to-maturity of 0.12% (as at 01/09/20, Source: FTSE Russell). It has an annual all-in fee of 0.07%.

Product Table

Name of ETF	BBG Code	ISIN	Currency	Annual All-in Fee	Physical/Synthetic	UCITS Compliant
Xtrackers US Treasuries Ultrashort Bond UCITS ETF 1C	XT01	IE00BM97MR69	USD	0.07%	Physical	Yes

DWS Group

DWS Group (DWS) is one of the world's leading asset managers with EUR 745bn of assets under management (as of 30 June 2020). 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 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 CIO View, which guides our investment approach strategically.

DWS wants to innovate and shape the future of investing: with approximately 3,500 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 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.

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 (IE) plc is an undertaking for collective investment in transferable securities (UCITS) in accordance with the applicable laws and regulations and set up as open-ended investment company with variable capital and segregated liability between their respective compartments.

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 (IE) plc.

The information contained in this document is provided for information purposes only. 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.

Risk considerations