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.
12/13/2024
The two ETFs each actively invest in standard or second-line stocks of companies with a high level of research and development activities in the field of green technologies
Flat fees of 0.35 percent and 0.45 percent per year
The ETFs expand the range of Xtrackers ETFs that offer access to equities with environmental criteria in mind
DWS is expanding its Xtrackers ESG product universe with two actively managed ETFs, each of which invests globally in blue chips or small caps from developed economies: The Xtrackers World Green Transition Innovators UCITS ETF 1C (ISIN: LU2859392081) and the Xtrackers World Small Cap Green Transition Innovators UCITS ETF 1C (ISIN: LU2859297330). They enable investors to invest in companies that are characterized by a high level of research and development activities in the field of green technologies, as documented by their respective patent portfolios. The two ETFs were listed on the German Stock Exchange on December 6, 2024. A listing on the London Stock Exchange is planned for December 13.
The transformation of the economy towards climate neutrality and resource conservation continues to be a key sustainability goal of the United Nations (UN) and the European Union (EU). The two Xtrackers Green Transition Innovators (GTI) UCITS ETFs offer an innovative, forward-looking approach to selecting companies that are particularly innovative in the green transition.
"The Xtrackers World Green Transition Innovators ETFs are of interest to investors looking to add an innovation-oriented, green technology-focused component to their portfolios," said Michael Mohr, Global Head of Xtrackers Product at DWS.
Objective and transparent patent data has proven to be useful for assessing the innovative strength of companies. The allocation of patents to defined environmentally sound technologies is standardized by the World Patent Organization. Patent activity can be seen as an indicator of above-average excess returns and earnings growth. Studies have established a correlation between the number of patents granted and value growth in the past[1].
DWS has commissioned Index Capital GmbH as allocation agent to provide investment advice on the composition of the equity portfolio of the two new funds. Index Capital specializes in the development and application of scientifically based concepts for the management of securities portfolios. Managing Director Dr. Andreas Beck said: "International sustainability goals can only be achieved through innovation. The two Green Transition Innovators ETFs follow this market-based logic"
The patent databases are currently being analyzed for Index Capital GmbH by Quant IP GmbH. The data is based on the IPC Green Inventory of the World Intellectual Property Organization, which provides access to patent information on environmentally friendly technologies. "Our evaluations of the global patent databases enable the Green Transition Innovators ETFs to achieve a new quality standard in terms of data depth, objectivity and transparency in sustainable investments," said Managing Director Lucas von Reuss.
The Xtrackers World Green Transition Innovators UCITS ETF tracks around 200 leading companies from various sectors worldwide. The largest individual stocks currently include Microsoft and Nvidia, each with a weighting of around eight percent in the ETF[2]. In addition to technology stocks, the ETF invests in financial service providers, healthcare stocks and retail stocks, among others.
The Xtrackers World Small Cap Green Transition Innovators UCITS ETF tracks around 200 leading companies from various sectors with small and medium market capitalization worldwide. The largest stocks are currently Guardant Health Inc (3.8% weighting), Lyft Inc (2.7%) and Puma SE (2.5%)[2]. The largest sectors are industrials, information technology, consumer staples and healthcare. The sectors and individual companies in both ETFs are weighted according to market capitalization, which makes the ETFs suitable as core investments that track the performance of the broad equity market.
| ETF name | Investment strategy | ISIN | Appropriation of earnings | Ticker | Flat-rate fee p.a. |
|---|---|---|---|---|---|
| Xtrackers World Green Transition Innovators UCITS ETF 1C | Active fund management | LU2859392081 | Accumulating | GTIL | 0.35 % |
| Xtrackers World Small Cap Green Transition Innovators UCITS ETF 1C | Active fund management | LU2859297330 | Accumulating | GTIS | 0.45 % |
Source: DWS, as at 09.12.2024
DWS Group (DWS), with assets under management of 963 billion euros (as of September 30, 2024), aims to be one of the world's leading asset managers. It can look back on more than 60 years of experience and enjoys an excellent reputation in Germany, Europe, America and Asia. Clients around the world trust DWS as a provider of integrated investment solutions. It is recognized as a source of stability and innovation across the entire spectrum of investment disciplines.
DWS offers individuals and institutions access to its powerful investment capabilities across all major liquid and illiquid asset classes as well as solutions that are aligned with growth trends. Our extensive expertise as an asset manager in the active, passive and alternatives business and our strong focus on environmental, social and governance issues complement each other in developing targeted solutions for our clients. The in-depth know-how of our economists, research analysts and investment professionals is summarized in the global CIO View, which serves as a strategic guideline for our investment approach.
DWS wants to shape the future of investing. We want to play a key role in the transition to a more sustainable future - both as a company and as a trusted advisor to our clients. With around 4,700 employees in offices around the world, we have a local presence and a global team. We act decisively on behalf of our clients and invest in their best interests to help them achieve 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, creating the best foundation for our clients' financial futures.
Index Capital specializes in the development and application of scientifically based concepts for the management of securities portfolios. Index Capital has been the asset allocator of the Xtrackers Portfolio ETF for DWS since 2008.
Quant IP GmbH is the leading provider of patent data/information and analytics for the financial market. The Munich-based company supplies high-quality data products to asset managers, hedge funds, pension funds and sovereign wealth funds with more than USD 3 trillion in assets under management.
This document is an advertising communication.
Please read the prospectus and the BIB before making a final investment decision.
DWS is the brand name under which DWS Group GmbH & Co. KGaA and its subsidiaries conduct their business. The responsible legal entities offering DWS products or services are identified in the relevant documents.
The information contained in this document does not constitute investment advice.
The full details of the Xtrackers World (Small Cap) Green Transition Innovators UCITS ETF, including all risks and costs, can be found in the relevant prospectus in the current version. This and the "Key Information Document (KID)" are the sole binding sales documents for the Xtrackers World (Small Cap) Green Transition Innovators UCITS ETF. Investors can obtain these documents, including the regulatory information and the current constitutional documents in German from DWS Investment GmbH, Mainzer Landstraße 11-17, 60329 Frankfurt am Main and, in the case of Luxembourg funds, from DWS Investment S.A., 2, Boulevard Konrad Adenauer, L-1115 Luxembourg, free of charge in written form or electronically in the relevant languages at: www.dws.de for Germany and https://funds.dws.com/ for Austria and Luxembourg and for passive investments www.etf.dws.com
A summary of investor rights for investors in passive products is available at (Germany - German) https://etf.dws.com/de-de/ueber-uns/umgang-mit-beschwerden-etfs/ (Austria - German) https://etf.dws.com/de-at/ueber-uns/umgang-mit-beschwerden-etfs/ (Luxembourg - English) https://etf.dws.com/en-lu/about-us/how-to-complain-etfs/
available. The Management Company may decide to revoke the distribution at any time.
The gross performance (BVI method) takes into account all costs incurred at fund level (e.g. management fee), the net performance also takes into account any front-end load; further costs may be incurred at investor level (e.g. custody account costs), which are not included in the presentation. Past performance is not a reliable indicator of future performance.
Xtrackers® is a registered trademark of DWS Group
The registered office of Xtrackers (RCS no.: B-119.899), a company registered in Luxembourg, is located at 49, Avenue J.F. Kennedy, L-1855 Luxembourg, Luxembourg
CRC 103989 10.12.2024
Information as at September 2024
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