Xtrackers by DWS switches more ETFs to MSCI Select ESG Screened indices while cutting fees

• Six more Xtrackers ETFs switch to MSCI Select ESG Screened indices
• Product fee cuts also implemented as ESG suite continues to expand
• Product name changes reflecting new index exposures also implemented

Xtrackers by DWS has further expanded its range of exchange-traded funds (ETFs) tracking MSCI Select ESG (environmental, social and governance) Screened indices while also cutting fees on certain products. Yesterday (October 20, 2021), six Xtrackers ETFs switched their underlying index.

Xtrackers MSCI World High Dividend Yield UCITS ETF has switched to become Xtrackers MSCI World ESG Screened UCITS ETF. Its annual all-in fee (total expense ratio) moves from 0.29% to 0.19%. Xtrackers Russell Midcap UCITS ETF is now Xtrackers MSCI USA ESG Screened UCITS ETF, with its annual all-in fee moving from 0.35% to 0.07%. Xtrackers MSCI Europe Mid Cap UCITS ETF switches to become Xtrackers MSCI Europe ESG Screened UCITS ETF. Its annual all-in fee falls from 0.25% to 0.12%. Xtrackers MSCI EMU Minimum Volatility UCITS ETF has become Xtrackers MSCI EMU ESG Screened UCITS ETF, with its annual all-in fee also falling from 0.25% to 0.12%. Xtrackers MSCI AC World UCITS ETF is now Xtrackers MSCI AC World ESG Screened UCITS ETF. It’s annual all-in fee remains constant at 0.25%.

Finally, Xtrackers JPX-Nikkei 400 UCITS ETF, which has four share classes, has become Xtrackers MSCI Japan ESG Screened UCITS ETF. The 0.20% annual all-in fee on the 1D share class moves from 0.20% to 0.15%, with the annual all-in fee on the GBP-hedged (2D), EUR-hedged (3C) and USD-hedged (4C) share classes falling from 0.30% to 0.25%. (See product table for summary).

The latest expansion of the Xtrackers ESG suite follows the completion last month of a programme converting nine existing Europe equity sector Xtrackers ETFs to MSCI Select ESG Screened underlying indices, with corresponding product name changes. The ETFs harness MSCI’s ESG research processes and combine the index provider’s established ESG screened methodology with additional filtering for conventional weapons and other areas while also removing the worst ESG ‘laggards’^[1] in terms of MSCI’s ESG rating system.

“This ambitious programme of switches, alongside fee cuts on certain ETFs to keep them as competitive as possible, creates an extensive range of Xtrackers ESG ETFs which we are confident will be well received by the investment community,” said Michael Mohr, DWS Head of Passive Products.

Product Table

Old Xtrackers ETF Name	Share Class	New Xtrackers ETF name	Old Annual All-in Fee	New Annual All-in Fee
Xtrackers MSCI World High Dividend Yield UCITS ETF	1D	Xtrackers MSCI World ESG Screened UCITS ETF 1D ESG Screened	0.29%	0.19%
Xtrackers Russell Midcap UCITS ETF	1C	Xtrackers MSCI USA ESG Screened UCITS ETF 1C ESG Screened	0.35%	0.07%
Xtrackers MSCI Europe Mid Cap UCITS ETF	1C	Xtrackers MSCI Europe ESG Screened UCITS ETF 1C ESG Screened	0.25%	0.12%
Xtrackers JPX-Nikkei 400 UCITS ETF	1D	Xtrackers MSCI Japan ESG Screened UCITS ETF 1D ESG Screened	0.20%	0.15%
Xtrackers JPX-Nikkei 400 UCITS ETF	2D - GBP Hedged	Xtrackers MSCI Japan ESG Screened UCITS ETF 2D GBP Hedged ESG Screened	0.30%	0.25%
Xtrackers JPX-Nikkei 400 UCITS ETF	3C - EUR Hedged	Xtrackers MSCI Japan ESG Screened UCITS ETF 3C EUR Hedged ESG Screened	0.30%	0.25%
Xtrackers JPX-Nikkei 400 UCITS ETF	4C - USD Hedged	Xtrackers MSCI Japan ESG Screened UCITS ETF 4C USD Hedged ESG Screened	0.30%	0.25%
Xtrackers MSCI EMU Minimum Volatility UCITS ETF	1D	Xtrackers MSCI EMU ESG Screened UCITS ETF 1D ESG Screened	0.25%	0.12%
Xtrackers MSCI AC World UCITS ETF	1C	Xtrackers MSCI AC World ESG Screened UCITS ETF 1C ESG Screened	0.25%	0.25%

 

About DWS Group

DWS Group (DWS) is one of the world's leading asset managers with EUR 859bn of assets under management (as of 30 June 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 3,500 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 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 2021.