Xtrack­ers ex­pands its product range with small-cap ET­Fs

Xtrackers is significantly expanding its small-cap ETF offering. Investors now have efficient access to global and European small caps – both in traditional versions and in those that incorporate ESG strategies.

Often considered particularly innovative, specialised, and growth-oriented, but also volatile, listed small companies (‘small caps’) are active in new or fast-growing industries or serve specialised market niches, among other things. 

The launch of three new ETFs specifically complements the existing product range: in addition to a broadly diversified global small-cap ETF – available in distributing and accumulating versions – two strategies incorporating ESG criteria for global and European small caps are being launched.

Three of the four new ETF share classes offer access to global small caps based on the MSCI World Small Cap Index. This comprises around 4,000 equities from companies with relatively low market capitalisation from 23 industrialised countries. The index thus covers around 14 per cent of global free float market capitalisation – a significant portion of the investable equity universe that is not included in the classic MSCI World Index.

Small cap indices on European and global stocks also offer special internal diversification. Measured in terms of the number of stocks, the natural capping of index weights or the industry and country distribution in the corresponding indices, this sets them apart from traditional large and mid-cap indices. 
By adding small caps, an ETF portfolio can not only be expanded by several thousand stocks, but also broadened to improve risk/return over the long term.

‘With these new products, we want to offer our investors the opportunity to efficiently expand their core equity portfolio, closing a strategic gap,’ says Michael Mohr, Global Head of Xtrackers Product. ‘It is particularly noteworthy that our MSCI World Small Cap ETF is currently the most cost-effective UCITS-listed product in its category.’

‘This year, portfolio diversification is more important than ever, especially for institutional investors,’ says Simon Klein, Global Head of Xtrackers Sales at DWS. ‘Broad small-cap ETFs enable investors to improve the existing risk diversification within traditional equity portfolios in terms of individual stocks, but also in terms of countries and industries.’

Product information

Source: DWS, as of 12/08/2025 

Risks of ETFs include, among others, the following:

• The value of ETF shares may be negatively impacted by legal, economic, or political changes, market volatility, and/or fluctuations in the assets of the sub-fund and/or the underlying index.
• The value of ETF shares may fall below the purchase price, leading to losses. Currency fluctuations may also adversely affect value.
• ETFs are not capital-protected. Share values may fall as well as rise. Past performance is not a reliable indicator of future performance.
• There is no guarantee that a specific redemption amount will be paid at maturity. Redemption values may fall below the original investment. Investors must be prepared to bear losses up to the total investment amount.

About the DWS Group

DWS Group (DWS), with EUR 1,010bn of total assets under management (as of 30 June 2025), is a leading European asset manager with global reach. With approximately 4,800 employees in offices around the world, DWS offers individuals, institutions and large corporations access to comprehensive investment solutions and bespoke portfolios across the full spectrum of investment disciplines. Its diverse expertise in Active, Passive and Alternative asset management enables DWS to deliver targeted solutions for clients across all major liquid and illiquid asset classes.

This document is a marketing communication. Investors should read the prospectus and the Key Information Document (KID) before making an investment decision.

Important information 

DWS is the brand name under which DWS Group GmbH & Co. KGaA and its subsidiaries conduct their business. The legal entities responsible for offering DWS products or services are identified in the relevant documents. 

The information contained in this document does not constitute investment advice. 

Full details of the funds, including all risks and costs, can be found in the current version of the relevant sales prospectus. This prospectus and the ‘Key Information Document (KID)’ constitute the only binding sales documents for the funds.

Investors can obtain these documents, including 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 writing 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  The management company may decide to cease distribution at any time. 

Forecasts are not a reliable indicator of future performance. Forecasts are based on assumptions, estimates, opinions and hypothetical models or analyses that may prove to be inaccurate or incorrect. 

Performance is calculated in accordance with the BVI Bundesverband Investment und Asset Management e.V. method, i.e. without taking into account any front-end load. 

More detailed tax information is provided in the sales prospectus. Past performance is not a reliable indicator of future performance. 

All opinions expressed are those of DWS Group GmbH KGaA at the time of publication and are subject to change without notice. 
This document is a marketing communication and not a financial analysis. Consequently, the information contained in this document does not meet all legal requirements for ensuring the impartiality of investment recommendations and investment strategy recommendations and is not subject to any prohibition on trading prior to the publication of such recommendations. As explained in the relevant sales prospectus, the distribution of the above-mentioned fund(s) is subject to restrictions in certain jurisdictions. This document and the information contained herein may only be distributed or published in countries where this is permitted under the applicable legal provisions. This document may not be distributed directly or indirectly within the United States, to or on behalf of US persons or persons resident in the United States. 

Xtrackers® is a registered trademark of the DWS Group. 

The registered office of Xtrackers (IE) (reg. no.: 393802), a company registered in Ireland, is located at 78 Sir John Rogerson’s Quay, Dublin 2, Ireland.

DWS Group GmbH & Co. KGaA, CRC 107 018 12.08.2025