Xtrackers lists industry’s first ETFs aligned with United Nations Sustainable Development Goals
- Sustainable Development Goals (SDGs) address key global challenges
- Newly launched Xtrackers MSCI Global SDG UCITS ETFs track six individual goals and a combination of multiple goals
- Relevance of individual companies to the various goals determines inclusion in the underlying index
The United Nations' 2030 Agenda formulates a total of 17 Sustainable Development Goals (SDGs) to address key global challenges. Examples include food and water supply, health and climate protection. To achieve these goals, an estimated five trillion to seven trillion U.S. dollars will be needed annually by 2030. Investment funds play a major role in directing capital to companies that specifically support the formulated goals.
DWS is now the first asset manager to offer the opportunity to invest via ETFs in companies that can contribute to the achievement of specific SDGs. Six Xtrackers MSCI Global SDG UCITS ETFs are each aligned with one of these goals. Index members are selected based on their relevance with respect to these goals. They are thus thematic ETFs that track broad social and economic trends. The SDG themes are supported by a wide range of institutions, states and companies.
The Xtrackers MSCI Global SDGs UCITS ETFs are aligned with six different goals: "Sustainable Production and Consumption" (SDG 12), "Sustainable Cities and Communities" (SDG 11), "Industry, Innovation and Infrastructure" (SDG 9), "Affordable and Clean Energy" (SDG 7), "Clean Water and Sanitation" (SDG 6), "Health and Wellbeing" (SDG 3). The Xtrackers MSCI Global SDGs UCITS ETF tracks a combination of all SDGs to which companies can measurably contribute through their activities. Three ETFs are already listed on Deutsche Börse, the London Stock Exchange and the Swiss Stock Exchange. The four other ETFs are expected to be listed in the coming weeks (see table for more information).
Specifically, the ETFs invest in small, mid and large cap companies from 23 developed and 24 emerging markets. The starting point is the MSCI ACWI Investable Market Index. To identify relevant companies for each goal, various related themes were defined for each sustainability goal. For SDG 11 ("Sustainable Cities and Communities"), for example, these are pollution prevention, smart infrastructure and buildings, or zero-emission vehicles. Only companies whose sales specifically support at least 50 percent of the respective goal are selected for the index. It is important to note that companies whose operations conflict with any of the 17 sustainability goals are excluded. In addition, the selection of index members of the Xtrackers MSCI Global SDG UCITS ETFs filters out companies that exceed revenue thresholds in activities related to, for example, coal, tobacco and conventional weapons (so-called MSCI ESG Screened Index methodology), as well as companies that would violate one SDG even if they contributed to another.
"With our Xtrackers MSCI Global SDG UCITS ETFs we have become the first asset manager to make the United Nations Sustainable Development Goals investable via a rules-based strategy. The goals mapped represent social and economic trends that are broadly supported and can therefore represent an attractive investment target", says Simon Klein, Global Head of Xtrackers Sales at DWS.
Product information
| ETF-Name | ISIN | Listing | Ticker | TER p.a. |
|---|---|---|---|---|
| MSCI Global SDG 12 Circular Economy UCITS ETF 1C | IE000Y6ZXZ48 | Xetra, SIX, LSE | XG12/XD12 | 0.35% |
| MSCI Global SDG 11 Sustainable Cities UCITS ETF 1C | IE000V0GDVU7 | Xetra, SIX, LSE | XG11/XD11 | 0.35% |
| MSCI Global SDG 9 Industry, Innovation & Infrastructure UCITS ETF 1C | IE0005E47AH7 | Xetra, SIX, LSE | SDG9/XDG9 | 0.35% |
| MSCI Global SDG 7 Affordable and Clean Energy UCITS ETF 1C | IE000JZYIUN0 | End of January/early February (planned) | XDG7 | 0.35% |
| MSCI Global SDG 6 Clean Water & Sanitation UCITS ETF 1C | IE0007WJ6B10 | End of January/early February (planned) | XDG6 | 0.35% |
| MSCI Global SDG 3 Good Health UCITS ETF 1C | IE00036F4K40 | End of January/early February (planned) | XDG3 | 0.35% |
| MSCI Global SDGs UCITS ETF 1C | IE000PSF3A70 | End of January/early February (planned) | XDGI | 0.35% |
About DWS Group
DWS Group (DWS) is one of the world's leading asset managers with EUR 833bn of assets under management (as of 30 September 2022). 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 3,600 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 and ETCs 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.
- Investments in ETC securities will not accrue any interest and performance is subject to the deduction of the product fee.
- Pricing of the ETC securities on the secondary market may be at a significant discount or premium compared to the Value per ETC Security (intrinsic value) published by the Issuer. Investments in Xtrackers ETCs involve numerous risks including but not limited to, general market risks relating to the relevant commodities, exchange rate risks, interest rate risks, inflationary risks, liquidity risks, and legal and regulatory risks.
- Movements in exchange rates can impact the value of your investment. If the currency of your country of residence is different from the currency in which the underlying investments of the fund are made, the value of your investment may increase or decrease subject to movements in exchange rates.
- For a full description of risk factors, please refer to the relevant prospectus.
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.
S&P®, S&P 500®, The 500, US 500 are trademarks of S&P Dow Jones Indices LLC or its affiliates (collectively, “S&P DJI”), and have been licensed for use by DWS for use with the Xtrackers. DWS’ Xtrackers ETFs based on the S&P DJI Indices as their underlying interest are not sponsored, endorsed, sold or promoted by S&P DJI or any of their affiliates and S&P DJI makes no representations or recommendations concerning the advisability of investing in such ETFs.
© DWS Investments UK Limited 2022.