DWS Expands Xtrackers High Yield Fixed Income ETF Suite

NEW YORK, NY – November 7, 2023 – DWS has launched a new Xtrackers ETF that tracks a subset of the ICE BofA US High Yield Index with sector and rating constraints, offering a unique high yield investment opportunity to investors. DWS is expanding its successful high yield fixed income ETF suite, which has approximately $3 billion in assets (as of October 12, 2023), in order to meet investor demand for products targeting the higher rated segment of the high yield market. 

The Xtrackers USD High Yield BB-B ex Financials ETF (the “Fund") was listed on the Chicago Board Options Exchange as of October 27, 2023. The Fund’s underlying index, the ICE BofA BB-B Non FNCL Non-Distressed US HY Constrained Index, (the Underlying Index), is a subset of the ICE BofA US High Yield Index (Parent Index), which is designed to track the performance of US dollar-denominated sub-investment grade corporate debt publicly issued in the US domestic market.  

The Parent Index is comprised of individual securities with, among other characteristics, a below-investment grade rating (based on an average of ratings from leading rating agencies), a fixed-coupon schedule and a minimum amount outstanding of $250 million. To qualify for the Parent Index a bond must have an assigned country of risk that is either a member of the FX-G10 (all Eurozone members, the US, Japan, the UK, Canada, Australia, New Zealand, Switzerland, Norway, and Sweden), Western Europe or the territories of the US and Western Europe. 

The Underlying Index excludes financial issuers (i.e., banking, financial services, insurance and financial/commodity exchange issuers) and restricts the credit ratings of its constituent securities to securities rated BB1 through B3, inclusive, based on an average of ratings from Moody’s, S&P and Fitch. Additionally, constituent securities are required to have an option-adjusted spread of less than 10%. (Option-adjusted spread helps investors compare a fixed-income security’s cash flow to reference rates while also valuing a bond’s embedded options against general market volatility. By considering both components, investors can evaluate whether a fixed income investment is worthwhile at a given price.)

"High yield corporate bond exposure continues to provide attractive returns in the current interest rate environment, although investors are looking for solutions to mitigate possible pressure and volatility in the high yield segment”, says Amanda Rebello, Head of Xtrackers Sales, US Onshore. “Our new Xtrackers USD High Yield BB-B ex Financials ETF is intended to meet this investor demand”.  

Xtrackers High Yield ETF suite[1]

Ticker Fund Name AUM
HYLB Xtrackers USD High Yield Corporate Bond ETF $3,533,424,453
HYDW Xtrackers Low Beta High Yield Bond ETF $218,288,978
SHYL Xtrackers Short Duration High Yield Bond ETF $88,039,890
HYRM Xtrackers Risk Managed USD High Yield Strategy ETF $43,070,538
HYUP Xtrackers High Beta High Yield Bond ETF $11,736,758
ESHY Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF $5,348,819

 

The addition of BHYB expands the Xtrackers US product suite to 43 funds, which as of September 30, 2023, had $18.8 billion in assets under management. Since January 2023, Xtrackers by DWS has launched 5 ETFs and has plans to continue to approach the market with innovative, cost disruptive indexing strategies that give investors building blocks to various types of exposures.  

To learn more about Xtrackers ETFs available in the US, please visit www.etf.dws.com/en-us/etf-products/. 

 

*Based on ICE Fixed Income Sector Classification Schema – Level 2 Financial.

**USD High Yield BB-B ex Financials ETF (dws.com)

1. Source BONYM, September 30, 2023

font

About DWS Group 

DWS Group (DWS) with EUR 860bn of assets under management (as of September 30, 2023) aspires to be one of the world's leading asset managers. 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 liquid and illiquid asset classes as well as 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, giving strategic guidance to our investment approach. 

DWS wants to innovate and shape the future of investing. We understand that, both as a corporate as well as a trusted advisor to our clients, we have a crucial role in helping navigate the transition to a more sustainable future. With approximately 4,400 employees in offices all over the world, we are local while being one global team. We are committed to acting on behalf of our clients and investing with their best interests at heart so that they can reach 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, to build the best foundation for our clients’ financial future. 

 

IMPORTANT INFORMATION 

ETF shares are not individually redeemable, and owners of shares may acquire those shares from a Fund or tender such shares for the redemption to the Fund in Creation Units only. 

Consider the Fund’s investment objective, risk factors and charges and expenses before investing. This and other important information can be found in the Fund’s prospectus, which may be obtained by calling 1-844-851-4255 or by viewing or downloading a prospectus at www.Xtrackers.com. Please read it carefully before investing. 

The brand Xtrackers represents all systematic investment solutions. Xtrackers ETFs in the U.S. are managed by DBX Advisors LLC (the Advisor) and distributed by ALPS Distributors, Inc. (ALPS). The Advisor is a wholly owned subsidiary of DWS Group GmbH & Co. KGaA and is not affiliated with ALPS. 

Investing involves risk, including possible loss of principal. Bond investments are subject to interest rate, credit, liquidity, and market risks to varying degrees. When interest rates rise, bond prices generally fall. Credit risk refers to the ability of an issuer to make timely payments of principal and interest.  If interest rates rise due to reasons other than inflation, the fund's investment in inflation indexed bonds may not be fully protected from the effects of rising interest rates.  This fund is non-diversified and can take larger positions in fewer issues, increasing its potential risk. An investment in the fund should be considered only as a supplement to a complete investment program for those investors willing to accept the risks associated with the fund. Please read the prospectus for more information. 

Credit ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). All Fund securities except for those labeled Not Rated and Other have been rated by Moody’s, S&P or Fitch, which are each a Nationally Recognized Statistical Rating Organization (NRSRO). All Index securities except for those labeled Not Rated have been rated by Moody’s or S&P. Credit ratings are subject to change. One cannot invest directly into an index.

 

ESG Disclosures  

Environmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments: Environmental (how a company performs as a steward of nature); Social (how a company manages relationships with employees, suppliers, customers, and communities); Governance (company’s leadership, executive pay, shareholder rights, etc). 

An ESG fund investment strategy limits the types and number of investment opportunities available to the fund and, as a result, the fund may underperform other funds that do not have an ESG focus. 

ESG related DWS strategies seek to provide investors with access to assets that meet responsible investment criteria without sacrificing investment returns. Although we strive to incorporate an ESG criterion, as one of many other criteria, in our investment process, ESG activities and processes may vary by investment strategy, asset type and location. 

 

Past performance is no guarantee of future results. 

War, terrorism, sanctions, economic uncertainty, trade disputes, public health crises and related geopolitical events have led, and, in the future, may lead to significant disruptions in U.S. and world economies and markets, which may lead to increased market volatility and may have significant adverse effects on the fund and its investments. 

This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction. 

Certain statements contained in this release may be forward-looking in nature. These include all statements relating to plans, expectations, and other statements that are not historical facts and typically use words like “expect,” “anticipate,” “believe,” “intend,” and similar expressions. Such statements represent management’s current beliefs, based upon information available at the time the statements are made, with regard to the matters addressed. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. Management does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. The following factors, among others, could cause actual results to differ materially from forward-looking statements: (i) the effects of adverse changes in market and economic conditions; (ii) legal and regulatory developments; and (iii) other additional risks and uncertainties, including public health crises (including the pandemic spread of the novel coronavirus), war, terrorism, trade disputes and related geopolitical events. 

NOT FDIC/ NCUA INSURED • MAY LOSE VALUE • NO BANK GUARANTEE 

The brand DWS represents DWS Group GmbH & Co. KGaA and any of its subsidiaries such as DWS Distributors, Inc., which offers investment products, or DBX Advisors LLC, DWS Investment Management Americas, Inc. and RREEF America L.L.C., which offer advisory services.

CIO View