The ETF will invest in US large and mid-cap stocks, aligning with the objective of transforming economies to net zero.

Asset manager DWS has launched a new ETF that puts US equity investors on the Net Zero Pathway. The Xtrackers Net Zero Pathway Paris Aligned U.S. Equity ETF (NYSE Ticker: USNZ) listed on Tuesday and provides investors with twin exposures – US stocks as well as to a unique Paris Aligned Benchmark (PAB) index that uses a transparent set of rules that aim to be at the cutting edge of sustainable investment practices. (Businesswire)

DWS Xtrackers Net Zero Pathway Paris Aligned U.S. Equity ETF

The ETF will track the Solactive ISS ESG United States Net Zero Pathway Enhanced Index, which was specially developed by Solactive for DWS.

The index is designed to provide a 50% reduction in carbon intensity2 versus a market capitalization weighted U.S. equity index, and a carbon intensity reduction trajectory of 7% year-on-year.

It provides an evidence-based, statistically driven ‘pathway’ to net zero, aligned with the Paris Climate Accords and their two main objectives: to achieve a net zero emissions economy by 2050 and limit the rise in global temperature by 1.5°C above pre-industrial levels.

In addition to meeting PAB regulations, the index also aims to comply with recommendations published by the Institutional Investors Group on Climate Change (IIGCC), specifically its Net Zero Investment Framework.

Regarding equity exposure, the index comprises 386 U.S. large and mid-cap stocks.

The ETF has a gross/net expense ratio of 0.10% per annum.

Fundspeak

“There is a clear need for investments that align with net zero aims. USNZ provides a powerful net zero investment strategy that meets the latest regulatory standards” that govern Paris aligned benchmark indices as defined above,” said Arne Noack, Head of Systematic Investment Solutions, Americas, at DWS. “DWS has a long history of providing ETF investors with specialist investment opportunities that combine the efficiency of passive investing with the advantages of well thought out, rules-based strategies for particular needs. This new listing is another example of that.”

Amanda Rebello, Head of Passive Sales at DWS, U.S. Onshore, commented: “Our clients are keen to play a positive role in helping society reach net zero, and we are confident that this new ETF, with its rigorous index methodology run by Solactive, can help seek to meet that need.”

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