Alternative Investments/ESG: DWS Launches ESG-Themed Bond And Equity ETFs
The twin launches expand DWS’ ESG ETFs range.
DWS, one of the world’s leading asset managers, has launched a USD corporate bond ETF and a euro-hedged global equity ETF under its Xtrackers ESG banner. (ETF Stream)
Xtrackers ESG USD Corporate Bond UCITS ETF (XZBU)
This ETF tracks the Bloomberg Barclays MSCI USD Liquid Investment Grade Corporate Sustainable and SRI Index.
Listed on the London Stock Exchange and Xetra, it has a total expense ratio of 0.16%.
Investors will get exposure to more than 1000 dollar-denominated, investment-grade corporate bonds that match MSCI and Bloomberg Barclays ESG criteria.
– Bonds with remaining maturities of at least 3 years
– Minimum amount outstanding of USD 750mn
– 2% issuer weight capping
– Only bonds issued by companies with an MSCI ESG rating of BBB or above and an MSCI ESG
Controversy score of 1 or above are included
– Bonds issued by companies involved in the following business lines/activities are excluded: Alcohol,
Tobacco, Gambling, Adult Entertainment, Genetically Modified Organisms (GMO), Nuclear Power,
Civilian Firearms, and certain Military Weapons as further described in the index exclusion rules.
The Xtrackers MSCI World ESG UCITS ETF EUR – Hedged (XZWE)
This ETF tracks the MSCI World Low Carbon SRI Leaders Index and offers a euro-hedged version of its parent product.
The fund seeks global stocks that have high ESG performance and low carbon exposure compared to their sector peers.
Last month, DWS launched its Xtrackers II ESG EUR Corporate Bond Short Duration UCITS ETF. The ETF addressed investors’ demand for corporate debt laced with sustainable and socially conscious strategies with a new ESG-focused short-duration corporate bonds ETF.
Simon Klein, global head of DWS passive sales, commented: “These are just the latest additions to our rapidly expanding suite of DWS Xtrackers ETFs designed to meet the surging demand for ESG exposure.”
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