Alternative Investments/ESG: DWS Introduces A Range Of Factor-Based Equity ETFs With A Focus On ESG

The DWS global equity factor range of four ETFs is now available in an ESG avatar.
DWS has introduced a series of exchange-traded funds (ETFs) that offer an environmental, social, and governance (ESG) version of its global equity factor ETFs range. These ETFs, listed on the Deutsche Boerse and the London Stock Exchange, have a total expense ratio of 0.25%. The funds track MSCI indices and focus on low carbon metrics and socially responsible investing, targeting large and mid-cap companies from developed countries.
The ETFs in the range include Xtrackers MSCI World Minimum Volatility ESG UCITS ETF (XWEB), Xtrackers MSCI World Momentum ESG UCITS ETF (XWEM), Xtrackers MSCI World Quality ESG UCITS ETF (XWEQ), and Xtrackers MSCI World Value ESG UCITS ETF (XWEV).
The selection and weighting of companies will be based on MSCI’s factor approach. The DWS ETFs apply different strategies, such as minimizing risk, selecting stocks with strong price performance, and using quality metrics or valuation indicators. (ETF STREAM)
Companies with low MSCI ESG ratings or involvement in certain industries like nuclear weapons, tobacco, alcohol, gambling, fossil fuel extraction, and thermal coal are excluded, as well as those not complying with the United Nations Global Compact principles.
The index constituents are chosen through an optimization process that considers climate, environmental, and social objectives, including reducing greenhouse gas emissions and active fossil fuel exposure. These ESG ETFs are offered at the same price as their non-ESG counterparts and currently have a combined £2.7 billion in assets under management.
This launch follows the introduction by DWS of the Xtrackers J.P. Morgan EM Local Government Bond UCITS ETF (XEML) in May.
Related Story: Four New ETFs From DWS Themed On UN Sustainable Development Goals
Image by Alain Audet from Pixabay

Latest Alternative Investment News

Digital Assets: 1% Of Chileans Sign Up For Worldcoin; Rush Seen In Argentina, Too
Worldcoin, the innovative biometric wallet and ID project, is making significant waves in Chile as it surpasses a remarkable milestone. The organization has reported that over 200,000 Chileans have embraced…

FinTech: Atom Bank And Kamma To Partner For Greening UK Mortgage Assets
Atom bank and Kamma have formed a significant partnership aimed at addressing the pressing concerns of climate change. This collaboration brings together Atom bank’s cutting-edge banking technology with Kamma’s climate…

Venture Capital: Slope, A B2B Solutions Provider Backed By Sam Altman, Scores $30M Funding
Slope, a two-year-old AI startup based in San Francisco, has secured a substantial $30 million equity round led by Union Square Ventures and featuring participation from OpenAI’s CEO, Sam Altman….

Artificial Intelligence: Palantir Awarded $250M Contract By US Department Of Defense For AI R&D
Palantir Technologies Inc. (NYSE: PLTR) has secured a significant contract worth $250 million with the US Defense Department. The primary focus of this contract is the research and development of…