Alternative Investments/ESG: DWS Launches Two ESG S&P500 ETFs In Europe
The two new DWS Xtracker ETFs are listed on the London Stock Exchange and Deutsche Börse Xetra.
DWS launched in December two new ESG-focused UCITS ETFs based on the S&P500 titled the Xtrackers S&P 500 ESG UCITS ETF and Xtrackers S&P 500 Equal Weight ESG UCITS ETF. (ETF Strategy)
The S&P 500 Index tracks the 500 largest companies in the US equity market by market capitalization and is one of the most important equity benchmarks in the world. The S&P 500 Equal Weight Index tracks the same companies but weights all 500 index members equally at 0.2 per cent each.
The two ETFs track the S&P 500 ESG Index and the S&P 500 Equal Weight ESG Index respectively, which consider additional criteria for selecting index members. They initially make a number of exclusions before selecting constituents with a consideration for E, S and G criteria.
Companies that exceed revenue thresholds in activities related to thermal coal, tobacco and controversial weapons, among others are excluded. Also, companies that violate international norms and standards, and those without an S&P DJI ESG score are excluded.
Thereafter, index members are listed according to their S&P DJI ESG Scores and only the companies with the best scores are selected, leaving around 300 stocks out of the original 500 stocks.
While the Xtrackers S&P 500 ESG UCITS ETF comes with an expense ratio of 0.08%, the Xtrackers S&P 500 Equal Weight ESG UCITS ETF has an expense ratio of 0.17%.
Related Story: DWS Launches Paris-Aligned Emerging Market Equity ETF
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