Alternative Investments/ESG: DWS Xtrackers Launches $2B Climate Equity ETF Anchored By Finland Insurer

This fund from Xtrackers is the largest ETF launch of all time in the US.

DWS, a leading asset manager, has announced the launch of Xtrackers MSCI USA Climate Action Equity ETF (NYSE: USCA), which aims to provide investors exposure to large and mid-cap companies in the US that are taking the lead in climate positive steps in their industry group.

The ETF has received an investment of approximately $2 billion on the first day of trading, making it the largest ETF launch in the US and the largest climate investing ETF launch, highlighting investors’ continued appetite for sustainable investment products. The launch is a partnership between DWS and Ilmarinen, Finland’s largest private earnings-related pension insurance company, which is aligned with its goal to achieve a carbon-neutral portfolio by 2035. (DWS)

The ETF uses a “passive” investment approach, seeking investment results that correspond to the performance of the MSCI USA Climate Action Index, which assesses companies based on the extent of their carbon emissions, reduction commitments, climate risk management, and revenue from greener businesses.

The aim of the Underlying Index is to include 50% of companies from every sector of the Parent Index. The Fund has a net/gross expense ratio of 0.07% and is the 15th climate-related and ESG-focused ETF in DWS’s suite of products, which represents around 24% of Xtrackers total AUM in the US of approximately $19.1 billion.

Related Story: Four New ETFs From DWS Themed On UN Sustainable Development Goals

Image by Iván Tamás from Pixabay

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