DWS has launched four new Xtrackers-branded ETFs, providing exposure to equities of firms with high environmental, social and governance (ESG) ratings, as well as small current and expected future carbon footprints.
Four newly launched funds track the evolution of global, US, Japanese and European stock indices, which have been compiled according to Environmental, Social, Governance (ESG) criteria, as well as a small current and future carbon footprint. No companies from sectors with high potential for a negative ESG impact such as alcohol, gambling, weapons or nuclear energy are permitted in the reference indices. Companies that generate more than five per cent of their earnings from tobacco products are also excluded.
The four ETFs provide a choice of investment in stock corporations from Japan, the USA, Europe and around the world.
The new ETFs track indices that are part of the MSCI ESG Leaders Low Carbon ex Tobacco Involvement 5% series. The indices use extensive filtering based on MSCI ESG research, which means included companies meet strict ESG and low carbon requirements.
DWS manages over €20bn of dedicated ESG assets under management, including seven sustainable and impact funds investing in sectors such as clean energy, energy storage and water as well as real estate investments in certified green-labelled buildings.
The new Xtrackers ESG equity ETFs complement the existing Xtrackers II ESG EUR Corporate Bond Ucits ETF, which is also based on a comprehensive MSCI screening process.