DWS Group changes ESG ETF offerings
DWS Group has made changes to three of its fixed income ETFs including changes to the funds' names, ticker symbols, underlying indexes, investment objectives and investment policies.
In connection with these changes, the ETFs’ respective advisory fees have also been reduced. The changed, renamed ETFs are:
• Xtrackers JP Morgan ESG Emerging Markets Sovereign ETF (Cboe BZX Exchange: ESEB) – previously the Xtrackers Emerging Markets Bond - Interest Rate Hedged ETF (EMIH)). ESEB seeks investment results that correspond generally to the performance, before fees and expenses, of the JP Morgan ESG EMBI Global Diversified Sovereign Index.
• Xtrackers JP Morgan ESG USD High Yield Corporate Bond ETF (Cboe BZX Exchange: ESHY) – previously the Xtrackers High Yield Corporate Bond - Interest Rate Hedged ETF (HYIH)). ESHY seeks investment results that correspond generally to the performance, before fees and expenses, of the JP Morgan ESG DM Corporate High Yield USD Index.
• Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF (Cboe BZX Exchange: ESCR) – previously the Xtrackers Investment Grade Bond - Interest Rate Hedged ETF (IGIH)). ESCR seeks investment results that correspond generally to the performance, before fees and expenses, of the Bloomberg Barclays MSCI US Corporate Sustainability SRI Sector/Credit/Maturity Neutral Index.
“We believe ESG will become increasingly important for investors, especially as the Coronavirus pandemic brings greater attention to the investments needed to make the global economy, society and environment more sustainable,” says Luke Oliver, Head of Index Investing for the Americas at DWS. “Sustainability has always been one of DWS’ core foundational values, and our growing Xtrackers ETF suite continues to deliver ESG solutions across core benchmarks, which can help align client portfolios with business models at the intersection of shareholder and stakeholder value creation.
“With so much choice on the market, investors looking to make allocations to ESG ETFs face a tough challenge when it comes to distinguishing between products and product providers. Investors are increasingly looking at the stewardship practices of asset managers when selecting which products to invest in, and DWS has a long track record of engaging with companies, including proxy voting, to foster positive environmental and social outcomes, such as tackling climate change.”
The above-described ETF changes serve to bolster DWS’ ESG capabilities and the continued innovation of the Xtrackers fund family. In 2019, the firm launched two ESG ETFs, including the US market’s first S&P 500 ESG ETF (SNPE), as well as one of largest ESG ETF by assets (USSG). In addition to ESEB, ESHY and ESCR, DWS currently manages more than USD1.8 billion USD across six ESG ETF products, making it among the largest providers of ESG ETF products in the US.
DWS has long recognised the importance of ESG factors for investors. In 2007 the firm began integrating ESG screens into its investment process. In 2008, DWS was one of the first asset managers to adopt the United Nations Principles for Responsible Investment. In 2010 DWS co-founded the Urban Land Institute’s Green Print Center for Building Performance and committed to the White House Better Buildings Challenge. In 2013 DWS implemented international proxy voting guidelines. And in 2018 DWS incorporated the UN Sustainable Development Goals into its proprietary DWS ESG Engine.