Xtrackers S&P 500 ESG ETF tops USD500m in assets
DWS’s Xtrackers S&P 500 ESG ETF has broken through USD500 million in assets as investor money continues to move into the product amid rising investor interest in environmental, social and governance (ESG) ETFs.
The increasing popularity of the product, which currently registers USD 545 million in assets under management (AUM), is driven by investor demand for sustainable solutions to supplement their investment strategy, while also seeking to generate attractive returns.
DWS, one of the world’s leading asset managers, is also one of the largest ESG ETF providers globally, with USD14 billion AUM in dedicated ESG ETFs. The firm’s Xtrackers suite of funds has an AUM of USD21 billion in the US, and USD178 billion globally.
The Xtrackers S&P 500 ESG ETF tracks large US stocks, with similar risk and return characteristics to the S&P 500 Index, but with a weighting towards companies with the strongest ESG characteristics relative to sector peers. It has a net expense ratio of 0.10 per cent (0.11 per cent gross).
Amanda Rebello, DWS Head of Passive Sales, US onshore, says: “Momentum into Xtrackers ETFs, and in particular into our ESG suite, continues. We expect to see even higher levels of investor interest with the Biden administration’s focus on climate policy, including the Paris Agreement, and also as the economy continues to recover from the impact of the pandemic.”
Listed options on SNPE began trading on the NYSE last month, providing an additional route for investors to gain exposure to the product, as well as potentially hedge existing positions.
The Xtrackers ESG range spans US and international, as well as corporate and emerging market bond exposures, and was awarded ‘ETF Suite of the Year’ at Fund Intelligence’s Mutual Fund Industry and ETF Virtual Awards 2020.4 The Xtrackers ESG range was expanded earlier this year with the launch, in February, of the Xtrackers S&P MidCap 400 ESG ETF (NYSE Arca: MIDE) and Xtrackers S&P SmallCap 600 ESG ETF (NYSE Arca: SMLE).