DWS unveils ETFs targeting UN sustainable development goals
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DWS is launching a seven-strong range of thematic exchange traded funds that specifically target United Nations’ Sustainable Development Goals.
The listed €833bn asset manager has started trading the first three ETFs of the new Dublin-domiciled Xtrackers product suite in London, Frankfurt and Zurich, while the remaining four products will be listed in the next few weeks.
The ETFs all track MSCI benchmarks and have total expense ratios of 0.35 per cent.
One of the ETFs is a diversified global SDG strategy, while the six others are linked to single SDGs.
The range includes ETFs focusing on individual SDGs such as good health, sustainable cities, clean water and sanitation, as well as the circular economy.
“Index members are selected based on their relevance with respect to these goals,” according to the fund house controlled by Deutsche Bank.
“They are thus thematic ETFs that track broad social and economic trends.”
The offerings, which are classified under the lighter green Article 8 of the EU’s Sustainable Finance Disclosure Regulation, are registered for sale across much of Europe including France, Germany, the UK, Italy, Spain and Switzerland.
Simon Klein, global head of Xtrackers sales at the Frankfurt-based asset manager, said: “With our Xtrackers MSCI Global SDG Ucits ETFs we have become the first asset manager to make the United Nations Sustainable Development Goals investable via a rules-based strategy.
“The goals mapped represent social and economic trends that are broadly supported and can therefore represent an attractive investment target.”
The launches come against a backdrop of increasing scrutiny by regulators of potential greenwashing by asset managers claiming to invest according to environmental, social and governance criteria.
*Ignites Europe is a news service published by FT Specialist for professionals working in the asset management industry. It covers everything from new product launches to regulations and industry trends. Trials and subscriptions are available at igniteseurope.com.