DWS has cross-listed four Xtrackers-branded ETFs onto SIX Swiss Exchange. Each fund provides exposure to equities of firms with high environmental, social and governance (ESG) ratings, as well as small current and expected future carbon footprints.
DWS has cross-listed four ESG equity ETFs onto SIX
The ETFs, which target large- and mid-cap stocks in Japan, the US, Europe and globally, harness sustainability ratings from index provider MSCI.
Each underlying MSCI index excludes companies that generate more than 5% of their earnings from tobacco products. Additionally, companies from sectors with high potential for a negative ESG impact, such as alcohol, gambling, weapons or nuclear energy are not permitted in the reference indices.
Index construction is based on MSCI’s “Global Low Carbon Leaders” and “ESG Leaders” methodologies which are applied independently on the parent indices with securities selected by both methodologies being eligible for inclusion.
Using data from MSCI ESG Research, the “Global Low Carbon Leaders” methodology measures constituents’ greenhouse gas emissions and their potential carbon emissions from fossil fuel reserves.
The 20% of securities with the worst greenhouse gas emissions are excluded subject to sector constraints, while securities with the highest potential carbon emissions are also excluded such that half the total potential carbon emissions of the parent index is eliminated.
The “ESG Leaders” methodology evaluates each firm based on the most pertinent ESG themes specific to its sub-industry and assigns an ESG rating between AAA (highest) and CCC (lowest). Companies that are currently not constituents of the index are required to have an MSCI ESG rating above B to be considered eligible for addition.
All four ETFs have total expense ratios (TERs) of 0.15% and are also listed on the London Stock Exchange, Xetra and Borsa Italiana.
Japan
The Xtrackers ESG MSCI Japan UCITS ETF (XZMJ SW) tracks the MSCI Japan ESG Leaders Low Carbon ex Tobacco Involvement 5% Index, which screens the parent MSCI Japan Index. It trades in US dollars.
USA
The Xtrackers ESG MSCI USA UCITS ETF (XZMU SW) tracks the MSCI USA ESG Leaders Low Carbon ex Tobacco Involvement 5% Index, which screens the parent MSCI USA Index. It also trades in US dollars.
Europe
The Xtrackers ESG MSCI Europe UCITS ETF (XZEU SW) tracks the MSCI Europe ESG Leaders Low Carbon ex Tobacco Involvement 5% Index, which screens the parent MSCI Europe Index. It is the only of the four funds to trade in Swiss francs on SIX.
World
The Xtrackers ESG MSCI World UCITS ETF (XZW0 SW) tracks the MSCI World ESG Leaders Low Carbon ex Tobacco Involvement 5% Index, which screens the parent MSCI World Index. It trades in US dollars.