DWS has reduced the fees charged on 21 of its European-domiciled ETPs.
DWS has reduced the fees across 21 Xtrackers ETPs representing more than €10bn in assets under management.
The products benefitting from reductions comprise ten global equity sector ETFs, eight core market equity ETFs, two commodity basket ETFs, and one physically backed silver ETC.
Collectively, the ETPs house in excess of €10 billion assets under management.
Simon Klein, Global Head of Passive Sales at DWS, said, “We aim to make Xtrackers ETFs and ETCs as competitive as possible, looking at all times to take advantage of economies of scale so we can provide our investors with highly efficient index trackers.”
Highlights
The €2.5bn Xtrackers MSCI USA Swap UCITS ETF, which provides synthetically replicated exposure to US large- and mid-cap stocks, has had its expense ratio halved from 0.30% to 0.15%. ETFs utilizing synthetic (or swap-based) replication have become increasingly popular for certain exposures primarily due to performance benefits, which, in turn, is largely to do with dividends and the application of withholding taxes by countries around the world – the most significant of which for European-based investors is the United States.
Each of DWS’s global sector Xtrackers ETFs, which are linked to MSCI World sector indices and collectively house over €4.1bn AUM, have had their expense ratios trimmed by five basis points to 0.25%. The move may have been in response to rival BlackRock introducing a suite of MSCI global sector ETFs with fees of 0.25% last year.
Investors seeking euro-hedged access to a broad representation of global developed stocks may now access this exposure for a fee of 0.39% following a reduction in the cost of the Xtrackers MSCI World Swap UCITS ETF – EUR Hedged from 0.52%.
While the two broad commodities ETFs seeing fee reductions house less than €200m AUM collectively, they have benefited from the largest price cuts. The Xtrackers DB Bloomberg Commodity Optimum Yield Swap UCITS ETF 2C – EUR Hedged has been cut from 0.95% to 0.24%, and the Xtrackers DBLCI Commodity Optimum Yield Swap UCITS ETF 2C has been cut from 0.55% to 0.29%.
The full list of affected ETFs, along with their old and new expense ratios, is as follows:
Xtrackers MSCI World Consumer Discretionary UCITS ETF 1C; down from 0.30% to 0.25%
Xtrackers MSCI World Industrials UCITS ETF 1C; down from 0.30% to 0.25%
Xtrackers MSCI World Energy UCITS ETF 1C; down from 0.30% to 0.25%
Xtrackers MSCI World Communication Services UCITS ETF 1C; down from 0.30% to 0.25%
Xtrackers MSCI World Utilities UCITS ETF 1C; down from 0.30% to 0.25%
Xtrackers MSCI World Financials UCITS ETF 1C; down from 0.30% to 0.25%
Xtrackers MSCI World Consumer Staples UCITS ETF 1C; down from 0.30% to 0.25%
Xtrackers MSCI World Health Care UCITS ETF 1C; down from 0.30% to 0.25%
Xtrackers MSCI World Information Technology UCITS ETF 1C; down from 0.30% to 0.25%
Xtrackers MSCI World Materials UCITS ETF 1C; down from 0.30% to 0.25%
Xtrackers MSCI Emerging Markets UCITS ETF 1C; down from 0.20% to 0.18%
Xtrackers MSCI AC World UCITS ETF 1C; down from 0.40% to 0.25%
Xtrackers MSCI USA Swap UCITS ETF 1C; down from 0.30% to 0.15%
Xtrackers MSCI World Swap UCITS ETF 4C – EUR Hedged; down from 0.52% to 0.39%
Xtrackers MSCI Japan UCITS ETF 1C; down from 0.30% to 0.20%
Xtrackers MSCI Pacific ex Japan UCITS ETF 2C; down from 0.45% to 0.25%
Xtrackers MSCI Europe Value UCITS ETF 1C; down from 0.25% to 0.15%
Xtrackers FTSE All-Share UCITS ETF 1; down from 0.20% to 0.18%
Xtrackers DB Bloomberg Commodity Optimum Yield Swap UCITS ETF 2C – EUR Hedged; down from 0.95% to 0.24%
Xtrackers DBLCI Commodity Optimum Yield Swap UCITS ETF 2C; down from 0.55% to 0.29%
Xtrackers IE Physical Silver ETC; down from 0.38% to 0.20%