Lyxor Asset Management has cross-listed the Lyxor 1 DAX 50 ESG UCITS ETF on SIX Swiss Exchange.
Lyxor cross-lists DAX ESG ETF on SIX
The fund provides exposure to large- and mid-cap German equities with robust environmental, social, and governance (ESG) characteristics
The new listing trades in Swiss francs under the ticker E909 SW and comes with an expense ratio of 0.23%.
Income is distributed to investors.
The underlying DAX 50 ESG Index belongs to the DAX family of indices, barometers of German stock market performance.
The index is perceived as a responsible alternative to the DAX, the most widely followed performance benchmark for German equities, though the market-cap spectrum of eligible stocks is broader than the conventional DAX.
Constituents are selected from the HDAX universe of approximately 100 stocks which groups all equities that belong to either the large-cap DAX, the mid-cap MDAX, or the technology-focused TecDAX indices.
The methodology harnesses insights from ESG analytics firm Sustainalytics to exclude companies that are involved in controversial weapons, tobacco, thermal coal, nuclear power, and military contracts, as well as those that are in violation of UN Global Compact Principles.
The remaining constituents are then assigned an ESG score that incorporates over 70 core and industry-specific indicators.
The assessment is structured within four dimensions: preparedness, an assessment of company management systems and policies designed to manage material ESG risks; disclosure, an assessment of whether company reporting meets international best practice standards and is transparent with respect to most material ESG issues; quantitative performance, an assessment of company ESG performance based on quantitative metrics such as carbon intensity; and qualitative performance, an assessment of company ESG performance based on the analysis of controversial incidents that the company may be involved in.
The rating also uses a “best-of-sector” analysis to compare companies within a given sector to industry best practices. Underlying each industry group template is a customized weight matrix designed to further highlight the key ESG issues faced by each sector.
Securities are ranked according to a combined score across three parameters: their ESG score, order book volume, and free-float market capitalization. The 50 top-ranked companies are selected for inclusion and weighted by free-float market capitalization subject to a single stock cap of 7%.
The index is reconstituted and rebalanced on a quarterly basis. DAX fast-exit and fast-entry rules apply including any sustainability breaches.