Xtrackers by DWS has established a range of ten environmental, social and governance (ESG) screened Europe equity sector ETFs tracking MSCI indices.
Simon Klein, DWS’s Global Head of Passive Sales
- Ten Xtrackers physical replication ETFs on European equity sectors now available, each tracking established index provider MSCI’s indices with ESG screens
- Annual all-in fees reduced from 0.3% per annum to 0.2%
- Continued expansion of Xtrackers ESG / ESG screened range as positive flow momentum continues
A programme of converting nine existing Europe equity sector Xtrackers ETFs to ESG screened MSCI underlying indices, with corresponding product name changes, completed last week. With the launch in June 2021 of the Xtrackers MSCI Europe Consumer Discretionary ESG Screened UCITS ETF 1C, this establishes a range of ten Xtrackers Europe equity sector ESG screened ETFs, all tracking MSCI indices (see table for product details), and all using direct physical replication. The products provide exposure to the following individual sectors: communication services, consumer discretionary, energy, financials, health care, industrials, information technology, utilities, materials, and consumer staples.
The ETFs harness MSCI’s ESG research processes and combine the index provider’s established ESG screened methodology with additional filtering for conventional weapons and other areas while also removing the worst ESG ‘laggards’ in terms of MSCI’s ESG rating system. The products are the first ESG screened equity sector ETFs in the European market and have been classified as Article 8 funds under the European Union’s SFDR (Sustainable Finance Disclosure Regulation).
ETFs in the previous Xtrackers Europe sectors range had annual all-in fees of 0.3%. The new ESG screened Xtrackers Europe sector ETFs have annual all-in fees of 0.2%.
“We are pleased to establish these new Xtrackers ETFs providing exposure to MSCI’s ESG screened Europe sector indices. This is in line with the demand we see from clients, while the highly competitive annual all-in fees should also prove attractive,” said Simon Klein, DWS’s Global Head of Passive Sales.
Flows into Xtrackers ESG ETFs have been positive this year, registering over EUR 4.4 billion year-to-date.
|ETF||BBG Ticker||ISIN||Annual All-in Fee|
|Xtrackers MSCI Europe Communication Services ESG Screened UCITS ETF 1C||XSKR||LU0292104030||0.20%|
|Xtrackers MSCI Europe Consumer Discretionary ESG Screened UCITS ETF 1C||XZEC||IE00BNKF6C99||0.20%|
|Xtrackers MSCI Europe Energy ESG Screened UCITS ETF 1C||XSER||LU0292101796||0.20%|
|Xtrackers MSCI Europe Financials ESG Screened UCITS ETF 1C||XS7R||LU0292103651||0.20%|
|Xtrackers MSCI Europe Health Care ESG Screened UCITS ETF 1C||XSDR||LU0292103222||0.20%|
|Xtrackers MSCI Europe Industrials ESG Screened UCITS ETF 1C||XSNR||LU0292106084||0.20%|
|Xtrackers MSCI Europe Information Technology ESG Screened UCITS ETF 1C||XS8R||LU0292104469||0.20%|
|Xtrackers MSCI Europe Utilities ESG Screened UCITS ETF 1C||XS6R||LU0292104899||0.20%|
|Xtrackers MSCI Europe Materials ESG Screened UCITS ETF 1C||XSPR||LU0292100806||0.20%|
|Xtrackers MSCI Europe Consumer Staples ESG Screened UCITS ETF 1C||XS3R||LU0292105359||0.20%|