- Launches strengthen DWS's $4 billion1 ESG ETF product lineup to help investors utilize different approaches to U.S. equities
DWS, one of the world’s leading asset managers, announced today the listing of three new exchange-traded funds (ETFs) that provide exposure to U.S. equity investment styles with ESG (environmental, social and governance) screened U.S. dividend, growth and value-oriented equities.
The products, which listed on the CBOE, BZX Exchange today are:
- Xtrackers S&P ESG Dividend Aristocrats ETF (CBOE: SNPD)
- Xtrackers S&P 500 Growth ESG ETF (CBOE: SNPG)
- Xtrackers S&P 500 Value ESG ETF (CBOE: SNPV)
The new listings strengthen DWS’s ESG Xtrackers suite that, together with their competitive net expense ratios, ranges across most major equity and fixed income markets and can be used as core portfolio building blocks. The $4 billion2 fund suite includes: Xtrackers S&P 500 ESG ETF (NYSE Arca: SNPE), Xtrackers S&P MidCap 400 ESG ETF (NYSE Arca: MIDE) and Xtrackers S&P SmallCap 600 ESG ETF (NYSE Arca: SMLE). The ESG ETFs suite is part of DWS’s $18 billion3 Xtrackers U.S. listed portfolio of global equities and fixed income strategies.
“At a time of high inflation and rising interest rates, investors are looking for products that allow them to target specific investment styles in order to tailor their portfolios in line with market expectations,” said Arne Noack, Head of Systematic Investment Solutions, Americas. “Our dividend, growth and value ESG ETFs let them do that, while adding to our series of ETFs that can be useful for investors seeking credible ESG alternatives to mainstream equity indices. New funds also reinforce DWS’s capacity to provide innovative ESG-centric investment solutions across asset classes.”
Margaret Dorn, Senior Director, Head of ESG Indices, North America, S&P Dow Jones Indices said, “We’re very pleased that DWS has selected S&P Dow Jones Indices’ equity ESG indices as underlying benchmarks for their new ETFs. We’re proud to collaborate with clients such as DWS to continue expanding the range of sustainable index-based solutions in the market and provide more transparency to investors in the U.S.”
Amanda Rebello, Head of Passive Sales, U.S. Onshore at DWS, commented: “We are pleased to continue providing innovation in the industry by developing funds that can meet the needs of investors seeking competitively priced core building blocks of a portfolio that also incorporate ESG investment considerations. With the addition of these new funds, ESG investing can now be embedded into an all-cap, all-style solutions for U.S. equities.”
Description of Underlying Indexes and ETF Expense Ratios
Xtrackers S&P ESG Dividend Aristocrats ETF seeks investment results that correspond generally to the performance, before fees and expenses, of the S&P ESG High Yield Dividend Aristocrats Index. The S&P ESG High Yield Dividend Aristocrats Index measures the performance of constituents from the S&P High Yield Dividend Aristocrats Index that meet certain ESG criteria. The S&P High Yield Dividend Aristocrats Index measures the performance of companies within the S&P Composite 1500® Index4 that have followed a policy of consistently increasing dividends every year for at least 20 years.
Xtrackers S&P 500 Growth ESG ETF and Xtrackers S&P 500 Value ESG ETF seek investment results that correspond generally to the performances, before fees and expenses, of the S&P 500 Growth ESG Index and the S&P 500 Value ESG Index, respectively. The S&P 500 Growth ESG Index and the S&P 500 Value ESG Index are broad-based, market capitalization weighted indices that provide exposure to companies with high ESG performance relative to their sector peers, while maintaining similar overall industry group weights as the S&P 500 Growth Index5 and the S&P 500 Value Index6, respectively.
S&P’s assessment of a company’s growth characteristics is generally based on the company’s three-year net change in earnings per share over current price, the three-year sales per share growth rate, and a twelve-month percentage price change measure of momentum. Value characteristics are generally based on the company’s book value to price ratio, earnings to price ratio, and sales to price ratio. A scoring system is used to rank companies on a growth and value basis, with the top third or so of companies selected for each category.
4 The S&P Composite 1500® Index combines three leading indices, the S&P 500® Index, the S&P MidCap 400® Index, and the S&P SmallCap 600® Index, to cover approximately 90% of U.S. market capitalization. (Source: spglobal.com)
5 The S&P 500 Growth Index measures the performance of the large capitalization growth sector of the U.S. equity market and consists of those stocks in the S&P 500 Index exhibiting the strongest growth characteristics, as determined by S&P. (Source: spglobal.com)
6 The S&P 500 Value Index measures the performance of the large-capitalization value sector of the U.S. equity market and consists of those stocks in the S&P 500 Index exhibiting the strongest value characteristics, as determined by S&P. (Source: spglobal.com)
All three ETFs utilize ESG filtering in addition to their investment style focus, and have net/gross expense ratios of 0.15%.
ESG criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments: Environmental (how a company performs as a steward of nature); Social (how a company manages relationships with employees, suppliers, customers, and communities); Governance (company’s leadership, executive pay, shareholder rights, etc.).
Note To Editors
Xtrackers by DWS is a large and established provider of high-quality exchange traded funds (ETFs) and exchange traded commodities (ETCs). Providing efficient ‘passive’ exposure to diversified indices or to single commodities, Xtrackers ETFs and ETCs provide a comprehensive set of dependable investment tools for effective portfolio allocation.
Xtrackers are listed on seven stock exchanges globally and have over $143,894b in assets under management, as of September 2022 making Xtrackers one of the largest providers of ETFs and ETCs by AUM.
DWS is one of the world's leading asset managers with $817bn of assets under management (as of 30 September 2022). Building on more than 60 years of experience, it has a reputation for excellence in Germany, Europe, the Americas and Asia. DWS is recognized by clients globally as a trusted source for integrated investment solutions, longevity, and innovation across a full spectrum of investment disciplines.
We offer individuals and institutions access to our strong investment capabilities across all major liquid and illiquid asset classes as well as solutions aligned to growth trends. Our diverse expertise in Active, Passive and Alternatives asset management complement each other when creating targeted solutions for our clients. Our expertise and on-the-ground knowledge of our economists, research analysts and investment professionals are brought together in one consistent global CIO View, giving strategic guidance to our investment approach.
DWS wants to innovate and shape the future of investing. We understand that both as a firm as well as a trusted advisor to our clients, we have an important role in helping navigate the transition to a more sustainable future. With approximately 3,900 employees in offices all over the world, we are local while being one global team. We are committed to acting on behalf of our clients and investing with their best interests at heart so that they can reach their financial goals, no matter what the future holds. With our entrepreneurial, collaborative spirit, we work every day to deliver outstanding investment results, in both good and challenging times to build the best foundation for our clients’ financial future.
ETF shares are not individually redeemable, and owners of shares may acquire those shares from the Fund or tender such shares for the redemption to the Fund, in Creation Units only.
Consider each fund’s investment objectives, risk factors, and charges and expenses before investing. This and other important information can be found in the fund’s prospectus, which may be obtained by calling 1-855-DBX-ETFS (1-855-329-3837) or by viewing or downloading a prospectus at www.Xtrackers.com. Please read it carefully before investing.
Xtrackers ETFs are managed by DBX Advisors LLC (the Advisor), and distributed by ALPS Distributors, Inc. (ALPS). The Advisor is a wholly owned subsidiary of DWS Group GmbH & Co. KGaA, and is not affiliated with ALPS.
Investing involves risk, including possible loss of principal. Stocks may decline in value. Bond investments are subject to interest-rate, credit, liquidity, and market risks to varying degrees. When interest rates rise, bond prices generally fall. Foreign investing involves greater and different risks than investing in U.S. companies, including currency fluctuations, less liquidity, less developed or less efficient trading markets, lack of comprehensive company information, political instability and differing auditing and legal standards. Emerging markets tend to be more volatile and less liquid than the markets of more mature economies, and generally have less diverse and less mature economic structures and less stable political systems than those of developed countries.
Funds investing in a single industry, country or in a limited geographic region generally are more volatile than more diversified funds. Performance of a fund may diverge from that of an underlying index due to operating expenses, transaction costs, cash flows, use of sampling strategies or operational inefficiencies. There are additional risks associated with investing in high-yield bonds, aggressive growth stocks, non-diversified/concentrated funds and small- and mid-cap stocks which are more fully explained in the prospectuses, as applicable. An investment in any fund should be considered only as a supplement to a complete investment program for those investors willing to accept the risks associated with that fund. Please read the applicable prospectus for more information.
Performance of a Fund may diverge from that of an Underlying Index due to operating expenses, transaction costs, cash flows, use of sampling strategies or operational inefficiencies. There are additional risks associated with investing in high-yield bonds, aggressive growth stocks, non-diversified/concentrated funds and small- and mid-cap stocks which are more fully explained in the prospectuses, as applicable. An investment in any Fund should be considered only as a supplement to a complete investment program for those investors willing to accept the risks associated with that fund. Please read the prospectus for more information.
An Environmental, Social, and Governance (ESG) Fund’s investment strategy limits the types and number of investment opportunities available to the fund and, as a result, the fund may underperform other funds that do not have an ESG focus.
Environmental, social responsibility and corporate governance (ESG) related DWS strategies seek to provide investors with access to assets that meet responsible investment criteria without sacrificing investment returns. Although we strive to incorporate an ESG criterion, as one of many other criteria, in our investment process. In addition, ESG activities and processes may vary by investment strategy, asset type and location.
Past performance is no guarantee of future results.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Certain statements contained in this release may be forward-looking in nature. These include all statements relating to plans, expectations, and other statements that are not historical facts and typically use words like “expect,” “anticipate,” “believe,” “intend,” and similar expressions. Such statements represent management’s current beliefs, based upon information available at the time the statements are made, with regard to the matters addressed. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. Management does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. The following factors, among others, could cause actual results to differ materially from forward-looking statements: (i) the effects of adverse changes in market and economic conditions; (ii) legal and regulatory developments; and (iii) other additional risks and uncertainties, including public health crises (including the recent pandemic spread of the novel coronavirus), war, terrorism, trade disputes and related geopolitical events.
NOT FDIC/ NCUA INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
NOT A DEPOSIT • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
The S&P ESG Dividend Aristocrats Indices, the S&P 500 Value Index, and the S&P 500 Growth ESG Index are products of S&P Dow Jones Indices LLC or its affiliates (“S&P DJI”) and have been licensed for use by DWS Group (“DWS”). S&P® and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and has been licensed for use by S&P Dow Jones Indices; and these trademarks have been licensed for use by S&P DJI and sublicensed for certain purposes by DWS. DWS’ Xtrackers S&P ESG Dividend Aristocrats ETF, Xtrackers S&P 500 Value ESG ETF and Xtrackers S&P 500 Growth ESG ETF are not sponsored, endorsed, sold or promoted by S&P DJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P ESG Dividend Aristocrats, the S&P 500 Value and the S&P 500 Growth ESG indices.
The brand DWS represents DWS Group GmbH & Co. KGaA and any of its subsidiaries such as DWS Distributors, Inc. which offers investment products or DWS Investment Management Americas, Inc. and RREEF America L.L.C. which offer advisory services. R-092904 (11/22) DBX005376 (11/23)
1 As of October 27, 2022