- Xtrackers MSCI USA Climate Action Equity ETF receives approximately $2 billion investment from Finnish insurer Ilmarinen to help launch fund; largest ever ETF launch in the U.S.
- Launch strengthens Xtrackers by DWS’s position as a global leader in partnering with top institutional investors to create bespoke client-led solutions
- Fund underscores DWS’s commitment to continuing to be an industry standard-bearer for sustainable investing
DWS, one of the world’s leading asset managers, announced today the listing of Xtrackers MSCI USA Climate Action Equity ETF (NYSE: USCA) (the “Fund”). The Fund is designed for investors seeking exposure to large and mid-cap companies in the United States that are leading their sector peers in taking actions relating to climate transition.
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The investment of approximately $2 billion on the first day of trading makes it the largest ETF launch of all time in the U.S. and also the single largest climate investing ETF launch, underscoring continued investor demand for sustainable investment solutions. The investment into USCA by Ilmarinen, Finland’s largest private earnings-related pension insurance company, is part of Ilmarinen’s investment strategy that is aligned with its goal to achieve a carbon neutral portfolio by the end of the year 2035.
The investment in USCA incorporates existing investments Ilmarinen has in an Xtrackers ETF fund that it helped start in 2019, and that has tripled in assets under management since its launch. With USCA, Ilmarinen and DWS seek to build upon their successful partnership.
DWS Americas CEO Dirk Goergen commented on the launch, saying: “DWS is pleased to partner with Ilmarinen to establish this new Xtrackers fund in the U.S. to help drive the transition to a low carbon economy. As we shared at our Capital Markets Day, we are focused on providing investors bespoke index investment solutions across asset classes and expanding the Xtrackers brand in the Americas with specialized products with attractive long term return opportunity.”
Ilmarinen’s Chief Investment Officer Mikko Mursula commented that “passive strategies form an important part of our overall investment strategy, and it is important to us to align these investments with our climate goals.”
Description of Underlying Index, Fund Expense Ratio and Xtrackers AUM
The Fund, using a “passive” or index investing investment approach, seeks investment results that correspond generally to the performance, before fees and expenses, of the MSCI USA Climate Action Index (the “Underlying Index”), which is comprised of large and mid-capitalization companies in the United States that the index’s methodology assesses as leading their sector peers in taking action relating to a climate transition. Companies from the MSCI USA Index (the “Parent Index”) are assessed relative to their sector peers based on their emissions intensity, emissions reduction commitments, climate risk management and revenue from greener businesses. The Underlying Index uses this assessment to select 50% of the companies from each Global Industry Classification Standard (GICS) sector1 of the Parent Index. Overall, the Underlying Index targets a coverage of 50% of the companies from each GICS sector from the Parent Index.
"U.S. investors considering how to lower their carbon emissions over the long term are looking for best-in-class, forward looking strategies that align with their objectives,“ said Arne Noack, Head of Systematic Investment Solutions, Americas. “The launch of USCA is an example of our ability to launch products that meet the needs of our clients in a timely manner, while further extending our lineup of ETFs to invest in today's markets."
Peter Lidblom, Head of Xtrackers Sales, Nordics said: “This is another milestone in Xtrackers Nordic ETF business where we again have showed our capabilities in launching state of the art and scalable investment solutions to sophisticated investors in our region.”
The Fund, with a net/gross expense ratio of 0.07%, expands to 15 DWS’s robust suite of climate related and environmental, social and governance (ESG) focused ETFs, which as of March 23, 2023, consisted of 14 products with a total of approximately $4.5 billion in assets under management. DWS’s climate related and ESG-focused ETFs represent approximately 24 percent of Xtrackers overall AUM in the U.S. of approximately $19.1 billion as of March 23, 2023.
For more information about Xtrackers ETFs available in the U.S., visit Xtrackers.com.
Note to Editors: Xtrackers’ Global Business
Globally, 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 has approximately $167 billion in assets under management as of February 28, 2023, making Xtrackers one of the largest providers of ETFs and ETCs by AUM.
About DWS Group
DWS Group (DWS) with EUR 821 billion of assets under management (as of December 31, 2022) aspires to be one of the world's leading asset managers. 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, stability 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 complements 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 3,800 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 the Fund’s investment objective, 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 in the U.S. 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.
MSCI and MSCI Index are service marks of MSCI Inc. and have been licensed for use by DBX Advisors. The ETFs are not sponsored, endorsed, issued, sold or promoted by MSCI Inc. nor does this company make any representation regarding the advisability of investing in the ETFs. Index data source: MSCI Inc.
Investing involves risk, including possible loss of principal. Stocks may decline in value. 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.
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 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, 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.
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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-095051-2 (3/23) DBX005504 (3/24)
1 Source: MSCI GICS sectors include: Energy, Materials, Industrials, Consumer Discretionary, Consumer Staples, Health Care, Financials, Information Technology, Communication Services, Utilities and Real Estate.
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