DWS has launched a five-strong climate transition equity ETF range targeting US, Japan, Europe, emerging markets and global equities.
The ETFs listed on the Deutsche Boerse on 8 March and will list on the London Stock Exchange tomorrow with total expense ratios (TERs) ranging from 0.09% for US equities and 0.19% for global equities.
Each ETF will track MSCI indices designed to meet the minimum standards of the EU Climate Transition Benchmark (CTB), which will aim to reduce the CO2 intensity of the portfolio.
Typically, CTB indices will aim for a carbon footprint reduction of 30% and an annual decarbonisation reduction of 7% versus the parent index.
Furthermore, they will exclude companies from the parent index that do not meet certain ESG criteria, are active in certain controversial business areas, or exceed certain revenue thresholds for business activities with a high potential impact on climate change.
The five ETFs are:
Xtrackers MSCI USA Climate Transition UCITS ETF (XCUD)
Xtrackers MSCI Japan Climate Transition UCITS ETF (XCJD)
Xtrackers MSCI Europe Climate Transition UCITS ETF (XCET)
Xtrackers MSCI EMU Climate Transition UCITS ETF (XCEU)
Xtrackers MSCI World Climate Transition UCITS ETF (XCTW)
All ETFs will be labelled Article 8 under the Sustainable Finance Disclosure Regulation (SFDR).
In January, DWS unveils a seven-strong thematic ETF range tracking the United Nation’s Sustainable Development Goals (SDGs).
Last month, the German asset manager was forced to close the £62.3m Xtrackers MSCI Europe Energy ESG Screen UCITS ETF (XSER) after changes to its sustainability metrics left it with an “extremely small number of constituents”.
