DWS will see the index methodology change on several German equity products including its $4.5bn DAX ETF.
The changes – which come into effect 18 March – will see five ETFs have their capping limits raised from 10% to 15% after index provider STOXX conducted a market consultation on the range.
The changes will raise the capping limit for the largest weighted company from 10% to 15%, DWS said in a shareholder notice.
The move was made to “enhance the representativeness of DAX with regards to the German stock market and the attractiveness of Frankfurt as a listing venue”, STOXX said.
Impacted ETFs are:
Xtrackers DAX UCITS ETF (XDAX)
The DAX index is made up of 40 German blue-chip companies and is weighted by free-float adjusted market capitalisation.
The index’s highest weighting is Sap SE which makes up 10.75% of the index, followed by Siemens at 10.10% and Allianz at 7.98%.
In 2020, DAX overhauled its methodology in a bid to make it more attractive to investors.
These changes included expanding the group from 30 to 40 constituents, new profitability metrics and removing insolvent constituents within two trading days.
Other news from DWS came last December when launched three US Treasury ETFs with different maturity bands, the Xtrackers US Treasuries 3-7 UCITS ETF (LT13), the Xtrackers US Treasuries 7-10 UCITS ETF (LT09) and the Xtrackers US Treasuries 10+ UCITS ETF (LUTR).
