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DWS expands range of Xtrackers ETFs aligned with United Nations Sustainable Development Goals
Calendar01 Apr 2024
Theme: ETF
Fundhouse: DWS

- Sustainable Development Goals (SDGs) address important global challenges
- Xtrackers MSCI Global SDGs Social Fairness Contributors UCITS ETF tracks the performance of companies that are positively aligned with certain socially oriented SDGs
- Almost 400 million euros are already invested into the seven existing SDG focused Xtrackers ETFs since their launch about one year ago

DWS is adding a new listed exchange traded fund to its range of Xtrackers ETFs that are aligned with the United Nations (UN) Sustainable Development Goals. The UN’s Agenda 2030 formulates a total of 17 Sustainable Development Goals (SDGs) to tackle important global challenges. These include food and water supply, health and climate protection among other. The new Xtrackers MSCI Global SDGs Social Fairness Contributors UCITS ETF enables investors to invest in companies that are positively aligned to certain socially oriented SDGs. Specifically, these are SDG 1, 2, 4, 5, 8 and 10.[i]

The ETF is based on the MSCI ACWI Investable Market Index, which includes small, mid and large capitalisation companies from 23 developed and 24 emerging markets. Companies are selected from this universe either if at least 50 per cent of their revenues are generated from socially focused SDG aligned products and services or the companies are assessed as helping promote growth, development, and safeguards for employees and communities. It is important to note that companies whose activities conflict with at least one of the 17 sustainability goals are excluded. In addition, when selecting index members for the ETF, companies that exceed turnover limits in activities related to coal, tobacco and conventional weapons, for example (so-called MSCI SRI screened index methodology), as well as companies that violate one SDG even if they contribute to another, are filtered out. The Xtrackers MSCI Global SDGs Social Fairness Contributors UCITS ETF was listed on the London Stock Exchange on 28 March and on the German Stock Exchange the day before.

"With the Xtrackers MSCI Global SDGs Social Fairness Contributors UCITS ETF, DWS is offering a useful addition to the existing ETF range. It is the first index-based strategy that addresses comprehensive social issues using a thematic approach based on ESG data. It offers investors a broadly diversified and representative allocation to companies that are better aligned with achieving social SDGs," says Olivier Souliac, Head of Indexing, Xtrackers Products at DWS .

For around a year now, DWS has been offering investors the opportunity to invest in companies that are aligned to the achievement of certain SDGs via ETFs. Six existing single goal focused Xtrackers ETFs are: "Sustainable Production and Consumption" (SDG 12), "Sustainable Cities and Communities" (SDG 11), "Industry, Innovation and Infrastructure" (SDG 9), "Affordable and Clean Energy" (SDG 7), "Clean Water and Sanitation" (SDG 6), "Health and Wellbeing" (SDG 3). The Xtrackers MSCI Global SDGs UCITS ETF tracks a combination of all SDGs to which companies can make a measurable product and services related contribution through their activities. Those seven ETFs now hold assets totaling more than 400 million euros.