Investment Product and Service Launches

DWS releases climate-focused Xtrackers ETF.

By DJ Shaw



DWS Releases Climate-Focused Xtrackers ETF

DWS has announced the launch of a new Xtrackers exchange-traded fund. It provides large and mid-cap U.S. equity exposure aligned with an internationally recognized framework and is designed to capture the move of the global economy to a net-zero emissions environment.

Listed on the New York Stock Exchange, the Xtrackers Net Zero Pathway Paris Aligned U.S. Equity ETF provides exposure to a Paris-aligned benchmark index that uses a transparent set of rules that aim to be at the forefront of sustainable investment practices. The index is designed to provide a 50% reduction in carbon intensity relative to a capitalization-weighted U.S. equity index, and a carbon intensity reduction trajectory of 7% year over year. It provides an evidence-based, statistically driven ‘pathway’ to net zero, aligned with the Paris Climate Accords and their two main objectives: to achieve a net-zero emissions economy by 2050 and limit the rise in global temperature to 1.5°C above pre-industrial levels.

In addition to meeting PAB regulations, the index also aims to comply with recommendations published by the Institutional Investors Group on Climate Change, specifically its Net Zero Investment Framework.

DWS engaged with index provider Solactive to develop the index, which is called the Solactive ISS ESG United States Net Zero Pathway Enhanced Index. It consists of 386 U.S. large and mid-cap stocks and is rebalanced semiannually.

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