New ETFs track Value, Momentum, Quality and Minimum Volatility equity factors
- Underlying indices additionally include ESG criteria
- Particularly suitable for investors who want to focus on individual equity factors within an ESG strategy
18 July 2023 – With four new Xtrackers ETFs from DWS, investors can track equity factors in their portfolio. In addition, the ETFs take into account criteria of the index provider MSCI for environment, social and governance (ESG). The new ETFs allow investors to invest in the equity factors Value, Momentum, Quality and Minimum Volatility and track different variants of the MSCI World Factor Low Carbon SRI Screened Select series. The four new Xtrackers MSCI World Factor ESG UCITS ETFs were listed on the German Stock Exchange on 17 July and on the London Stock Exchange on 18 July.
Back in 2014, Xtrackers launched ETFs that allowed investors to track the Value, Quality, Momentum and Minimum Volatility equity factors in their portfolios. Now the new series combines the proven MSCI factor methodology with an ESG approach. It is important to emphasise that the ESG factor indices also reflect the underlying equity factors with similar accuracy as a non-ESG index.
Unlike traditional market capitalisation-based index methods, factor-based approaches target individual sources of return. Value, momentum, quality and minimum volatility are established and widely used equity factors. With them, investors focus on fundamental characteristics such as favourable valuation (Value) and high balance sheet quality (Quality) or on specific share price developments (Momentum, Minimum Volatility). “Almost ten years after Xtrackers launched the first factor ETFs, investors can now also use these strategies as part of a sustainable asset allocation,” says Simon Klein, Global Head of Xtrackers Sales at DWS.
|ETF||Underlying Index||ISIN||Income treatment||Ticker||TER p.a.|
|Xtrackers MSCI World Value ESG UCITS ETF 1C||MSCI World Value Low Carbon SRI Screened Select Index||IE000LAUZQT6||capitalizing||XWEV||0,25 %|
|Xtrackers MSCI World Momentum ESG UCITS ETF 1C||MSCI World Momentum Low Carbon SRI Screened Select Index||IE000TL3PL69||capitalizing||XWEM||0,25 %|
|Xtrackers MSCI World Quality ESG UCITS ETF 1C||MSCI World Quality Low Carbon SRI Screened Select Index||IE0003NQ0IY5||capitalizing||XWEQ||0,25 %|
|Xtrackers MSCI World Minimum Volatility ESG UCITS ETF 1C||MSCI World Minimum Volatility Low Carbon SRI Screened Select Index||IE0008YN0OY8||capitalizing||XWEB||0,25 %|