Financial News

Xtrackers S&P 500 ESG ETF Breaks Through USD 500 Million in Assets

DWS’s Xtrackers S&P 500 ESG ETF (NYSE Arca: SNPE), has broken through USD 500 million in assets as investor money continues to move into the product amid rising investor interest in environmental, social and governance (ESG) ETFs.

The increasing popularity of the product, which currently registers USD 545 million in assets under management (AUM)1, is driven by investor demand for sustainable solutions to supplement their investment strategy, while also seeking to generate attractive returns.

DWS, one of the world’s leading asset managers, is also one of the largest ESG ETF providers globally, with $14bn AUM in dedicated ESG ETFs. The firm’s Xtrackers suite of funds has an AUM of $21bn in the U.S., and $178bn globally.2

The Xtrackers S&P 500 ESG ETF tracks large US stocks, with similar risk and return characteristics to the S&P 500 Index, but with a weighting towards companies with the strongest ESG characteristics relative to sector peers. It has a net expense ratio of 0.10% (0.11% gross).3

Amanda Rebello, DWS Head of Passive Sales, US onshore, commented: “Momentum into Xtrackers ETFs, and in particular into our ESG suite, continues. We expect to see even higher levels of investor interest with the Biden administration’s focus on climate policy, including the Paris Agreement, and also as the economy continues to recover from the impact of the pandemic.”

Listed options on SNPE began trading on the NYSE last month, providing an additional route for investors to gain exposure to the product, as well as potentially hedge existing positions.

The Xtrackers ESG range spans US- and international, as well as corporate- and emerging market bond exposures, and was awarded ‘ETF Suite of the Year’ at Fund Intelligence’s Mutual Fund Industry and ETF Virtual Awards 2020.4 The Xtrackers ESG range was expanded earlier this year with the launch, in February, of the Xtrackers S&P MidCap 400 ESG ETF (NYSE Arca: MIDE) and Xtrackers S&P SmallCap 600 ESG ETF (NYSE Arca: SMLE).

1 Source: DWS, 13 April 2021

2 Source: DWS, Xtrackers AUM of $14bn in dedicated ESG ETFs; $21bn in the U.S.; and $178bn globally, current as of April 15, 2021.

3 The Advisor has contractually agreed through December 17, 2021 to waive its fees and/or reimburse fund expenses to the extent necessary to prevent the operating expenses of the fund (excluding interest expense, taxes, brokerage expenses, distribution fees or expenses, litigation expenses and other extraordinary expenses) from exceeding 0.10% of the fund’s average daily net assets. This agreement may only be terminated by the fund’s Board (and may not be terminated by the Advisor) prior to that time.

4 Xtrackers ESG ETF product portfolio was named ‘ETF Suite of the Year’ at the 27th annual Fund Intelligence’s Mutual Fund Industry and ETF Virtual Awards 2020. These industry awards are meant to recognize people and organizations whose excellence, achievements and contributions to the mutual fund industry have stood out. In addition, Xtrackers MSCI USA ESG Leaders Equity ETF (USSG) won the ‘Newcomer ESG/Impact ETF of the Year’ accolade. For more information on methodology and judging process for the awards, please visit: https://mutualfundindustryawards.awardstage.com/#!/home-of0eb3nc9stuglc7mkd. The Top ETF Suite award is given to the most successful suite of ETFs as determined by a combination of several elements, such as flows, performance, innovation and fund objectives.

About DWS Group

DWS Group (DWS) is one of the world's leading asset managers with USD 969bn of assets under management (as of 31 December 2020). Building on more than 60 years of experience, it has a reputation for excellence in Germany, Europe, the Americas and Asia. DWS is recognized by clients globally as a trusted source for integrated investment solutions, stability and innovation across a full spectrum of investment disciplines.

We offer individuals and institutions access to our strong investment capabilities across all major asset classes and solutions aligned to growth trends. Our diverse expertise in Active, Passive and Alternatives asset management – as well as our deep environmental, social and governance focus – complement each other when creating targeted solutions for our clients. Our expertise and on-the-ground-knowledge of our economists, research analysts and investment professionals are brought together in one consistent global CIO View, which guides our investment approach strategically.

DWS wants to innovate and shape the future of investing: with approximately 3,500 employees in offices all over the world, we are local while being one global team. We are investors – entrusted to build the best foundation for our clients’ future.

IMPORTANT INFORMATION

ETF shares are not individually redeemable, and owners of shares may acquire those shares from the Fund, or tender such shares for the redemption to the Fund, in Creation Units only.

Consider each fund’s investment objectives, risk factors, and charges and expenses before investing. This and other important information can be found in the fund’s prospectus, which may be obtained by calling 1-855-DBX-ETFS (1-855-329-3837) or by viewing or downloading a prospectus at www.Xtrackers.com. Please read it carefully before investing.

Xtrackers ETFs are managed by DBX Advisors LLC (the Advisor), and distributed by ALPS Distributors, Inc. (ALPS). The Advisor is a wholly owned subsidiary of DWS Group GmbH & Co. KGaA, and is not affiliated with ALPS.

Xtrackers S&P 500 ESG ETF: Investing involves risk, including the possible loss of principal. Investing in securities that meet ESG criteria may result in the fund forgoing otherwise attractive opportunities, which may result in underperformance when compared to funds that do not consider ESG factors. Stocks may decline in value. Stocks of medium-sized companies involve greater risk than securities of larger, more-established companies. Funds investing in a single industry, country or in a limited geographic region generally are more volatile than more diversified funds. Various factors, including costs, cash flows and security selection, may cause the fund’s performance to differ from that of the index. Performance of the fund may diverge from that of the Underlying Index due to operating expenses, transaction costs, cash flows, use of sampling strategies or operational inefficiencies. This fund is non-diversified and can take larger positions in fewer issues, increasing its potential risk. An investment in this fund should be considered only as a supplement to a complete investment program for those investors willing to accept the risks associated with the fund. Please read the prospectus for more information.

Xtrackers S&P MidCap 400 ESG ETF: ESG criteria in a fund’s investment strategy does not guarantee a return or protect against a loss. This fund is new and has limited operating history. Investing involves risk, including the possible loss of principal. Stocks may decline in value. Stocks of medium‐sized companies involve greater risk than securities of larger, more‐established companies. Performance of the Fund may diverge from that of the Underlying Index due to operating expenses, transaction costs, cash flows, use of sampling strategies or operational inefficiencies. This fund is non‐diversified and can take larger positions in fewer issues, increasing its potential risk. Investing in securities that meet ESG criteria may result in the fund forgoing otherwise attractive opportunities, which may result in underperformance when compared to funds that do not consider ESG factors. An investment in this fund should be considered only as a supplement to a complete investment program for those investors willing to accept the risks associated with the fund. Please read the prospectus for more information.

Xtrackers S&P SmallCap 600 ESG ETF: ESG criteria in a fund’s investment strategy does not guarantee a return or protect against a loss. This fund is new and has limited operating history. Investing involves risk, including the possible loss of principal. Stocks may decline in value. Small company stocks tend to be more volatile than medium‐sized or large company stocks. Performance of the Fund may diverge from that of the Underlying Index due to operating expenses, transaction costs, cash flows, use of sampling strategies or operational inefficiencies. This fund is non‐diversified and can take larger positions in fewer issues, increasing its potential risk. Investing in securities that meet ESG criteria may result in the fund forgoing otherwise attractive opportunities, which may result in underperformance when compared to funds that do not consider ESG factors. An investment in this fund should be considered only as a supplement to a complete investment program for those investors willing to accept the risks associated with the fund. Please read the prospectus for more information.

Past performance is no guarantee of future results.

This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.

Certain statements contained in this release may be forward-looking in nature. These include all statements relating to plans, expectations, and other statements that are not historical facts and typically use words like “expect,” “anticipate,” “believe,” “intend,” and similar expressions. Such statements represent management’s current beliefs, based upon information available at the time the statements are made, with regard to the matters addressed. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. Management does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. The following factors, among others, could cause actual results to differ materially from forward-looking statements: (i) the effects of adverse changes in market and economic conditions; (ii) legal and regulatory developments; and (iii) other additional risks and uncertainties, including public health crises (including the recent pandemic spread of the novel coronavirus), war, terrorism, trade disputes and related geopolitical events.

NOT FDIC/ NCUA INSURED • MAY LOSE VALUE • NO BANK GUARANTEE

NOT A DEPOSIT • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY

The brand DWS represents DWS Group GmbH & Co. KGaA and any of its subsidiaries such as DWS Distributors, Inc. which offers investment products or DWS Investment Management Americas, Inc. and RREEF America L.L.C. which offer advisory services.

R- 082722-1 (4/21) DBX004882 (4/22)

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