Bringing you live news and features since 2006 

DWS expands Xtrackers factor ETF suite

RELATED TOPICS​

DWS has launched a new quality factor exchange-traded fund (ETF) – the Xtrackers Russell 1000 US QARP ETF (QARP).

The fund seeks investment results that generally correspond to the performance of the underlying index that aims to identify companies that have strong quality scores relative to their peers, while also looking at the value scores of the securities to avoid those quality companies that are potentially over-priced. The quality focus also seeks to avoid “value traps” – companies with favourable valuation metrics as they approach bankruptcy, that a pure value exposure would likely fall into.
 
“Quality investing aims to target companies that demonstrate strong and persistent profitability, stability or growth in earnings, and a strong financial foundation. In times of market volatility spikes, quality factor strategies have historically behaved defensively, which may provide opportunities for strong outperformance,” says Fiona Bassett, Global Co-Head of Passive Asset Management. “Factor strategies have historically allowed investors to generate alpha and diversify their portfolios, while managing for downside risk. QARP is designed to provide investors exposure to quality companies at a reasonable price.”
 
QARP, which stands for Quality at a Reasonable Price, seeks investment results that correspond generally to the performance, before fees and expenses, of the Russell 1000 2Qual/Val 5 per cent Capped Index. The launch of QARP adds to the existing Xtrackers comprehensive factor indices line-up, which is designed to track the equity market performance of companies that have demonstrated relatively strong exposure to targeted investment style factors: value, momentum, quality, volatility and size.
 
“We are excited to continue our collaboration with DWS to offer innovative smart beta alternatives to investors,” says Ron Bundy, managing director of global strategic accounts for FTSE Russell. “We seek to stay at the leading edge of smart beta index development, particularly in the emerging multi-factor space and we are pleased to add a multi-factor dimension to the widely followed US large-cap Russell 1000 Index.”
 

Latest News

US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..

Related Articles

Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Lorraine Sereyjol-Garros, BNP Paribas
Following changes to the French Monetary and Financial Code and of the French market authority AMF’s General Regulation, it is...
Ed Rosenberg, Texas Capital
Texas Capital Bank first opened its doors back in December 1998 and nowadays offers wealth-management services, as well as commercial,...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by