Bringing you live news and features since 2006 

DWS expands suite of dividend income Xtrackers ETFs


Xtrackers has launched three new dividend ETFs that include a quality filter as part of the securities selection process.

 The Xtrackers Morningstar US Quality Dividend UCITS ETF, the Xtrackers Morningstar Global Quality Dividend UCITS ETF and the Xtrackers MSCI World High Dividend Yield UCITS ETF have listed on the Deutsche Börse and the London Stock Exchange.
DWS writes that all utilise quality screening to tilt towards securities with attractive fundamentals as well as sustainably high dividends.
For example, the index methodology for the Xtrackers MSCI World High Dividend Yield UCITS ETF screens out stocks with weak fundamentals based on return-on-equity, earnings variability and debt-to-equity, while also filtering out stocks with a negative or extremely high pay-out ratio and stocks that do not have a track record of persistent dividend payments. 
The two Xtrackers ETFs tracking Morningstar indices take a different approach, utilising proprietary Morningstar analysis based on the firm’s Economic Moat research methodology, which aims to build a picture of the fundamental health of a company inclusive of intangible factors such as brand impact, as well as other factors. The Morningstar quality screening therefore aims to look beyond accounting metrics.
In February the reference benchmark of the db x-trackers Euro Stoxx Select Dividend 30 UCITS ETF (DR) was changed to track a quality index, with the name of the ETF changing to the Xtrackers Euro Stoxx Quality Dividend UCITS ETF.  
“We want to provide our clients with a sophisticated range of high quality income-oriented ETFs. The approach that most of our income-oriented ETFs now take, focusing on quality screening based on fundamentals and dividend sustainability, can bring a number of benefits, including lower metrics for volatility and maximum drawdown thanks to weighting in favour of more defensive stocks,” says Michael Mohr, Director, ETF Product Development.

Latest News

REX Shares has announced a strategic reorganisation that integrates its REX Shares, MicroSectors, and T-REX products, as well as REX..
Allspring Global Investments writes that as it builds an investment platform for the future, it has filed for exemptive relief..
LSEG Lipper writes that ETF promoters in Europe enjoyed estimated net inflows (+EUR25.1 billion) for May 2024...
The European Fund and Asset Management Association (EFAMA) has published its 2024 industry Fact Book, which includes a foreword by..

Related Articles

Marcus Wayerer, Franklin Templeton
Franklin Templeton says that emerging markets are navigating a tricky environment at the moment, due to factors such as the...
Matt Barry, Touchstone Investments
Back in 2022, Cincinnati, Ohio-based Touchstone Investments launched its first four ETFs, having previously been predominantly a mutual fund company....
CN Tower, Toronto
The winners were announced in the second ETF Express Canadian awards at the event held at The Quay in Toronto,...
Darren Jordan, Komainu
Custody specialist, Komainu, was launched in 2018 as a joint venture between Nomura, digital-asset investment manager, CoinShares and blockchain business,...
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