DWS has launched four Xtrackers ETFs designed to provide investors with exposure to innovation drivers in the fintech, genomics and next generation internet sectors.
Eschewing traditional sector classifications, the ETF’s underlying indices select stocks that have significant exposure to technological innovation in their respective focus areas. Underlying stocks consist of large, medium and small-capitalisation companies from both developed and emerging markets, with the weighting of a security in the index dependent on market capitalisation and the stock’s relevance, as measured by revenues generated from selected investment themes. The maximum weighting of each issuer is limited to 4.5 percent and is adjusted quarterly.
The Xtrackers MSCI Fintech Innovation UCITS ETF focuses on companies active in mobile or digital payments, and in digital platforms, among other areas.
The Xtrackers MSCI Genomic Healthcare Innovation UCITS ETF includes companies active in areas such as molecular diagnostics, agricultural biotechnology and bio-informatics, among others.
The Xtrackers MSCI Next Generation Internet Innovation UCITS ETF aims to track an index including companies with a focus on areas such as cloud computing, the ‘internet of things’ (the mass networking of devices), machine learning, social media and artificial intelligence.
Finally, the Xtrackers MSCI Innovation UCITS ETF is a single product composed of all three themes plus the theme of autonomous technology and industrial innovation.
The ETFs listed on XETRA on July 19th, 2022, and on the London Stock Exchange on July 20th, 2022.
The indices tracked by the ETFs also follow MSCI’s ESG Screened methodology. As such, companies that exceed certain turnover thresholds in areas such as tobacco, fossil fuels and weapons manufacturing, companies that have an MSCI ESG rating of “CCC”, and companies involved in controversial or nuclear weapons are excluded.
“We are seeing a lot of interest from investors in thematic ETFs as they are an efficient way to capture the growth potential of individual investment trends. Some segments of the economy have seen rapid technological development, particularly in recent years. We aim to make the drivers of these innovations accessible to investors with these new Xtrackers ETFs,” says Simon Klein, Global Head of Passive Sales at DWS.