DWS has expanded its range of Xtrackers ETFs with three new products.
The Xtrackers Eurozone Government Green Bond UCITS ETF is designed to offer access to the growing segment of “green” government bonds. Here, the issuers are committed to using the capital collected through the issue to finance sustainable projects – such as environmental and climate protection. Last year, DWS had already launched two Xtrackers ETFs that invest in “green” corporate bonds denominated in Euros and US dollars. The new ETF invests in “green” government bonds in the Eurozone. This market is growing strongly as public budgets play an important role in financing the sustainable transformation of energy networks and infrastructure. The Xtrackers Eurozone Government Green Bond UCITS ETF reports under Article 9 of the Sustainable Finance Disclosure Regulation (SFDR).
The Xtrackers TIPS US Inflation-Linked Bond UCITS ETF also represents an expansion of the ETF range. DWS already offers ETFs that provide exposure to Global and Eurozone inflation-linked bonds. The new ETF gives investors access to the US market for inflation-indexed bonds. Inflation-indexed bonds pay a variable interest rate linked to realised inflation. The bond’s principal repayment can also vary depending on inflation trends.
The Xtrackers Eurozone Government Bond ESG Tilted UCITS ETF complements the existing range of Xtrackers Government Bond ETFs that promote ESG characteristics. While traditional indices base their country weighting on the volume of government bonds issued, the index underlying the new ETF uses a different approach: those countries with a better score for environmental and social standards as well as for good governance (ESG) are weighted higher. While countries with a poorer ESG scores are weighted lower.
“With the new Xtrackers bond ETFs, we are completing our offering in important segments that are attractive to investors. With ETFs on ‘green’ government bonds and ESG-weighted euro government bonds, investors can map their sustainability preferences. Our new ETF on US dollar inflation-indexed bonds is the ideal complement to our successful offering in this segment,” says Simon Klein, Head of Passive Sales at DWS.
The ETFs are listed on Deutsche Boerse, the TIPS US Inflation-Linked Bond UCITS ETF additionally on the London Stock Exchange. Listings of the ETFs on other exchanges are planned.