NEW YORK--(BUSINESS WIRE)--To provide investors with greater ESG exposure across asset classes, DWS Group, one of the world's leading asset managers, today announced changes to three fixed income ETFs. The changes are effective as of May 12, 2020 and include changes to the ETFs’ names, ticker symbols, underlying indexes, investment objectives and investment policies. In connection with these changes, the ETFs’ respective advisory fees have also been reduced. The changed, renamed ETFs are:
- Xtrackers J.P. Morgan ESG Emerging Markets Sovereign ETF (Cboe BZX Exchange, Inc.: ESEB) (previously Xtrackers Emerging Markets Bond - Interest Rate Hedged ETF (EMIH)). ESEB seeks investment results that correspond generally to the performance, before fees and expenses, of the J.P. Morgan ESG EMBI Global Diversified Sovereign Index.
- Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF (Cboe BZX Exchange, Inc.: ESHY) (previously Xtrackers High Yield Corporate Bond - Interest Rate Hedged ETF (HYIH)). ESHY seeks investment results that correspond generally to the performance, before fees and expenses, of the J.P. Morgan ESG DM Corporate High Yield USD Index.
- Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF (Cboe BZX Exchange, Inc.: ESCR) (previously Xtrackers Investment Grade Bond - Interest Rate Hedged ETF (IGIH)). ESCR seeks investment results that correspond generally to the performance, before fees and expenses, of the Bloomberg Barclays MSCI US Corporate Sustainability SRI Sector/Credit/Maturity Neutral Index.
With a 25-year history in the responsible investing space, ESG is a key feature of DWS’ portfolio of products across active, passive and alternatives. Sustainable investing is an important growth area for DWS, and the firm is expanding sustainability-focused products across almost all of its asset classes tailored for both institutional and retail clients as part of its strategy.
“We believe ESG will become increasingly important for investors, especially as the Coronavirus pandemic brings greater attention to the investments needed to make the global economy, society and environment more sustainable,” said Luke Oliver, Head of Index Investing for the Americas at DWS. “Sustainability has always been one of DWS’ core foundational values, and our growing Xtrackers ETF suite continues to deliver ESG solutions across core benchmarks, which can help align client portfolios with business models at the intersection of shareholder and stakeholder value creation.”
“With so much choice on the market, investors looking to make allocations to ESG ETFs face a tough challenge when it comes to distinguishing between products and product providers,” continued Oliver. “Investors are increasingly looking at the stewardship practices of asset managers when selecting which products to invest in, and DWS has a long track record of engaging with companies, including proxy voting, to foster positive environmental and social outcomes, such as tackling climate change.”
The above-described ETF changes serve to bolster DWS’ ESG capabilities and the continued innovation of the Xtrackers fund family. In 2019, the firm launched two ESG ETFs, including the U.S. market’s first S&P 500 ESG ETF (SNPE), as well as one of largest ESG ETF by assets (USSG). In addition to ESEB, ESHY and ESCR, DWS currently manages more than $1.8 billion USD across six ESG ETF products, making it among the largest providers of ESG ETF products in the U.S.
DWS has long recognized the importance of ESG factors for investors. In 2007 the firm began integrating ESG screens into its investment process. In 2008, DWS was one of the first asset managers to adopt the United Nations Principles for Responsible Investment. In 2010 DWS co-founded the Urban Land Institute’s Green Print Center for Building Performance and committed to the White House Better Buildings Challenge. In 2013 DWS implemented international proxy voting guidelines. And in 2018 DWS incorporated the U.N. Sustainable Development Goals into its proprietary DWS ESG Engine.
For more information about DWS’s ETFs available in the U.S. or its commitment to ESG principles, visit: www.Xtrackers.com.
About DWS Group
DWS Group (DWS) is one of the world's leading asset managers with USD 756.7bn of assets under management (as of 31 March 2020). Building on more than 60 years of experience and a reputation for excellence in Germany and across Europe, DWS has come to be 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.
ESEB Risks: 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. Bond investments are subject to interest rate, credit, liquidity and market risks to varying degrees. When interest rates rise, bond prices generally fall. Credit risk refers to the ability of an issuer to make timely payments of principal and interest. Foreign investing involves greater and different risks than investing in US companies, including currency fluctuations, less liquidity, less developed or less efficient trading markets, lack of comprehensive company information, political instability and differing auditing and legal standards. Emerging markets tend to be more volatile and less liquid than the markets of more mature economies, and generally have less diverse and less mature economic structures and less stable political systems than those of developed countries. This fund is non-diversified and can take larger positions in fewer issues, increasing its potential risk. 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. 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 that fund. Please read the prospectus for more information.
ESCR risks: 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. Bond investments are subject to interest rate, credit, liquidity and market risks to varying degrees. When interest rates rise, bond prices generally fall. Credit risk refers to the ability of an issuer to make timely payments of principal and interest. 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. 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 that fund. Please read the prospectus for more information.
ESHY Risks: 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. Bond investments are subject to interest rate, credit, liquidity and market risks to varying degrees. When interest rates rise, bond prices generally fall. Credit risk refers to the ability of an issuer to make timely payments of principal and interest. Investments in lower-quality ("junk bonds") and non-rated securities present greater risk of loss than investments in higher-quality securities. This fund is non-diversified and can take larger positions in fewer issues, increasing its potential risk. 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. 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 that fund. Please read the prospectus for more information.
ESG investment strategy risk. The funds’ underlying indexes’ ESG methodologies, and thus the indexes’ investment strategies, limit the types and number of investment opportunities available to the indexes and, as a result, the indexes may underperform other indexes that do not have an ESG focus. The underlying indexes’ ESG methodologies may result in the index investing in securities or industry sectors that underperform the market as a whole or underperform other indexes screened for ESG standards. In addition, the index providers may be unsuccessful in creating an index composed of companies that exhibit positive ESG characteristics.
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.
BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). BARCLAYS® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg or Bloomberg’s licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays is affiliated with DWS Group, and neither approves, endorses, reviews or recommends Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF. Neither Bloomberg nor Barclays guarantees the timeliness, accurateness or completeness of any data or information relating to Bloomberg Barclays MSCI US Corporate Sustainability SRI Sector/Credit/Maturity Neutral Index, and neither shall be liable in any way to the DWS Group, investors in Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF or other third parties in respect of the use or accuracy of the Bloomberg Barclays MSCI US Corporate Sustainability SRI Sector/Credit/Maturity Neutral Index or any data included therein.
Xtrackers J.P. Morgan ESG Emerging Markets Sovereign ETF and Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF are not sponsored, endorsed, or promoted by JPMorgan Chase & Co. (“JPMorgan”), and JPMorgan bears no liability with respect to any index on which such funds are based. The accuracy, completeness or relevance of the information which has been obtained from external sources cannot be guaranteed, although it has been obtained from sources reasonably believed to be reliable. Subject to any applicable law, JPMorgan shall not assume any liability in this respect. The index described herein is a proprietary J.P. Morgan index. The funds’ prospectuses contain a detailed description of the limited relationship that JPMorgan has with DBX Advisors LLC.
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. (75865-1) (5/20) DBX 4411 (5/21)