New Listing

Credit Suisse AM launches DAX ESG ETF

DXESG becomes the lowest-fee DAX 50 ESG ETF, undercutting Amundi's product by 7 basis points

Jamie Gordon

a man wearing glasses and a suit

Credit Suisse Asset Management has joined its European rivals in launching an environmental, social and governance (ESG) ETF targeting German equities. 

The CSIF DAX 50 ESG Blue UCITS ETF (DXESG) is listed on the Deutsche Boerse and SIX Swiss Exchange with a total expense ratio (TER) of 0.12%. 

DXESG tracks the DAX 50 ESG index offers exposure to a basket of the largest German equities which score strongly from an ESG perspective.

Ranking constituents by market cap, turnover and ESG score, the index uses the HDAX index as a baseline and applies exclusion criteria. 

Once UN Global Compact Principles, and screening for controversial weapons, tobacco, coal, nuclear power and military contracts are applied, the top 50 scoring equities are selected, almost halving the 98-strong constituent count of the parent index. 

Each stock is capped at a 7% weighting in the DAX 50 ESG index, with the benchmark reviewed every three months.

Valerio Schmitz-Esser (pictured), head of index solutions at Credit Suisse AM, said: “DXESG allows investors to participate in the growth of Europe’s largest economy while respecting the environmental, social, and governance standards defined by the index methodology.

“Today’s launch underlines the importance of the German market for Credit Suisse AM in general and our index business in particular.”

Stephan Flaegel, chief product officer, index, at Qontigo, added: “The methodology is designed to ensure an ESG index whose liquidity and risk-return characteristics are similar to those of the flagship DAX while drawing from a broader universe.” 

The launch follows the release of other DAX 50 ESG products in 2020, such as the Lyxor DAX 50 ESG UCITS ETF (E909) last April and the Amundi DAX 50 ESG UCITS ETF (DECD) last December. 

Featured in this article