Industry Updates

DWS cancels synthetic to physical switch on emerging market ESG ETFs

Following clarifications from ESG data providers

Theo Andrew

Emerging markets south-east Asia

DWS has cancelled plans to switch four synthetic emerging market ESG ETFs to physical after clarifications around the ESG data for synthetic ETFs.

In a shareholder notice, DWS said there have been renewed demands among investors for indirectly replicated ESG ETFs after updates from the ESG data providers.

The German asset manager first earmarked the switch in December last year, with the changes due to take place by 12 August.

A DWS spokesperson said: “There has been a shift in market demand towards indirect replication ETFs.”

“Moreover, we have seen important clarifications obtained from ESG data providers around providing of ESG related data for indirect replication ETFs.”

The below ETFs will no longer be switched:

The group previously said XMAI may start engaging in securities lending once the changes had been made, allowing it to generate lending revenue and lowering the cost of investors’ cost of ownership.

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