Industry Updates

DWS closes two bond ETFs on low AUM

The two credit swap ETFs had ‘limited interest’ from investors

Theo Andrew

Locked shutters closed business

DWS has shut two fixed income ETFs due to “limited interest” from investors and low assets under management (AUM).

In a shareholder notice, the German asset manager said it will shut the Xtrackers iTraxx Europe Swap UCITS ETF (XTXE) and the Xtrackers EUR Credit 12.5 Swap UCITS ETF (D3V3) on 23 March.

DWS said the AUM of XTXE and D3V3 had fallen “below the specified addendum” at €8.6m and €7.7m, respectively.

The ETFs will delist from the Deutsche Boerse on 17 March with the repurchase price to be determined by the last net asset value calculated on 23 March.

A DWS spokesperson said: “The closure of certain ETFs with limited interest from investors and low AUM is part of our normal platform maintenance work.

“However, closures are rather an exception, in 2022 more than 50 new Xtrackers ETFs and share classes were launched or new indices were used.”

The German asset manager has been rapidly expanding its product offering in recent months with a focus on ESG ETFs.

In January, ETF Stream revealed the group launched seven thematic ETFs tracking the United Nation’s Sustainable Development Goals.

A month earlier it unveiled the Xtrackers S&P 500 Equal Weight ESG UCITS ETF (XZEW) and the Xtrackers Emerging Market Net Zero Pathway Paris Aligned UCITS ETF (XEMN).

Last December, DWS said it wanted to leapfrog Amundi to regain its position as Europe's second-largest exchange-traded product (ETP) issuer by AUM by 2025.

Investors pulled €7.1bn from its ETF range in 2022 as “clients de-risked their portfolios given the adverse environment and prevailing expectations of a recession”.

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