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DWS ‘completes’ climate transition ETF range with emerging market launch

XEMC creates a six-strong CTB range

Theo Andrew

smoke coming from a factory plant

DWS has launched an emerging market Climate Transition Benchmark (CTB) equity ETF completing the range.

The Xtrackers MSCI Emerging Markets Climate Transition UCITS ETF (XEMC) is listed on the Deutsche Boerse with a total expense ratio (TER) of 0.19%.

XEMC tracks the MSCI Emerging Market Select Sustainability Screened CTB index comprised of 868 companies across the region, as at the end of September.

The indices are also designed to meet the minimum standards of the EU’s CTB, which aims for a carbon footprint reduction of 30% and an annual decarbonisation reduction of 7% versus the parent index.

China is currently the largest regional weight in the index at 29.9% followed by Taiwan at 14.9%, India at 14.4% and South Korea at 12%.

Meanwhile, financials are the biggest sector weighting at 24% followed by technology and consumer discretionary at 20.6% and 13.7%, respectively.

It takes the number of ETFs in DWS’s climate transition range to six after the launch of five ETFs in March.

The five other ETFs to launch are:

All ETFs are labelled Article 8 under the Sustainable Finance Disclosure Regulation (SFDR).

Simon Klein, global head of Xtrackers sales at DWS, said: "The new Xtrackers ETF expands DWS's investment solutions, which are orientated towards the EU climate targets, to include the emerging markets region.

"It enables a broadly diversified investment across companies and sectors with significantly lower CO2 emissions compared to the benchmark index."

Earlier this month, DWS launched four regional high-dividend ESG ETFs.

The German asset manager said it was planning on launching a range of target maturity euro corporate bond ETFs before the end of the year.

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