Industry Updates

DWS cuts fees and takes six more ETFs to ESG indices

Six ETFs to cut fees following the switch

Theo Andrew

ESG globe world

DWS is adding an environmental, social and governance (ESG) filter to six more ETFs as well as slashing fees as it continues its push to green-up the range.

Effective 20 October, the latest round of index swaps will see all six ETFs track MSCI indices with some more than halving fees as the group expands its ESG range.

ETF Stream revealed earlier this month that the issuer would be switching two of its ETFs, the Xtrackers JPX-Nikkei Index 400 UCITS ETF (XDNY) and the £39.6m Xtrackers MSCI Europe Mid Cap UCITS ETF (XEUM) to ESG screened indices.

Under the changes, XDNY is tracking the MSCI Japan Select ESG Screened index and changing its name to the Xtrackers MSCI Japan ESG Screened UCITS ETF while cutting its fees from 0.20% to 0.15%.

In its latest announcement, DWS said that the sterling, US dollar and euro currency hedged versions of the ETF would be reducing fees from 0.30% to 0.25%.

XEUM, which is slashing fees from 0.25% to 0.12%, is switching to MSCI Europe Select ESG Screened index under the new name Xtrackers MSCI Europe ESG Screened UCITS ETF.

Elsewhere, the Xtrackers MSCI World High Dividend Yield UCITS ETF (XDWY) will be renamed the Xtrackers MSCI World ESG Screened UCITS ETF, with the total expense ratio (TER) moving from 0.29% to 0.19%, while the Xtrackers Russell Midcap UCITS ETF (XRSM) will switch to the Xtrackers MSCI USA ESG Screened UCITS ETF, slashing the TER from 0.35% to 0.07%.

In addition, the Xtrackers MSCI EMU Minimum Volatility UCITS ETF (XMVE) will be renamed Xtrackers MSCI EMU ESG Screened UCITS ETF halving its fee from 0.25% to 0.12%.

The Xtrackers MSCI AC World UCITS ETF (XMAW) is now known as the Xtrackers MSCI AC World ESG Screened UCITS ETF and will keep the same TER.

Michael Mohr, head of passive products at DWS, said: “This programme of switches, alongside fee cuts on certain ETFs to keep them as competitive as possible, creates an extensive range of ESG ETFs which we are confident will be well received by the investment community.”

In August, the issuer added an ESG filter to nine of its Europe sector ETF, swapping the index provider from STOXX to MSCI.

The nine ETFs also become fully replicated and started engaging with securities lending, making it one of the first ESG ETFs in Europe to do so.

Earlier this month, DWS said it was delaying planned fee cuts and index switch on its £42m Xtrackers FTSE All-World ex UK UCITS ETF (XDEX) to ensure “operational aspects” are in place.

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