New Listing

DWS expands thematic ETF range with quadruple launch

The four ETFs apply ESG screens

Theo Andrew

a man in a suit

DWS has launched a suite of four thematic ETFs tracking fintech, genomics and next generation internet innovation as well as a multi-megatrend exposure.

The Xtrackers MSCI Fintech Innovation UCITS ETF (XFSN), the Xtrackers MSCI Genomic Healthcare Innovation UCITS ETF (XGEN), the Xtrackers MSCI Next Generation Internet Innovation UCITS ETF (XNGI) and the Xtrackers MSCI Innovation UCITS ETF (XNNS) are listed on the Deutsche Boerse and London Stock Exchange with total expense ratios (TERs) of 0.35%.

The ETFs track their respective MSCI indices comprising large, medium and small-cap companies from both developed and emerging markets.

Individual stocks will be capped at a weighting of 4.5% measured on their market cap and the stock’s relevance to its selected investment theme.

XFSN will track companies focusing on companies in mobile and digital payments and digital platforms while XGEN will invest in companies in areas including molecular diagnostics, agricultural biotechnology and bioinformatics.

Meanwhile, XNNS offers exposure to companies active in cloud computing, the ‘internet of things’, machine learning, social media and artificial intelligence while XNNS will combine all three themes with the addition of autonomous technology and industrial innovation.

The ETFs will all apply MSCI ESG screens and will exclude companies that exceed certain turnover thresholds in tobacco, fossil fuels, weapons manufacturing and those that have an MSCI ESG rating of CCC.

Simon Klein (pictured), global head of passive sales at DWS, said: “We are seeing a lot of interest from investors in thematic ETFs as they are an efficient way to capture the growth potential of individual investment trends.

“Some segments of the economy have seen rapid technological development, particularly in recent years. We aim to make the drivers of these innovations accessible to investors with these ETFs.”

Earlier this month, DWS launched two fixed-income ESG ETFs, the Xtrackers ESG Eurozone Government Bond UCITS ETF (XZEB) and the Xtrackers ESG EUR High Yield Corporate Bond UCITS ETF (XZHE).

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