New Listing

DWS launches Nordic equity Paris-Aligned climate ETF

The ETF tracks the performance of 180 Scandinavian companies

Jamie Gordon

Norway fjord winter

DWS has expanded its Paris-Aligned Benchmark (PAB) climate range with an ETF capturing Scandinavian equities.

The Xtrackers Nordic Net Zero Pathway Paris Aligned UCITS ETF is listed on the Deutsche Boerse with a total expense ratio (TER) of 0.15%.

The ETF tracks the Solactive ISS ESG Nordic Investable Universe Net Zero Pathway index of 180 companies whose selection and weighting are aligned with EU PAB standards.

It currently has a 45.6% weighting to Sweden, 33% to Denmark, 12.7% to Finland and 8.7% to Norway.

The benchmark targets an initial decarbonisation versus its parent benchmark of 50% and an additional annual decarbonisation target of 7%.

Solactive also excludes companies involved in business activities including controversial weapons, firearms, tobacco, nuclear weapons and fossil fuels.

The index also applies a six-month liquidity screen requiring €1m average daily trading volume, a minimum market cap of €100m and each constituent company is capped at a maximum weighting of 9%.

The ETF is classified as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR).

The Nordic climate ETF arrives just weeks after the Xtrackers MSCI USA Climate Action Equity ETF (USCA) was dubbed the ‘largest ETF launch’ following a €2bn seed from Finnish pension fund Ilmarinen.

In March, DWS launched a five-strong range of climate transition ETFs in Europe targeting US, Japan, Europe, emerging markets and global equities.

This came within a month of the firm closing the Xtrackers MSCI Europe Energy ESG Screen UCITS ETF (XSER) after changes to its sustainability metrics meant it no longer met UCITS diversification requirements.

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