New Listing

DWS launches US TIPS and eurozone government bond ESG ETFs

Following the launch of the government green bond ETF last month

Theo Andrew

a man in a suit

DWS has expanded its fixed income range with the launch of two ETFs tracking eurozone government bonds with an ESG tilt and US TIPS.

The Xtrackers Eurozone Government Bond ESG Tilted UCITS ETF (XEZB) and the Xtrackers TIPS US Inflation-Linked Bond UCITS ETF (XTIP) are listed on Deutsche Boerse with total expense ratios (TER) of 0.12% and 0.07%, respectively.

XTIP, which is also listed on the London Stock Exchange, provides exposure to US inflation-linked bonds via the Markit iBoxx TIPS Inflation-Linked index.

XEZB tracks the iBoxx EUR Sovereigns ESG Tilted index, weighting countries with a better ESG score higher, while bad ESG scorers will be weighted lower.

The two ETFs follow the launch of the Xtrackers Eurozone Government Green Bond UCITS ETF (XGEZ) last month, which offers exposure to investment grade euro-denominated government green bonds with a remaining amount of at least €1bn.

Simon Klein (pictured), head of passive sales at DWS, said: “With the new bond ETFs, we are completing our offering in important segments that are attractive to investors.

“With ETFs on 'green' government bonds and ESG-weighted euro government bonds, investors can map their sustainability preferences. Our new ETF on US dollar inflation-indexed bonds is the ideal complement to our successful offering in this segment.”

In July 2021, DWS launched two investment grade green bond ETFs, the Xtrackers EUR Corporate Green Bond UCITS ETF (XGBE) and Xtrackers USD Corporate Green Bond UCITS ETF (XGBU), seeded by Quintet Private Bank.

Earlier this month, DWS upgraded its corporate bond ETF from ‘light green’ to ‘dark green’ after its underlying index was changed to incorporate Paris-aligned benchmark (PAB) criteria.

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