DWS has expanded its offerings with the launch of two new sustainable high-dividend exchange-traded funds (ETFs) on the London Stock Exchange (LSE) and Deutsche Börse.
The Xtrackers MSCI World High Dividend Yield ESG Ucits ETF and Xtrackers MSCI USA High Dividend Yield ESG Ucits ETF debuted on the LSE on 20 October, targetting price performance akin to broad market indices while aiming for dividend yields in line with high dividend indices.
Both ETFs have total expense ratios of 0.25% and employ index construction methodologies that exclude companies involved in controversial activities or harmful business practices. Moreover, they aim to significantly reduce CO2 intensity and exposure to fossil commodities.
The ETFs track different variants of the MSCI High Dividend Yield Low Carbon SRI Screened Select index series, thereby striving to balance ESG considerations with dividend yield.
Simon Klein, global head of Xtrackers sales at DWS, said, “Xtrackers’ new ETF range combines dividend-oriented with sustainable investing while also tracking the performance of broad equity markets. For this combination of important investment objectives, we expect high demand from both retail and institutional investors.”
In addition to the LSE listings, the firm also introduced the two ETFs on the Deutsche Börse, along with two other high dividend sustainable ETFs focusing on Europe and the European economic and monetary union.
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