DWS has launched a new Paris Climate Agreement-aligned emerging equity markets Xtrackers ETF.
The Xtrackers Emerging Markets Net Zero Pathway Paris Aligned UCITS ETF (XMEN) is listed on Deutsche Boerse and the London Stock Exchange, with other exchanges to follow.
The fund has a total expense ratio of 0.20%.
The ETF aims to reduce emissions in line with the objectives of the Paris Climate Agreement, with the underlying index, the Solactive ISS ESG Emerging Markets Net Zero Pathway Index, corresponding to the EU Paris Aligned Benchmark (PAB).
The benchmark aims to achieve a 50% reduction in carbon intensity compared to an equivalent non-ESG market index, in line with the goals of the Paris Climate Agreement, as well as a continuous decrease in carbon intensity of 7% per year.
It also considers recommendations of the Institutional Investors Group on Climate Change (IIGCC), meaning that the indices do not weight the included index members solely based on their carbon intensity, per the recommendations of the IIGCC.
Simon Klein, global head of passive sales at DWS, said: “With the new ETF, we now offer a full range of products aligned with the Paris Climate Agreement – giving investors suitable solutions for both developed and emerging markets.”
Including the new ETF, DWS has already launched six equity ETFs based on the same index methodology, providing exposure to the following equity markets: Global, USA, Europe, Eurozone, Japan and now also emerging markets.
Last month, DWS introduced four Xtrackers ETFs that track the corporate bond market in Euros and US dollars with different maturities and whose tracked indices are also aligned with the goals of the Paris Climate Agreement.
The German asset manager’s expansion of climate-linked ETFs comes after consumer group Verbraucherzentrale Baden-Württemberg filed legal action over misleading sustainability claims less than six months after former CEO Asoka Woehrmann was forced to step down following allegations of greenwashing.
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