The firm said it was the first asset manager to offer ETFs that target individual goals within the SDGs, with six targeting specific goals and the seventh tracking a combination of all SDGs.
The seven ETFs are: Xtrackers MSCI Global SDG 3 Good Health UCITS ETF, Xtrackers MSCI Global SDG 6 Clean Water & Sanitation UCITS ETF, Xtrackers MSCI Global SDG 7 Affordable & Clean Energy UCITS ETF, Xtrackers MSCI Global SDG 9 Industry, Innovation & Infrastructure UCITS ETF, Xtrackers MSCI Global SDG 11 Sustainable Cities UCITS ETF, Xtrackers MSCI Global SDG 12 Circular Economy UCITS ETF and the more general Xtrackers MSCI Global SDGs UCITS ETF.
All of the ETFs have a total expense ratio of 0.35%, and 9, 11 and 12 are currently listed on the London Stock Exchange and the Swiss Stock Exchange, with the other four set to list within the next month.
The ETFs invest in small, mid and large-cap companies from 23 developed and 24 emerging markets, using the MSCI ACWI Investable Market index as the starting point.
All the portfolios will all be labelled Article 8 under SFDR, and used various themes to define each sustainability goal.
DWS gave the example of SDG 11, or sustainable cities and communities, where it selected firms involved in pollution prevention, smart infrastructure and buildings, and zero-emission vehicles.
It specified: “Only companies whose sales specifically support at least 50% of the respective goal are selected for the index.”
Furthermore, firms whose operations conflict with any of the UN SDGs are excluded, while the index filters out companies that exceed revenue thresholds in activities such as coal and tobacco.
“With our Xtrackers MSCI Global SDG UCITS ETFs we have become the first asset manager to make the United Nations Sustainable Development Goals investable via a rules-based strategy,” said Simon Klein, global head of Xtrackers sales at DWS.
“The goals mapped represent social and economic trends that are broadly supported and can therefore represent an attractive investment target.”
