DWS launches ESG versions of its factor ETFs

investmentweek.co.uk:

In 2014, DWS launched ETFs that allowed investors to track value, momentum, quality and minimum volatility equity factors.

The new ETFs track value, momentum, quality and minimum volatility equity factors, while including ESG criteria on their underlying indices through tracking different variants of the MSCI World Factor Low Carbon SRI Screened Select series.

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DWS said that unlike traditional market capitalisation-based index methods, factor-based approaches target individual sources of return.

The four ETFs listed on the London Stock Exchange yesterday (18 July), having listed on Deutsche Börse earlier this week, and all carry total expense ratios of 0.25%.

In 2014, DWS launched ETFs that allowed investors to track value, momentum, quality and minimum volatility equity factors.

The value ETF currently holds $1.4bn in assets under management and has returned 23.4% over five years, while the momentum ETF holds $839.9m and has returned 42.4%, according to data from FE fundinfo.

The quality ETF sits at $1.1bn and has returned 57.3%, while the minimum volatility ETF holds $416.8m and has returned 30.7% in the last five years.

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«Almost ten years after Xtrackers launched the first factor ETFs, investors can now also use these strategies as part of a sustainable asset allocation,» said Simon Klein, global head of Xtrackers sales at DWS.

The four new ETFs are the Xtrackers MSCI World Value ESG UCITS ETF, Xtrackers MSCI World Momentum ESG UCITS ETF, Xtrackers MSCI World Quality ESG UCITS ETF and Xtrackers MSCI World Minimum Volatility ESG UCITS ETF.

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