DWS unveils two sustainable high dividend ETFs

investmentweek.co.uk:

The ETFs track different variants of the MSCI High Dividend Yield Low Carbon SRI Screened Select index series

The Xtrackers MSCI World High Dividend Yield ESG UCITS ETF and Xtrackers MSCI USA High Dividend Yield ESG UCITS ETF launched on LSE on 20 October, aiming for price performance similar to broad market indices and dividend yields comparable to those of high dividend indices.

Both with total exchange ratios of 0.25%, the ETFs track different variants of the MSCI High Dividend Yield Low Carbon SRI Screened Select index series, aiming to optimise the potentially conflicting objectives of ESG considerations and dividend yield.

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The two use index construction to exclude companies with controversial activities and harmful business practices, while significantly reducing CO2 intensity and fossil commodity exposure.

«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,» said Simon Klein, global head of Xtrackers sales at DWS.

 The firm also launched the two ETFs on the Deutsche Börse, in tandem with two additional high dividend sustainable ETFs focusing on Europe and the European Economic and Monetary Union.

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