DWS has launched three new exchange traded funds that provide exposure to U.S. equity investment styles with ESG-screened U.S. dividend-, growth-, and value-oriented equities.
The funds, which are listed on the CBOE BZX Exchange today, are:
S&P Dow Jones Indices’ equity ESG indexes serve as underlying benchmarks for the new ETFs.
SNPD seeks investment results that correspond generally to the performance, before fees and expenses, of the S&P ESG High Yield Dividend Aristocrats Index, which measures the performance of constituents from the S&P High Yield Dividend Aristocrats Index that meet certain ESG criteria. The S&P High Yield Dividend Aristocrats Index measures the performance of companies within the S&P Composite 1500 Index that have followed a policy of consistently increasing dividends every year for at least 20 years.
SNPG and SNPV seek investment results that correspond generally to the performances, before fees and expenses, of the S&P 500 Growth ESG Index and the S&P 500 Value ESG Index, respectively. The S&P 500 Growth ESG Index and the S&P 500 Value ESG Index are broad-based, market capitalization-weighted indexes that provide exposure to companies with high ESG performance relative to their sector peers, while maintaining similar overall industry group weights as the S&P 500 Growth Index and the S&P 500 Value Index, respectively.
“At a time of high inflation and rising interest rates, investors are looking for products that allow them to target specific investment styles in order to tailor their portfolios in line with market expectations,” said Arne Noack, head of systematic investment solutions, Americas, in a news release. “Our dividend, growth and value ESG ETFs let them do that, while adding to our series of ETFs that can be useful for investors seeking credible ESG alternatives to mainstream equity indices. New funds also reinforce DWS’s capacity to provide innovative ESG-centric investment solutions across asset classes.”
The new funds join DWS’ $4 billion suite of Xtrackers ESG ETFs that includes the Xtrackers S&P 500 ESG ETF (NYSE Arca: SNPE), the Xtrackers S&P MidCap 400 ESG ETF (NYSE Arca: MIDE), and the Xtrackers S&P SmallCap 600 ESG ETF (NYSE Arca: SMLE).
“DWS has continued to build out an ESG presence offering a sustainable alternative to popular S&P Dow Jones Index-based products,” said Todd Rosenbluth, head of research at VettaFi. “We have seen strong demand for SNPE, but now advisors can tilt toward growth, value, or dividends too.”
All three funds use ESG filtering in addition to their investment style focus and have an expense ratio of 0.15%.
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