Sept. 12, 2018
DUE DILIGENCE Alert: MODERATE
COMPETITIVE Alert: 2
Event: DWS files for 3 new ESG ETFs and operationalizes one.
Briefing Points: i) DWS (formerly Deutsche Asset Management) has launched one of the three ESG international ETFs that it registered with the SEC earlier in the month, ii) The firm’s first sustainable entry in the US, the newly launched Xtrackers MSCI EAFE ESG Leaders Equity ETF invests in mid- and large-cap stocks of developed countries, ex-US and Canada, and iii) The new ETF is designed to provide investors with “efficient access to international markets” and companies with high ESG ratings as measured by MSCI – the ETF indexed against the MSCI EAFE ESG Leaders Index.
Affected Fund(s): Xtrackers MSCI EAFE ESG Leaders Equity ETF (EASG)
Asset Classes: Non-US Equities
Management Company: DWS Group (New York, NY)
DD Concerns: Change in product-line or strategy offering
Marketing Considerations: The firm’s new filings and the current launch suggests a commitment to ESG investing, also reinforced by the introduction of the DWS ESG Liquidity Fund (See September 4). The expansion of its product-line to non-US and Canada is targeting a more sophisticated investor base and reps interested in a one-stop ETF allocation platform.