DWS launches emerging markets Paris-aligned ETF

DWS has expanded its range of exchange traded funds aligned with the Paris climate agreement with the launch of an emerging market equities strategy.

The Xtrackers Emerging Markets Net Zero Pathway Paris Aligned Ucits ETF had been listed on Deutsche Börse and the London Stock Exchange, with other exchanges to follow, the Frankfurt-listed asset manager said.

The ETF tracks the Solactive ISS ESG Emerging Markets Net Zero Pathway Index, which aims to achieve a 50 per cent reduction in carbon intensity compared with an equivalent non-environmental, social and governance market index, as well as a continuous reduction in carbon intensity of 7 per cent per year.

DWS said the index, provided by Germany-based Solactive, met the EU’s Paris Aligned Benchmark regulations.

This article was previously published by Ignites Europe, a title owned by the FT Group.

The product bolsters the Deutsche Bank-owned asset manager’s existing line-up of PAB-compliant ETFs, which provide global, US, European, eurozone and Japan exposure.

According to Simon Klein, global head of passive sales at DWS, the fund group offers “a full range of products aligned with the Paris climate agreement — giving investors suitable solutions for both developed and emerging markets”.

All six of the ETFs in the asset manager’s Net Zero Pathway series also take into account recommendations of the Institutional Investors Group on Climate Change, meaning the indices do not weight the included index members solely on the basis of their carbon intensity, in accordance with IIGCC recommendations.

According to DWS, weighting of companies in the indices is partly based on the extent to which they adopt science-based targets. Also relevant for the index weighting are the standards for climate reporting as defined by the Task Force on Climate-related Financial Disclosures and efforts to mitigate climate change.

*Ignites Europe is a news service published by FT Specialist for professionals working in the asset management industry. It covers everything from new product launches to regulations and industry trends. Trials and subscriptions are available at igniteseurope.com.

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