The proliferation in ESG-themed investment products continues, with a new ETF launched today by DWS, linked to the short duration corporate bond market. The asset manger introduced the Xtrackers II ESG EUR Corporate Bond Short Duration UCITS ETF, adding to the Xtracker series, which already has an ESG ETF that tracks corporate bonds covering a full range of maturities.
The new ETF will track the Bloomberg Barclays MSCI Euro Corporate Sustainable & SRI 0-5 Year Index. The index is a fixed-income benchmark tracking short-term, Euro-denominated, investment-grade corporate bonds with a minimum MSCI ESG Rating of BBB. The index, introduced in 2019, screens to exclude securities from issuers with business activities including controversial weapons, alcohol, tobacco, gambling, adult entertainment, genetically modified organisms (GMO), nuclear power and civilian firearms, as well as companies involved in severe controversies.
Simon Klein, Global Head of Passive Sales at DWS, said:
“Our latest launch reflects DWS’s strong commitment to environmental and social responsibility. It builds on approximately EUR 4.7bn under management across our ESG ETFs globally, and our strong focus on corporate governance and on ESG thought leadership.”