DWS, one of the world’s leading asset managers, announced today the listing of three new thematic exchange-traded funds (ETFs) designed to provide investors equity exposure to three vital sectors, U.S. green infrastructure, semiconductor and cybersecurity, at a competitive cost. The ETFs represent the first Xtrackers thematic offering for U.S. investors.
The products, which listed today on the Nasdaq, are:
- Xtrackers U.S. Green Infrastructure Select Equity ETF (NASDAQ: UPGR) – The signing of the Inflation Reduction Act and Infrastructure Investment and Jobs Act confirmed the United States’ commitment to revamping its infrastructure in a sustainable way. Implementation of these laws should provide substantial short- and long-term investment opportunities as projects are developed.
- Xtrackers Semiconductor Select Equity ETF (NASDAQ: CHPS) – Semiconductors have historically been a foundational component of technological evolution and continue to rapidly evolve. The outlook for semiconductor demand and advancement appears robust with a long runway for growth, making it ripe for capital.
- Xtrackers Cybersecurity Select Equity ETF (NASDAQ: PSWD) – As global activity continues to shift to digital, the demand for sophisticated solutions to fight cybercrime has grown, and effective cybersecurity solutions have become a necessity. Companies involved in creating cybersecurity solutions provide investors with the opportunity to capitalize on the innovation and growth prospects of the industry.
"We are delighted to offer investors the opportunity to access three thematic investment trends through efficient index-tracked solutions. The themes that underpin UPGR, CHPS and PSWD, we believe, hold immense potential for impact on the economy in both the near and long-term” said Arne Noack, Head Systematic Investment Solutions, Americas, at DWS Group. “It has long been our mission to offer investors innovative and diverse ETF solutions that not only enhance their core portfolio holdings but provide exposure to different segments of the global economy.”
The launch supports the firm’s growth plans of expanding the Xtrackers footprint in the Americas with specialized, bespoke index investment solutions. The funds will complement DWS’s European thematic ETF suite, which was launched in 2019.
Amanda Rebello, Head of Xtrackers Sales, U.S. Onshore, at DWS Group, added, "Recent legislation developments have created a fertile ground for investment opportunities within the U.S. green infrastructure, semiconductor and cybersecurity industries. We believe these sectors are poised to benefit from enhanced government spending, regulatory backing and the surging demand for cutting-edge global technologies and sustainable solutions.”
Henry Wu, Xtrackers Product US Lead, commented, “With thematic investments, investors don’t focus on traditional sectors and companies, but on growth themes of the future. Xtrackers thematic ETFs offer investors solutions that provide access to investable growth themes, which may serve as an attractive complement to traditionally oriented portfolios.”
The addition of UPGR, CHPS and PSWD expands the Xtrackers U.S. product suite to 42 funds, and as of July 7, 2023, $19.5 billion in assets under management. Since January 2023, Xtrackers by DWS has launched four ETFs and has plans to continue to approach the market with innovative, cost disruptive indexing strategies that give investors building blocks to various types of exposures.
Description of Underlying Indexes and ETF Expense Ratios
Xtrackers US Green Infrastructure Select Equity ETF seeks investment results that correspond generally to the performance, before fees and expenses, of the Solactive United States Green Infrastructure ESG Screened Index. The index is comprised of companies that have business exposure in the production, generation or distribution of green energy or are engaged in the establishment of a sustainable infrastructure to enable the use of renewable energy and that fulfill certain sustainability criteria.
Xtrackers Semiconductor Select Equity ETF seeks investment results that correspond generally to the performance, before fees and expenses, of the Solactive Semiconductor ESG Screened Index. The index is comprised of companies that have business operations in the semiconductor industry and that fulfill certain sustainability criteria.
Xtrackers Cybersecurity Select Equity ETF seeks investment results that correspond generally to the performance, before fees and expenses, of the Solactive Cyber Security ESG Screened Index. The index is comprised of companies that have business operations in the field of cybersecurity and that fulfill certain sustainability criteria.
All three ETFs are competitively priced with UPGR, PSWD and CHPS having net/gross expense ratios of 0.35%, 0.20% and 0.15%, respectively.
