DWS Expands US Equity Options with Three New Xtrackers ETFs on London Stock Exchange

In a strategic expansion of its US equity offerings, DWS’s Xtrackers platform has listed three new ETFs on the London Stock Exchange, providing European investors with sophisticated, rules-based approaches to the S&P 500.

Sign up for our weekly Newsletter and receive the latest ETF and ETC news. Click here to register for your free copy

By ETFWorld.co.uk

Simon Klein, Global Head of Xtrackers Sales at DWS

Strategic Launch Provides European Investors Targeted Access to S&P 500 Strategies

This move signals continued product innovation in the competitive European ETF marketplace as investors seek targeted exposures beyond broad market indices.

The newly launched funds employ distinct methodologies to capture specific factors within the US large-cap universe, offering investors precise tools for portfolio construction.

All three ETFs share common structural features as UCITS-compliant funds with accumulation policies (denoted by “1C” in their names), meaning dividends are reinvested automatically. Each index undergoes semi-annual reviews to ensure continued adherence to their respective methodologies.

Strategic Expansion in Competitive ETF Landscape

DWS’s latest product expansion demonstrates Xtrackers’ commitment to providing European investors with targeted access to US equity markets through systematic approaches.

The timing of these launches coincides with growing European investor appetite for US equity exposure despite macroeconomic uncertainties. By offering three distinct approaches—shareholder yield, growth-at-a-reasonable-price (GARP), and market leadership—Xtrackers provides portfolio managers with specific tools to express nuanced views on US large-cap stocks without taking active manager risk.

Sophisticated Methodologies for Targeted Exposure

Each ETF employs a distinct, rules-based methodology to target specific factors within the S&P 500 universe:

The Xtrackers S&P 500 Defensive Shareholder Yield UCITS ETF (XUDY) tracks an index that selects and weights companies based on their shareholder yield—a comprehensive measure including dividends, buybacks, and debt reduction—combined with a composite score. This approach aims to identify companies returning substantial value to shareholders while maintaining defensive characteristics.

The Xtrackers S&P 500 GARP UCITS ETF (XUGA) implements a Growth at a Reasonable Price strategy, balancing growth potential with valuation discipline. The underlying index selects companies based on a growth score combined with a quality and value composite score, then weights constituents by their growth characteristics, seeking to avoid the pitfalls of overpaying for growth.

The Xtrackers S&P 500 Market Leaders UCITS ETF (XUML) takes a more concentrated approach, targeting just 50 companies from the S&P 500 that demonstrate exceptional leadership within their industries. The index uses a market leader score to identify dominant companies with sustainable competitive advantages, then employs standard market capitalization weighting.

Building on Established Expertise

As part of DWS, Xtrackers leverages substantial institutional expertise in passive strategies, with the broader platform offering exposure across equities, bonds, money markets, and commodities . The platform has established itself as a significant player in the European ETF landscape with 41 US-listed ETFs alone and expense ratios typically ranging between 0.05% and 0.66% across its product lineup .

This latest launch expands Xtrackers’ already comprehensive US equity suite, which includes various ESG-screened products and factor-based strategies. The new ETFs offer European investors additional tools for strategic asset allocation, allowing for more precise implementation of investment views within the US large-cap space.

Source: ETFWorld.co.uk