DWS Launches New Low-Cost Climate-Focused US Equity ETF on LSE

Today, DWS’s Xtrackers listed a new fund on the London Stock Exchange: the Xtrackers MSCI USA Positioning Screened UCITS ETF 1D (ISIN: IE000EVOVOG1).

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By ETFWorld.co.uk

Simon Klein, Global Head of Xtrackers Sales at DWS

The ETF provides exposure to US large- and mid-cap companies assessed as leaders in managing the transition to a low-carbon economy. The fund has a total expense ratio of 0.12% .

Index Methodology and Investment Objective
The ETF is a passively managed fund that tracks the MSCI USA Climate Action Select Index. The index starts with the broad MSCI USA Index and applies a multi-step screening process. First, it excludes companies based on specific ESG criteria related to business activities like thermal coal mining and controversial weapons. From the remaining pool, companies are ranked within their sectors. The selection prioritizes firms with lower greenhouse gas intensity, verified emissions reduction targets or a track record of decreasing emissions, and structured climate risk management programs.

The index targets a certain percentage of top-ranking companies from each sector, maintaining broad sector representation while tilting toward climate leaders. Constituent weights are capped at 5%, and the index is reviewed semi-annually, with rebalancing occurring at least quarterly.

Key Fund Details

• Fund Name: Xtrackers MSCI USA Positioning Screened UCITS ETF 1D

• ISIN: IE000EVOVOG1

• Index: MSCI USA Climate Action Select Index (Net Total Return, USD)

• TER: 0.12%

• Replication Method: Physical (full replication)

• Listing Venue: London Stock Exchange

• Base Currency: USD

The fund’s objective is to track the index performance before fees and expenses. It will typically purchase all or a substantial number of the underlying index securities.

Analysis
The launch expands the range of tools for European investors seeking US equity exposure with a defined climate transition focus. At 0.12%, the fund’s cost is competitive within its niche, though not the cheapest. Its success will likely depend on investor preference for its specific climate action methodology and the established scale of the Xtrackers platform.

Source: ETFWorld.co.uk