DWS Xtrackers has listed a new Hig Yield Corporate Bond Exchange Traded Fund (ETF) to the LSE (London Stock Exchange)
By ETFWorld.co.uk
Simon Klein, Global Head of Passive Sales at DWS.
Xtrackers ESG USD High Yield Corporate Bond UCITS ETF
The fund is passively managed. The aim is for your investment to reflect the performance of the Bloomberg MSCI US High Yield Sustainable and SRI Index while seeking to minimize foreign currency fluctuations at share class level. The index aims to reflect the performance of USD denominated, high yield, fixed-rate corporate bonds, excluding bonds which do not fulfil specific environmental, social and governance (ESG) criteria.
The bonds must have a fixed rate of interest, must be rated less than Ba1/BB+ by major rating agencies and meet certain currency, sector, amount outstanding, credit quality, maturity, coupon, seniority of debt, market of issue, and security type criteria. The index excludes 144A tranche securities that do not have an equivalent Regulation S tranche. Bonds rated below BB by MSCI ESG Research are excluded.
Issuers with a “red” MSCI ESG Controversies score (less than 1) and issuers that are classified by MSCI in their MSCI ESG Business Involvement Screening Research (BISR) as breaching certain thresholds in controversial activities are also excluded from the index. At least 20% of issuers will be excluded from the original universe using the ESG criteria. Issuers with MSCI ESG Ratings of BBB or higher will be weighted in the index at 100% weight by market value while the weight of bonds from issuers with MSCI ESG Ratings of BB will be weighted in the index at a 50% weight by market value. The weight of each issuer is limited to 3% and any excess weight over the 3% cap will be redistributed on a pro rata basis to all other issuers’ bonds in the index that are under the 3% cap. The composition of the index is rebalanced monthly.
| Product Name | Xtrackers ESG USD High Yield Corporate Bond UCITS ETF |
| ISIN | IE000WHO5BF2 |
| SEDOL | BKS76P9 |
| Trading Currency | GBP |
| Underlying | Bloomberg MSCI US High Yield Sustainable and SRI Index |
| Management Fee | 0.30% |
Source: ETFWorld.co.uk
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