DWS lists one new Xtrackers Clean Energy ETF to the LSE

DWS Xtrackers has listed a three Thematic Exchange Traded Fund (ETF) to the LSE (London Stock Exchange)

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By ETFWorld.co.uk

Simon Klein, Global Head of Passive Sales at DWS

Xtrackers MSCI Global SDG 7 Affordable and Clean Energy UCITS ETF

The fund is passively managed. The aim is for your investment to track the performance of the MSCI ACWI IMI SDG 7 Affordable and Clean Energy Select Index. The index is based on the MSCI ACWI IMI Index (Parent Index) and is designed to reflect the performance of the shares of large, medium, and small-capitalisation companies globally that are associated with a positive contribution to the United Nations Sustainable Development Goal 7 (Ensure access to affordable, reliable, sustainable and modern energy for all) (SDG 7). In order to be eligible for inclusion in the index, companies must be eligible for inclusion in the Parent Index and must pass the ESG screening criteria and either the SDG impact selection criteria or the SDG thematic selection criteria.

The ESG screening criteria excludes companies from the Parent Index, which: (i) are unrated by MSCI ESG Research; (ii) are assigned an MSCI ESG Rating of B and below; (iii) have any tie to controversial weapons; (iv) are classified by MSCI in their Business Involvement Screening Research as breaching certain thresholds in controversial activities, including, but not limited to, tobacco, conventional weapons, nuclear weapons, civilian firearms, thermal coal and oil sands extraction; (v) fail to comply with the United Nations Global Compact principles; (vi) have an MSCI ESG Controversies score of 0 or those with very severe controversies; and/or (vii) are assessed by MSCI Impact Solutions’ SDG Alignment as ‘Misaligned’ or ‘Strongly Misaligned’ on their net alignment to any of the 17 SDGs. The SDG impact selection criteria identifies companies that contribute positively to SDG 7. Securities must meet a certain revenue threshold from associated business activities to be eligible for inclusion. The SDG thematic selection criteria calculates a relevance score for potential constituents by assessing companies’ exposure to the clean energy theme.

Securities must meet a certain relevance score threshold to be eligible for inclusion. Securities are weighted by the product of their free float-adjusted market capitalisation and either their percentage revenue exposure from SDG 7 aligned business activities (if meeting the SDG impact selection criteria) or their relevance score (if meeting the SDG thematic selection criteria) and are then scaled to 75% and 25% respectively.

Source: ETFWorld.co.uk