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Introduces New Small-Cap ESG Exchange-Traded Funds by Xtrackers

Investment company DWS Xtrackers introduces three ETFs aimed at global and European small-cap stocks, incorporating ESG principles, providing investors with opportunities to invest in socially responsible small companies worldwide.

Xtrackers introduces fresh small-cap ESG exchange-traded funds
Xtrackers introduces fresh small-cap ESG exchange-traded funds

Introduces New Small-Cap ESG Exchange-Traded Funds by Xtrackers

In a strategic move to fill a gap in investors' core equity portfolios, DWS Xtrackers has announced the launch of three new Exchange-Traded Funds (ETFs) targeting global and European small-cap equities.

The new ETFs, offered in four share classes, include a globally diversified small-cap ETF, offered in both distributing and accumulating share classes. According to Michael Mohr, the global head of Xtrackers products, these new products aim to provide investors with an efficient way to expand their portfolio.

Broad small-cap ETFs, as explained by Simon Klein, the global head of Xtrackers sales at DWS, can significantly improve risk diversification within traditional equity portfolios. This diversification is achieved through a large number of stocks, capped weights, and varied industry and country exposure, as stated by Xtrackers.

The MSCI World Small Cap Index, which covers about 14% of global free-float market capitalisation, forms the basis for three of the share classes. This index comprises around 4,000 companies from 23 developed markets, a portion of the investable equity universe not included in the classic MSCI World Index.

In addition to the standard offerings, DWS Xtrackers has also launched ESG-screened versions of global and European small-cap strategies. Michael Mohr, the global head of products at Xtrackers who developed the new ETFs for access to global and European small-cap stocks, emphasizes the importance of portfolio diversification, especially for institutional investors, in 2021.

It is worth noting that the global head of products at Xtrackers who developed the new ETFs has not been explicitly named in the available search results.

Separately, HANetf is expanding with a NATO ETF in Poland. However, this expansion is not related to the DWS Xtrackers ETFs.

The MSCI World Small Cap ETF offered by Xtrackers is currently the most cost-effective Ucits-listed product in its category, according to Michael Mohr. This new launch adds three new ETFs to the Xtrackers portfolio, providing investors with a wider range of options to efficiently expand their core equity portfolio.

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