DWS Launches New Xtrackers ETF Tracking Solactive Index and Guides U.S. Equity Investors on the Net-Zero ‘Pathway’

Over the last few years, investors have been increasingly considering aligning investment decisions with ESG values. Within this trend, Solactive is pleased to announce that DWS, one of the world’s leading asset managers, launched a new Xtrackers exchange-traded fund (ETF), tracking the Solactive ISS ESG United States Net Zero Pathway Enhanced Index. It provides large and mid-cap U.S. equity exposure aligned with an internationally recognized framework and is designed to capture the move of the global economy to a net-zero emissions environment. 

The index consists of 386 U.S. large and mid-cap stocks and is designed to provide a 50% reduction in carbon intensity[1] versus a market capitalization-weighted U.S. equity index[2], and a carbon intensity reduction trajectory of 7% year-on-year. It provides an evidence-based, statistically driven ‘pathway’ to net zero, aligned with the Paris Climate Accords and their two main objectives: to achieve a net-zero emissions economy by 2050 and limit the rise in global temperature by 1.5°C above pre-industrial levels. The index also aims to comply with recommendations published by the Institutional Investors Group on Climate Change (IIGCC)[3], specifically its Net Zero Investment Framework.

Timo Pfeiffer, Chief Markets Officer of Solactive, comments: “We are very glad about the launch of this new ESG product, after two other DWS ETFs tracking our ESG indices earlier in the year. This is a result of our commitment to provide our clients with the most seamless and fitting ESG solution as well as from our clients’ dedication to offer state-of-the-art opportunities for investors to contribute to a greener planet. The Solactive  ISS ESG United States Net Zero Pathway Enhanced Index embodies once more this joint effort between DWS and us, and represents a step into the next stage of sustainable investing.”

“There is a clear need for investments that align with net-zero aims. USNZ provides a powerful net-zero investment strategy that meets the latest regulatory standards that govern Paris-aligned benchmark indices as defined above. DWS has a long history of providing ETF investors with specialist investment opportunities that combine the efficiency of passive investing with the advantages of well-thought-out, rules-based strategies for particular needs. This new listing is another example of that”, says Arne Noack, Head of Systematic Investment Solutions, Americas, at DWS.

Amanda Rebello, Head of Passive Sales at DWS, U.S. Onshore, states: “Our clients are keen to play a positive role in helping society reach net zero, and we are confident that this new ETF, with its rigorous index methodology run by Solactive, can help seek to meet that need.”

Xtrackers Net Zero Pathway Paris Aligned U.S. Equity ETF (NYSE Ticker: USNZ) is listed on the New York Stock Exchange.

[1] The carbon intensity for each company included in the underlying index is defined as its greenhouse gas emissions as a percentage of the company’s enterprise value including cash.

[2] The relevant reference is the Solactive GBS US Large & Mid Cap Index.

[3] IIGCC (Institutional Investors Group on Climate Change): European initiative to mobilize capital to reduce carbon dioxide emissions. More than 170 members with more than 23 trillion euros of investment capital. Linked to Climate Action 100+.