A recent filing from Deutsche Asset Management’s ETF operations outlines plans for six funds falling into three different categories. Three of the funds will implement socially responsible approaches; another two will target the quality and value factors; the sixth will offer cap-weighted exposure to the United Kingdom.
The three proposed ESG funds include:
- Xtrackers MSCI USA ESG Leaders Equity ETF
- Xtrackers MSCI EAFE ESG Leaders Equity ETF
- Xtrackers MSCI World ESG Leaders Equity ETF
The methodology scores companies in each fund’s selection universe of mid- and large-cap companies based on environmental, social and governance performance relative to their sector peers, selecting the highest-scoring firms and weighting them by market capitalization. The EAFE fund will select companies from developed markets excluding the U.S. and Canada, while the World fund will target all developed markets.
Quality At A Reasonable Price
Two of the funds will target the quality and value factors. The Xtrackers Russell 1000 US Quality at a Reasonable Price ETF will draw its components from the Russell 1000, while the Xtrackers FTSE All World ex US Quality at a Reasonable Price ETF will draw its components from the FTSE All-World ex US Index, which includes both developed-market and emerging market equities.
According to the prospectus, companies will be assigned a quality score based on low debt, stable earnings growth and other “quality” metrics, while the value score will be based on valuation ratios in an attempt to identify stocks that have low prices compared to their actual fundamental values.
Finally, the Xtrackers United Kingdom Equity ETF will simply track an index of U.K. stocks that is rebalanced semiannually.
Columbia Lowers Fund Fee
Columbia recently announced that the price on its $50.5 million Columbia India Infrastructure ETF (INXX) had been lowered from 0.98% to 0.86%.
Contact Heather Bell at [email protected]