ESG ETF Tracks Modified S&P 500 Index

New fund covers companies of the S&P 500 with the best ESG scores.

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Reviewed by: Heather Bell
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Edited by: Heather Bell

Today DWS rolled out an environmental, social and governance (ESG) ETF that tracks an index derived from the S&P 500 Index. The Xtrackers S&P 500 ESG ETF (SNPE) is the fifth socially responsible ETF to be added to DWS’ lineup.

SNPE lists on the NYSE Arca and has an expense ratio of 0.11%.

The fund’s underlying index aims to capture 75% of the float-adjusted market capitalization of each of the Global Industry Classification Standard (GICS) industry groups in the S&P 500.

Companies are automatically excluded from the index if they have any significant involvement in business activities around tobacco or weapons, and if they fall within the bottom 5% of rankings based on the United Nations Global Compact or the bottom 25% of S&P DJI ESG scores within their respective industry groups, according to the prospectus.

The companies are selected based on their S&P DJI ESG scores, with the top scoring companies in each GICS industry group chosen for the index until 75% of the industry group has been covered. At the end of March, the index for SNPE included 329 components, the document says.

Contact Heather Bell at [email protected]

 

 

Heather Bell is a former managing editor of etf.com. She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a graduate of Dartmouth college and resides in the Denver area with her two dogs.