DWS Launches U.S. Market’s First S&P MidCap 400 ESG and S&P SmallCap 600 ESG ETFs

Xtrackers exchange-traded funds (ETF) by DWS has launched the first ETFs providing exposure to ESG (Environmental, Social and Governance) versions of the S&P MidCap 400 and S&P SmallCap 600 indices.

Xtrackers S&P MidCap 400 ESG ETF (NYSE Arca: MIDE) and Xtrackers S&P SmallCap 600 ESG ETF (NYSE Arca: SMLE) listed today, further expanding the Xtrackers footprint in the rapidly growing area of values-based index investing. Assets under management in Xtrackers NYSE-listed ESG ETFs reached over USD 3 billion in 2020.

Arne Noack, DWS’s Head of Systematic Investment Solutions, Americas, commented: "At DWS, we have made ESG-centric investing integral to our value proposition for our clients and the launch of MIDE and SMLE is a logical follow-on. We seek to provide investors with transparency around relevant ESG-metrics of a potential investment. Investors can, for example, easily view the reduction in carbon footprint of the underlying companies, compared to a non-ESG benchmark. This level of transparency is important for investors and intermediaries seeking credible ESG alternatives to mainstream equity indices."

The ESG methodology underpinning the funds starts by taking the established S&P mid and small-cap indices then applying exclusions and rankings filters to produce the ESG indices the ETFs track. Both the Xtrackers S&P MidCap 400 ESG ETF and Xtrackers S&P SmallCap 600 ESG ETFs have net expense ratios of 0.15 percent.

“We’re very pleased to collaborate with DWS as it launches these new ESG ETFs in the U.S. By representing the U.S. mid- and small-cap equities market with improved sustainability profiles, the S&P MidCap 400 ESG and S&P SmallCap 600 ESG indices signify a new sustainable frontier in a space left largely untouched by sustainable indexing to date,” said Mona Naqvi, Senior Director, Head of ESG Product Strategy, North America, S&P Dow Jones Indices. “As the first of their kind, these indices are poised to help raise reporting and sustainability standards among medium and small-sized companies as they seek to join the ranks of ESG indices. As such, ESG investing is no longer just a large-cap solution, it is now an all-cap solution.”

Amanda Rebello, Head of Passive Sales, U.S. onshore, commented: “We are pleased to be the first in the industry to launch ETFs for the S&P MidCap and SmallCap ESG indices. With their competitive net expense ratios, the ETFs can be used as core portfolio building blocks.”

The new listings complement the Xtrackers S&P 500 ESG ETF (NYSE Arca: SNPE), which launched in June 2019 and has over USD 400 million in assets under management. DWS is recognized for its expertise in ESG ETFs. Its ESG range was awarded ‘ETF Suite of the Year’ at Fund Intelligence’s Mutual Fund Industry and ETF Virtual Awards 2020.¹

¹ Xtrackers ESG ETF product portfolio was named ‘ETF Suite of the Year’ at the 27th annual Fund Intelligence’s Mutual Fund Industry and ETF Virtual Awards 2020. These industry awards are meant to recognize people and organizations whose excellence, achievements and contributions to the mutual fund industry have stood out. In addition, Xtrackers MSCI USA ESG Leaders Equity ETF (USSG) won the ‘Newcomer ESG/Impact ETF of the Year’ accolade. For more information on methodology and judging process for the awards, please visit: https://mutualfundindustryawards.awardstage.com/#!/home-of0eb3nc9stuglc7mkd

About DWS Group

DWS Group (DWS) is one of the world's leading asset managers with USD 969bn of assets under management (as of 31 December 2020). Building on more than 60 years of experience, it has a reputation for excellence in Germany, Europe, the Americas and Asia. DWS is recognized by clients globally as a trusted source for integrated investment solutions, stability and innovation across a full spectrum of investment disciplines.

We offer individuals and institutions access to our strong investment capabilities across all major asset classes and solutions aligned to growth trends. Our diverse expertise in Active, Passive and Alternatives asset management – as well as our deep environmental, social and governance focus – complement each other when creating targeted solutions for our clients. Our expertise and on-the-ground-knowledge of our economists, research analysts and investment professionals are brought together in one consistent global CIO View, which guides our investment approach strategically.

DWS wants to innovate and shape the future of investing: with approximately 3,500 employees in offices all over the world, we are local while being one global team. We are investors – entrusted to build the best foundation for our clients’ future.

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ETF shares are not individually redeemable, and owners of shares may acquire those shares from the Fund, or tender such shares for the redemption to the Fund, in Creation Units only.

Consider each fund’s investment objectives, risk factors, and charges and expenses before investing. This and other important information can be found in the fund’s prospectus, which may be obtained by calling 1-855-DBX-ETFS (1-855-329-3837) or by viewing or downloading a prospectus at www.Xtrackers.com. Please read it carefully before investing.

Xtrackers ETFs are managed by DBX Advisors LLC (the Advisor), and distributed by ALPS Distributors, Inc. (ALPS). The Advisor is a wholly owned subsidiary of DWS Group GmbH & Co. KGaA, and is not affiliated with ALPS.

Xtrackers S&P MidCap 400 ESG ETF: ESG criteria in a fund’s investment strategy does not guarantee a return or protect against a loss. This fund is new and has limited operating history. Investing involves risk, including the possible loss of principal. Stocks may decline in value. Stocks of medium‐sized companies involve greater risk than securities of larger, more‐established companies. Performance of the Fund may diverge from that of the Underlying Index due to operating expenses, transaction costs, cash flows, use of sampling strategies or operational inefficiencies. This fund is non‐diversified and can take larger positions in fewer issues, increasing its potential risk. Investing in securities that meet ESG criteria may result in the fund forgoing otherwise attractive opportunities, which may result in underperformance when compared to funds that do not consider ESG factors. An investment in this fund should be considered only as a supplement to a complete investment program for those investors willing to accept the risks associated with the fund. Please read the prospectus for more information.

Xtrackers S&P SmallCap 600 ESG ETF: ESG criteria in a fund’s investment strategy does not guarantee a return or protect against a loss. This fund is new and has limited operating history. Investing involves risk, including the possible loss of principal. Stocks may decline in value. Small company stocks tend to be more volatile than medium‐sized or large company stocks. Performance of the Fund may diverge from that of the Underlying Index due to operating expenses, transaction costs, cash flows, use of sampling strategies or operational inefficiencies. This fund is non‐diversified and can take larger positions in fewer issues, increasing its potential risk. Investing in securities that meet ESG criteria may result in the fund forgoing otherwise attractive opportunities, which may result in underperformance when compared to funds that do not consider ESG factors. An investment in this fund should be considered only as a supplement to a complete investment program for those investors willing to accept the risks associated with the fund. Please read the prospectus for more information.

Xtrackers S&P 500 ESG ETF: Investing involves risk, including the possible loss of principal. This fund is new and has limited operating history. Investing in securities that meet ESG criteria may result in the fund forgoing otherwise attractive opportunities, which may result in underperformance when compared to funds that do not consider ESG factors. Stocks may decline in value. Stocks of medium-sized companies involve greater risk than securities of larger, more‐established companies. Funds investing in a single industry, country or in a limited geographic region generally are more volatile than more diversified funds. Various factors, including costs, cash flows and security selection, may cause the fund’s performance to differ from that of the index. Performance of the fund may diverge from that of the Underlying Index due to operating expenses, transaction costs, cash flows, use of sampling strategies or operational inefficiencies. This fund is non‐diversified and can take larger positions in fewer issues, increasing its potential risk. An investment in this fund should be considered only as a supplement to a complete investment program for those investors willing to accept the risks associated with the fund. Please read the prospectus for more information.

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R- 081523-1 (2/21) DBX004811 (2/22)

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