DWS has launched the largest-ever ETF to date in the US, a passive fund with exposure to companies demonstrating climate transition leadership. The NYSE-listed ‘Xtrackers MSCI USA Climate Action Equity ETF’ (USCA) began trading on 5 April with US$2 billion of assets. According to the Financial Times, the previous record for the largest global ETF launch was held by the Goldman Sachs MarketBeta US 1000 Equity ETF (GUSA), which debuted with US$1.35 billion in April 2022. The new DWS ETF is backed by Ilmarinen, Finland’s largest private earnings-related pension insurance company, which is providing the initial capital as part of a goal to achieve a carbon neutral portfolio by the end of 2035. The ETF is designed for investors seeking exposure to large and mid-cap companies in the US that are “leading their sector peers in taking actions relating to climate transition”. It will invest in the top 50% of companies within each industry sector based on their emissions intensity, emissions reduction commitments, climate risk management and revenue from greener businesses. DWS currently has 14 US-listed climate-related and ESG ETFs with combined assets of US$4.5 billion, just under a quarter of Xtrackers’ overall US assets under management of US$19.1 billion.
The passive fund began trading on the NYSE with $2bn of assets, backed by Finnish pension insurance company Ilmarinen.https://t.co/E90xPqQftB
— Regulation Asia (@RegulationAsia) April 10, 2023