New Products
Deutsche Asset Management Launches ESG-Focused ETF

The asset management arm of Germany's largest lender has launched a new ETF that allows investors to tap into the European corporate bond market through socially responsible investing.
Deutsche
Bank Asset Management has launched a fixed income
exchange-traded fund with an environmental, social and
corporate governance-focused exposure to the euro-denominated
corporate bond market.
The DB X-Trackers II ESG EUR Corporate Bonds UCITS ETF tracks an
index of corporate debt filtered only to include companies that
meet certain sustainability, social and corporate governance
requirements, Deutsche Bank AM said in a statement earlier this
week.
The physical replication ETF tracks the Bloomberg Barclays MSCI
Euro Corporate Sustainable and Socially Responsible Investment
(SRI) Index, which, according to Deutsche Bank AM, has similar
yield and duration to its non-SRI equivalent, with a correlation
rate exceeding 99 per cent.
To be included in the index, bonds must be investment-grade rated
and have an amount outstanding of at least €300 million ($320.4
million), while also meeting sustainability and SRI
requirements.
The Frankfurt-headquartered bank's new ETF has an annual all-in
fee of 0.25 per cent and is listed on the Deutsche Börse.
“The provision of environmental, social and corporate governance
investment solutions is an essential part of Deutsche Asset
Management’s overall offering. More investors are starting to
access fixed income exposure using ETFs, so it is important to
have ESG-focused bond exposure available in ETF form alongside
our existing solutions,” said Petra Pflaum, Deutsche AM’s chief
investment officer for responsible investments.