The Xtrackers MSCI USA Climate Action Equity ETF is a climate-focused fund that has received a $2 billion investment from Ilmarinen, a Finnish pension insurance firm. The fund aims to provide investors with exposure to US large and mid-cap companies that are leading in their sectors on climate transition action. The index tracks the MSCI USA Climate Action Index, which applies a series of ESG screens to its parent index, the MSCI USA Index. Securities are excluded based on factors such as very high emissions intensity and not having Science Based Targets initiative-approved emissions reduction targets, as well as those with the lowest climate risk management scores in their GICS sector. Securities are then ranked for inclusion based on factors including emissions intensity, green business revenue, climate risk management score, and emission track record.
ETF Newz Says:
DWS Americas CEO Dirk Goergen said that the Xtrackers fund would help drive the transition to a low-carbon economy, and the head of systemic investment solutions at DWS Americas added that the launch of the ETF is an example of the company's ability to launch products that meet the needs of clients in a timely manner while expanding its lineup of ETFs to invest in today's markets.