- Designed to track companies that support critical emerging
technologies across the US and its allies. Underlying index selects
large and mid-cap companies from developed market countries that
satisfy key criteria related to critical technology sectors and
geopolitical risk ratings.
- Underlying index is constructed by index provider Solactive AG,
utilizing a geostrategic risk rating developed by J.H. Whitney Data
Services.
DWS, one of the world’s leading asset managers announced today
the listing of a new exchange-traded fund (ETF), the Xtrackers
US National Critical Technologies ETF (NYSE: CRTC) (the
“Fund”), which is designed to provide investors with equity
exposure to large and mid-cap companies from developed market
countries that satisfy key criteria related to critical technology
sectors and geopolitical risk ratings. Companies are carefully
screened for their association with one of 14 critical technology
areas established by the Office of the Undersecretary of Defense
Research & Engineering (a division of the Department of
Defense) that have been deemed vital to maintaining the national
security of the United States today and in the future. These
critical technologies range from emerging opportunity fields such
as biotechnology and quantum science to wider areas such as
microelectronics and renewable energy.
“In our ongoing build-out of the Xtrackers ETF offering in the
US market, we continue to focus on key strategic themes in the
current economic environment as well as the foreseeable future.
Complementing our existing offerings in Cybersecurity (ticker
symbol: PSWD), Semiconductors (ticker symbol: CHPS) and US Green
Infrastructure (ticker symbol: UPGR), our newest launch, CRTC, is
an innovative way for investors to gain efficient exposure to
technologies deemed critical to the national security of the United
States,” said Dirk Goergen, CEO of DWS Americas.
“Over the past few decades, advancements in technology and
infrastructure have become a key resource and determining factor
for current and future economic competitiveness,” added Arne Noack,
Head of Systematic Investment Strategies, Americas. “Our new
Xtrackers US National Critical Technologies ETF leverages a
geostrategic risk rating that evaluates risks on different levels.
This will provide investors with exposure to sectors and companies
aligned to technologies of strategic importance, as well as fortify
their investments against certain geostrategic
interdependencies.”
Description of Underlying Index and ETF Expense Ratio
The Fund seeks investment results that correspond generally to
the performance, before fees and expenses, of the Solactive Whitney
U.S. Critical Technologies Index (the “Underlying Index”). The
Underlying Index is designed to track companies that support
critical emerging technologies across the U.S. and its allies by
selecting companies from a defined investment universe that satisfy
key criteria related to their association with critical technology
sectors and their geopolitical risk rating. The Underlying Index’s
investment universe is derived from the large and mid-cap companies
in developed market countries that comprise the Solactive GBS
Developed Markets Large & Mid Cap USD Index (the “Parent
Index”). Companies are eligible for inclusion in the Underlying
Index if (i) they are associated with one of 14 critical technology
sectors and (ii) they receive a sufficiently high geostrategic risk
rating score, each as determined pursuant to index selection
criteria developed by J.H. Whitney Data Services LLC (“J.H.
Whitney”).
J.H. Whitney follows a two-step process to select individual
securities for the Underlying Index. First, J.H. Whitney uses a
critical technology screen to select companies that are associated
with one of 14 critical technology areas established by the Office
of the Undersecretary of Defense, Research & Engineering that
have been deemed to be vital to maintaining the national security
of the United States. Second, J.H. Whitney assigns each company
that passes the critical technology screen a geostrategic risk
rating score using a proprietary model that quantifies the relative
level of risk that the individual company may face as a result of
geopolitical activities, including, economic sanctions, national
industrial policy actions, national regulatory actions and other
economic strategic competition actions taken by the U.S. and
adversarial nations.
As of October 31, 2023, there were 1,648 constituent companies
in the Parent Index of which 242 companies were selected for the
Underlying Index by J.H. Whitney after its application of its
critical technology screens and geostrategic risk rating process.
As of such date, tech stocks, Alphabet and Microsoft, oil
companies, Exxon Mobil and Chevron, and drug makers, Merck & Co
and Abbvie, were the biggest Underlying Index components.
The ETF is competitively priced with net/gross expense ratios of
0.35%.
The addition of the Fund expands the Xtrackers US product suite
to 44 funds. Since January 2023, Xtrackers by DWS has launched 6
ETFs, including CRTC, and has plans to continue to approach the
market with innovative, cost disruptive indexing strategies that
give investors building blocks to various types of exposures. The
Fund is the fourth product in the Xtrackers US thematic suite. To
learn more about Xtrackers ETFs available in the US, please visit
www.etf.dws.com/en-us/etf-products/.
About DWS Group DWS Group (DWS) with EUR 860bn of assets
under management (as of September 30, 2023) aspires to be one of
the world's leading asset managers. 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 liquid and illiquid asset
classes as well as 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, giving
strategic guidance to our investment approach.
DWS wants to innovate and shape the future of investing. We
understand that, both as a corporate as well as a trusted advisor
to our clients, we have a crucial role in helping navigate the
transition to a more sustainable future. With approximately 4,500
employees in offices all over the world, we are local while being
one global team. We are committed to acting on behalf of our
clients and investing with their best interests at heart so that
they can reach their financial goals, no matter what the future
holds. With our entrepreneurial, collaborative spirit, we work
every day to deliver outstanding investment results, in both good
and challenging times, to build the best foundation for our
clients’ financial future.
IMPORTANT INFORMATION
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 the Fund’s investment objective, 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 1-844-851-4255 or by viewing or downloading a
prospectus at www.Xtrackers.com. Please read it carefully before
investing.
The brand Xtrackers represents all systematic investment
solutions. Xtrackers ETFs in the U.S. 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.
Investments in mutual funds involve risk. Stocks may decline in
value. Bond investments are subject to interest-rate, credit,
liquidity and market risks to varying degrees. Credit risk refers
to the ability of an issuer to make timely payments of principal
and interest. Investing in derivatives entails special risks
relating to liquidity, leverage and credit that may reduce returns
and/or increase volatility. Investing in foreign securities,
particularly those of emerging markets, presents certain risks,
such as currency fluctuations, political and economic changes, and
market risks. There are additional risks associated with investing
in commodities, high-yield bonds, aggressive growth stocks,
non-diversified/concentrated funds and small- and mid-cap stocks
which are more fully explained in the prospectuses. Please read the
prospectus for more information.
Investing involves risk, including possible loss of principal.
Stocks may decline in value. This Fund is non-diversified and can
take larger positions in fewer issues, increasing its potential
risk. An investment in the 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.
ESG Disclosures
Environmental, social, and governance (ESG) criteria are a set
of standards for a company’s operations that socially conscious
investors use to screen potential investments: Environmental (how a
company performs as a steward of nature); Social (how a company
manages relationships with employees, suppliers, customers, and
communities); Governance (company’s leadership, executive pay,
shareholder rights, etc.).
An ESG fund investment strategy limits the types and number of
investment opportunities available to the fund and, as a result,
the fund may underperform other funds that do not have an ESG
focus.
ESG related DWS strategies seek to provide investors with access
to assets that meet responsible investment criteria without
sacrificing investment returns. Although we strive to incorporate
an ESG criterion, as one of many other criteria, in our investment
process, ESG activities and processes may vary by investment
strategy, asset type and location.
Past performance is no guarantee of future results. War,
terrorism, sanctions, economic uncertainty, trade disputes, public
health crises and related geopolitical events have led, and, in the
future, may lead to significant disruptions in US and world
economies and markets, which may lead to increased market
volatility and may have significant adverse effects on the fund and
its investments.
This press release shall not constitute an offer to sell or a
solicitation to buy, nor shall there be any sale of these
securities in any state or jurisdiction in which such offer or
solicitation or sale would be unlawful prior to registration or
qualification under the laws of such state or jurisdiction.
Certain statements contained in this release may be
forward-looking in nature. These include all statements relating to
plans, expectations, and other statements that are not historical
facts and typically use words like “expect,” “anticipate,”
“believe,” “intend,” and similar expressions. Such statements
represent management’s current beliefs, based upon information
available at the time the statements are made, with regard to the
matters addressed. All forward-looking statements are subject to
risks and uncertainties that could cause actual results to differ
materially from those expressed in, or implied by, such statements.
Management does not undertake any obligation to update or revise
any forward-looking statements, whether as a result of new
information, future events, or otherwise. The following factors,
among others, could cause actual results to differ materially from
forward-looking statements: (i) the effects of adverse changes in
market and economic conditions; (ii) legal and regulatory
developments; and (iii) other additional risks and uncertainties,
including public health crises (including the pandemic spread of
the novel coronavirus), war, terrorism, trade disputes and related
geopolitical events.
NOT FDIC/ NCUA INSURED • MAY LOSE VALUE • NO BANK
GUARANTEE
The brand DWS represents DWS Group GmbH & Co. KGaA and any
of its subsidiaries such as DWS Distributors, Inc., which offers
investment products, or DBX Advisors LLC, DWS Investment Management
Americas, Inc. and RREEF America L.L.C., which offer advisory
services. R-098550-1 (11/24) DBX005739 (11/24)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231116291682/en/
For further information:
Madison Hanlon Contact Phone: +1 (646) 818-9012 Contact
Email: mhanlon@prosek.com
Joerg Jaeger Contact Phone: +49(69)910-45925 Contact
Email: joerg-e.jaeger@dws.com
Brendan Moffitt Contact Phone: +1 (212) 454-0013 Contact
Email: brendan.moffitt@dws.com
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