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Xtrackers by DWS Launches US National Critical Technologies ETF

  • 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)

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