One of Europe’s most prominent providers of exchange traded funds (ETFs), Xtrackers by DWS, is bringing its products to the South American market with the listing of 10 funds on B3 S.A. – Brasil, Bolsa, Balcão.

The new listings aim to provide local investors with efficient exposure to major equity benchmarks within the respected European UCITS (Undertakings for the Collective Investment in Transferable Securities) regulatory framework. It includes Xtrackers Core ETFs, which are designed to provide exposure to the most widely used investment benchmarks at extremely competitive fee levels. For example, the Xtrackers MSCI USA UCITS ETF, providing exposure to large and mid-cap companies listed in the US, has an annual all-in fee (total expense ratio) of 0.07%. (see product table for full details).

Other new listings include Xtrackers that provide exposure to global emerging markets, to China, and to non-market-capitalization weighted versions of well-known equity benchmarks, such as an equal weight version of the S&P 500 (using an index methodology that equally weights underlying stocks regardless of company market capitalization).

“As the second largest global ETF provider based in Europe^[1], and with over 20 years’ experience of index replication, we are very pleased to bring the benefits of Xtrackers ETFs to investors here in Brazil,” said Simon Klein, Global Head of Xtrackers Sales, DWS.

Xtrackers is the ETF division of DWS, one of the world’s leading asset managers, with over EUR 821 billion of assets under management (as of 31 December 2022^[2]). Xtrackers ETFs are listed on stock exchanges globally and have over EUR 130 billion in assets under management (as of 13 March 2023^[3]).

DWS’s Xtrackers UCITS ETFs have been listed on the Mexico Stock Exchange since 2014. Currently, over 90 Xtrackers ETFs are listed in Mexico. The debut of Xtrackers on the Brazilian market was facilitated via the Brazilian Depository Receipts (BDR) programme.

“This is the first listing of UCITS ETFs on the Brazilian market using the BDR programme. Xtrackers has been keen to innovate in this area,” commented Salvador Gómez Galaz, Head of Xtrackers Sales Latin America & US Offshore at DWS.  “Furthermore, one of the reasons we’ve chosen to lead with our UCITS ETFs is due to lack of potential automatic withholding tax for Brazilian investors, relative to US-domiciled ETFs.^[4]”

“The listing of Xtrackers in Brazil means investors across much of the Americas now have access, via local exchanges, to Xtrackers ETFs,” said Klein. “We look forward to engaging with more investors in South America, as we introduce them to the benefits of Xtrackers ETFs.”

Source: DWS