DWS Plans Active Overhaul of Emerging Markets Climate ETF

DWS plans to convert the Xtrackers MSCI Emerging Markets Climate Transition UCITS ETF (XEMC) from passive to active management. The fund would stop tracking the MSCI Emerging Markets Select Sustainability Screened CTB index and adopt a bottom-up stock-selection process based on valuation, financial strength, technical indicators, analyst sentiment and earnings growth. It would be renamed the Xtrackers Emerging Markets Equity Enhanced Active UCITS ETF, while its TER would rise from 0.16% to 0.30%. The fund would also move from SFDR Article 9 to Article 8 and apply direct exclusion screens. The proposal follows similar passive-to-active conversions announced by JPMorgan AM and Fidelity International.