Zug April 22, 2020 – Qontigo has licensed the DAX® 50 ESG Index to Lyxor Asset Management to serve as an underlying for an ETF.
The ETF was listed today and is available for trading on Xetra and via Börse Frankfurt. The index marries ESG-based exclusion and inclusion mechanisms: companies involved with controversial activities or not in compliance with ethical principles are excluded, and high environmental, social and governance (ESG) scores are an inclusion criteria for company selection.
“German investors are increasingly looking for financial instruments that allow them to invest in German stocks with ESG filters. With our ETF on the DAX 50 ESG Index, we are offering investors for the first time the opportunity to invest in a German share index in a simple, transparent and cost-effective manner using an ESG selection process,” said Arne Scheehl Head of Product Development at Lyxor ETF in Frankfurt.
“The DAX 50 ESG Index was created with the ambition to become the go-to benchmark for sustainable equity investments in Germany, and we are very pleased that Lyxor has selected the index for their new ETF. With its robust framework and transparent methodology, the DAX 50 ESG Index is a liquid representation of the German equity market that enhances the sustainable profile of a portfolio”, said Stephan Flaegel, Global Head of Indices & Benchmarks at Qontigo.
The DAX 50 ESG Index includes the 50 top companies in Germany with respect to ESG performance, market capitalisation and trading volume. The selection universe is the HDAX® index, which includes all equities that belong to the DAX®, MDAX® and TecDAX® indices. The HDAX index currently consists of 99 components. From this universe, a set of filters are applied to exclude companies deemed to be non-compliant with Sustainalytics’ Global Standards Screening assessment, as well as those companies being involved in controversial weapons, tobacco, thermal coal (extraction and power generation), nuclear power and military contracting. The remaining securities are screened for their individual ESG scores, as calculated by Sustainalytics’ ESG performance rating model.
DAX®, MDAX®, TecDAX®, HDAX® and DAX® 50 ESG are registered trademarks of Qontigo GmbH.