The U.S. division of German asset manager DWS launched its first actively managed exchange-traded fund (ETF), the Xtrackers RREEF Global Natural Resources ETF (NRES), bringing the company’s U.S.-listed ETFs to nine.
The ETF will provide exposure to global natural resources companies primarily through investments in equity and equity-related securities, the company said. It has an expense ratio of 0.45%.
“More and more investors are recognizing the advantages of this form [actively managed] of investment,” said Arne Noack, head of systemic investment solutions, Americas. “Active strategies can adapt to a wide range of market conditions, especially in times of great uncertainty.”
The ETF seeks opportunities across a variety of resources subsectors including metals, energy, agriculture, paper & forestry.
The fund will be based on a target allocation provided by the Liquid Real Assets (LRA) team, including portfolio managers Avi Feinberg, Darwei Kung, and John Vojticek.
“During the post-COVID inflationary cycle, investor portfolios were under-allocated to inflation-resilient assets. Because government deficits and debts have continued to expand, we believe natural resource equities provide a timely opportunity to protect capital in a prolonged period of gentle or minor price increases,” added Vojticek.
DWS’ alternative platform had $120 billion in assets under management as of September 30, 2023, with $28 billion invested in LRA strategies.
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