DWS, the German asset manager’s U.S. division, has unveiled its inaugural active exchange-traded fund (ETF), marking a significant addition to the U.S. ETF landscape. The Xtrackers RREEF Global Natural Resources ETF diversifies investment across global commodity producers, encompassing industries from metals mining to paper products. With this launch, DWS expands its U.S. ETF lineup to a total of nine offerings.
Unlike many existing broadly-based ETFs that follow passive strategies tied to specific indices or commodity futures contracts, the new Xtrackers ETF stands out with its active management approach. The fund aims to navigate commodity price cycles and analyze business fundamentals for potential outperformance.
Avi Feinberg, a portfolio manager at DWS, emphasizes that the volatility and cyclicality of commodities are not the sole sources of potential returns. The active management team has the flexibility to adjust the portfolio’s exposure to mining, energy, and agricultural commodities, as well as make strategic stock selections. This approach allows the fund to seize opportunities not constrained by benchmark limitations.
Arne Noack, Head of Systemic Investment Solutions, Americas at DWS, clarified that the ETF’s launch timing wasn’t a tactical decision based on market or interest rate cycles. However, he acknowledged that amid concerns about inflation, commodities might become more prominent as investors seek hedges against rising prices and potential sell-offs in other asset classes. The Xtrackers RREEF Global Natural Resources ETF offers a dynamic investment option in response to evolving market conditions.
