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Blog Posts — October 23, 2020

DAX 50 ESG Index to Serve as Benchmark for Active Fund

The DAX® 50 ESG Index will for the first time serve as benchmark for an actively managed fund, expanding the menu of investment vehicles that follow the German sustainability index.

The fund will be managed by Stuttgart, Germany-based Württembergische Lebensversicherung AG.

The DAX 50 ESG tracks the 50 largest, most liquid German stocks that have comparably good performance based on environmental, social and governance (ESG) criteria. The index employs two complementary sustainability approaches: standardized negative screens for controversial or unsustainable activities1; and positive screening based on ESG scores. The methodology is designed to ensure a German market ESG flagship index whose liquidity and risk-return characteristics are similar to those of the flagship DAX®.

Investors can now access the DAX ESG either through the new mutual fund, an exchange-traded fund managed by Lyxor Asset Management, or certificates issued by Austria’s Raiffeisen Centrobank.

“We are observing a continuous trend towards sustainable investing, and the DAX 50 ESG is the ideal index to be used as the ESG flagship benchmark for the German equity market,” said Stephan Flaegel, Global Head of Indices and Benchmarks at Qontigo.

For a Qontigo whitepaper analyzing the performance of the DAX 50 ESG Index, please click here

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DAX® 50 ESG Index

1 Negative exclusions in the DAX 50 ESG Index cover a Global Standards Screening as well as involvement in controversial weapons, tobacco production, thermal coal, nuclear power and military contracting. The base universe of the DAX 50 ESG Index is the HDAX universe, which comprises the joint set of companies included in DAX, MDAX® and TecDAX®.