Petmal
DWS launched the Xtrackers MSCI USA Climate Action Equity ETF (NYSEARCA:USCA) which marked the largest exchange traded fund debut of all time as it received $2B worth of capital on its first day of trading.
USCA blew past the Goldman Sachs MarketBeta US 1000 Equity ETF (NYSEARCA:GUSA) which previously held the record for the largest global ETF debut when it came to market with $1.35B back in April of 2022.
USCA is a passive index fund that aims to deliver the investment community with exposure to companies that are the leaders in taking action relating to a climate transition and are at the forefront towards a low-carbon economy. Moreover, the ETF intends to track the MSCI USA Climate Action Index and comes with a 0.07% expense ratio and 306 holding.
While the fund has 306 holdings, nearly 20% of its weighting, 19.35% to be exact falls in the hands of 5 mega cap giants. The five largest portfolio weightings in USCA are Apple (AAPL) at 5.40%, Amazon (AMZN) at 3.94%, NVIDIA Corp (NVDA) at 2.81%, Alphabet (GOOG) (GOOGL) at a combined 5.09%, and Tesla (TSLA) at 2.11%.
Regarding the launch, Todd Rosenbluth, head of research at VettaFi stated: “There’s a perception that demand for climate change-focused ETF remains uncertain, so it’s impressive to see strong institutional support for a new product.”
In other ETF unveiling news, Jeffrey Gundlach’s DoubleLine Capital announced the launch of two new actively managed fixed income securities funds.