Investment Product Launches

Xtrackers by DWS Launches ETF

DWS Group announced the listing of the Xtrackers MSCI USA Climate Action Equity ETF. The exchange-traded fund is designed for investors seeking exposure to large- and mid-cap companies in the U.S. that are taking actions on climate change.

Ilmarinen Mutual Pension Insurance Co. has invested in USCA as a part of its goal to achieve a carbon-neutral portfolio by the end of the year 2035. The firm is Finland’s largest private earnings-related pension insurance company.

“DWS is pleased to partner with Ilmarinen to establish this new Xtrackers fund in the U.S. to help drive the transition to a low carbon economy,” said Dirk Goergen, DWS Americas CEO, in a comment. “We are focused on providing investors bespoke index investment solutions across asset classes and expanding the Xtrackers brand in the Americas with specialized products with attractive long term return opportunity.”

The investment of approximately $2 billion on the first day of trading makes it the largest ETF launch of all time in the U.S. and the single largest climate-investing ETF launch.

Principal Launches Hybrid QDIA

Principal Financial Services Inc. has launched a hybrid qualified default investment alternative, Principal Intelligent QDIA, which offers both target-date strategies and a managed-account service in one default option.

Participants younger than the plan’s set transition age will be defaulted into a target-date fund, unless a different investment election is made during enrollment. Once participants reach the plan’s set transition age, they will automatically move to a managed account service.

“We know from research and our direct conversations with customers that personalized investment advice has become a need for retirement savers,” said Brett Fisher, head of investment product strategy for retirement and income solutions at Principal, in a statement. “Principal Intelligent QDIA can help participants feel more confident in their financial futures by getting them started on a savings path for retirement before ultimately helping them manage the wealth they’ve accumulated.”

Penn Mutual Introduces Protection Whole Life

The Penn Mutual Life Insurance Co. has introduced Protection Whole Life, a permanent life insurance product that provides guaranteed lifetime protection at a competitive premium rate.

“As a leader in the life insurance industry, Protection Whole Life strengthens our ability to support diverse client needs, goals and budgets,” said Tom Harris, president of life insurance and annuities for Penn Mutual, in a statement. “This newest addition to our life insurance product lineup can be a good fit for clients when protection, guarantees and the cost of coverage matter most.”

Protection Whole Life’s client-focused features include:

• Guaranteed Protection – death benefit guaranteed to age 121;
• Guaranteed Premiums – payment amounts are set and guaranteed to never increase; and
• Guaranteed Cash Value – accumulates tax-deferred and is accessible income tax-free at any time.

Schwab Announces Enhancements to Schwab Personalized Indexing

Charles Schwab today announced new personalization and digital capabilities to Schwab Personalized Indexing, the firm’s direct indexing solution with tax-loss harvesting and portfolio management capabilities.

The enhancements include new options for portfolio customization and digital capabilities for retail clients who work with a Schwab financial consultant. Similar enhancements are anticipated to be available to independent advisers who custody with Schwab later this year.

“We have seen strong adoption of Schwab Personalized Indexing since its launch last year and we are excited to introduce new customizations to further address unique client preferences or situations—such as concentrated stock positions or values-based exclusions—and to make investing a more personal experience,” said Divya Krishnan, Schwab director of product management and strategy, in a statement. “The new digital tools are designed to add transparency and accessibility to valuable account information and analysis, setting Schwab Personalized Indexing apart from competitors.”

Savvy Wealth Rolls Out Proprietary Direct Indexing Solution 

Savvy Wealth Inc. announced the launch of Savvy Direct Indexing. The solution provides advisers with a solution to deliver tax-efficient, values-aligned portfolios that are customized to their high-net-worth clients’ environmental, social and governance preferences.

Savvy Direct Indexing allows investors to use separately managed accounts, emulating clients’ desired index exposure while screening out investments that undermine their values.