Bringing you live news and features since 2006 

Fixed-income ETFs grow 250 per cent in less than two years, says Deutsche

RELATED TOPICS​

There has been an explosion in fixed income exchange-traded fund assets under management in Europe, with 250 per cent growth in less than two years, according to Deutsche Bank.

There has been an explosion in fixed income exchange-traded fund assets under management in Europe, with 250 per cent growth in less than two years, according to Deutsche Bank.

Of this, 44 per cent can be attributed directly to db x-trackers, Deutsche Bank’s ETF platform, which raised EUR10bn in fixed income ETF assets between June 2007 and February 2009.

While fixed-income ETF assets have climbed from EUR9bn to EUR31.7bn over the 20-month period, db x-trackers have seen an average asset accumulation in fixed income ETFs of EUR500m per month.

Money market ETFs have also enjoyed phenomenal growth since their introduction in Europe by db x-trackers in June 2007 with the Deutsche Bank Eonia (European overnight index average) ETF. The Eonia ETF has accumulated more than EUR6bn assets under management, which represents more than 20 per cent of the European fixed income ETF market.

‘db x-trackers have been instrumental in the innovation and growth of the fixed income ETF market in Europe,’ says Marco Montanari, head of fixed income ETF structuring at db x-trackers.

‘Since June 2007 more than three quarters of our fixed income ETFs assets under management can be directly attributed to our ‘first to market’ products including Eonia, our range of short bond and credit default swap products and our inflation products. The market has responded positively to innovations from db x-trackers and we aim to continue to launch new and relevant products in this space.

‘The success of the money market ETF range has been driven in particular by institutional clients seeking the advantages that these products offer them, namely transparency, flexibility, low costs and a tactical tool box that they can easily access.’

Thorsten Michalik, head of db x-trackers, adds: ‘At present the majority of the db x-tracker fixed income ETF range is listed on Frankfurt Xetra, and Borsa Italiana, however we have plans to launch a dedicated range of fixed income ETFs for the UK market later this year.’

Despite the growth of assets under management, fixed income ETFs still account for just 30 per cent of the total ETF market in Europe compared to a 48 per cent share of the mutual fund market, suggesting that there is both room and appetite for further growth in this sector.

Latest News

ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..
Investors urgently need greater access to diversified investment strategies aligned with the Paris Agreement on climate change if the world..

Related Articles

Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Lorraine Sereyjol-Garros, BNP Paribas
Following changes to the French Monetary and Financial Code and of the French market authority AMF’s General Regulation, it is...
Ed Rosenberg, Texas Capital
Texas Capital Bank first opened its doors back in December 1998 and nowadays offers wealth-management services, as well as commercial,...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by