Deutsche Bank’s ETF platform, db X-trackers, has cross-listed its pioneering Global Fund Supporters ETF in London. The db x-trackers Global Fund Supporters ETF tracks the Dow Jones Global Fund 50 Index to Fight AIDS, Tuberculosis and Malaria. Following an initial launch on the Frankfurt Stock Exchange in December 2010, the ETF can now also be traded on the London Stock Exchange.
The index tracks the performance of the largest public companies that support the mission of the Global Fund, the unique global public/private partnership dedicated to attracting and distributing resources to prevent and treat HIV/Aids, tuberculosis and malaria. To date the Global Fund has committed over USD21 billion in 144 countries to support large-scale disease prevention, treatment and care programs. db X-trackers’ management revenues after costs for running the Global Fund Supporters ETF will go directly to the Global Fund.
“By making the Dow Jones Global Fund 50 Index available in ETF format we have made it truly investable, and we are happy to direct profits from the product to the Global Fund,” says Thorsten Michalik, Frankfurt-based global head of db X-trackers. “We’ve seen a massive uptake in our ETFs since we launched in 2007. With ever increasing numbers of investors embracing the products, and with more of those investors wishing to invest along socially-conscious lines, we are confident that the db x-trackers Global Fund Supporters ETF will be a success.”
The Dow Jones Global Fund 50 Index emerged from a collaboration between leading index provider Dow Jones Indexes and the Global Fund. “The collaboration with Deutsche Bank is an example of innovative financing that can benefit investors and serve humanitarian purposes,” says Professor Michel Kazatchkine, Executive Director of the Global Fund. “With Deutsche Bank, the Global Fund is showing that it is possible to do well and to do good at the same time.” The Global Fund Supporters ETF uses physical replication to track its index. db X-trackers traditionally replicates indices using a swap-based – also commonly referred to as synthetic – replication method. However, if clients, due to investment restrictions or tax treatments, request the physical replication method, then db X-trackers can replicate those ETFs physically. This is the case with the Global Fund Supporters ETF.