Bringing you live news and features since 2006 

Deutsche Bank launches sterling hedged ETCs


Deutsche Bank’s exchange-traded commodities (ETC) platform, db ETC, has launched the first sterling hedged gold ETC, as well as sterling hedged versions of its silver, oil and agriculture ETCs.

British pound hedged versions of gold, silver, oil and agriculture db ETCs can now be traded on the London Stock Exchange. Commodities are generally priced in US dollars on the international markets, and the sterling-denominated ETCs provide a hedge on the sterling/US dollar currency risk.

“The db X-ETC platform has seen significant inflows since its launch in February last year. British pound hedged versions of some of the most popular db ETCs will let sterling-denominated investors participate in the commodity markets while minimising the impact of exchange rate risks on performance,” says Manooj Mistry (pictured), head of db X-ETCs for the UK.  

The launch of the sterling hedged products comes on the back of significant inflows into db ETC’s euro hedged products, which began listing last year – the db Physical Gold Euro Hedged ETC has to date generated more than EUR580 million in inflows. The development of such euro hedged products was also an industry first.

The four new products are the db Physical Gold GBP Hedged ETC, the db Physical Silver GBP Hedged ETC, the db Brent Crude Oil Booster GBP Hedged ETC, and the db Agriculture Booster GBP Hedged ETC. The agriculture ETC references the prices of a range of agricultural commodities, including wheat, cocoa and sugar. For non-physical commodity ETCs, where exposure to the underlying index is acquired via the futures market, Deutsche Bank has developed a specialist futures buying methodology designed to make tracking more efficient. The products that use this methodology all have the word ‘Booster’ in their name (see notes for editors below). This contrasts with db Physical ETCs, which directly hold the relevant commodity.

Latest News

Figment Europe, a provider of institutional staking infrastructure, writes that it is solidifying its presence in the heart of Europe’s..
Saving and investing app, Moneybox, has doubled the number of ETFs available on the platform, in the light of ‘growing..
Global X ETFs has announced the appointment of Ryan O'Connor as its Chief Executive Officer effective as of April 8, 2024. ..
Value-driven structured credit investing firm, Angel Oak Capital Advisors, LLC, has announced the completed conversions of two of its mutual..

Related Articles

Ryan McCormack, Invesco
This year sees the 25th anniversary of Invesco’s QQQ, the USD240 billion ETF – the fifth largest ETF in the...
The European ETF market achieved a record 28 per cent growth – reaching over USD1.8 trillion assets under management (AUM)...
Sal Esposito, Zacks Investment Management
Zacks Investment Management started doing investment research in 1978 and in 1992 started its investment management arm, initially with SMAs...
Jeremy Senderowicz, Vedder Price
Jeremy Senderowicz, a member of the Investment Services Group at law firm Vedder Price, has witnessed a steady upswing in...
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