Deutsche Bank has launched five new Exchange Traded Funds (ETFs) linked to currency-hedged MSCI International indexes. These ETFs are designed to provide investors direct exposure to international equity markets and aim to protect against fluctuations in value of the US dollar and non-US currencies.
The ETFs will be listed for trading on the NYSE Arca, under the following symbols:
db-X MSCI Japan Currency-Hedged Equity Fund (NYSE Arca: DBJP); db-X MSCI Brazil Currency-Hedged Equity Fund (NYSE Arca: DBBR); db-X MSCI Canada Currency-Hedged Equity Fund (NYSE Arca: DBCN); db-X MSCI EAFE Currency-Hedged Equity Fund (NYSE Arca: DBEF); and db-X MSCI Emerging Markets Currency-Hedged Equity Fund (NYSE Arca: DBEM).
Deutsche Bank’s newest ETFs expand a product line that now includes 49 Exchange Traded Products (ETPs) in the US with USD14.9 billion assets under management (AUM), and 281 ETPs globally with USD67 billion AUM. The ETFs seek to provide investment results that, before fees and expenses are applied, correspond generally to the price and yield performance of their respective benchmark indexes. The funds are designed to provide exposure to equity securities globally, while at the same time seeking to mitigate exposure to fluctuation between the value of the US dollar and non-U.S. currencies by also investing in currency forwards.
“Deutsche Bank is filling a need in the marketplace by offering investors direct access to global markets with a built-in hedge against currency fluctuations,” says Martin Kremenstein (pictured), Chief Investment Officer and Chief Operating Officer of Deutsche Bank’s db-X business. “The newest Deutsche Bank ETFs provide investors direct access to some of the world’s most significant international markets with the goal of allowing investors to better manage their portfolios currency risk by capitalizing on Deutsche Bank’s industry-leading foreign exchange expertise.”