Deutsche Asset & Wealth Management has launched three new currency-hedged equity exchange-traded funds on its db X-trackers platform.
The new funds will expand the db X-trackers suite of currency-hedged equity ETFs to a total of 11 ETFs.
Similar to the existing db X-trackers currency-hedged equity products, these news funds will track currency-hedged equity indexes from MSCI, the most widely used global foreign equity benchmark. Each of the db X-trackers currency-hedged equity ETFs provides exposure to one or more key international equity markets, while aiming to protect against fluctuations in the value of the US dollar and foreign currencies.
The three new ETFs are listed for trading on the NYSE Arca, under the following symbols:
db X-trackers MSCI All World ex US Hedged Equity Fund (DBAW)
db X-trackers MSCI South Korea Hedged Equity Fund (DBKO)
db X-trackers MSCI Mexico Hedged Equity Fund (DBMX)
“In the current market environment, investors are looking for products to help them manage exposure to currency risk in their international investments. For this reason, we continue to expand our hedged equity platform to include countries and regions where the management of currency risk can strengthen a global equity portfolio,” says Martin Kremenstein, head of passive asset management for Deutsche Asset & Wealth Management Americas.
Investors who are looking to gain broad exposure to international equity markets, while managing the currency risk from those markets should consider DBAW. The fund seeks to track the MSCI ACWI ex USA US Dollar Hedged Index, which includes developed and emerging market countries, as well as countries in the Eurozone.
DBKO allows investors access to the South Korean equity market, while managing exposure to the recently volatile Korean Won. DBKO seeks to track the MSCI Korea 25/50 US Dollar Hedged Index.
DBMX will offer the opportunity to access another major emerging Latin American economy – in addition to the existing db X-trackers MSCI Brazil Hedged Equity Fund (DBBR) – while hedging the currency risk and reducing the impact of fluctuations between the Mexican Peso, relative to the US Dollar. DBMX seeks to track the MSCI Mexico IMI 25/50 US Dollar Hedged Index.
