Bringing you live news and features since 2006 

Deutsche AWM launches X-trackers enhanced beta ETFs


Deutsche Asset & Wealth Management (Deutsche AWM) has launched its first enhanced beta ETFs – Deutsche X-trackers Russell 1000 Enhanced Beta ETF (DEUS) and Deutsche X-trackers FTSE Developed ex US Enhanced Beta ETF (DEEF).

The ETFs are the US platform’s first, broad-based US domestic and unhedged developed international equity ETFs. They are intended to serve as core portfolio allocations as well as an alternative to traditional market cap weighted domestic and international index products.
“We are excited to launch our first suite of enhanced beta ETFs in the US,” says Fiona Bassett, Head of Passive in the Americas. “We believe this new suite complements our expertise and commitment to bringing innovative and relevant investment solutions to market, as we have seen growing investor interest in market factor diversification in addition to traditional sector and country diversification.”
DEUS tracks the Russell 1000 Comprehensive Factor Index, while DEEF tracks the FTSE Developed ex US Comprehensive Factor Index. Both FTSE Russell Comprehensive Factor indexes weight each stock within their respective underlying benchmark based on five academically-proven characteristics that influence the risk and performance of stocks.
The indexes seek to identify undervalued stocks relative to accounting values by measuring cash-flow yield, earnings yield and sales-to-price of each company.
In addition, the indexes seek to identify high-quality companies by measuring profitability, efficiency, earnings quality and leverage, and also analyse relatively recent price movements-over-time as a potential indicator of future performance of a stock price by analysing 11-month total return and lagged one-month returns.
The indexes seek to identify stocks with relatively low volatility by measuring the standard deviation of five years of weekly, total local returns on each stock, and consider market capitalisation in US dollars as an indicator of performance, and have found that small-cap stocks have historically outperformed large-cap stocks.
These indexes are factor weighted and not market cap weighted. The FTSE Russell methodology follows a simple, bottom-up approach that scores each stock based on each of the five factor characteristics and multiplies each stock’s starting benchmark weight by the respective score. As a result, stocks exhibiting strong factor characteristics are given higher weights within the multi-factor index.
“Multi-factor indexes have become increasingly popular as important diversification tools. Our new FTSE Russell Comprehensive Factor Indexes draw on the unique expertise of our extensive FTSE Russell global index research team, combining multiple factors in a transparent way to help investors meet their unique objectives,” says Ron Bundy, CEO North America Benchmarks for FTSE Russell. “We are excited to align with Deutsche AWM’s ETFs to offer indexes as the basis for their new ETFs.”
98.4pt 226.75pt 255.1pt 283.45pt 311.8pt 340.15pt; mso-layout-grid-align:none;text-autospace:none'> 
Generally speaking, activist campaigns on Fitch-rated entities do not have a rating impact unless Fitch believes the activist has a credible chance of implementing its desired changes and that the changes will be materially adverse to creditors. Fitch believes that not all activist activities have weakened credit profiles, as some have been neutral to mildly positive.

Latest News

US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles..
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..

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