Deutsche Asset Management (Deutsche AM) has launched six new Xtrackers ETFs providing exposure to US equity sectors.
Sectors covered are energy, healthcare, information technology, financials, consumer discretionary and consumer staples. The new ETFs, which are based on MSCI USA indices, all have a competitively-priced annual All-in Fee1 of 0.12 per cent.
The latest launch complements the existing Xtrackers equity sector ETFs providing exposure to global sectors and to European sectors.
Michael Mohr, Deutsche AM’s Head of ETF Product Development, says: “As ETFs are increasingly being used as tactical asset allocation tools, there is demand from investors for granular exposure on a sector basis. These very competitively-priced ETFs on US sectors will help meet that demand, and their launch demonstrates once again our determination to provide investors with all the tools they need to meet their asset allocation needs.”
A white paper2 from Deutsche AM’s ETF quantitative research group published earlier this year demonstrates how sector ETFs can be used to establish sector rotation strategies, and how equity factors (such as the ‘value factor’, the ‘momentum factor’, etc.) can be used as signals to rotate sector exposures.
The new ETFs listed on the Deutsche Börse on Friday, 15 September, 2017, and are due to list on the London Stock Exchange on 19 September, 2017.