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DEKA launches three ETFs based on Solactive indices


German asset manager Deka has launched three new benchmark ETFs based on Solactive indices on Deutsche Borse Xetra.

The respective ETFs track two fixed income indices from the corporate and sovereign space as well as one equity index, which incorporates the thirty largest German stocks. The ETFs are primarily targeted to institutional investors looking for highly liquid ETFs by offering full physical replication and no securities lending.

The indices building the underlying of Deka’s new ETF range are derived from Solactive’s major index families covering global equities, global government bonds, and global corporate bonds. The Deka Germany 30 UCITS ETF tracks the performance of the thirty largest German companies by market capitalization. The ETF is aimed at investors who believe in Germany’s innovation potential and robust economy in the long run. The Solactive Germany 30 Index, a precise rule-based index, provides the underlying.

The Solactive Euro Corporates 0-3 Liquid EUR Index serves as the underlying for the Deka Euro Corporates 0-3 Liquid UCITS ETF. The index mirrors the performance of Euro-denominated, short-term corporate debt, which can be used as a substitute for cash. To achieve this goal, Solactive only includes highly rated (Investment Grade) European issuers with sufficient liquidity (large amounts outstanding) in the market. Furthermore, to keep the exposures to interest rate changes at a low level, the index only includes securities with a maturity of no more than three years.

Lastly, Deka releases its Deka US Treasury 7-10 UCITS ETF utilising the Solactive US Treasury 7-10 Year Q Series USD Index as its underlying. The index tracks the performance of US Treasuries, one of the largest and most liquid capital markets in the world, only including bonds with a maturity between 7 and 10 years. While the interest rates within the Eurozone remain negative – the entire German yield curve was below zero recently – investors receive 1.6  per cent pa on 10-year US Treasuries. This opportunity is a particularly attractive option for investors who hold USD exposure or are willing to take the exchange rate risk.

Timo Pfeiffer, Head of Research at Solactive, says: “Deka’s new pure beta ETFs are a distinct representation of the respective markets, focusing on institutional players in Germany. We are very proud to intensify our relationship with Deka, one of the leading players in the German market, and provide them with the benchmark indices for their new line of ETFs.

Georg Kayser, Institutional Sales at Deka comments: “Especially when reproducing classic market beta, it is important to offer institutional customers fully transparent and coherent investment solutions; and for the release of the ETFs, Solactive convinced us with its strictly rule-based approach. Apart from this fact, Solactive offers prime service and flexible solutions, making us long-standing partners for years already.”

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