DWS has reduced the annual all-in fees for two of its Xtrackers ETFs and one ETC, as of the beginning of March.
The firm writes that the reductions stem from the cost advantages created by high inflows, which are effectively then passed on to investors. The Xtrackers II Eurozone Inflation-Linked Bond UCITS ETF tracks the euro-denominated inflation-linked bond market and has recorded inflows of EUR225 million over the past 12 months. Currently, the ETF has assets under management of more than EUR1 billion. Due to increased inflation expectations, the asset class of inflation-indexed bonds is currently very much in focus for investors.
The Xtrackers II Harvest China Government Bond UCITS ETF, which invests in Chinese government bonds, has registered inflows of around EUR133 million in the past 12 months. The fund volume currently amounts to around EUR280 million. The ETF tracks an index with an indicative yield-to-maturity of 2.9 per cent. It is seen by defensive investors as an alternative to indices on US and Euro government bond markets.
In addition, the annual all-in fee of the Xtrackers IE Physical Gold ETC Securities, which has seen inflows of around EUR2.1 billion over the last 12 months, was reduced. The ETC currently has around EUR2.6 billion in assets under management. Increased geopolitical risks have historically led to stronger demand for gold investment products.
“We are increasing the attractiveness of these bond ETFs and gold ETC at a time when investors are using these exposures for portfolio adjustments amidst volatility rises,” says Michael Mohr, Head of Passive Products at DWS.