Commerzbank launches two ComStage multi-asset ETFs on Deutsche Börse

Mar 14th, 2018 | By | Category: Alternatives / Multi-Asset

German investment bank Commerzbank has introduced two new passively managed multi-asset ETFs on Deutsche Börse’s Xetra and Frankfurt exchanges.

Commerzbank launches two ComStage multi-asset ETFs on Deutsche Börse

Commerzbank is the asset manager behind the ComStage range ETFs.

Launched under the firm’s ETF brand ComStage, the funds provide multi-asset exposure for investors looking for either defensive or aggressive risk positioning.

Each fund is an ETF of ETFs, investing in other Comstage ETFs including equity, fixed income, and commodity funds.

The ComStage Vermögensstrategie Defensiv UCITS ETF (F702 GR) , aimed at more risk-averse investors, sets its initial allocation as 40% equity ETFs, 50% bond ETFs, and 10% commodity ETFs. Its total expense ratio (TER) is 0.45%.

The ComStage Vermögensstrategie Offensiv UCITS ETF (F703 GR), aimed at more growth-oriented investors, has an initial allocation that is dominated by equities, with 80% exposure, plus 10% each to fixed income and commodity ETFs. Its TER is slightly more expense at 0.55%.

The equity exposure in both ETFs is diversified across geographic regions and sectors.

To obtain their fixed income exposures, the defensive strategy utilizes both government bond and Pfandbrief (covered bond) ETFs.

For the commodity component, the offensive strategy incorporates a broad-basket ETP, while the defensive strategy consists purely of the firm’s gold ETC, seeking to harness the safe-haven quality of the yellow metal.

Each ETF distributes income to investors on a quarterly schedule.

The funds complement the existing ComStage Vermögensstrategie UCITS ETF (F701 GR), launched in April 2016, which offers a risk/return profile broadly in between the new defensive and offensive strategies. This ETF’s initial composition includes 60% equity ETFs, 30% bond ETFs, and 10% commodity ETFs.

Each fund rebalances to its initial allocation once a year in the spring.

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