Deutsche AWM extends suite of international currency-hedged ETFs

Aug 24th, 2015 | By | Category: Equities

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Deutsche Asset & Wealth Management (Deutsche AWM), a leading global exchange-traded fund provider, has launched a further six dollar-hedged equity ETFs on its Deutsche X-trackers platform.

Deutsche Asset & Wealth Management extends suite of international currency-hedged ETFs

Deutsche AWM has expanded its currency-hedged ETF range to include various single country exposures.

Deutsche AWM’s US-listed currency-hedged ETFs offer dollar-referenced investors targeted international equity exposure, while mitigating the risk that currency fluctuations will erode dollar-based returns.

The new funds provide dollar-hedged exposure to MSCI parent indices across EAFE Small Cap, Australia, Southern Europe, Italy and Spain, and Japan Exchange Group‘s JPX-Nikkei 400.

With the addition of these country- and market-cap-specific ETFs (see below), the range now offers new tools for tactical investment strategies and risk management.

 

Internationally invested US portfolios have witnessed the powerful effect that currency movements can have on dollar-based returns. The unprecedented monetary stimulus measures being enacted in Europe and Japan have led their equity markets up and their currencies down relative to the US dollar. As such, the demand for currency-hedged solutions has sky-rocketed over the last year as investors seek purer exposure to the underlying investment returns of international markets.

“As a European-based bank, we have been able to leverage our local insight to offer the most comprehensive suite of currency-hedged international equity ETFs in the US,” said Fiona Bassett, Head of Passive in the Americas. “We will continue to strategically expand our suite, providing strategies that meet the demands of investors.”

The new funds come on the back of the continued success of the provider’s flagship currency-hedged ETF, the Deutsche X-trackers MSCI EAFE Hedged Equity ETF (DBEF), which has grown from $1.7bn to approximately $14.1 billion in assets under management since the beginning of 2015. This accomplishment has lifted the German firm into the top-10 rankings of ETF providers in the US by market share.

The six ETFs have been listed on the NYSE Arca exchange and each carry a 0.45% total operating expense ratio.

Deutsche X-trackers MSCI EAFE Small Cap Hedged Equity ETF (DBES)

Deutsche X-trackers MSCI Australia Hedged Equity ETF (DBAU)

Deutsche X-trackers MSCI Southern Europe Hedged Equity ETF (DBSE)

Deutsche X-trackers MSCI Italy Hedged Equity ETF (DBIT)

Deutsche X-trackers MSCI Spain Hedged Equity ETF (DBSP)

Deutsche X-trackers Japan JPX-Nikkei 400 Hedged Equity ETF (JPNH)

 

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