Deutsche launches currency-hedged Treasury bond ETF on Xetra

Dec 8th, 2016 | By | Category: Fixed Income

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Deutsche Asset Management has launched the db x-trackers II iBoxx $ Treasuries UCITS ETF (Xetra: XUTE), providing access to US Treasuries with currency hedging relative to the euro.

Deutsche launches currency-hedged Treasury bond ETF on Xetra

The db x-trackers II iBoxx $ Treasuries UCITS ETF (Xetra: XUTE) tracks the performance of US Treasury securities with a minimum of one year to maturity, while mitigating the risk of adverse currency movements between the US dollar and the euro.

The exchange-traded fund tracks the iBoxx $ Treasuries (Hedged in EUR) Index, which references the performance of tradable bonds issued by the US government with a residual maturity of at least one year and an outstanding volume of at least $1bn. The USD to EUR currency risk is minimised through the use of currency futures.

As of 2 December 2016 the index has a maturity yield of 2.4% and an effective duration of 6.2 years.

The ETF has a total expense ratio of 0.20%.

Deutsche Börse’s product offering currently comprises a total of 1,152 ETFs.

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