Deutsche Asset Management has launched a new ETF on Deutsche Börse Xetra, the db x-trackers Spanish Equity UCITS ETF (XESP), tracking the performance of large cap equities listed in Spain.

Spanish equities have enjoyed a strong bull run thus far in 2017 with the Solactive Spain 40 Index gaining 11.9% to 7 July.

The fund’s underlying reference is the Solactive Spain 40 Index which was recently unveiled by Frankfurt-based index provider Solactive at the end of June.

It is a free-float market capitalisation weighted index covering approximately 63% of the total Spanish equity market. To be eligible for inclusion, company shares must be listed on the Madrid Stock Exchange. The forty largest companies among the sixty most liquid according to six-month average daily trading volume are chosen as final index components. The index composition is readjusted quarterly.

Spanish equities have enjoyed a strong bull run thus far in 2017 with the Solactive Spain 40 Index gaining 11.9% to 7 July.

The ETF has existed on the Madrid Stock Exchange since its initial launch in April 2011, previously named the db x-trackers IBEX 35 UCITS ETF (DXIBX) and tracking the IBEX 35 Index. The fund changed its name and underlying index following the introduction of the Solactive Spain 40 Index last month.

The IBEX 35 tracks the 35 most liquid stocks listed in Madrid. As such the choice between the IBEX and Solactive indices may represent a slight trade-off between liquidity and the ability to track the largest cap segment of the Spanish equity universe.

XESP treats income generated within the fund’s portfolio as accumulating while a distributing fund has also been launched under the ticker XESD.

Each ETF trades in euros and has a total expense ratio (TER) of 0.30%. There is just under €260 million in assets across all three ETFs.