Deutsche to cross-list core equity & corporate bond ETFs to LSE

Sep 12th, 2017 | By | Category: ETF and Index News

Deutsche Asset Management is planning to cross-list four ETFs, two corporate bond and two low-cost ‘core’ equity funds, on London Stock Exchange.

Deutsche to cross-list core & corporate bond ETFs to LSE

Deutsche expects the four ETFs to begin trading on the London Stock Exchange “very soon”.

The db X-trackers II EUR Corporate Bond UCITS ETF (XBLC) and the db X-trackers II – EUR High Yield Corporate Bond UCITS ETF (XHYG) will be listed in euros and track plain vanilla indices created by Bloomberg Barclays and Markit iBoxx respectively. The ETFs provide exposure to euro-denominated corporate bonds across the maturity spectrum with XBLC targeting bonds with an investment grade rating, while XHYG offers access to the high yield segment.

Both funds have their primary listings on Deutsche Börse where they trade in euros. XBLC has amassed €340 million in assets under management (AUM) since its inception in January 2012 and has a total expense ratio (TER) of 0.16%. XHYG has €250m in AUM and a TER of 0.35%.

The db X-trackers DAX UCITS ETF (XDAX) and the db X-trackers MSCI World Index UCITS ETF (XDWL) are part of Deutsche’s ‘core’ range of ETFs – low-cost index trackers designed to act as the foundational building blocks of an investor’s portfolio.

XDAX tracks Germany’s DAX index, a blue chip stock market index consisting of 30 major German companies trading on the Frankfurt Stock Exchange. The fund currently has approximately €4 billion in AUM, making it one of Deutsche’s most successful ETFs. The London-listed share class will be denominated in pounds and will have a TER of 0.09%.

XDWL tracks the MSCI World Index, providing exposure to over 1,600 global equities from 23 developed markets. It has approximately €3bn in AUM. The London-listed share class will trade in US dollars and will have a TER of 0.19%.

Simon Klein, head of passive distribution, EMEA and APAC, Deutsche Asset Management, commented: “Our DAX and MSCI World ETFs that we are cross-listing to London are part of our core ETF range providing very low TER core exposures to major benchmarks. We want to make these available to as wide an audience as possible. We also have a focus on expanding the opportunity for investors to access fixed income exposures in ETF format. This is especially important for corporate bond and high-yield bond exposures, where we’ve seen a lot of demand.”

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