Deutsche unveils low-cost international equity ETF suite in US

Oct 26th, 2017 | By | Category: Equities

Deutsche Asset Management has unveiled a low-cost suite of US-listed ETFs designed to offer investors access to various segments of the international equity market. The suite consists of three ETFs tracking equities listed in the eurozone, Germany, and Japan, with further additions in the pipeline.

Deutsche unveils low-cost international equity ETF suite in US

Fiona Bassett, head of passive asset management in the Americas.

Fiona Bassett, head of passive asset management in the Americas, commented: “Globally, we have been offering ETFs linked to international benchmark indices for more than ten years and are currently managing $15.6 billion in ETF assets linked to benchmarks for the eurozone, Germany and Japan. These capabilities and our European heritage mean that we are well-positioned to bring meaningful efficiencies and cost savings to US investors for these exposures.”

As part of the new range, Deutsche has launched two new ETFs, the Xtrackers Germany Equity ETF (Bats: GRMY) and Xtrackers Eurozone Equity ETF (Bats: EURZ), both of which track Nasdaq indices. GRMY tracks the Nasdaq Germany Large Mid Cap Index, while EURZ tracks the Nasdaq Eurozone Large Mid Cap Index.

David Gedeon, vice president and product manager for Nasdaq’s global index research, said: “Nasdaq’s collaboration with Deutsche Asset Management on these new ETFs is a positive step forward in market access. We launched our global equity family to provide the efficient benchmark exposure asset managers and investors need to meet their goals in today’s investment landscape and are thrilled to see these products launch.”

GRMY and EURZ each has a total expense ratio (TER) of 0.15%.

Additionally, Deutsche AM has reduced the expense ratio for its existing Xtrackers Japan JPX-Nikkei 400 Equity ETF (NYSE: JPN) from 0.40% to 0.15%. JPN provides investors with benchmark exposure to the Japanese stock market by tracking the JPX-Nikkei 400 Index.

The index consists of 400 Japanese securities that pass a rigorous screening process which includes indicators such as return on equity, cumulative operating profit, and market capitalization. The intended result is an index of high-quality, capital efficient Japanese companies.

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