DWS cuts fees on euro cash and US Treasury ETFs

Apr 12th, 2018 | By | Category: ETF and Index News

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DWS, the asset manager recently spun out of Deutsche Bank, has reduced the fees charged on five of its Xtrackers-branded ETFs. The funds include four US Treasury ETFs and a euro cash deposit rate tracker.

Blanca Koenig, fixed income strategist at Deutsche Wealth Solutions.

Blanca Koenig, fixed income strategist at Deutsche Wealth Solutions.

“We are making our US Treasuries and EUR cash offering even more attractive for our clients at a time when, particularly with increased volatility, investors are trading more fixed income exposures using ETFs,” said Blanca Koenig, fixed income strategist at Deutsche Wealth Solutions.

The ETFs’ primary exchange is Xetra but they also have listings on other European exchanges, including LSE, SIX Swiss Exchange and Borsa Italiana.

US Treasury ETFs

The Xtrackers US Treasuries ETF suite provides exposure to a range of US government bond exposures. These include nominal bonds across the yield curve, bonds within targeted maturity ranges, and inflation-linked exposures.

The funds benefiting from fee reductions are as follows:

The Xtrackers II US Treasuries UCITS ETF (XUTD GR) sees its total expense ratio (TER) lowered from 0.15% to 0.12%. XUTD tracks the Markit iBoxx $ Treasuries Index, providing exposure to bonds from across the yield curve with maturities greater than one year. The fund has assets under management (AUM) of $330 million.

The Xtrackers II US Treasuries UCITS ETF EUR hedged (XUTE GR) has lowered its TER from 0.20% to 0.17%. XUTE provides exposure to a euro-hedged version of the above Markit iBoxx $ Treasuries Index.

The Xtrackers II US Treasuries 1-3 UCITS ETF (D5BE GR) sees its TER lowered from 0.15% to 0.12%. D5BE tracks the Markit iBoxx $ Treasuries 1-3 Year Index which invests in nominal government bonds from the nearer end of the yield curve, offering investors access to a lower duration exposure. Its AUM is $54m.

The Xtrackers II US Treasuries Inflation-Linked UCITS ETF (D5BF GR) sees its TER lowered from 0.20% to 0.12%. D5BF tracks the Markit iBoxx TIPS Inflation-Linked Index, providing exposure to Treasury Inflation-Protected Securities with more than one year remaining to maturity. Its AUM is just $10m.

Euro Cash ETF

The Xtrackers II EUR Cash Swap UCITS ETF (XEON GR) sees its TER lowered from 0.15% to 0.10%. XEON tracks the Deutsche Bank EONIA Index, which reflects the performance of a deposit earning interest at the rate of the Euro Over Night Index Average (EONIA), with the interest being re-invested in the deposit daily.

EONIA is a weighted average of the interest rates at which banks in the eurozone lend to each other on an unsecured basis overnight (as calculated by the European Central Bank). Its AUM is €435m.

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