Deutsche’s db X-tracker ETF business turns ten

Jan 17th, 2017 | By | Category: ETF and Index News

Deutsche Asset Management’s db X-trackers exchange-traded fund business is celebrating the 10-year anniversary of the listing of its first ETF.

Reinhard Bellet, Deutsche Asset Management

Reinhard Bellet, Deutsche AM’s Head of Passive Asset Management.

The db x-trackers MSCI World Index UCITS ETF (Xetra: XMWO) listed on the Deutsche Börse in January 2007, and now boasts over €2.5bn in assets under management (AUM). The fund tracks the MSCI World Index, a broad global equity benchmark that represents large and mid-cap equity performance across 23 developed markets countries.

From that starting point ten years ago, Deutsche AM has grown into the second largest provider of ETFs in Europe by AUM, and has established successful operations in Asia and in the US. As of 5 January 2017, there is approximately €54bn invested in Deutsche AM’s ETFs listed across Europe, representing a 11.4% market share according to a recent Morningstar report, and around $13bn in its ETFs listed in the US. The fund range has expanded to over 200 ETFs covering all major asset classes.

Reinhard Bellet, Deutsche AM’s Head of Passive Asset Management, commented: “Since the launch of our first ETF 10 years ago we’ve grown to become the biggest Europe-based globally operative provider of ETFs. That is a remarkable achievement in what is perhaps the most competitive area of the asset management industry.”

Industry firsts achieved over the last decade include the listing of the first ETFs in Europe and the US to provide investors with access to China’s domestic A-shares equity market, and the first ETF providing exposure to the global investment-grade bond market.

The db X-trackers platform has also transformed itself over this period, from its initial inception as a provider of synthetic ETFs to the point today where the majority of AUM is in physical replication form.

“We are rightly celebrating our achievements these past 10 years but we’re very much focused on the future,” said Bellet. “With a range of physical replication fixed income ETFs we’re well placed to meet investor demand in this important new segment. We will also continue to take a leading market development role in areas such as strategic beta, model portfolios, and demonstrating how passive solutions can meet a wide range of investment challenges.”

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