DWS closes three US-listed Xtrackers ETFs

May 17th, 2018 | By | Category: ETF and Index News

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DWS will close and liquidate three of its US-listed Xtrackers ETFs—the Xtrackers MSCI Brazil Hedged Equity ETF (DBBR US), Xtrackers MSCI EAFE Small Cap Hedged Equity ETF (DBES US), and Xtrackers MSCI Mexico Hedged Equity ETF (DBMX US).

DWS will close and liquidate three of its Xtrackers ETFs.

DWS will close and liquidate three of its US-listed Xtrackers ETFs.

DBBR tracks the MSCI Brazil US Dollar Hedged Net Index, and has an expense ratio of 0.60%. The index covers roughly 85% of the Brazilian equity universe and provides a currency hedge between the US dollar and the Brazilian real.

DBES tracks the MSCI EAFE Small Cap hedged USD Index and has an expense ratio of 0.45%. The index provides US dollar-hedged exposure to small cap equities across 21 developed markets excluding the US and Canada.

DBMX tracks the MSCI Mexico IMI 25/50 US Dollar Hedged Index, and has an expense ratio of 0.50%. The index covers approximately 99% of the Mexican equity market and provides a currency hedge between the US dollar and the Mexican peso.

The niche dollar-hedged exposures offered by the funds have failed to pique investors’ interest. Each fund has less than $10 million in assets under management, and collectively the ETFs account for less than 1% of DWS’s total US AUM.

The last day of trading for the funds is expected to be 31 May 2018, and creations will be accepted until that time. Proceeds of the liquidations are scheduled to be sent to shareholders on or around 12 June 2018.

When each ETF commences liquidation of its securities, it may hold cash and securities that may not be consistent with the ETF’s investment objective and strategy. During this period, each ETF is likely to incur higher tracking error than usual.

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