Deutsche Rolls Out Currency-Hedged ETFs

By
ETF.com Staff
June 09, 2011
Share:

Related ETFs

Ticker Fund name
DBCPowerShares DB Commodity Tracking
Related ETF Lists
Commodity ETFs

Deutsche Bank rolls out line of international equity ETFs that hedge out currency exposures.

 

Deutsche Bank, the world’s biggest currency firm measured by the sums it trades, today rolled out five equity ETFs that are designed to protect investors against the fluctuation of the dollar versus non-U.S. currencies.

The five ETFs, unlike a slew of existing DB ETFs and ETNs, will be marketed by an internal arm of Deutsche Bank and not by Invesco PowerShares, the Wheaton, Ill.-based firm that works with Deutsche Bank to promote and market successful securities such as the PowerShares DB Commodity Tracking Index Fund (NYSEArca: DBC). A Deutsche official said the German-based bank sees an opportunity in promoting its own products, but stressed its existing products with PowerShares won’t be affected.

The new products and their expense ratios, according to a prospectus Deutsche filed early this year, are:

  • db-X MSCI Japan Currency-Hedged Equity Fund (NYSEArca: DBJP), 0.50 percent
  • db-X MSCI Brazil Currency-Hedged Equity Fund (NYSEArca: DBBR), 0.60 percent
  • db-X MSCI Canada Currency-Hedged Equity Fund (NYSEArca: DBCN), 0.50 percent
  • db-X MSCI EAFE Currency-Hedged Equity Fund (NYSEArca: DBEF), 0.35 percent
  • db-X MSCI Emerging Markets Currency-Hedged Equity Fund (NYSEArca: DBEM), 0.65 percent

 

The products will provide a single tool to neutralize the effects changing currency valuations can have for U.S. investors on investments that aren’t denominated in dollars. While the dollar has been in a secular decline against many currencies for much of the past 10 years, the fluctuations can cut the other way too. For example, when investors flocked to U.S. Treasurys during the financial crisis, the dollar rose against many other currencies.

The funds achieve their investment objectives by seeking to track their respective equity indexes while also investing in currency forwards, Deutsche Bank said in a press release.

The new products expand the U.S.-listed line of products Deutsche sponsors, which together have gathered $14.9 billion in assets.

 

ETF.COM CHANNELS

Want to learn more about smart-beta ETFs? Check out our smart-beta guide, essentials library and ETF screener!

ETF DAILY DATA

International equity funds like 'IEMG' led inflows on Monday, May 18, as rising markets lifted U.S.-listed ETF assets to a record $2.174 trillion.

'SPY' and 'GLD' paced SSgA's issuer-leading outflows on Monday, May 18, as rising markets lifted total U.S.-listed ETF assets to a record $2.174 trillion.

ETF.COM ANALYST BLOGS

By Olly Ludwig

Yields will one day head higher, so is it time to get bond exposure outside the U.S.?

By Rachael Revesz

Stop dancing around the subject, call women ‘women’ and let’s be a more visible part of this industry.

By Olly Ludwig

It’s no secret that hedge funds love ETFs, but what’s less appreciated is that their love of ETFs will likely spell their demise.

By Olly Ludwig

Yes, bond yields are ticking higher these days, but it’s important to keep the whole yield-curve picture in mind.