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

Small-cap stock ETF 'IWM' took a breather and found itself among the biggest creations Monday, July 27, raking in more than $420 million in one day. Total U.S.-listed ETF assets dropped to $2.111 trillion.

A roster of ETFs including 'IJH' and 'IWM' paced iShares' issuer-leading inflows Monday, July 27. Total U.S.-listed ETF assets dipped to $2.111 trillion.

ETF.COM ANALYST BLOGS

By Paul Britt

Toss and turn about whether to hedge currency risk, but don’t lose sleep over the derivatives themselves.

By Dave Nadig

With the China A-Share market half-broken, ETF investors should be very, very cautious.

By Drew Voros

Price depreciation and continued outflows have made for a tough few years.

By Dave Nadig

Legendary investor trips over how ETFs work.

ETF INDUSTRY PERSPECTIVE

By Invesco PowerShares

A more in-depth look at the smart-beta survey's results.

By Invesco PowerShares

Smart beta appears to be poised for further growth.