3 Currency-Hedged ETFs From DB

January 26, 2014

Deutsche Bank launched three more currency-hedged strategies on Sept. 30, using riffs on MSCI indexes, which means large institutional players looking to hedge currency exposure can do so with tighter controls to the extent that they frequently benchmark their performance to MSCI indexes.

The db X-trackers MSCI AC Asia Pacific ex Japan Hedged Equity fund (DBAP) costs 60 basis points; the db X-trackers MSCI Europe Hedged Equity fund (DBEU) and the db X-trackers MSCI United Kingdom Hedged Equity fund (DBUK) each cost 45 basis points.

The Asia-Pacific strategy is alone, competitively, and Asia in general is positioned to be one area of the investment universe where U.S. investors could really use currency hedging, according to an IndexUniverse ETF analyst.

The Europe fund and the U.K. fund resemble competitively two funds that WisdomTree has already has on the market: the WisdomTree United Kingdom Hedged Equity Fund (DXPS) and the WisdomTree Europe Hedged Fund (HEDJ | D-39).


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