Daily ETF Watch: Hedged Equity ETF Trio

January 06, 2014

DB plans to deepen its lineup of currency-hedged ETFs.

Deutsche Bank has updated regulatory paperwork on three currency-hedged equities ETFs canvassing emerging markets and developed markets alike, adding to its eight existing funds that take currency risk out of the equation in different areas and regions of the world.

The three new funds, their associated fees and tickers are:

  • db X-trackers MSCI All World ex US Hedged Equity Fund (DBAW), 0.40 percent, or $40 for every $10,000 invested
  • db X-trackers MSCI South Korea Hedged Equity Fund (DBKO), 0.58 percent, or $58 for every $10,000 invested
  • db X-trackers MSCI Mexico Hedged Equity Fund (DBMX) 0.50 percent, or $50 for every $10,000 invested.

The three ETFs will track their respective indexes—the MSCI All Country World Index ex USA US Dollar Hedged Index; the MSCI Korea US Dollar Hedged Index; and the MSCI Korea US Dollar Hedged Index.

In cases where the dollar rose against a particular currency, currency-hedged ETFs returned more than nonhedged funds last year.

For example, the db X trackers MSCI Japan Hedged Equity Fund (DBJP | C-53) gained 41.1 percent last year, while the non-hedged iShares MSCI Japan ETF (EWJ | B-96) rose 21.8 percent—a function of the yen’s slide against the dollar.

There were no other filings or launches this morning.

 

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