Deutsche Bank’s DBX Advisors is closing three of its currency-hedged Xtrackers ETFs by the end of this month. In a recent announcement, the issuer said the trio would see their last day of trading May 31.
The funds to be shuttered include:
- Xtrackers MSCI Brazil Hedged Equity ETF (DBBR)
- Xtrackers MSCI EAFE Small Cap Hedged Equity ETF (DBES)
- Xtrackers MSCI Mexico Hedged Equity ETF (DBMX)
All three have been trading for several years but have not accumulated much in the way of assets, with the largest weighing in at $5 million. A lot of that could have to do with the fact that it’s been a rocky road for currency-hedged equity funds in recent years.
Consider that the WisdomTree Japan Hedged Equity Fund (DXJ) and the WisdomTree Europe Hedged Equity Fund (HEDJ) once tipped the scales at roughly $30 million in assets under management during their heyday in 2014-2015, but now those funds have seen their AUMs decline to less than $7 billion each.
There have been 77 completed ETF shutdowns this year so far, with the most recent including the ETRACS UBS Bloomberg CMCI Platinum Total Return ETN (PTM), completed on May 14, and the Janus Henderson SG Global Quality Income ETF (SGQI), completed just yesterday.
That’s compared to 29 closures by this time last year, which was a record-breaking year for closures. However, it should be noted that the count for this year has been somewhat distorted by iPath’s revamp of its ETN lineup, which included the closure of delisting of 50 products.
Contact Heather Bell at [email protected]