Deutsche Bank Lists U.K.'s First Money Market ETFs

April 21, 2008

The new funds are tied to the U.S. federal funds rate and the SONIA rate.
 

On Monday, Deutsche Bank launched the first money market ETFs to trade on the London Stock Exchange. The db x-trackers Sterling Money Market ETF (ISIN: LU0356591882) is linked to the Sterling Overnight Index Average rate (SONIA), while the db x-trackers US Dollar Money Market ETF (ISIN: LU0356592187) is tied to the U.S. federal funds rate.

Money market funds are primarily used as vehicles for cash holdings. The db x-tracker family has several such funds tracking these rates and others listed on exchanges in Italy and Germany. According to Deutsche Bank, the db x-trackers EONIA Total Return Index ETF, linked to the Euro-zone money market rate, was at EUR 2.7 billion in assets under management in less than 10 months of trading. It is the largest fixed-income ETF in Europe and among the top ETFs in Europe overall, so it looks like the prospects are good for these latest listings as well. Currently, the U.S. money market ETF listed in Germany and Italy has about $61 billion in assets, while the SONIA-linked fund has about GBP23 million.

Both of the funds listed on the LSE charge 0.15% in annual expenses. Deutsche Bank has nearly 40 ETFs trading on the LSE.

 

 

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