Deutsche Bank announced the addition of five new exchange-traded funds which are linked to MSCI International Indexes.
Each of the new funds provide exposure to international equity markets while attempting to avoid fluctuation between the U.S dollar and non-U.S. currencies by investing in currency forwards.
“Deutsche Bank is filling a need in the marketplace by offering investors direct access to global markets with a built-in hedge against currency fluctuations,” said Chief Investment and Operating Officer Martin Kremenstien.
The new ETFs, along with their corresponding ticker symbols are:
- DBX MSCI Brazil Currency-Hedged Equity Fund (NYSE: DBBR)
- DBX MSCI Canada Currency-Hedged Equity Fund (NYSE: DBCN)
- DBX MSCI Japan Currency-Hedged Equity Fund (NYSE: DBJP)
- DBX MSCI EAFE Currency-Hedged Equity Fund (NYSE: DBEF)
- DBX MSCI Emerging Markets Currency-Hedged Equity Fund (NYSE: DBEM)
DBBR tracks the MSCI Brazil US Dollar Hedged Index, which provides exposure to Brazilian equity markets and hedges the Brazilian real to the U.S. dollar by selling Brazilian real currency forwards. The annual expense ratio for the new DBBR fund is 0.60%.
DBCN tracks the MSCI Canada US Dollar Hedged Index, which provides exposure to Canadian equity markets and hedges the Canadian dollar to the U.S. dollar by selling Canadian dollar currency forwards. The annual expense ratio for the DBCN exchange traded fund is 0.50%.
DBJP tracks the MSCI Japan US Dollar Hedged Index, which provides exposure to Japanese equity markets and hedges the Japanese yen to the U.S. dollar by selling Japanese yen forwards. The annual expense ratio for the DBJP fund is 0.50%.
DBEF tracks the MSCI EAFE US Dollar Index, which provides exposure to equity securities in Europe, Australia and the Far East, and hedges each foreign currency in the Index to the U.S. dollar by selling the applicable currency forward. The annual expense ratio for the DBEF exchange traded fund is 0.35%.
DBEM tracks the MSCI EM US Dollar Hedged Index, which provides exposure to emerging markets equity and hedges each foreign currency in the Index to the U.S. dollar by selling the applicable currency forward. The annual expense ratio for DBEM is 0.65%.
According to Kremenstien, the goal of the new ETF funds is to provide investors with access to some of the “world’s most significant markets” while allowing them to better manage the currency risk of their portfolios.
Deutsche Bank’s DBX group now has $67 billion in assets in a total of 281 exchange-traded products globally.
In Other ETF News
Index IQ launched their first Real Estate ETF on Tuesday. The IQ US Real Estate Small Cap ETF (NYSE: ROOF) is linked to the IQ U.S. Real Estate Small Cap Index. The Index is a float-adjusted market-cap weighted Index that tracks the performance of small cap real estate companies in the U.S. The annual expense ratio for ROOF is 0.69%.
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