Deutsche Asset & Wealth Management today announced the launch of three new hedged equity exchange traded funds (ETFs) on the db X-trackers platform. The new funds track MSCI hedged equity indexes and provide direct exposure to several important international equity markets, while aiming to protect against fluctuations in value of the U.S. dollar and non-U.S. currencies. db X-trackers offers the most comprehensive suite of hedged equity ETFs in the U.S.
The three new ETFs are listed for trading on the NYSE Arca, under the following symbols:
db X-trackers MSCI Asia Pacific ex Japan Hedged Equity Fund (NYSEArca:DBAP)
db X-trackers MSCI Europe Hedged Equity Fund (NYSEArca:DBEU)
db X-trackers MSCI United Kingdom Hedged Equity Fund (NYSEArca:DBUK)
“Hedged equity ETFs have been one of the fastest growing segments of ETFs by assets, and these three new innovative ETFs address this growing demand by providing investors with more complete exposure to investment opportunities in Asia and Europe. Investors now have the ability to manage their currency risk, while capturing the potential growth in these unique slices of the international market,” said Martin Kremenstein, Deutsche Asset & Wealth Management Americas− Head of Passive Asset Management.
DBAP, which offers exposure to equities in 12 Asian countries, excluding Japan, joins db X-trackers MSCI Japan Hedged Equity Fund (DBJP) to offer complete investment opportunities across developed and emerging Asian markets, where currencies have increasingly fluctuated relative to the U.S. dollar.
The other new ETFs DBEU, which offers broad exposure to the European Union, and DBUK, which provides exposure to equity securities of the United Kingdom, will join existing products db X-trackers MSCI EAFE Hedged Equity Fund (DBEF) and db X-trackers MSCI Germany Hedged Equity Fund (DBGR) to deliver four distinct ways to invest in the European markets while mitigating exposure to fluctuations between the value of the U.S. dollar and non-U.S. currencies.
DBEU, DBUK and DBAP seek investment results that correspond generally to the performance of the MSCI Europe USD Hedged Index, the MSCI United Kingdom USD Hedged Index and the MSCI AC Asia Pacific ex Japan Index, respectively.
The MSCI hedged equity indexes have empirically generated greater returns year-to-date than their unhedged index counterparts.*
With the addition of these three new ETFs, the db X-trackers platform offers eight hedged equity ETFs, including the following:
db X-trackers MSCI Brazil Hedged Equity Fund (NYSEArca:DBBR)
db X-trackers MSCI Germany Hedged Equity Fund (NYSEArca:DBGR)
db X-trackers MSCI EAFE Hedged Equity Fund (NYSEArca:DBEF)
db X-trackers MSCI Emerging Markets Hedged Equity Fund (NYSEArca:DBEM)
db X-trackers MSCI Japan Hedged Equity Fund (NYSEArca:DBJP)
Deutsche Asset & Wealth Management’s U.S. exchange traded products (ETP) platform includes 58 ETPs, with approximately $12 billion in assets under management. Deutsche Asset & Wealth Management’s ETP platform was launched in 2006 and has risen to become the fifth largest in the world, with approximately $60 billion in assets under management as of September 09, 2013.**
*Source: MSCI, as of 8/30/13.
**Source: Deutsche Bank, Bloomberg Finance LP, Reuters.