Deutsche Asset & Wealth Management today announced the launch of the db X-trackers Municipal Infrastructure Revenue Bond Fund (NYSE Ticker: RVNU) and the db X-trackers Regulated Utilities Fund (NYSE Ticker: UTLT). RVNU is the only exchange-traded fund (ETF) on the market offering investors targeted access to municipal infrastructure revenue bonds and UTLT is first ETF to provide investors with 100% exposure to regulated utilities.
The new funds offer unique investment opportunities in markets not previously served by ETFs. RVNU invests in municipal infrastructure revenue bonds which are backed by dedicated revenue streams from infrastructure projects. UTLT provides investors exposure to regulated utilities, an asset class backed by a government regulated rate base that produces stable earnings.
“UTLT and RVNU are unique in allowing access to two new market sectors. The new ETFs further demonstrate our commitment to growing the db X-trackers platform in the U.S. with first-to-market products that fill gaps in investor demand,” said Martin Kremenstein, Deutsche Asset & Wealth Management Americas Head of Passive Asset Management.
RVNU seeks to track the DBIQ Municipal Infrastructure Revenue Bond Index, a proprietary index of long-term U.S. tax-exempt bonds focusing on investment-grade1 bonds issued for infrastructure purposes that are backed by dedicated revenue streams. The index has over 500 constituents representing approximately 150 unique municipal obligors with approximately $73 billion in total market value.
UTLT seeks to track the DBIQ Regulated Utility Index, a proprietary index of regulated utility companies from developed international markets. This index includes companies whose primary business operations are in the regulated utility sector. This includes companies whose non-utility businesses and/or unregulated utilities businesses represent 25% or less of EBITDA (or if EBITDA is not available, net income or operating income) in any year on a three-year look back basis.
Deutsche Asset & Wealth Management’s U.S. exchange traded products (ETP) platform includes 55 ETPs, with approximately $11.6 billion in assets under management. Deutsche Asset & Wealth Management’s ETP platform was launched in 2006 and has risen to become the second largest ETP provider in Europe and the fifth largest in the world, with approximately $63 billion in assets under management as of May 24, 2013.2
1 Investment-grade is a rating from a Nationally Recognized Statistical Rating Organization that indicates that a bond has a relatively lower risk of default than those that are rated below investment-grade.
2 Source: Deutsche Asset & Wealth Management