Deutsche Asset & Wealth Management today announced the addition of the db X-trackers MSCI Germany Hedged Equity Fund (NYSE Ticker: DBGR) to the db X-trackers platform, effective May 31, 2013. DBGR is the first ETF designed to provide investors direct exposure to the German equity markets while mitigating exposure to fluctuations between the value of the U.S. dollar and the euro.
DBGR will provide access to Germany, the fourth largest economy in the world by gross domestic product according to UN data1, while simultaneously decoupling German equity investment from currency exposure. Before the introduction of DBGR, investors could only access the German stock market through unhedged ETFs that subjected the funds to the fluctuations in the currency market, possibly eroding gains in equity investments.
“U.S. investors are looking for products with built-in protection against fluctuations between the dollar and non-U.S. currencies that also provide pure exposure to equity markets. DBGR is the first ETF focused on Germany that responds to this demand,” said Martin Kremenstein, Deutsche Asset & Wealth Management Americas’ Head of Passive Asset Management.
DBGR will seek investment results that correspond generally to the performance, before fees and expenses, of the MSCI Germany U.S. Dollar Hedged Index (the “Index”). The Index measures the performance of the large and mid cap segments of the German market. With 51 constituents, the Index covers approximately 85% of the equity universe in Germany. One cannot invest directly in an index.
DBGR currently trades as “db X-trackers MSCI Canada Hedged Equity Fund” under the ticker “DBCN” and with its underlying index as the MSCI Canada U.S. Dollar Hedged Index. On May 31, 2013, following a delayed opening, the ETF will be available under the ticker “DBGR,” and its underlying index will be the MSCI Germany U.S. Dollar Hedged Index. DBGR joins the db X-trackers suite of hedged equity ETFs that includes the db X-trackers MSCI Japan Hedged Equity Fund (NYSE Ticker: DBJP), db X-trackers MSCI EAFE Hedged Equity Fund (NYSE Ticker: DBEF), db X-trackers MSCI Emerging Markets Hedged Equity Fund (NYSE Ticker: DBEM), and db X-trackers MSCI Brazil Hedged Equity Fund (NYSE Ticker: DBBR).
Deutsche Asset & Wealth Management’s U.S. exchange traded products (ETP) platform includes 53 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 second largest ETP provider in Europe and the fifth largest in the world, with approximately $60 billion in assets under management.