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Deutsche Asset & Wealth Management (DeAWM), a subsidiary of Deutsche Bank, has rolled out three new currency-hedged equity exchange-traded funds on the NYSE Arca.
The funds provide exposure to several international equity markets, while aiming to protect against fluctuations in the value of the US dollar and non-US currencies.
The three ETFs are the db X-trackers MSCI Asia Pacific ex Japan Hedged Equity ETF (DBAP), which offers exposure to equities in 12 Asian countries, excluding Japan; the db X-trackers MSCI Europe Hedged Equity ETF (DBEU), which offers broad exposure to Europe; and the db X-trackers MSCI United Kingdom Hedged Equity ETF (DBUK), which tracks the UK market.
The funds seek investment results that correspond generally to the performance of the MSCI Asia Pacific ex Japan USD Hedged Index, the MSCI Europe USD Hedged Index, and the MSCI United Kingdom USD Hedged Index, respectively.
These specialist MSCI indices hedge each foreign currency in the parent index back to a home currency (in this case US dollars) by notionally selling each foreign currency forward at the one-month forward rate at the end of each month.
Commenting on the launch, Martin Kremenstein, Head of Passive Asset Management at DeAWM Americas, said: “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.”
DeAWM’s US exchange-traded products platform includes 58 ETPs, with approximately $12 billion in assets under management.
Existing currency-hedged ETFs include:
db X-trackers MSCI Brazil Hedged Equity ETF (DBBR)
db X-trackers MSCI Germany Hedged Equity ETF (DBGR)
db X-trackers MSCI EAFE Hedged Equity ETF (DBEF)
db X-trackers MSCI Emerging Markets Hedged Equity ETF (DBEM)
db X-trackers MSCI Japan Hedged Equity ETF (DBJP)