DB X-trackers, Deutsche Bank’s ETF platform, has launched ETFs with sterling–hedged share classes on the MSCI Japan and S&P 500 indices.
The ETFs, DB X-trackers MSCI Japan TRN Index ETF (XMJG) and DB X-trackers S&P 500 ETF (XSPG), have been listed on the London Stock Exchange and are the latest addition to a growing range of DB X-trackers currency hedged products. The ETFs have TERs of 0.60% and 0.30% respectively.
“UK investors seeking equity exposure to Japan or the US often simply accept implicit foreign exchange risk because the indices are listed in US dollars. With these new ETFs investors get an automatic in-built hedge that aims to minimise the impact of currency movements on their equity investment,” said Manooj Mistry, head of DB X-trackers for the UK.
DB X-trackers’ other currency-hedged offerings include GBP share classes in the DB X-trackers II Global Sovereign Index ETF (XGSG), offering sterling-hedged exposure to an international basket of sovereign debt, the DB X-trackers II iBoxx Global Inflation-Linked TR Index ETF (XGIG), providing sterling-hedged exposure to major sovereign and quasi-sovereign inflation-linked bond markets, and the DB X-trackers DBLCI – OY Balanced ETF (XDGB), providing sterling-hedged exposure to a diversified basket of commodities.