Deutsche Bank issues three new ETFs tracking eurozone bonds

May 7th, 2012 | By | Category: Fixed Income

Three new ETFs have been issued by DB X-trackers, Deutsche Bank’s ETF brand, on the XTF segment of Deutshce Borse’s Xetra.

Deutsche Bank issues three new ETFs

DB X-trackers, part of Deutsche Bank, has expanded its eurozone government bond offering with the issuance of three new ETFs.

The db x-trackers II Eurozone Sovereigns Double Long Daily ETF and the db x-trackers II Eurozone Sovereigns Double Short Daily ETF enable investors to participate with a leverage factor of two in the positive or inverse performance of government bonds issued by eurozone countries.

The leverage factor means that, for example, a 2% fall in the Deutsche Bank Eurozone Sovereigns Total Return Index would lead to an approximate 4% fall in the db x-trackers II Eurozone Sovereigns Double Long Daily ETF on a daily basis.

In a corresponding manner, the same 2% fall would translate into an approximate 4% gain for db x-trackers II Eurozone Sovereigns Double Short Daily ETF.

The leveraged long and short funds track the Deutsche Bank Eurozone Sovereigns Double Long Daily Index and Deutsche Bank Eurozone Sovereigns Double Short Daily Index respectively, both of which are based on the IBOXX € Sovereigns Eurozone Total Return Index. This index represents the overall euro-denominated currency sovereign debt issued by eurozone governments.  France, Italy, Germany, Spain and Belgium are the largest country weights, which combined make up over 85% of the fund.

The third fund is the db x-trackers II iBoxx € Germany 7-10 TRI ETF. This fund tracks the IBOXX € Germany 7-10 Index, representing the 7-10 years maturity bucket of euro-denominated sovereign debt issued by the German government. The fund offers investors access to high-quality debt with the opportunity to react to interest rate expectations within the maturities of seven to ten years.

All three funds are registered for sale in the UK, are UCITS compliant, eligible for ISAs and SIPPs, and have UK Distributor Status.

db X-trackers II Eurozone Sovereigns Double Long Daily ETF
ISIN: LU0621755080
Total expense ratio: 0.30%
Distribution policy: non-distributing
Benchmark: Deutsche Bank Eurozone Sovereigns Double Long Daily Index

db X-trackers II Eurozone Sovereigns Double Short Daily ETF
ISIN: LU0621755676
Total expense ratio: 0.30%
Distribution policy: non-distributing
Benchmark: Deutsche Bank Eurozone Sovereigns Double Short Daily Index

db X-trackers II iBoxx € Germany 7-10 TRI ETF
ISIN: LU0730820569
Total expense ratio: 0.15%
Distribution policy: distributing
Benchmark: iBoxx € Germany 7-10 Index

The three funds went live on Xetra on Thursday 3 May.

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