Deutsche lowers fees to establish ‘core’ fixed income ETF suite

Mar 1st, 2017 | By | Category: Fixed Income

Deutsche Asset Management has established a range of db X-trackers fixed income ETFs designed to be low-cost mainstream benchmark trackers, and suitable as long term “core” holdings in investors’ portfolios.

Deutsche lowers fees to establish ‘core’ fixed income ETF suite

Simon Klein, Deutsche AM’s Head of ETF Sales, EMEA and APAC.

The exposures provided across the Core fixed income range include Eurozone and US government bonds, euro-denominated and US dollar-denominated corporate bonds, and euro-denominated high-yield corporate bonds. Euro-hedged share classes of those ETFs providing exposure to USD corporate bond and US government bond markets are also available.

In establishing the fixed income Core range the db X-trackers II EUR Corporate Bond UCITS ETF and the db X-trackers Barclays USD Corporate Bond UCITS ETF have had their annual all-in fees reduced from 0.20% per annum to 0.16% per annum.

“We already have low-cost db X-trackers Core ETFs covering major equity benchmarks, and investors will now welcome a similar focus on efficiency on the fixed income side,” said Simon Klein, Deutsche AM’s Head of ETF Sales, EMEA and APAC. “The inclusion of a range of physical replication fixed income ETFs into the db X-trackers Core range helps give investors the exposures they need to create efficient, long-term holdings in their portfolios.”

Similar to the firm’s equity Core ETF range, each ETF in the fixed income suite uses a direct physical replication approach to index tracking.

The full range of db X-tracker core fixed income ETFs, along with their ticker codes, assets under management (AUM) as of 21 February 2017, and total expense ratios (TERs) is listed below:

db x-trackers II Eurozone Government Bond UCITS ETF (LON: XGLE)
AUM – €1.53bn; TER – 0.15%.

db x-trackers II iBoxx $ Treasuries UCITS ETF (LON: XUTD)
AUM – $152m; TER – 0.15%.
EUR-hedged share class (Xetra: XUTE), TER – 0.20%.

db x-trackers II EUR Corporate Bond UCITS ETF (Xetra: XBLC)
AUM – €205m; TER – 0.16%.

db x-trackers Barclays USD Corporate Bond UCITS ETF (LON: XDGU)
AUM – $546m; TER – 0.16%.
EUR-hedged share class, (Xetra: XDGE), TER – 0.21%.

db x-trackers II EUR High Yield Corporate Bond UCITS ETF (Xetra: XHYG)
AUM – €302m; TER – 0.35%

The db X-trackers equity Core ETFs range was established in 2014, providing major equity benchmark exposure starting at 0.07% all-in fee per annum.

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