Hedge fund ETF reaches $1bn in AUM

The db x-trackers Hedge Fund Index ETF has reached $1bn in assets under management (AUM) since launch in January.

The ETF invests directly in hedge funds through the underlying db Hedge Fund index, which is linked to the range of hedge funds available on Deutsche's X-markets platform.

Deutsche Bank global head of hedge fund derivatives Stephane Farouze says: "The db x-trackers Hedge Fund Index ETF is the first of its kind to provide exposure to the performance of actual hedge funds. It is not a hedge fund replicator."

The fund is available in US dollars, British pounds, euros and Swiss francs, and is listed in the UK, Germany and Switzerland.

Deutsche Bank provides sufficient liquidity across all listed exchanges and allows over the counter (OTC) trading, supporting large order sizes. It is also possible to trade daily at net asset value.

Head of db x-trackers Thorsten Michalik says daily volumes of over €50m provide substantial intra-day liquidity.

He adds: "We're aiming for the db x-trackers db Hedge Fund Index ETF to become the world's most recognised product for transparent and liquid investments into hedge funds."