Db ETC platform launches in Europe

Deutsche Bank has launched its db exchange-traded commodities platform in Europe, unveiling four ETCs on the Frankfurt stock exchange (Xetra).

The four euro-hedged ETCs track Brent crude oil, industrial metals, monthly short Brent crude oil and monthly short gold, with management fees of 0.45% per annum.

The bank will expand the platform to the rest of Europe this year, offering ETCs on gold, silver, platinum and palladium.

As commodity products carry US dollar exposure, Deutsche says it is offering euro-hedged products on the platform alongside US dollar-denominated ETCs, for those investors who want access to the asset class without dollar exposure.

Deutsche Bank global head of commodities David Silbert says ETCs allow investors to gain access to this underlying asset without trading futures contracts or taking physical delivery of the commodities.

The ETCs are fully collateralised using physical gold, rather than baskets of equities and bonds.

The db ETC platform will additionally provide access to Deutsche Bank's Optimum Yield commodity indices, which use a method designed to maximise gains and minimise losses from the rolling of commodity futures contracts. The bank already has a range of ETFs tracking these indices.

Head of db x-trackers Thorsten Michalik says: "We expect to launch more than 30 products before June and will continue to add to the product range on the ETC platform as we launch more products across Europe."

He adds: "Building on our strong investment banking skills in commodities we are also planning to launch db ETC on the underlying physical asset classes, for example silver."