Deutsche Bank launches sterling hedged ETCs

Deutsche Bank’s db x-ETC platform has unveiled sterling hedged versions of its oil, agriculture, physical gold and physical silver ETCs on the London Stock Exchange.

The firm says its db Physical Gold GBP Hedged ETC is the first of its kind and that commodities are generally priced in US dollars on the international markets.

Db x-ETC UK head Manooj Mistry says: "British pound hedged versions of some of the most popular db ETCs will let sterling-denominated investors participate in the commodity markets while minimising the impact of exchange rate risks on performance."

The move comes after db x-ETC's euro hedged products began listing last year. Deutsche Bank says its db Physical Gold Euro Hedged ETC has generated more than €580m since its launch last June.

The db Agriculture Booster and Brent Crude Oil Booster GBP Hedged ETCs both take exposure to the relevant commodities via the futures market, using Deutsche Bank's ‘booster' methodology to try to minimise roll costs and tracking error. Both are trading at a total expense ratio of 0.45%

The db Physical Gold and Physical Silver GBP Hedged ETCs, costing 0.69% and 0.85% respectively, are secured by material stores of the underlying precious metal.