Deutsche Bank launches first funds on ETF platform in the US

Deutsche Bank has inaugurated its US exchange-traded funds (ETF) platform, db-X US, with the launch of five currency-hedged equity index trackers in New York.



The ETFs give investors the opportunity to invest in Japanese, Brazilian and Canadian equity markets all in a format that seeks to mitigate  US dollar exchange rate risk.



The db-X division currently manages investor funds totaling €98bn in over 100,000 products across Asia, Europe and the US. db-X division is part of  the investment bank and is led globally by Reinhard Bellet. 
“The establishment of db-X US is an important component of the db-X brand, which is becoming a distinct symbol of investment expertise globally,” said Bellet. 



The db-X division has achieved a number of notable successes in recent years. The db X-trackers ETF brand (covering ETF sales outside the US) for example has accumulated €36bn of investor funds in 158 ETFs in Europe, placing it in third place behind iShares and Lyxor in terms of European assets under management (AUM). With 187 products and $52.6bn in assets globally, db X-trackers ranks fifth worldwide in terms of AUM.

Alongside db X-trackers, db-X markets is one of the bank's largest db-X business areas in terms of AUM. It manages investor funds of just under €37bn in Europe and Asia in about 105,000 certificates and leverage products. db-X funds provide systematically managed funds packaged as both alpha and enhanced beta strategies.

The brand includes more than 60 UCITS III and non-UCITS III funds, in which investors have invested more than €13 billion. Meanwhile, Deutsche Bank’s exchange traded commodities business, db-X ETC, has launched 36 ETCs since March 2010, which collectively hold around €1.4bn of investor funds. This is the newest area of the db-X business in Europe. 


Deutsche Bank has been active in the US ETF market over the past five years via its tie-in with ETF provider PowerShares. The partnership has led to the launch of 39 products on the US market under the name of PowerShares DB, representing some $14.9bn managed in 11 ETFs and 28 exchange-traded notes (ETNs). Deutsche Bank now offers around 50 ETPs in the US, with investor funds of around $15 bn under management there as at the end of May.

The five newly launched ETFs, which are physical replication products and have been listed on the New York Stock Exchange, are db-X MSCI Japan Currency-Hedged Equity Fund, 
db-X MSCI Brazil Currency-Hedged Equity Fund, db-X MSCI Canada Currency-Hedged Equity Fund, 
db-X MSCI EAFE Currency-Hedged Equity Fund, and 
db-X MSCI Emerging Markets Currency-Hedged Equity Fund.

www.db.com