Pen and graphs

DeAWM launches fixed income ETFs

Deutsche Asset & Wealth Management (DeAWM) has launched a range of fixed income exchange-traded funds, including an ETF that provides exposure to short-dated higher yield Eurozone sovereign debt.

 
The db x-trackers II iBoxx Sovereigns Eurozone Yield Plus 1-3 UCITS ETF provides exposure to shorter-dated sovereign debt of the Eurozone’s five highest-yielding countries, with the weighting for each country based on the total market value of the relevant debt for that country. Countries currently included are Italy, Spain, Belgium, Ireland and Slovakia.
 
The launch comes on the back of significant inflows into the db x-trackers II iBoxx Sovereigns Eurozone Yield Plus UCITS ETF which currently has approximately EUR780m in assets under management.
 
Arne Noack, head of product development for exchange traded products, EMEA, says: “Providing investors with exposure to areas of the fixed income market that may be more difficult to access via easy-to-trade products is a key development aim for us. Our shorter-dated Eurozone Sovereign Yield Plus ETF has already gathered over EUR160m in assets under management prior to its first listing, demonstrating that we’re meeting investors’ needs in terms of new opportunities.”
 
Other new ETF listings provide individual exposure to Spanish and Italian sovereign debt, and to the Canadian dollar overnight interest rate. As the Canadian dollar cash ETF (db x-trackers II Canadian Dollar Cash UCITS ETF) is denominated in euros, it provides a straight forward way for euro-denominated investors to take a position in the Canadian currency – with an appreciation of the Canadian dollar leading to a gain.
 
Earlier this month DeAWM launched unhedged share classes of the db x-trackers II iBoxx Global Inflation-Linked UCITS ETF, and of the db x-trackers II Global Sovereign UCITS ETF.  
 
Simon Klein, Deutsche Asset & Wealth Management’s head of exchange traded product sales, EMEA and Asia, says: “Our shorter duration Eurozone sovereign bond ETF will be welcomed by those clients looking for a reasonable yield while guarding against potential higher interest rates. The development of the fixed income space is still nascent, but we’re well placed to be a leading provider of fixed income ETFs as this area of the market develops.”
 
All new listings have taken place on the Deutsche Börse.

Further reading



Upcoming training

Tue, 14/10/2014 (All day) - London