Deutsche Bank has announced the launch of six new Exchange Traded Funds (ETFs) on the Stock Exchange of Hong Kong Limited (SEHK), including the first ETF in Asia to track the performance of the Brazilian domestic equity market.
The six ETFs, which have been launched in Hong Kong by Deutsche Bank’s db x-trackers, are among the most successful in terms of assets under management of the 120 ETFs that db x-trackers provides in Europe.
“Together with the six new ETFs, db x-trackers now has a total of 13 ETFs listed on SEHK, making Deutsche Bank the largest issuer of ETFs in Hong Kong in terms of product offerings,” said Marco Montanari, head of db x-trackers ETFs, Asia.
The db x-trackers Emerging Markets TRN Index ETF is the biggest db x-trackers ETF with more than US$3.4 billion in assets under management globally as of February 19, 2010.
“The db x-trackers Emerging Markets TRN Index ETF is a great example of the kind of market leading product and innovation that db x-trackers can bring across asset classes that include equities, commodities, currencies and fixed income,” said Mr Montanari. “This focus on innovation has helped Deutsche Bank ETFs raise more than US$50 billion in assets under management globally in just under three years.”
The db x-trackers MSCI Brazil TRN Index ETF is the first ETF issued in Hong Kong to track the performance of the Brazilian equity market.
With the db x-trackers MSCI Russia Capped Index ETF, Deutsche Bank completes its BRIC offering covering the four major emerging countries of Brazil, Russia, India and China.
Deutsche Bank has both ETF manufacturing capabilities as well as trading and market-making capabilities.
“All our ETFs benefit from the liquidity provided by the market-making commitment of Deutsche Bank,” Mr Montanari said. “In addition db x-trackers ETFs represent a tax-efficient option for Asian investors as they are domiciled in Luxemburg, whereas Asian investors who invest in other off-shore ETFs domiciled in the US may be taxed up to 30% on their dividends.”
As a dedicated market-maker, Deutsche Bank offers efficient execution by ensuring the spreads on its ETFs are competitive. Tight spreads, combined with large trading size and an efficient tracking error, have made db x-trackers the world’s fastest growing global ETF provider.
db x-trackers ETFs are listed on seven stock exchanges across Asia and Europe. After its considerable success in Europe, db x-trackers started introducing innovative ETFs to Asia in early 2009, including: Asia’s first Vietnam ETF; and Asia’s first US-dollar money market ETF.