Deutsche Asset & Wealth Management (Deutsche AWM) has launched a smart beta exchange-traded fund (ETF) tracking equities on Japan’s JPX-Nikkei 400 Index, which came into the market at the beginning of 2014.
The db x-trackers JPX-Nikkei 400 Ucits ETF DR [depositary receipt] tracks the index of 400 Japanese stocks selected through quantitative and qualitative screening. As the underlying index is not a standard capitalisation-weighted benchmark, the ETF falls into the strategic beta, or ‘smart beta’, category of investments.
The ETF has been listed on the London Stock Exchange (LSE) as a sterling-hedged share class and on the Deutsche Börse in unhedged and euro-hedged share classes.
The unhedged share class has an annual all-in fee of 0.2% per annum, while the currency-hedged share classes have annual all-in fees of 0.3% per annum.
Also newly listed on the LSE are sterling- and dollar-hedged share classes for the existing db x-trackers MSCI EMU Index Ucits ETF (DR), and a dollar-hedged share class for the db X-trackers MSCI Europe Index Ucits ETF (DR).
Michael Mohr, Deutsche AWM’s head of exchange-traded product development, Europe the Middle East and Africa, says: “The introduction of quantitative easing in the Eurozone has boosted returns on European equities, but it’s also weakened the euro against major currencies, which dilutes the returns for non-euro investors. These share classes potentially solve that issue, mitigating the currency risk.”
Deutsche AWM has €934 billion of assets under management as of March 31, 2014.
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