From the August 2011 issue of Research Magazine • Subscribe!

DB Tackles Currency Volatility

Falling dollar got you worried? Five new Deutsche Bank ETFs offer hedged exposure to various global currencies.

The new ETFs, along with their corresponding ticker symbols are:

  • db-X MSCI Brazil Currency-Hedged Equity Fund (DBBR)
  • db-X MSCI Canada Currency-Hedged Equity Fund (DBCN)
  • db-X MSCI Japan Currency-Hedged Equity Fund (DBJP)
  • db-X MSCI EAFE Currency-Hedged Equity Fund (DBEF)
  • db-X MSCI Emerging Markets Currency-Hedged Equity Fund (DBEM)

“Deutsche Bank is filling a need in the marketplace by offering investors direct access to global markets with a built-in hedge against currency fluctuations,” says Martin Kremenstien, the institution’s chief investment and operating officer.

DBBR tracks the MSCI Brazil US Dollar Hedged Index, which provides exposure to Brazilian equity markets and hedges the Brazilian real to the U.S. dollar by selling Brazilian real currency forwards. The annual expense ratio for DBBR is 0.60 percent.

DBCN tracks the MSCI Canada US Dollar Hedged Index, which provides exposure to Canadian equity markets and hedges the Canadian dollar to the U.S. dollar by selling Canadian dollar currency forwards. The annual expense ratio for DBCN is 0.50 percent.

DBJP tracks the MSCI Japan US Dollar Hedged Index, which provides exposure to Japanese equity markets and hedges the Japanese yen to the U.S. dollar by selling Japanese yen forwards. The annual expense ratio for DBJP is 0.50 percent.

DBEF tracks the MSCI EAFE US Dollar Index, which provides exposure to equity securities in Europe, Australia and the Far East, and hedges each foreign currency in the Index to the U.S. dollar by selling the applicable currency forward. The annual expense ratio for DBEF is 0.35 percent.

DBEM tracks the MSCI EM US Dollar Hedged Index, which provides exposure to emerging markets equity and hedges each foreign currency in the Index to the U.S. dollar by selling the applicable currency forward. The annual expense ratio for DBEM is 0.65 percent.

In related news, DB took over the management of five TDX target dated retirement ETFs. Each db-X Target Date Fund’s name will continue to correspond to a specified “target” year. The db-X Target Date Funds’ underlying indexes and trading symbols have not changed. During the second quarter, the db-X Target Date Funds had approximately $134 million in assets.

Previous: TDX Independence 2010 ETF New: db-X 2010 Target Date Fund (TDD)

  • Previous: TDX Independence 2020 ETF New: db-X 2020 Target Date Fund (TDH)
  • Previous: TDX Independence 2030 ETF New: db-X 2030 Target Date Fund (TDN)
  • Previous: TDX Independence 2040 ETF New: db-X 2040 Target Date Fund (TDV)
  • Previous: TDX Independence In-Target ETF New: db-X In-Target Date Fund (TDX)
Reprints Discuss this story
This is where the comments go.