db x-trackers, Deutsche Bank’s Exchange Traded Fund (ETF) platform, has listed two world first ETFs on the Deutsche Boerse….
The two new ETFs are a short bond ETF and an emerging market bond euro-hedged ETF and are based on the following indices:
• Short IBOXX € Sovereigns Eurozone Total Return Index®
• Deutsche Bank Emerging Markets Liquid Eurobond Euro Index®
Thorsten Michalik, Head of db x-trackers , comments: “db x-trackers once again demonstrates its innovative capabilities by launching yet more market leading products, this time in the form of the first short bond ETF and euro-hedged Emerging Market Bond ETF. db x-trackers’s provide investors access to all asset classes and continue to demonstrate outstanding flexibility in reacting quickly to market needs by offering investment solutions in line with their demands.”
The db x-trackers Short IBOXX € Sovereigns Eurozone Total Return Index ETF will allow investors to take a short position on the overall Eurozone sovereign debt issued by Eurozone governments and will be particularly interesting to investors forecasting continued long-term inflationary pressures driving up bond yields.
The db x-trackers Emerging Markets Liquid Eurobond Index ETF will provide investors with euro-hedged exposure to 14 emerging market sovereign and quasi-sovereign Eurobonds whilst also providing access to the underlying index methodology, including macroeconomic factors which have proved to be highly rewarding in the past. “Currently the Emerging Markets Liquid Eurobond Index offers a yield of 6.09% with duration of 5.55. 34.95% of the bonds are rated at BBB, 42.32% at BB and 22.72% at B according to Standard & Poor’s rating. Bonds out of Mexico, Brazil, Venezuela, Columbia and Russia are responsible for more than 50% of the Index adds Marco Montanari, Head of rates ETF structuring at Deutsche Bank”.