Deutsche Asset & Wealth Management launches USD corporate bond ETF
Deutsche Asset & Wealth Management launches an ETF that provides exposure to the US dollar-denominated liquid corporate bond market.
db x-trackers Barclays USD Corporate Bond UCITS ETF (DR)* tracks the Barclays USD Liquid Investment Grade Corporate Index. The index comprises almost 1,500 bonds2, over 80% of which have been issued by US-domiciled companies. The ETF has listed on the Deutsche Börse and will shortly list on the London Stock Exchange.
The average credit rating of bonds in the index is investment grade (i.e. at least Baa3 from Moody’s, BBB from Fitch Ratings, or BBB- from Standard & Poor’s), while the current index yield is 3.69%3.
“With yields on many short maturity major government bonds now in negative territory, which means investors are effectively paying to own these bonds, there is a demand for fixed income exposure that generates a reasonable yield. Our new US dollar corporate bond ETF helps meet that demand,” comments Erik Rotander, Head of the Nordics, Passive Investments.
The ETF is physically replicating and has an All-in Fee of 0.2% per annum.
By the end of August this year, fixed income ETFs globally had generated almost USD 52.8 billion in inflows year-to-date4.
Deutsche AWM has a large suite of fixed income ETFs, including the db x-trackers Barclays Global Aggregate Bond UCITS ETF**, which tracks the global market for government, governmental, supranational, corporate, asset-backed and mortgage-backed securities across the full spectrum of maturities and the investment-grade credit rating range. The ETF launched in March 2014 and has EUR 500 million in assets under management5.
1 Source: Deutsche AWM, September 29, 2015
2 Source: Barclays Bank plc, September 17, 2015
3 Source: Barclays Capital Indices, October 4, 2015
4 Source: ETFGI, September 8, 2015
5 Source: Deutsche AWM, September 29, 2015
* A sub-fund of Concept Funds Solutions plc.
** A sub-fund of db x-trackers and domiciled in Luxembourg.
Name of ETF: db x-trackers Barclays USD Corporate Bond UCITS ETF (DR)
BBG Code: XDGU
Fund Currency: USD
Listing Currency: USD
Annual All-in Fee: 0.20%
UCITS compliant: Yes
Deutsche Asset & Wealth Management
With EUR 1.14 trillion of assets under management (as of June 30, 2015), Deutsche Asset & Wealth Management¹ is one of the world’s leading investment organizations. Deutsche Asset & Wealth Management offers individuals and institutions traditional and alternative investments across all major asset classes. It also provides tailored wealth management solutions and private banking services to high-net-worth individuals and family offices.
¹ Deutsche Asset & Wealth Management is the brand name of the Asset & Wealth Management division of the Deutsche Bank Group. The legal entities offering products or services under the Deutsche Asset & Wealth Management brand are listed in contracts, sales materials and other product information documents.
Investors should note that the db X-trackers UCITS ETFs1 are not capital protected or guaranteed and investors should be prepared and able to sustain losses of the capital invested up to a total loss.
Shares in db X-trackers UCITS ETFs which are purchased on the secondary market cannot usually be sold directly back to the relevant fund. Investors must purchase and redeem such shares on the secondary market with the assistance of an intermediary (e.g. a market maker or a stock broker) and may incur fees for doing so (as further described in the applicable prospectus). In addition, investors may pay more than the current net asset value of a share in a db X-trackers UCITS ETF when buying shares on the secondary market, and may receive less than the current net asset value when selling such shares on the secondary market.
Investments in funds involve numerous risks including, among others, general market risks, credit risks, foreign exchange risks, interest rate risks and liquidity risks. The value of an investment in a db X-trackers UCITS ETF may go down as well as up and investors may not get back the full amount of their original investment.
This press release has been issued and approved by Deutsche Bank AG, London Branch and has been prepared solely for information purposes and, offer or a recommendation to enter into any transaction.
Deutsche Bank AG is authorised under German Banking Law (competent authority: European Central Bank) and, in the United Kingdom, by the Prudential Regulation Authority. It is subject to supervision by the European Central Bank and by BaFin, Germany’s Federal Financial Supervisory Authority, and is subject to limited regulation in the United Kingdom by the Prudential Regulation Authority and Financial Conduct Authority. Deutsche Bank AG is a joint stock corporation with limited liability incorporated in the Federal Republic of Germany, Local Court of Frankfurt am Main, HRB No. 30 000; Branch Registration in England and Wales BR000005 and Registered Address: Winchester House, 1 Great Winchester Street, London EC2N 2DB.
Please refer to the relevant fund’s full prospectus and the latest version of the Key Investor Information Document for more information on db X-trackers UCITS ETFs. These documents are available free of charge from Deutsche Bank AG, London Branch and constitute the only binding basis for purchase of shares in the ETFs. As explained in the relevant offering documents, distribution of ETFs is subject to restrictions in certain jurisdictions. The ETFs described herein may neither be offered for sale nor sold in the USA, in Canada, in Japan to US Persons or to persons residing in the USA.
The indices mentioned herein are registered trademarks of their respective licensors. The ETFs described in this document are not sponsored, endorsed, sold or promoted in any way by the Licensors of the indices mentioned herein (with the exception of Deutsche Bank AG). The Licensors of the indices mentioned here (including Deutsche Bank AG) make no representations or warranties concerning the results obtained by using their indices and/or index levels or in any other respect, on any given day. The index sponsors are not liable for errors in their indices and are not obliged to provide information of such errors.