Products tracking the FTSE 100, Euro Stoxx 50 and Euro Stoxx 50 Ex Financials indices through direct replication are now trading on the London Stock Exchange. The firm’s ETFs tracking the FTSE 100 and Euro Stoxx 50 through indirect, or synthetic, replication remain unchanged.
Manooj Mistry, head of exchange-traded products in Europe, the Middle East and Africa at Deutsche Bank, said: “We recently announced our intention to offer investors replication choice in certain key equity markets. The listing of these products commences that initiative, with more direct replication products to follow.”
The company has plans to list physically-backed ETFs tracking the German Dax, the Japanese Nikkei 225 and US S&P 500 indices.
Previously, db X-trackers has focused on offering synthetic ETFs, which use derivatives to track the underlying index. However, it has launched its first physically-backed ETFs in recognition of the fact some investors are not comfortable using products backed by derivatives.
Mistry added: “Passive investments are set to gather a growing share of investor assets in coming years.
“We are determined to meet the needs of all investors in this area. That means not only offering Europe’s widest choice of underlying exposures in ETF format, but also the choice of replication method used, for certain markets.”
