Deutsche Asset Management has rebranded its Xtrackers MSCI Emerging Markets Climate Transition UCITS ETF to the Xtrackers Emerging Markets Equity Enhanced Active UCITS ETF.
The ETF will now use the MSCI Emerging Markets 10/40 Index as its benchmark rather than the MSCI Emerging Markets Select Sustainability Screened Index.
The 10/40 index represents emerging market large and mid-cap companies. Within this new benchmark, the updated vehicle will carry out active portfolio management with monthly rebalances, using DWS’s 20-year-old systematic equity strategies.
The strategy, which has 0.30% in management fees, aims to generate consistent alpha relative to its benchmark index – balanced against disciplined risk management. The target tracking error is predicted to be between 1% and 1.5%, describing the fluctuation in return difference between the portfolio and the benchmark index.
Michael Mohr, Deutsche’s global head of public products & wealth solutions, said: “With the Xtrackers Emerging Markets Equity Enhanced Active ETF, we offer investors an active approach to emerging market equities that can serve as a core component for individual asset allocation in this region.
“The ETF combines the opportunity to benefit from the region’s investment opportunities with the transparency and tradability of an ETF.”
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Dr. Irina Sidorovitch, head of Deutsche’s Qi Quantitative Investment, added: “With the new Xtrackers Emerging Markets Equity Enhanced Active UCITS ETF, we are now making our many years of experience in active quantitative portfolio management available for emerging market equities in ETF format.
“Our approach combines innovative alpha research through the analysis of large data sets using data science methods with risk-conscious portfolio construction.”
