Listed on the London Stock Exchange with immediate effect, the db x-trackers FTSE 100 Equal Weight UCITS ETF (DR) employs equal weighting to target superior returns to its capital-centric counterparts.
The strategic beta approach re-balances the market capitalisation-weighted index and equally weights its underlying stocks, thereby evening out the traditional FTSE 100 tracker bias towards larger companies.
The physical index replication income-distributing ETF carries an annual all-in fee of 0.25%, and avoids securities lending. Its underlying index is re-balanced biannually.
Michael Mohr, Deutsche AWM’s head of exchange-traded product development, EMEA, said: “Removing the large cap bias effectively increases the weighting to the smaller cap companies in the index, which may improve the risk-adjusted performance over the long term. This is a useful alternative for investors looking for adjusted beta exposure.”
Deutsche AWM also announced the listing of a US dollar-hedged share class of its db x-trackers JPX-Nikkei 400 UCITS ETF (DR), bolstering its Japanese equities offering.