The TERs have been significantly reduced to 0.09% (9bps) from 0.30% for the FTSE 100 product and 0.15% for the Dax-focused ETF. A EuroStoxx 50 Index ETF will be added to the range through a switch from indirect to direct replication, as well as a product tracking the MSCI USA Index, planned for the end of the first quarter.
The range is expected to compete with non exchange-traded index trackers, which typically have relatively low TERs. It aims to appeal to longer-term, buy-and-hold investors seeking core portfolio holdings, as well as any investor aiming for efficiency in holding and trading ETFs.
“With this range of low TER ETFs we aim not just to enhance our offering to current investors, but also to broaden our investor base. The combination of low TERs, intraday liquidity, visibility and transparency offered by our ETFs should make them appeal to an even wider cross-section of the investor community,” Reinhard Bellet, head of passive asset management, said.
In December, DeAWM said it would be moving 18 of its largest ETFs from synthetic (or indirect) replication to physical (or direct) replication. With this project now well underway, DeAWM said it was better placed to meet investor demand.
