“There is a demand for physical replication, particularly from retail-facing intermediaries such as IFAs, private banks and wealth managers,” according to a Deutsche spokesperson.
Some larger institutional investors will aim to use physical replication funds, but will often have a primary focus on performance, he added.
Earlier in April, the firm became one of the largest providers of physical providers in Europe when it switched 18 equity db x-Tracker ETFs.
Earlier in April, the firm became one of the largest providers of physical providers in Europe when it completed the switching of 18 equity db x-Tracker ETFs.
The latest conversion covers mainly exposures to equity markets of countries in the Asia-Pacific region.
DeAWM has focused on converting the replication strategy of its equity ETFs, while its fixed income ETFs continue to use indirect replication.
In March, the German firm became one of the first to launch a global bond ETF, tracking the Barclays Global Aggregate Bond Index.
The following are Deutsche ETFs moving to physical replications:
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