db x-trackers launches currency ETFs in London

db x-trackers, Deutsche Bank’s exchange-traded fund (ETF) platform, has launched two ETFs linked to the..…

The DBCR Index equally weights the three most established currency trading strategies – carry, momentum and valuation. Utilising a rules-based process, the strategies take long and short positions in the G10 currencies with regular rebalancing of the components.

“We have taken a major step today towards giving UK investors the tools they need to harness the potential of the currency markets,” said Manooj Mistry, head of db x-trackers ETFs UK. “The db x-trackers Currency Returns ETF is ideal for investors who are increasingly recognising the benefits of allocating assets to investment classes that show low or negative performance correlation with equity and bond markets, as well as investors looking for an additional way to achieve alpha in a low growth environment.”

Deutsche Bank broke new ground when it launched the DBCR Index in 2007. In-house research shows that long-term systematic returns, or ‘beta’, exist in the currency markets. The DBCR Index was created as a way to monetise those returns and was the world’s first investable benchmark for currency markets.

Historical analysis shows that over the long-term an investment in the DBCR will outperform an equivalent investment in global bonds or equities on a risk-adjusted basis. Meanwhile, the addition of a DBCR component to a broad investment portfolio can significantly improve an investor’s overall balance of risk versus return. The db x-trackers Currency Returns ETF is therefore expected to appeal to a broad range of investors, from pension funds to retail investors seeking diversified superior returns.

Details of the ETFs launched:

Source: ETFWorld – db x-trackers