db X-trackers lists its first major benchmark direct replication ETFs

Direct replication* ETFs tracking the FTSE 100 Index, the Euro STOXX® 50 Index and the Euro STOXX® 50 Ex Financials Index are now trading on the London Stock Exchange. Db X-trackers’ indirect replication ETFs tracking the FTSE 100 Index and the Euro STOXX® 50 Index remain unchanged, providing investors with the choice of replication technique in these markets.

“We recently announced our intention to offer investors replication choice in certain key equity markets. The listing of these products commences that initiative, with more direct replication products to follow,” said Manooj Mistry, Deutsche Bank’s head of exchangetraded products, EMEA.

Mistry added, “Passive investments are set to gather a growing share of investor assets in coming years. We are determined to meet the needs of all investors in this area. That means not only offering Europe’s widest choice of underlying exposures in ETF format, but also the choice of replication method used, for certain markets.”

* ETFs are designed to track market performance by matching as closely as possible the movements of indices. Indirect replication – also known as swap-based or synthetic replication – involves the ETF entering an agreement with a swap counterparty to provide the returns of the index being tracked. With direct replication products, the ETF invests directly in all or a portion of the securities that constitute the index. For UCITS ETFs, both direct and indirect replication products are backed by physical assets. However, for historical reasons the former is often referred to as ‘physical replication’.

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