DWS has further enhanced the attractiveness of its Xtrackers range by reducing the annual all-in fees for two exchange traded funds (ETFs) and one exchange traded commodity (ETC) as of the beginning of March.
Michael Mohr, Head of Passive Products, DWS
- Annual all-in fee reduced for two Xtrackers ETFs and one ETC
- Cost advantages resulting from high inflows passed on to investors
- Strong demand for gold investment products
The reductions stem from the cost advantages created by high inflows, which are effectively then passed on to investors. The Xtrackers II Eurozone Inflation-Linked Bond UCITS ETF tracks the euro-denominated inflation-linked bond market and has recorded inflows of EUR 225 million over the past twelve months. Currently, the ETF has assets under management of more than one billion euros . Due to increased inflation expectations, the asset class of inflation-indexed bonds is currently very much in focus for investors.
The Xtrackers II Harvest China Government Bond UCITS ETF, which invests in Chinese government bonds, has registered inflows of around EUR 133 million in the past twelve months. The fund volume currently amounts to around EUR 280 million. The ETF tracks an index with an indicative yield-to-maturity of 2.9%. It is seen by defensive investors as an alternative to indices on US and Euro government bond markets.
In addition, the annual all-in fee of the Xtrackers IE Physical Gold ETC Securities, which has seen inflows of around EUR 2.1 billion over the last twelve months, was reduced. The ETC currently has around EUR 2.6 billion in assets under management . Increased geopolitical risks have historically led to stronger demand for gold investment products.
“We are increasing the attractiveness of these bond ETFs and gold ETC at a time when investors are using these exposures for portfolio adjustments amidst volatility rises,” said Michael Mohr, Head of Passive Products at DWS.
Product Information Table
| ETF Name | TER old | TER new | ISIN | Bloomberg Ticker |
| Xtrackers II Harvest China Government Bond UCITS ETF 1D | 0,35% | 0,20% | LU1094612022 | CGB |
| Xtrackers II Eurozone Inflation–Linked Bond UCITS ETF 1C | 0,20% | 0,15% | LU0290358224 | XEIN |
| Xtrackers IE Physical Gold ETC Securities | 0,15% | 0,12% | DE000A2T0VU5 | XGDU |
Source: ETFWorld.co.uk
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