Deutsche Asset & Wealth Management will introduce the db X-trackers MSCI Germany Hedged Equity Fund (DBGR) to the db X-trackers platform on 31 May.
DBGR is the first echange-traded fund (ETF) designed to provide investors with direct exposure to the German equity market while mitigating exposure to fluctuations between the value of the US dollar and the euro.
"US investors are looking for products with built-in protection against fluctuations between the dollar and non-US currencies that also provide pure exposure to equity markets," said Martin Kremenstein (pictured), head of passive asset management for the Americas at Deutsche Asset & Wealth Management. "DBGR is the first ETF focused on Germany that responds to this demand."
DBGR will provide access to Germany's equity market while simultaneously decoupling German equity investment from currency exposure. Before the introduction of DBGR, investors could access the German stock market only through unhedged ETFs that exposed the funds to the fluctuations in the currency market.
DBGR will track the MSCI Germany US Dollar Hedged Index, a non-investable index measuring the performance of the large and mid-cap segments of the German market. With 51 constituents, the index covers approximately 85% of the equity universe in Germany.
DBGR is the latest addition to the db X-trackers suite of hedged equity ETFs which include the db X-trackers MSCI Japan Hedged Equity Fund; db X-trackers MSCI EAFE Hedged Equity Fund; db X-trackers MSCI Emerging Markets Hedged Equity Fund; and db X-trackers MSCI Brazil Hedged Equity Fund.
Deutsche Asset & Wealth Management's US exchange-traded products (ETP) platform includes 53 ETPs, including leverage and inverse structures with approximately $12bn in assets under management.