Deutsche Bank launches first ETF linked to S&P CNX Nifty index
Deutsche Bank has launched the first internationally-traded ETF linked to the S&P CNX Nifty, the flagship index for the Indian stock market. The db x-trackers S&P CNX Nifty ETF, which will be listed on Deutsche Boerse Frankfurt, is one of 41 new ETFs launched by Deutsche Bank over the past few weeks.
“The db x-trackers S&P CNX Nifty ETF provides investors in Europe a convenient and efficient way to gain exposure to one of the world’s fastest growing economies,” commented Thorsten Michalik, Head of ETFs at Deutsche Bank. “The S&P CNX Nifty is the flagship index for the Indian stockmarket and we are pleased to be launching the first ETF on this benchmark outside India.”
The S&P CNX Nifty is a well diversified 50 stock index providing exposure to 22 sectors of the Indian economy. As at 30 June 2007, it represented approximately 55% of the total market capitalisation of India. The S&P CNX Nifty is owned and managed by India Index Services & Products Ltd. and is computed using prices of stocks traded on the National Stock Exchange (NSE), India’s largest stock exchange.
“We are very pleased to be working with Deutsche Bank to launch the first ETF outside India to be linked to the S&P CNX Nifty,” commented Suresh Narayan, Chief Executive Officer, India Index Services & Products Ltd.
The db x-trackers S&P CNX ETF has an annual all in fee of 0.85% and will be traded in EUR on the Frankfurt Stock Exchange. Deutsche Bank plans to list the ETF on other European stock exchanges in the weeks ahead including the UK, Switzerland, Italy and France.
The db x-trackers ETF range consists of 49 products and covers all asset classes - equities, bonds, money markets, credit and commodities and includes the first ETFs on equity short, credit and money market indices.
ETFs were first introduced in the USA in 1993 and in Europe in 2000. Currently, there are more than 900 ETFs listed globally with over EUR 490 billion assets under management. In Europe there are over 300 ETFs available with assets under management of approximately EUR 80 billion. By 2011 it is widely forecast that assets in ETFs globally will exceed EUR 1,500 billion.
For further information please go to http://www.dbxtrackers.com/
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About Deutsche Bank
Deutsche Bank is a leading global investment bank with a strong and profitable private clients franchise. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With 73,114 employees in 75 countries, Deutsche Bank offers unparalleled financial services throughout the world. The bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people.
Further Information on S&P CNX Nifty
S&P CNX Nifty is a well diversified 50 stock index accounting for 22 sectors of the economy. It is used for a variety of purposes such as benchmarking fund portfolios, index based derivatives and index funds.
S&P CNX Nifty is owned and managed by India Index Services and Products Ltd. (IISL), which is a joint venture between NSE and CRISIL. IISL is India's first specialised company focused upon the index as a core product. IISL have a licensing and marketing agreement with Standard & Poor's (S&P), who are world leaders in index services.
- The average total traded value for the last six months of all Nifty stocks is approximately 43.72% of the traded value of all stocks on the NSE
- Nifty stocks represent about 55.78% of the total market capitalization as on June 30, 2007
- Impact cost of the S&P CNX Nifty for a portfolio size of Rs.5 million is 0.08%
- S&P CNX Nifty is professionally maintained and is ideal for derivatives trading