Deutsche Bank to launch ETFs on iTraxx
Deutsche Bank will shortly launch products on three iTraxx indices under its db x-trackers Exchange Traded Fund (ETF) platform following recently being awarded an iTraxx ETF licence. The three indices will be:
- iTraxx Europe
- iTraxx Europe HiVol
- iTraxx Europe Crossover
The launch of these products will allow European clients to trade ETFs on CDS indices for the first time. It is expected the iTraxx ETFs will be popular with corporates, insurance companies and asset managers.
Rich Herman, Head of Global Rates Structuring comments, "The ETF market is integral to Deutsche Bank’s strategy and we believe that the iTraxx brand is the perfect partner to spearhead the growth of our fixed income ETF business globally."
Deutsche Bank launched its ETF platform, db x-trackers, this year and has already issued eight equity ETFs with listings in Germany and Italy. The db x-tracker ETF platform benefits from Deutsche Bank’s market-leading index trading capabilities.
Thorsten Michalik, Head of Exchange Traded Funds adds: “The new ETFs on iTraxx indices combined with the listing of over 35 other ETFs on equity, fixed income and commodities indices on the db x-trackers platform in the coming two to three months will make Deutsche Bank one of the largest providers of ETFs in Europe.”
ETFs are passive investment funds that replicate the performance of indices and trade on stock exchanges in the same way as other exchange listed securities. As ETFs do not require active management they can be offered with competitive fees. In 2006 the majority of the new assets in passive funds flowed into ETFs demonstrating the attractiveness of their cost efficient and transparent features.
ETFs were first introduced in the USA in 1993 and in Europe in 2000. In December 2006 there were 769 ETFs listed globally with over EUR 445 billion assets under management, with equity-based ETFs showing an increase of 18% for the year. In Europe ETF assets grew 19% to EUR 67.9 billion. By 2011 it is widely forecast that assets in ETFs globally will exceed EUR1,500 billion.
For further information, please call:
Michelle Gathercole (44 20) 7545 4249
Press and Media Relations
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