Deutsche Asset Management Expands Currency-Hedged International Fixed Income ETFs Suite
DBAM -New York – Deutsche Asset Management (Deutsche AM) today announced the launch of two fixed income exchange traded funds (ETFs). Deutsche X-trackers Barclays International Treasury Bond Hedged ETF (Ticker: IGVT) and Deutsche X-trackers Barclays International Corporate Bond Hedged ETF (Ticker: IFIX) will provide investors access to a broad variety of international fixed income exposures without the often high individual bond investment minimums and with the liquidity offered by an exchange-traded product.
“During times of sharp market movements, investors are looking for stable sources of revenue. Through the new Deutsche X-trackers currency-hedged international bonds funds, we are offering investors an opportunity to potentially reduce volatility and drawdown risks while strengthening returns,” said Fiona Bassett, Head of Passive Asset Management in the Americas. “In our view, the currency hedging aspect of IGVT and IFIX allows investors an opportunity to preserve the reliable sources of income, stable and consistent cash flow typically associated with bond investments, decreasing the risk brought on by currency exposure.”
In addition, effective today, Deutsche X-trackers is also reducing management fees on two other funds in their fixed income line-up. The new fee for Deutsche X-trackers High Yield Corporate Bond – Interest Rate Hedged ETF (Ticker: HYIH) is 35 basis points, or 0.35%, and the new fee for Deutsche X-trackers Emerging Markets Bond – Interest Rate Hedged ETF (Ticker: EMIH) is 45 basis points, or 0.45%.
“If US interest rates rise, international fixed income may help investors diversify away from concentrated US-rate exposure. Our new suite gives investors access to a variety of bonds on a currency hedged basis within the international space covering the Treasury and investment-grade corporate bond segments of the fixed income market,” Bassett said. “We are committed to providing relevant, innovative and cost-effective solutions to our clients for their international investing needs.”
The Deutsche X-trackers Barclays International Treasury Bond Hedged ETF seeks investment results that correspond generally to the performance, before fees and expenses, of the Barclays Global Aggregate Treasury Ex USD Issuer Diversified Bond Index (USD Hedged). The Deutsche X-trackers Barclays International Corporate Bond Hedged ETF seeks investment results that correspond generally to the performance, before fees and expenses, of the Barclays Global Aggregate Corporate Ex USD Bond Index (USD Hedged).