Deutsche Asset & Wealth Management (Deutsche AWM) today announced the launch of three interest rate hedged exchange traded funds (ETFs) that provide investors with exposure to US dollar denominated investment grade, high yield corporate and emerging markets sovereign and quasi sovereign debt.
The ETFs are listed for trading on the NYSE Arca under the following symbols:
Deutsche X-trackers Investment Grade Bond – Interest Rate Hedged ETF (NYSEArca: IGIH)
Deutsche X-trackers High Yield Corporate Bond – Interest Rate Hedged ETF (NYSEArca: HYIH)
Deutsche X-trackers Emerging Markets Bond – Interest Rate Hedged ETF (NYSEArca: EMIH)
“Deutsche Asset & Wealth Management continues to bring to market innovative indexing products and strategies that anticipate investors’ portfolio needs,” said Fiona Bassett, Head of Deutsche AWM’s Passive Business in the Americas. “We designed IGIH, HYIH and EMIH as tools for managing duration, a source of both risk and potential return that can be dialed up and down using this new product suite. This feature may be particularly appealing as investors seek to mitigate solutions for reducing the interest rate sensitivity of their bond portfolios in anticipation of rising rates.”
“We believe a particularly compelling approach in today’s environment is to hedge interest rate risk using ETFs,” said Dodd Kittsley, Head of ETF Strategy at Deutsche AWM. “Traditional strategies for addressing interest rate risk include shortening duration or shifting into different asset classes, which lower exposure to interest rate risk but also reduce exposure to the risk and compensation of credit. Interest rate hedged ETFs allow investors to seek to mitigate the impact of rising rates while preserving desired bond exposures. On a standalone basis or in conjunction with other fixed income holdings, these ETFs could prove a powerful tool for risk management.”
The breakthrough success experienced in 2014 by Deutsche AWM’s Passive business in the Americas has continued in 2015. With assets totaling $7.8 billion as of February 20th 2015, an 82% increase since year end, Deutsche X-trackers continues to lead the industry as the fastest growing ETF franchise in the US. The firm’s global exchange traded products platform launched in 2006, and has grown to become the world’s fifth largest, with approximately USD 56.8 billion in assets under management as of December 31, 2014.
For more information about the ETPs available in the US, visit: http://www.deutsche-etfs.com. For further information, please call:
Deutsche Bank AG Press & Media Relations
Phone: +1 (212) 250-2790
E-Mail: [email protected]