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Deutsche AM steps up ETFs arms race with raft of new launches

Deutsche AM steps up ETFs arms race with raft of new launches

The arms race in ETFs has taken another turn with Deutsche AM stepping its expansion through six planned strategies targeting specific US sectors, Citywire Selector has learned.

The new strategies, which are set to be part of the firm’s db X-trackers range, will come to the market over the coming months and further enlarge the German group’s ETF footprint.

Since the start of the year Deutsche AM has already rolled out a core range of fixed income ETFs, while also cutting costs on 28 ETF products to remain competitive in an increasingly crowded market.

It is understood these latest launches will be ETFs based on existing US sub-sectors, such as consumer staples, telecoms and others. These are likely to be based on the constituent parts in the equivalent indices run by MSCI.

Speaking to Citywire Selector, Michael Mohr, head of ETF product development, Deutsche AM said: ‘We already have an extensive range of global sector and Europe sector ETFs. The addition of US sectors provides our investors with a more complete toolkit to do their asset allocation.

‘This is important as investors start to use ETFs more dynamically, taking shorter terms views on more granular exposures, like particular sectors.’

iShares already operates in this area of the ETFs market with several sector-based funds drawn from the S&P 500. These currently have total expense ratios of 15bps and it is understood Deutsche AM intends to offer a competitive price in this regard for its new range.

The group currently runs 300 products through the db X-trackers range and runs around €70 billion in assets under management through these ETFs.

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