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Deutsche Bank Launches 3 Overseas Hedged Equity ETFs

A new, actively managed short-duration bond ETF from iShares, while RevenueShares rolls out an "ultra dividend" ETF and Direxion brings to market a pair of supergeared junior gold-miners ETFs.

Robert Goldsborough, 10/07/2013

On Tuesday, Oct. 1, Deutsche Bank rolled out three more currency-hedged equity exchange-traded funds devoted to foreign markets.

Borrowing a page from the playbook of WisdomTree, whose WisdomTree Japan Hedged Equity DXJ this year has attracted tremendous investor interest, Deutsche Bank now has debuted hedged equity ETFs devoted to the United Kingdom, Europe, and areas of Asia outside of Japan. In some respects, the trio of new ETFs suggests that Deutsche Bank is following something of a copycat strategy relative to WisdomTree, given that the firm recently launched WisdomTree United Kingdom Hedged Equity DXPS and since 2010 has issued WisdomTree Europe Hedged Equity HEDJ.

Deutsche Bank's three proposed ETFs each have a fairly self-explanatory focus. They are db X-trackers MSCI Asia Pacific ex Japan Hedged Equity DBAP, db X-trackers MSCI Europe Hedged Equity DBEU, and db X-trackers MSCI United Kingdom Hedged Equity DBUK.

DBAP charges 0.60%, while the two European-themed funds, DBEU and DBUK, cost 0.45%.

iShares Debuts Actively Managed, Ultrashort-Duration Bond ETF
On Thursday, Sept. 26, iShares rolled out an actively managed ultrashort-duration bond ETF.

Listed on the BATS exchange, the new fund, iShares Short Maturity Bond NEAR is yet another in a growing list of clones of the popular  PIMCO Enhanced Short Maturity ETF MINT.

The short-duration theme continues to be a popular one among active fixed-income managers. And it's true that given stricter money market fund rules, which have artificially limited yields in short, high-quality debts, a portfolio manager can create value by investing in areas just beyond money markets' credit-quality and duration limits.

Actively managed by BlackRock's short duration portfolio team, NEAR targets having an effective duration of one year or less. The fund holds investment-grade corporates and Treasuries.

Robert Goldsborough is an ETF Analyst at Morningstar.

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