Deutsche Asset Management launches new emerging market fund
Deutsche Asset Management (Deutsche AM) has announced a new addition to its multifactor ETF suite.
The Deutsche X-trackers FTSE Emerging Comprehensive Factor ETF (Ticker: DEMG) seeks to track the FTSE Emerging Comprehensive Factor Index.
The FTSE Russell family of Comprehensive Factor Indices is designed to track the equity market performance of companies that have demonstrated relatively strong exposure to targeted investment style factors: value, momentum, quality, low volatility and size.
"Emerging market equities may be an interesting opportunity for diversification or growth. Investors who believe emerging markets are poised to rebound may be interested in DEMG, which seeks to identify and overweigh relatively valuable, high-quality emerging market stocks, with relatively positive performance momentum and lower volatility," said Fiona Bassett, Head of Passive in the Americas.
"DEMG is an important addition to our suite of Comprehensive Factor ETFs, which is designed to help investors establish new efficient frontiers in their asset allocation. Our Comprehensive Factor ETFs are based on an intelligently designed index construction mechanism, taking into account five investment factors that are supported by robust academic research."
Deutsche X-trackers Russell 1000 Comprehensive Factor ETF (Ticker: DEUS) and Deutsche X-trackers FTSE Developed ex US Comprehensive Factor ETF (Ticker: DEEF) launched in November 2015, and have both outperformed their market cap weighted benchmarks since launch. In Q1 2016, DEUS had a total return of 4.23%, which compared favorably to the 1.17% total return from the Russell 1000 Index, DEUS's market cap weighted benchmark.
DEEF delivered 1.04% over the same period, outperforming its market cap weighted FTSE Developed ex-US index by 1.38%. DEMG follows the same investment methodology as the two previously-launched funds applied to the emerging markets universe.
"We are very excited to build on our relationship with Deutsche Asset Management by providing innovative new indexes to benefit their US ETF clients," said Ron Bundy, CEO North America Benchmarks for FTSE Russell.
"Our innovative global factor indexes are a growing and diverse set of tools to help investors better meet their objectives."
Offering the broadest suite of currency-hedged ETFs in the US, Deutsche X-trackers US platform had a stellar year in 2015. With assets under management increasing by over 400%, the Deutsche X-trackers platform of 35 products solidified its position as the fastest-growing ETF issuer on a percentage basis for 2015 in the US.
The year was capped off by Deutsche AM being named the "Best ETF Issuer in 2015" by ETF.com. The award is given to the issuer that has done the most to improve investor outcomes through product introductions, product performance, fund management, asset gathering, investor support and innovation throughout last year.
Launched in 2006, Deutsche AM's global exchange traded products (ETP) platform has grown to become a top 5 ETF provider and a top 3 new asset gatherer globally4 in 2015.
Source: Company Press Release