{"id":51299,"date":"2016-04-22T01:11:07","date_gmt":"2016-04-21T23:11:07","guid":{"rendered":"http:\/\/beta.next-finance.net\/innovation\/deutsche-asset-management-extends-fixed-income-strategic-beta-etf-range-with-emerging-markets-launch\/"},"modified":"2016-04-22T01:11:07","modified_gmt":"2016-04-21T23:11:07","slug":"deutsche-asset-management-extends-fixed-income-strategic-beta-etf-range-with-emerging-markets-launch","status":"publish","type":"post","link":"http:\/\/beta.next-finance.net\/en\/innovation\/deutsche-asset-management-extends-fixed-income-strategic-beta-etf-range-with-emerging-markets-launch\/","title":{"rendered":"Deutsche Asset Management extends fixed income strategic beta ETF range with emerging markets launch"},"content":{"rendered":"<p>The ETF has listed on the London Stock Exchange and the Deutsche B\u00f6rse and follows the December 2015 launch of Deutsche Asset Management\u2019s first strategic beta ETF tracking a quality-weighted Eurozone sovereign bonds index.<\/p>\n<p>db x-trackers iBoxx USD Emerging Sovereigns Quality Weighted UCITS ETF<br \/>\n(DR)* tracks a newly-developed index \u2013 the Markit iBoxx USD Emerging<br \/>\nMarkets Sovereigns Quality Weighted Index \u2013 which re-weights emerging<br \/>\nmarket countries within a benchmark using a unique quality-weighted<br \/>\nmethodology based on fundamental factors (see Notes to Editors for more<br \/>\ndetail). Traditional fixed income sovereign benchmarks by contrast typically<br \/>\nweight constituents by market value of outstanding debt. This can result in the most indebted countries having the highest weighting in the index.<\/p>\n<p><em>\u201cStrategic beta makes a lot of sense in the fixed income space, and we intend to be at the forefront of product development,\u201d<\/em> said Martin Weithofer, Deutsche Asset Management\u2019s Head of Strategic Beta. <em>\u201cFor emerging markets in particular we found that the fundamental quality-weighted methodology can be useful in under-weighting countries prior to downgrades, which have often trailed fundamental underlying changes.\u201d<\/em><\/p>\n<p>By weighting based on fundamental factors, a quality-weighted index helps to<br \/>\ncounteract the tendency for fixed income benchmarks to weight in favour of the most indebted issuers. Eligible bonds in the emerging markets quality-weighted index are selected in accordance with an adjustment methodology that grades sovereign issuers using a series of fundamental measures, such as global competitiveness and inflation rate, history of default, sovereign debt as a proportion of GDP and GDP growth rate.<\/p>\n<p>Countries that are currently over-weighted in the emerging markets qualityweighted index \u2013 relative to a traditional non-weighted emerging markets sovereign index \u2013 include the Philippines and Turkey. Countries that are currently under-weighted in the emerging markets quality-weighted index<br \/>\ninclude Brazil and Venezuela.<\/p>\n<p>The annual yield of the emerging markets quality-weighted index is 4.56%, with duration of 6.95 years (Source, Markit iBoxx, March 31, 2016). The ETF is physically replicating and has an annual All-in Fee of 0.50% for the US Dollar share class.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Deutsche Asset Management has launched a quality-weighted fixed income<br \/>\nETF that provides exposure to emerging market sovereign bonds&#8230;<\/p>\n","protected":false},"author":20,"featured_media":51297,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1471],"tags":[1655,1718,1651,1711,1437,1691,1706,2234,1720,1952],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/51299"}],"collection":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/comments?post=51299"}],"version-history":[{"count":0,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/51299\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/51297"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=51299"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=51299"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=51299"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}