Deutsche Asset & Wealth Management (Deutsche AWM) today announced the launch of Deutsche X-trackers CSI 300 China A-Shares Hedged Equity ETF (Ticker:ASHX). ASHX is the world’s first currency-hedged China A-Shares ETF, and seeks to provide direct access to China A-share equities while mitigating exposure to fluctuations between the value of the Chinese Yuan and the US Dollar.
“As the first provider of a China A-shares ETF to the US market and as a leading provider of currency-hedged ETFs, we believe ASHX truly showcases our capabilities as we endeavor to deliver timely and relevant solutions to the market,” said Fiona Bassett, Head of Passive in the Americas. “With ASHX we aim to capture the growth of one of the world’s fastest-growing economies, while minimizing exposure to currency volatility.”
With increases in government spending and the intention to further deregulate and liberalize its financial markets, China remains a potentially attractive solution for investors seeking growth and portfolio diversification over the long term. However, China recently announced a new method of valuing the Chinese Yuan, allowing market forces to play a greater role in the Chinese currency markets. As a result, between August 10 - August 25, the Yuan weakened by more than 3% against the US Dollar, causing USD/Yuan volatility to spike and remain at elevated levels. ASHX seeks to minimize exposure to such currency fluctuations and solely capture the performance of pure large- and mid-cap Chinese A-share equities.
Offering the broadest suite of currency-hedged ETFs in the US, Deutsche’s X-trackers US platform has experienced breakthrough success. With assets totaling USD 19.6 billion as of October 15, 2015, the Deutsche X-trackers platform has increased by approximately 360% since year end, and continues to be among the fastest growing exchange-traded fund (ETF) franchises in the US.1 The firm’s global exchange traded products platform is now the world’s fifth largest, with approximately USD 76.9 billion in assets under management as of September 30, 2015.2
For more information about the ETFs available in the US, visit: http://www.deutsche-etfs.com.
Deutsche Asset & Wealth Management
With USD 1.27 trillion of assets under management (as of June 30, 2015), Deutsche Asset & Wealth Management¹ is one of the world's leading investment organizations. Deutsche Asset & Wealth Management offers individuals and institutions traditional and alternative investments across all major asset classes. It also provides tailored wealth management solutions and private banking services to high-net-worth individuals and family offices.
¹ Deutsche Asset & Wealth Management is the brand name of the Asset Management and Wealth Management division of the Deutsche Bank Group. The legal entities offering products or services under the Deutsche Asset & Wealth Management brand are listed in contracts, sales materials and other product information documents.
Deutsche X-trackers ETFs (“ETFs”) are managed by DBX Advisors LLC (the “Advisor”), and distributed by ALPS Distributors, Inc. (“ALPS”). The Advisors is a subsidiary of Deutsche Bank AG, and is not affiliated with ALPS.
MSCI is a servicemark of MSCI Inc. (MSCI) and has been licensed for use by DBX. The funds are not sponsored, endorsed, issued, sold or promoted by MSCI nor does MSCI make any representation regarding the advisability of investing in the funds. It is not possible to invest directly in an index.
Consider the fund's investment objectives, risk factors, and charges and expenses before investing. This and other important information can be found in the fund’s prospectus, which may be obtained by calling 1-855-DBX-ETFS (1-855-329-3837) or by viewing or downloading a prospectus at deutsche-etfs.com. Please read it carefully before investing.
Shares of the funds may be sold throughout the day on the exchange through any brokerage account. However, shares may only be purchased and redeemed directly from the funds by authorized participants in very large creation/redemption units. There is no assurance that an active trading market for shares of a fund will develop or be maintained. The fund is new and has a limited operating history.
Investing involves risk, including possible loss of principal. Stocks may decline in value. Bond investments are subject to interest-rate, credit, liquidity and market risks to varying degrees. When interest rates rise, bond prices generally fall. Foreign investing involves greater and different risks than investing in US companies, including currency fluctuations, less liquidity, less developed or less efficient trading markets, lack of comprehensive company information, political instability and differing auditing and legal standards. Emerging markets tend to be more volatile than the markets or more mature economies, and generally have less diverse and less mature economic structures and less stable political systems than those of developed countries. Funds investing in a single industry, country or in a limited geographic region generally are more volatile than more diversified funds. Uncertainties in the Chinese tax rules governing taxation of income and gains from investments in A-shares could result in unexpected tax liabilities for the Fund which may reduce Fund returns. Any reduction or elimination of access to A-shares will have a material adverse effect on the ability of the fund to achieve its minvestment objective. Special risks associated with investments in Chinese companies include exposure to currency fluctuations, less liquidity, less developed or less efficient trading markets, lack of comprehensive company information, political instability and differing auditing and legal standards the nature and extent of intervention by the Chinese government in the Chinese securities markets, and the potential unavailability of A shares. Performance of a Fund may diverge from that of an Underlying Index due to operating expenses, transaction costs, cash flows, use of sampling strategies or operational inefficiencies. There are additional risks associated with investing in high-yield bonds, aggressive growth stocks, non-diversified/concentrated funds and small- and mid-cap stocks which are more fully explained in the prospectuses, as applicable. An investment in any Fund should be considered only as a supplement to a complete investment program for those investors willing to accept the risks associated with that fund. Please read the prospectus for more information.
No bank guarantee | Not FDIC insured | May lose value
Deutsche Asset & Wealth Management represents the asset management and wealth management activities conducted by Deutsche Bank AG or any of its subsidiaries. Clients will be provided Deutsche Asset & Wealth Management products or services by one or more legal entities that will be identified to clients pursuant to the contracts, agreements, offering materials or other documentation relevant to such products or services.
© 2015 Deutsche Asset & Wealth Management. All rights reserved. R-039912-1.0 DBX001652 10/16/16
1 Source: ETF.com
2 Source: Deutsche AWM
Catherine Wooters, +1-212-250-2790