Deutsche Asset Management Boosts on Tuesday announced the launch of the Deutsche X-trackers Barclays International Treasury Bond Hedged ETF (IGVT) and Deutsche X-trackers Barclays International Corporate Bond Hedged ETF (IFIX).
The IGVT fund, which carries an expense ratio of 0.25 percent, follows the Barclays Global Aggregate Treasury Ex USD Issuer Diversified Bond Index (USD Hedged) comprised of sovereign bonds denominated in one of 23 eligible currencies.
The IFIX fund, which sports an expense ratio of 0.30 percent, tracks the Barclays Global Aggregate Corporate Ex USD Bond Index (USD Hedged) made up of bonds denominated in 18 eligible currencies.
According to their respective prospectus, both funds enter into forward currency contracts designed to offset their exposure to foreign currencies. They hedge each foreign currency in the portfolio to U.S. dollars by selling the applicable foreign currency forward at the one-month forward rate published by WM/Reuters.
With these two new products, Deutsche Asset Management now has 27 funds in its suite of currency-hedged ETFs.
Also on Tuesday, the company said it has trimmed management fees on the Deutsche X-trackers High Yield Corporate Bond – Interest Rate Hedged ETF (HYIH) to 0.35 percent from 0.45 percent, and on the Deutsche X-trackers Emerging Markets Bond – Interest Rate Hedged ETF (EMIH) to 0.45 percent from 0.50 percent.