Deutsche Bank lists first money market ETF on SGX

Deutsche Bank Lists First Money Market ETF On SGX


Deutsche Bank and Singapore Exchange Limited (SGX) announced the launch today of Asia’s first money market ETF on SGX – the db x-trackers US Dollar Money Market ETF. db x-trackers is Deutsche Bank’s Exchange Traded Funds (ETF) business.

The ETF tracks the Fed Funds Effective Rate Total Return Index, which is intended to reflect the performance of a deposit earning the United States Federal Funds Effective Rate interest at daily rest. The Fed Funds Effective Rate represents the weighted average inter-bank interest rate in the US. As such, the ETF provides investors with access to the overnight US Dollar money market, and charges a low all-in annual fee of up to 0.15% per annum.

Mr Marco Montanari, Head of db x-trackers ETFs, Asia, said: “Today’s listing demonstrates our continued commitment to bringing innovative product to investors in Singapore. The db x-trackers US Dollar Money Market ETF offers investors a flexible, transparent and convenient way to access the US Dollar money market.”

“The addition of this US Dollar money market ETF demonstrates a new range of access products available through an ETF structure, extending beyond traditional asset classes such as equities, fixed income and commodities. This ETF complements our existing suite by providing a cash management tool for investors, as well as brokers and asset managers who manage client monies. We are pleased to work with Deutsche Bank on this listing and will continue our efforts with issuers to build a comprehensive ETF offering for the marketplace,” said Ms Janice Kan, Senior Vice President & Head of Product Development, SGX.

The db x-trackers US Dollar Money Market ETF benefits from a credit rating of Aaa and a market risk rating of MR1 assigned by Moody's Investors Service.1 Based on Moody’s rating definition, this top credit rating2 is based on the credit quality of the fund's investments, the quality of the investment management process exhibited by the investment adviser and the manager's operations, including its compliance function.3

Today’s listing follows the introduction of other market firsts by db x-trackers in Asia, including the region’s first inverse ETF, which was listed on SGX in February 2009; and Singapore’s first Vietnam equity ETF, listed on SGX the following month.


With the launch of this ETF, SGX currently has 39 ETFs covering worldwide equity markets such as Singapore, India, North Asia, ASEAN, United States, Eastern Europe, Latin America and emerging markets as well as commodities, including gold. db x-trackers was the first ETF provider to

launch a money market ETF in Europe, with its EONIA Euro money market ETF seeing more investor inflows than any other ETF globally in 20084.

db x-trackers is committed to growing its ETF offering in Asia to create an ‘ETF supermarket’, from which investors can access different markets in a cost-efficient manner. It has already listed nine ETFs in Singapore covering different markets, namely: China (FTSE/Xinhua China 25 ETF); India (S&P CNX Nifty ETF); Korea (MSCI Korea TRN ETF); Taiwan (MSCI Taiwan TRN Index ETF); Vietnam (FTSE Vietnam ETF); Europe (DJ Euro STOXX 50 and MSCI Europe TRN Index); Asia (MSCI AC Asia ex Japan TRN); and a short strategy (S&P 500 Short).

db x-trackers began offering innovative ETF products to European investors in January 2007. With more than 100 ETFs on various asset classes including equity, fixed income, credit, money market, currencies and commodities, db x-trackers has more than US$31 billion of assets under management and it ranks third in Europe. Recognised as the fastest growing ETF provider in the world, according to “BGI ETF Landscape Industry, January 2009 – Year End 2008 Review”. Its products are currently listed on seven exchanges: Borsa Italiana; Frankfurt Xetra; Paris Euronext; London Stock Exchange; Zurich SIX Swiss Exchange in Europe; The Stock Exchange of Hong Kong and Singapore Exchange in Asia.

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1 Source: Moody’s as at 26 August 2009.

2 Source: Moody’s as at 26 August 2009.

3 Source: Moody’s Rating Action, 9 May 2008