Deutsche Bank and Singapore Exchange Limited launched 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 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.
“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,” said Mr Marco Montanari, Head of db x-trackers ETFs, Asia.
“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,” said Ms Janice Kan, Senior Vice President & Head of Product Development, SGX.
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.
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