Deutsche Bank and Singapore Exchange Limited (SGX) expand bank’s Exchange Traded Fund (ETF) offerings to investors in Asia with the first batch of four ETFs, branded as db x-trackers, listed on SGX.
This batch includes Asia’s first inverse ETF, the S&P 500 Short ETF. This is an ETF on the S&P 500 Short Index which tracks the S&P 500 Index, but in the opposite direction. Investors who expect the S&P 500 Index to fall can buy this ETF, as it is based on the Short Index which will rise when the main index falls.
With the launch of these four ETFs, SGX will have a total of 29 ETFs by end-February 2009, covering mainly Asian equity markets such as Singapore, India, Greater China, ASEAN, Korea and Japan as well as commodities, including gold.
“With the listing of the ETFs in Singapore, and the introduction of more ETFs covering major country, regional, as well as short and leveraged products in Singapore and Asia expected shortly, Deutsche Bank aims to become a leading provider of ETFs in Asia,” says Thorsten Michalik, global head of db x-trackers Exchange Traded Funds, Deutsche Bank.
“We are excited to offer our db x-trackers ETF products to investors through Singapore, and provide them with a simple, transparent and cost efficient way to diversify assets.”
“A short ETF, especially in today’s volatile environment, can help investors better manage their investment risk and at the same time making it possible to generate positive returns, without having to use derivatives,” continues Michalik.
“The launch of Asia’s first inverse ETF on our Exchange signals our ongoing commitment to increasing the breadth and depth of our products, allowing investors to capitalise on all market conditions,” says Andrew Ler, senior vice president & head, Private Investors, SGX.
“Furthermore, we are highly committed to our comprehensive issuer support programme that not only helps issuers manage the listing process in Singapore, but also promotes their ETFs to market participants and educates retail investors.”
L.D.