“Such transactions reduce or preclude the opportunity for gain if the value of the currency should move in the direction opposite to the position taken,” according to the exemptive relief filing.
The fund will hold at least 80% of its assets in Italian equities. The underlying index is also heavily tilted toward the financial services sector.
Deutsche Asset & Wealth Management offers a line of hedged-equity ETFs. For instance, thedb X-Trackers MSCI Europe Hedged Equity Fund (NYSEArca: DBEU) follows European markets and the db X-trackers MSCI Germany Hedged Equity Fund (NYSEArca: DBGR) targets German equities. Both funds hedges against a depreciating euro currency. These Europe hedged-equity ETFs are attracting greater interest on growing speculation that the European Central Bank will implement additional monetary easing. [ECB Speculation Drives Euro ETF to Three-Month Low]
For more information on new fund products, visit our new ETFs category.