“The things that are important right now in the passive ETF space are brand — especially if you’re late to the game — and deep pockets,” Lisa Cohen, chief executive of Momentum Partners, said in the article “You’re going need to go quickly, and to do that you’re going to need to have a big budget.”
Deutsche sold off its commodities suite to Invesco PowerShares and used the money to promote its line of X-trackers products. The company offers a line of 23 X-tracker ETFs. A number of ETFs in the X-trackers suite are gaining a wider following for their international market exposure and ability to hedge currency risks. The ETF provider even hired former iShares research chief Dodd Kittsley to help promote education and awareness of the firm’s line of currency-hedged international stock ETFs. [These are the Days for Currency Hedged ETFs]
For instance, the DeutscheX-trackers MSCI EAFE Hedged Equity Fund (NYSEArca: DBEF), with $1.4 billion in assets under management, helps investors capture developed overseas market exposure in Europe, Australasia and the Far East while hedging against potential negative effects of depreciating currencies. [An EAFE ETF to Capture Overseas Growth, Hedge Forex Risks]
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Max Chen contributed to this article.