Currency Hedged ETFs Power Deutsche AWM's ETF Ascent

The increased prominence of currency hedged exchange traded funds has been well-documented this year and few issuers are benefiting from that trend in a manner similar to that of Deutsche Asset & Wealth Man (Deutsche AWM), the ETF issuing business of Deutsche Bank.

Deutsche AWM said Monday US X-trackers platform surpassed $20 billion in assets under management and that the firm has improved its market share position to a top-10 ETF provider in the U.S.

With $20 billion in AUM “Deutsche X-trackers platform has increased by approximately 365% since year end, and continues to be among the fastest growing exchange-traded fund (ETF) franchises in the US,” according to a statement issued by the firm.

The Deutsche X-trackers MSCI EAFE Hedged Equity ETF (NYSEArca: DBEF) is Deutsche AWM’s largest ETF with over $14.6 billion in AUM. Only one ETF has added more new assets this year than DBEF, the dominant currency hedged play on the widely followed MSCI EAFE Index.

DBEF’s holdings can hail from 21 countries, including the following: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom. With combined weight to France and Germany of over 19%, DBEF is a credible hedged euro idea. [Big Growth for This Currency Hedged ETF]

The Deutsche X-Trackers MSCI Europe Hedged Equity ETF (NYSEArca: DBEU) has been another important driver of Deutsche AWM’s growth. That ETF now has over $2.9 billion in AUM, nearly $2.7 billion of which has flowed into the fund just this year. [A Quality Europe ETF]