Deutsche Bank has launched Asia’s first money market exchange-traded fund (ETF) – the db x-trackers US Dollar Money Market ETF on Singapore Exchange (SGX) – reported Asianinvestor.net. Reportedly, it tracks the Fed funds effective rate total return index, to reflect the performance of a deposit earning the US federal funds effective rate interest at daily rest.
It has been reported that 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. With this, SGX currently has 39 ETFs covering equity markets worldwide.
Marco Montanari, head of db x-trackers ETFs, Asia, said: “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.”
Janice Kan, senior vice-president and head of product development at the Singapore Exchange, said: 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. We are pleased to work with Deutsche Bank on this listing and will continue our efforts with issuers to build a comprehensive ETF offering for the marketplace, reported the website.
