The new platform, branded as ‘db ETC’, will roll out to the rest of Europe in 2010 and include ETCs on gold, silver, platinum and palladium.
In addition to USD ETCs, Deutsche Bank will be offering Euro-hedged products on the platform. Since commodity products by definition carry USD exposure, Deutsche Bank aims to make commodities available to investors that want to have access to this asset class without USD exposure.
Besides Euro-hedged and USD products on benchmark commodity indices, db ETC will provide access to Deutsche Bank’s own optimum yield commodity indices.
David Silbert, global head of commodities at Deutsche Bank, said: “Exchange traded commodities issued by Deutsche Bank’s db ETC platform offer a simple way for investors to gain exposure to commodities without trading the futures contracts or taking physical delivery of the commodities they track. Our index linked ETCs offer full collateralisation of the products using physical gold, while competitors use baskets of equity and bonds. Our ETCs also offer fully liquid trading provided by Deutsche Bank as market maker of the products.”
Thorsten Michalik, head of db x-trackers at Deutsche Bank, said: “We expect to launch more than 30 products before June and will continue to add to the product range on the ETC platform as we launch more products across Europe. Building on our strong investment banking skills in commodities we are also planning to launch db ETC on the underlying physical asset classes, for example silver, which will be the first product of its type brought to market.”
