Xtrackers, the exchange-traded fund (ETF, for its English-language acronym) platform of DWS, the asset management business of Deutsche Bank, has launched a new actively managed equity ETF focused on emerging markets, according to the firm itself.
The product, called "Xtrackers Emerging Markets Equity Enhanced Active ETF", uses the MSCI Emerging Markets 10/40 Index as its benchmark index, which brings together stocks of large- and mid-cap companies from emerging countries.
Although the selection of securities will be carried out using an active management approach, the portfolio construction will seek not to deviate in a relevant way from the structure of the underlying index. The fixed fee applied to the fund will be 0.30%.
The strategy aims to obtain additional returns, or "alpha", versus the benchmark index, while maintaining a target "tracking error" in the range of between 1% and 1.5%. The ETF positions are reviewed and adjusted each month and the vehicle is managed actively.
With this launch, the ETF moves to be integrated into Xtrackers' offering of actively managed exchange-traded funds, which already includes solutions focused on global, European and U.S. equity markets.