Deutsche Bank has launched two money market exchange-traded funds (ETFs) that aim to appeal both to buyers of money market funds and to users of traditional deposits.
The db x-trackers sterling (XGBP) and dollar (XUSD) ETFs are listed on the London Stock Exchange and began trading on Monday 21 April. Deutsche Bank hopes the funds will mirror the success of its German-listed euro money market ETF, which took in over €1bn in its first 10 weeks of trading last summer. The funds track the overnight money market rates and have an annual management fee of 0.15%, giving a current net-of-fees return of 4.85% on the sterling ETF. “We see it as an alternative to traditional cash funds, which typically have higher management fees, and they can also compete again...
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