Deutsche Bank joins ETF transparency drive

Individual db x-trackers fund webpages will show an ETF's collateral composition in terms of security type, country, sector, currency and, where applicable, credit rating. Investors will also be able to see the net swap exposure as a percentage of the fund's net asset value (NAV). Synthetic ETFs use swaps to supply the returns of the indices they track. The swap partner - Deutsche Bank in the case of db x-trackers - generates the return of a remote index and passes it on to the ETF via a swap arrangement. However, the lack of transparency around which securities a synthetic ETF ac...