Advisory Fees Cut On DeAWM's Currency-Hedged ETFs

Anna Hallissey

12 February 2014

Investment advisory fees have been cut on currency-hedged equity exchange traded funds operated by Deutsche Asset & Wealth Management, highlighting the competitive pressures in this sector.
The db X-trackers MSCI Japan and Germany Hedged Equity Funds will cut their advisory fees by a tenth, from 0.5 per cent to 0.45 per cent. The purpose of these funds is to protect investors against fluctuations in the value of the US dollar and the respective foreign countries, with hedged-equity ETFs for European and UK as well as those previously mentioned.

The move, which brings the two funds in line with DeAWM’s other currency-hedged equity ETFs, will help pass cost savings directly to investors, the firm said.

Its db X-trackers MSCI EAFE Hedged Equity Fund has the lowest expense ratio at 0.35 per cent, with all other funds within the firm’s suite standing at 0.45 per cent.
As fund fees can bite into returns significantly, due to the impact of compounding, there remains controversy over charges in the industry.
DeAWM is refining its product range, it said; it offers US market a mix of 11 hedged-equity ETFs