Deutsche Asset & Wealth joins physical ETF trend

THE shift towards replicating exchange-traded funds (ETFs) with physical assets continues apace, with Deutsche Asset and Wealth Management announcing that it will no longer use swaps and derivatives to replicate 12 Singapore-listed funds.

The db x-trackers ETFs for the MSCI Japan, MSCI Pacific ex-Japan, MSCI Brazil, FTSE China 25, MSCI Korea, MSCI China, S&P/ASX 200, MSCI Taiwan, MSCI Philippines IM, MSCI Thailand, MSCI Malaysia and MSCI Singapore indices will be converted from synthetic to physical replication, Deutsche said yesterday.

This follows Deutsche's move in the first quarter to convert 18 European-listed ETFs.