Deutsche expands physical ETF footprint with Japan launch

Deutsche Asset and Wealth Management has launched an exchange traded fund (ETF) physically tracking Japan’s Nikkei 225 index.

The db X-trackers Nikkei 225 Ucits ETFs ‘direct replication’ invests in the underlying index constituents, and joins the firm’s existing ‘indirect replication’ – or swap based – ETF on the Japanese market.

Manooj Mistry, head of ETFs EMEA at the firm, said: ‘We’ve noted a pick-up in interest this year from investors looking to take Japanese equity market exposure, so the launch of this new ETF is perfectly timed.’

The ETF, which has a total expense ratio of 0.5%, is the latest direct replication product launched by the predominantly swap-based issuer, adding to its physical range comprising the FTSE 100, Euro Stoxx 50 and Euro Stoxx 50 ex Financials ETFs.

Deutsche also offers GBP-hedged exposure to Japanese equities via a share class of the db X-trackers MSCI Japan index Ucits ETF.