Deka has expanded its offering of exchange-traded index funds with three highly liquid ETF products geared towards optimally implementing the needs of institutional investors in the changed regulatory environment (MiFID II).
The Deka Euro Corporates 0-3 Liquid Ucits ETF invests in high-quality corporate bonds from Europe with a limited residual maturity and correspondingly reduced probability of default. With the Deka US Treasury 7-10 Ucits ETF, investors participate in the higher yields of US government bonds. And the Deka Germany 30 Ucits ETF offers a cost-effective market beta to the 30 largest German companies.
The focus of the new Deka ETFs is on highly liquid underlyings. "There is a tendency in the industry to translate even smaller sectors and fashion themes into the shell of an ETF. Any deviation from the traditional market beta, however, inevitably comes at the expense of liquidity," said Georg Kayser, responsible at Deka for ETF sales.
The three funds are fully replicating. Thus, only the values of the index shown are bought one-to-one, derivatives are not used. The highly liquid underlyings ensure very flexible and cost-effective trading of the index funds. For this purpose Deka relies on an open trading architecture and works together with 19 liquidity providers, the so-called "Authorised Participants" (APs).
The ETFs can be traded from 3 September 2019 to Deutsche Börse and the Stuttgart Stock Exchange.