DB X-Trackers
Being the number 2 ETF provider in Europe (and the number 5 worldwide) DB X-Trackers has seen its ETF portfolio grown over recent years. The same goes for the growth of its customer base.
Owned by Deutsche Bank but managed from Deutsche Bank’s company Deutsche Asset Management it is headquartered in Germany. From there they provide ETF’s for customers around the world although their main customer base is Europe.
DB X-Trackers operating under the management of DAM
As we have seen among other ETF providers Deutsche Bank has also opted to let the ETF department being operated by their asset management company. In the case of Deutsche Bank this is Deutsche Asset Management. With a total amount of more than 700 Billion Euro Assets Under Management DAM is a major player.
They are number 1 in Germany and globally they take 10th place as a bank-owned asset manager. Of course it makes 100% sense to let the ETF department flourish under the guidance of the asset management department.
When you manage the assets of many professional and individual investors it is relatively easy to invest also in the ETF’s you create. But of course, many ETF buyers make their entries and exits through broker websites without ever having contact with DAM.
X-Trackers instead of ETF’s?
Deutsche Bank opted for another name than the word ETF. It calls its ETF’s X-Trackers. Why is that? Well, one reason is that tracking is of course the core of an ETF. In that respect Deutsche Asset Management chose a fitting name.
Another reason is that the name was coined back in 2007 when Deutsche Bank decided to participate in this then upcoming ETF market and a name that stood out from the rest of the crowd would make sense.
Now when the ETF market has materialized into this large global market with many professional players taking part it may be a bit confusing. Is an X-Tracker the same as an ETF I sometimes hear people asking. Of course it is. In my opinion the word “tracker” is better than this strange ETF word.
An Exhange Traded Fund gives too much emphasis on the word “fund” which is confusing to say the least. The fact that an ETF is “exchange traded” is important but that an ETF is tracking the underlying assets is much more important.
So, as far as I am concerned, I would not be sad if from now on we will rename ETF’s in trackers. But of course that is not going to happen. In the meanwhile DB X-Trackers will be the only big ETF provider using the fitting name “tracker”.
DB X-Trackers in a glance
Being one of the leading ETF providers in the world DB X-Trackers offers many ETF’s that cater to the needs of many investors, especially in Europe. They are particularly strong in ETF’s regarding the equity and bond market.
They also provide some very interesting regional ETF’s such as the DB X-trackers MSCI Philippines IM index UCITS ETF and specific niche ETF’s that I am very fond of such as the DB X-trackers MSCI Emerging Markets Healthcare Index UCITS ETF.
In commodities you will not find many DB X-Trackers ETF’s but there are other options to find from different providers.
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