DB X-Trackers ETF
DB X-Trackers ETF's – Pros & Cons
The number 2 ETF provider of Europe and German’s number 1 has a lot to offer to potential ETF investors. But like with all other ETF providers DB X-Trackers has its own set of pros and cons to offer to the international ETF trader. Here we will discuss some of these characteristics.
Pros of DB X-Trackers ETF
DB X-Trackers ETF is the most renowned brand of ETF’s in Europe. This was found out after a survey among 1.000 ETF specialists. For me, this came a bit as a surprise but nevertheless it says a lot about the market positioning of DB X-Trackers. But what are the most prolific pros DB X-Trackers has to offer to the individual ETF trader?
Great variety in specific ETF niches
I like some of DB X-Trackers very much, especially those that are aimed at specific niches. They are strong in specific emerging markets and they have also created some very fine regional ETF’s. It shows that DB X-Trackers has an eye for investors needs and is not afraid of developing specific ETF’s that cater to some investors that do not always follow the crowd.
Innovation as a way to grow its business
Deutsche Bank was not the first to enter the ETF market, one could say that they were a bit late. But that has not hampered them to grow steadily. DB X-Trackers often did this by creating innovative new ETF’s. In the bond market and equity ETF market they have created some very fine ETF’s.
DB X-Trackers has an eye for the individual ETF investor
What particularly strikes me in DB X-Trackers is the concern they have for individual ETF traders. You notice this in the creation of some very niche ETF’s as we have discussed before. You will also notice it through the way they communicate to their website. DB X-Tracker’s website is one of the most informative websites about ETF’s especially when compared with its competitors.
And what about the cons of DB X-Trackers?
Can we also mention some weaknesses in DB X-Trackers performance? Sure we can, but it is more about choices than weaknesses.
Not strong in commodity ETF’s
The world of commodities is a specific one. You also notice this in the suppliers of commodity ETF’s. There are not much ETF providers that really are into the creation of physical commodity ETF’s and DB X-Trackers isn’t one of them either.
Still offering synthetic ETF’s
DB X-Trackers is switching more and more to the direct replication ETF model by offering new physical ETF’s. But there are still a number of DB X-Trackers around that are synthetic by nature. The transparency of physical ETF’s is better than that created synthetically. But as said, DB X-Trackers has a good feeling about what the market wants and that road leads to the creation of more physical ETF’s.
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