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Deutsche Bank launches ETF basket funds

Deutsche Bank has launched three quantitatively managed funds fully invested in a portfolio of exchange traded funds.

The DB platinum dynamic ETF selector funds allow investors to invest exclusively in a basket of ETFs, either long or short aiming to replicate the strategy of a mean variance optimisation model.

ETFs are selected by a quantitative model which applies different specific weights, including market volatility, returns and correlation with other investment classes, over a time horizon of 20 working days.

The model defines the minimum and maximum weights that each ETF may reach from time to time within the portfolio to ensure a minimum diversification level.

The funds are available in multiple jurisdictions, offer virtually daily liquidity and are available with three different volatility targets.

Deutsche Bank head of fixed income ETFs Marco Montanari says: “ETFs are very efficient financial instruments, but they need to be carefully chosen in order to build a portfolio that meets certain requirements in terms of risk profile and expected returns. DB platinum dynamic ETF selector has been created specifically to meet these requirements.”

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