Deutsche Asset Management (Deutsche AM) today announced the launch of Deutsche X-trackers Russell 2000 Comprehensive Factor exchange traded fund (ETF) (Ticker: DESC), the fourth ETF to be added to its multifactor suite. The new fund seeks to track the Russell 2000 Comprehensive Factor Index. The FTSE Russell family of Comprehensive Factor Indices is designed to track the equity market performance of companies that have demonstrated relatively strong exposure to targeted investment style factors: value, momentum, quality, low volatility and size.
“Smart beta strategies provide investors the potential for increased or enhanced returns, lower risk possibilities and diversification improvement by shifting from industry and country diversification to factor diversification,” said Fiona Bassett, Head of Passive Strategy in the Americas. “DESC, focusing on small cap US stocks, is a logical addition to our Deutsche X-trackers Comprehensive Factor ETFs suite, which is based on an intelligently designed index construction mechanism that takes into account five investment factors. Academic research has identified certain stocks’ characteristics that are important in explaining a stock’s risk and performance. Emphasizing these factors can potentially make a significant contribution to outperforming traditional market-capitalization weighted benchmark indices.”
Deutsche AM rolled out its US multifactor suite late last year with the Deutsche X-trackers Russell 1000 Comprehensive Factor ETF (Ticker: DEUS) and the Deutsche X-trackers FTSE Developed ex US Comprehensive Factor ETF (Ticker: DEEF). The suite was expanded with the launch of Deutsche X-trackers FTSE Emerging Comprehensive Factor ETF (Ticker: DEMG) earlier this year. DESC follows the same investment methodology as the three previously-launched funds applied to the small cap US stock universe.
”We’re so glad to be able to extend our collaboration with Deutsche Asset Management to offer more smart beta investment alternatives to investors,” said Ron Bundy, CEO North America Benchmarks for FTSE Russell. “Our global research team is at the forefront of innovation in index-based market factor analysis, and we are now extending our comprehensive factor methodology to the Russell 2000® Index, long recognized as the definitive measure of US small-cap stocks.”
Offering the broadest suite of currency-hedged ETFs in the US, Deutsche AM was named the “Best ETF Issuer in 2015” in the US by ETF.com. The award is given to the issuer that has done the most to improve investor outcomes through product introductions, product performance, fund management, asset gathering, investor support and innovation throughout last year.1 In addition, earlier this year Fiona Bassett was named the “Fund Leader of the Year” in the 23rd annual Mutual Fund Industry Awards. Launched in 2006, Deutsche AM’s global exchange traded products (ETP) platform has grown to become a top 5 ETF provider2 and a top 3 new asset gatherer globally3 in 2015.
To find out more about the ETPs available in the US, visit: http://www.deutsche-etfs.com
Deutsche Asset Management
With about USD 842 billion of assets under management (as of March 31, 2016), Deutsche Asset Management4 is one of the world’s leading investment management organizations. Deutsche Asset Management offers individuals and institutions traditional and alternative investments across all major asset classes.
© 2016 Deutsche Asset Management. All rights reserved.
Consider the Fund’s investment objectives, risk factors, and charges and expenses before investing. This and other important information can be found in the Fund’s prospectus, which may be obtained by calling 1-855-DBX-ETFS (1-855-329-3837) or by viewing or downloading a prospectus at www.deutsche-etfs.com. Please read it carefully before investing.
Investing involves risk, including possible loss of principal. Stocks may decline in value. Funds investing in a single industry, country or in a limited geographic region generally are more volatile than more diversified funds. Because the fund seeks to provide exposure to stocks based on the following multifactors – value, momentum, quality, low volatility and size – it is expected exposure to such investment factors will detract from performance in some market environments, as more fully explained in the Fund’s prospectus. Performance of the Fund may diverge from that of the Underlying Index due to operating expenses, transaction costs, cash flows, use of sampling strategies or operational inefficiencies. An investment in any fund should be considered only as a supplement to a complete investment program for those investors willing to accept the risks associated with that fund. See the prospectus for details.
DBX Advisors LLC is the investment adviser to the Deutsche X-trackers Funds. Deutsche X-trackers Funds are distributed by ALPS Distributors, Inc. ALPS Distributors, Inc. is not affiliated with DBX Advisors or FTSE Russell.
The Indexes are calculated by FTSE or its agent. FTSE and its licensors are not connected to and do not sponsor, advise, recommend, endorse or promote the Deutsche ETFs and do not accept any liability whatsoever to any person arising out of (a) the use of, reliance on or any error in the Indexes or (b) investment in or operation of the Deutsche ETFs. FTSE makes no claim, prediction, warranty or representation either as to the results to be obtained from the Deutsche ETFs or the suitability of the Indexes for the purpose to which it is being put by Deutsche Asset Management.
One cannot invest directly in an index.
Shares of the Fund may be sold throughout the day on the exchange through any brokerage account. Shares, however, are not individually redeemable, and owners of shares may acquire those shares from the Fund or tender such shares for redemption to the Fund in creation units only. There is no assurance that an active trading market for shares of the Fund will develop or be maintained.
Diversification does not eliminate the risk of principal losses.
No bank guarantee | Not FDIC insured | May lose value DBX002138 06/23/17
1 Source: ETF.com
2 Source: Deutsche Bank, Bloomberg Finance LP, FactSet as of 10/5/15. Includes US, Europe, and Asia Pacific. All rankings based on AuM
3 Source: Morningstar Essentials, Deutsche Asset Management as of 12/31/15
4 Deutsche Asset Management is the brand name of the Asset Management division of the Deutsche Bank Group. The respective legal entities offering products or services under the Deutsche Asset Management brand are specified in the respective contracts, sales materials and other product information documents.
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