ETF Times - July 26 - 30

Deutsche Bank's commodity ETC platform has launched some unique funds, in that they are hedged to the euro

Morningstar ETF Analysts 4 August, 2010 | 11:27AM
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New Listings
db x-trackers listed five ETFs on the Borsa Italiana. Three of the funds are country-specific, tracking benchmarks including the MSCI Mexico index, MSCI Canada index, and the S&P 500. The final two ETFs provide exposure to REITS, tracking the FTSE/NAREIT Eurozone and Developed Europe indices.

db ETC Index, Deutsche Bank's commodity ETC platform, launched two products on the Xetra exchange. The two ETCs are backed by physical gold and physical silver respectively. While these aren't the first physical precious metals funds, they are unique in that they are hedged to the euro, so investors will only be exposed to the change in value of the metals in US dollar terms. Any change in foreign exchange rates between the euro and the dollar will not affect investor returns.

Best and Worst Performers for the week of July 26 - 30
It was generally a good week for most asset classes, as stronger-than-expected economic data increased investors' risk appetite. The news wasn't all good however, as wheat prices rose rapidly due to drought-like conditions in Eastern Europe and Russia. Canada's wheat harvest had the opposite problem of too much rain, but the end result is that prices for the commodity are approaching a 13-month high. The European bank sector enjoyed a strong rally as results from the stress tests were slightly better than expected, and earnings from Deutsche Bank and UBS also outperformed expectations. Natural gas prices were given a boost as weather continued to be hotter than normal in North America, increasing demand for electricity to run air conditioners. Sugar prices continued to climb after a weak first half of the year as weather conditions in key exporting markets like Brazil and Thailand appear to be leading to increased expectations of a poor crop.

A strong week for the markets pushed down some safe haven assets, such as the volatility-based futures strategies, for the second week running. This also in part explains the poor performance of the defensive food and beverage sector and of gold. The clean energy industry also suffered a setback as the US Senate's alternative energy bill fell far short of earlier efforts to introduce 'cap-and-trade' legislation.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Morningstar ETF Analysts  research hundreds of ETFs available to European investors. The Morningstar Rating for ETFs is based on a risk-adjusted performance measure.

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