In Germany, Deutsche Bank has launched “db x-tracker” exchange traded funds linked to eight exchanges (DAX, SMI, S&P/MIB, DJ Euro Stoxx50, M...

In Germany, Deutsche Bank has launched “db x-tracker” exchange traded funds linked to eight exchanges (DAX, SMI, S&P/MIB, DJ Euro Stoxx50, MSCI USA, MSCI Japan, MSCI Europe and MSCI World Index). "With the listings covering major country and regional indices, Deutsche Bank intends to become a leading provider of ETFs in Europe", said Garth Ritchie, European head of global markets equity. He sees increasing demand from both private and institutional investors. "The experience of the US has shown that ETFs are popular with self-directed retail investors and Deutsche Bank has considerable experience of targeting these markets in Europe," said Mr Ritchie. During 2007, Deutsche Bank will expand its range of db x-trackers ETFs to cover further equity indices, other asset classes and innovations. As well as being listed and marketed in Germany, the db x-tracker ETFs will soon be offered in other major European markets. ETFs are passive investment funds that replicate the performance of indices and trade on stock exchanges in the same way as other exchange listed securities. As ETFs do not require active management they can be offered with competitive fees. They were first introduced in the USA in 1993 and in Europe in 2000. In December 2006 there were 769 ETFs listed globally with over €445 billion ($570 billion) assets under management, with equity-based ETFs showing an increase of 18 per cent for the year. In Europe ETF assets grew 19 per cent to €67.9 billion. By 2011 it is forecast that assets in ETFs globally will exceed €1,500 billion.