The exchange traded funds business of Deutsche Bank, db x-trackers, has lowered its annual total expenses ratio for the db x-trackers DJ Euro STOXX 50 from 0.15 per cent to zero.

This reduction applies to both the distributing and accumulating share classes of the fund, the bank said in a statement. The db x-trackers DJ Euro STOXX 50 ETF was launched in 2007 and has, according to the bank, outperformed the underlying index by 0.61 per cent annually.

ETFs, which are listed and traded like individual stocks, give investors access to a variety of asset classes and market indices without the investor having to hold the underlying assets. The sector has grown rapidly and ETFs already typically charge a significantly lower fee than conventional index-tracking funds. The drop in the db x-trackers' fee comes as the industry is already under competitive pressure to cut charges and deliver greater  value for money.

Thorsten Michalik, head of db x-trackers, said that the db x-trackers DJ Euro STOXX 50 ETF is now the cheapest ETF that offers exposure to the Eurozone blue chip equity benchmark index.

“Since we are convinced that we can continue to achieve this superior index tracking performance, we want to share this success with our investors by lowering the all-in fee to zero per cent,” he said.