New Listing

Deka launches Nasdaq 100 ETF

TER 0.25%

Theo Andrew


German asset manager Deka has expanded its range with the launch of a Nasdaq 100 ETF.

The Deka Nasdaq-100 UCITS ETF (D6RH) is listed on Deutsche Boerse and the Stuttgart Stock Exchange with a total expense ratio (TER) of 0.25%.

The strategy is fully replicated and will track the Nasdaq 100 index, made up of the largest non-financial technology companies in the US.

The index has returned 39.2% this year, well above the 14.3% of the S&P 500, driven by the boom in artificial intelligence stocks.

In July, the index underwent a “special rebalance” in a bid to curb the dominance of the so-called ‘magnificent seven’ tech giants.

Nasdaq said action was needed to curtail the concentration after weighting restrictions in its methodology were breached.

Commenting on the launch, Thomas Pohlmann, head of ETF product management at Deka Investment, said: “US technology stocks are globally positioned and high-yield players. With our ETF on the flagship Nasdaq 100 index, investors can invest transparently and cost-effectively.”

There are already several Nasdaq 100 funds in the market, and while not the cheapest, D6RH does undercut the two largest funds, the $8.1bn iShares Nasdaq 100 UCITS ETF (CNDX) and the £4.1bn Invesco EQQQ Nasdaq-100 UCITS ETF (EQQQ) which have TERs of 0.33% and 0.30%, respectively.

The AXA IM Nasdaq 100 UCITS ETF (ANAU) is the cheapest on the market with a TER of 0.14%.

It is the German asset manager’s first launch since it unveiled the Deka iBoxx MSCI ESG EUR Corporates Green Bond UCITS ETF (D6RE) in August.

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