New Listing

DWS adds three maturities to US Treasury ETF range

The German asset manager now houses five ETFs in the range

Theo Andrew

mohr article-image

DWS has launched three US Treasury ETFs with different maturity bands as it continues to expand its fixed income range.

The Xtrackers US Treasuries 3-7 UCITS ETF (LT13), the Xtrackers US Treasuries 7-10 UCITS ETF (LT09) and the Xtrackers US Treasuries 10+ UCITS ETF (LUTR) are listed on the Frankfurt Stock Exchange and the London Stock Exchange with total expense ratios (TERs) of 0.06%.

The launches come after the German asset manager cut fees on its existing US Treasuries ETFs, the Xtrackers US Treasuries UCITS ETF (XUDT) and the Xtrackers US Treasuries 1-3 UCITS ETF (XUT3) by one basis point to 0.06%.

It takes its US Treasuries ETF range to six. XUDT and XUT3 were both launched in 2009 while the Xtrackers US Treasuries Ultrashort Bond UCITS ETF (X0TD) was added in 2020. Combined, the range houses $4.7bn assets under management.

Unlike the legacy ETFs which track iBoxx indices, the three new strategies will follow Bloomberg indices of their relevant maturities.

Michael Mohr (pictured), global head of Xtrackers products at DWS, commented: “In view of the rise in interest rates, US government bonds are an important portfolio component for many investors.

“With the new products, DWS completes the maturity spectrum of US Treasury ETFs and enables more precise duration management for different investment strategies.”

The new ETFs put DWS’ Treasury ETF range in line with its rivals, with only Amundi offering a cheaper suite of US government bond ETFs with a fee of 0.05%.

DWS has launched several new ETFs in recent weeks, including its four-strong range of fixed maturity euro corporate bond ETFs, as well as the Xtrackers Physical Carbon EUA ETC Security (XEAL) which also launched in November.

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