DWS has dropped Deutsche Bank for Solactive on its popular overnight rate swap ETF range to broaden the number of available swap counterparties.
In a shareholder notice, DWS said Solactive will replace Deutsche Bank as the index administrator on the Xtrackers EUR Overnight Rate Swap UCITS ETF (XEON), Xtrackers USD Overnight Rate Swap UCITS ETF (XFFE) and the Xtrackers GBP Overnight Rate Swap UCITS ETF (XSTR).
From 30 November, XEON will switch from tracking the Deutsche Bank Euro Overnight Rate index to the Solactive €STR +8.5 Daily Total return index.
Meanwhile, XFFE will switch from tracking the Fed Funds Effective Rate Total Return index to the Solactive FEDL Daily Total Return index and XSTR will change to the Solactive SONIA Daily Total Return index from the SONIA Total Return index.
A DWS spokesperson said: “The aim is to use Solactive as an index provider to allow for a greater selection of swap counterparties willing to enter into over-the-counter (OTC) swap transactions.
“An established index provider like Solactive is much better connected and can more efficiently make relevant data available to the ETF ecosystem.”
According to the German asset manager, the rules of the new indices are “materially the same” as the current indices.
XEON was one of the most popular ETFs in Europe this year, recording over $1.3bn inflows in Q3 alone and now houses $4.2bn assets under management (AUM).
The ETF has returned 2.9% over the past 12 months and investors have flocked to gain exposure as the European Central Bank has continued to raise interest rates to battle inflation.