New funds from SocGen & DBX

It looks like its going to be a very busy and fruitful few months for private investors looking to use trackers and index funds. The market is getting increasingly competitive with two new entrants to the market - Lyxor (from SocGen) and Deutsche (through their DBX outfit) - both launching a huge range of new funds. Next week we'll look at the Lyxor range - 8 ETFs will be launched in the next few months, with a strong emerging markets theme - but this week we'll look at the newest player Deutsche.

They've just brought out a fascinating range of 18 ETFs, ranging from a fairly conventional range of UK FTSE trackers (the FTSE All, 100 and 250) plus two interesting dividend funds and a huge range of emerging markets funds. We've listed the new ETfs below....

DBX FTSE 100	Deutsche	XUKX	GBP	0.30%
DBX FTSE 250	Deutsche	XMCX	GBP	0.35%
DBX FTSE All Share	Deutsche	XASX	GBP	0.40%
DBX FTSE/XINHUA CHINA 25	Deutsche	XX25	USD	0.60%
DBX MSCI BRAZIL	Deutsche	XMBR	USD	0.70%
DBX MSCI JAPAN	Deutsche	XMJP	USD	0.50%
DBX MSCI KOREA	Deutsche	XKS2	USD	0.65%
DBX MSCI TAIWAN	Deutsche	XMTW	USD	0.70%
DBX MSCI USA	Deutsche	XMUS	USD	0.30%
DBX S&P CNX NIFTY INDIA	Deutsche	XNIF	USD	0.85%
DBX EM ASIA	Deutsche	XMAS	USD	0.70%
DBX MSCI EMEA	Deutsche	XMEA	USD	0.70%
DBX MSCI LATAM	Deutsche	XMLA	USD	0.70%
DBX MSCI EMERGING MARKETS	Deutsche	XMEM	USD	0.70%
DBX MSCI EUROPE	Deutsche	XMEU	USD	0.30%
DBX MSCI WORLD	Deutsche	XMWO	USD	0.45%
DBX DJ EURO STOXX SELECT DIVIDEND 30	Deutsche	XD3E	EUR	0.30%
DBX DJ STOXX GLOBAL SELECT DIVIDEND 100	Deutsche	XGSD	EUR	0.50%

We're particularly interested in two themes

• The emerging markets are very well served by these funds. Up to now Barclay's iShares has pretty much had this space to itself but Deutsche have launched a cracking range of funds. Some of the funds duplicate iShares offerings (Taiwan, Korea, Global Emerging Markets) but with slightly lower expenses - the saving is generally between 0.05 and 0.1% per annum. They've also launched some really interesting new sectors and funds like the Nifty Fifty Indian index (the TER is a slightly pricey 0.85%) which is a brilliant way of buying into liquid Indian megacaps. we also think the MSCI Latin America index is genuinely innovative and groundbreaking as is the EMEA TRN index that tracks 10 emerging markets in Eastern Europe, the Middle East and Africa.
  


• The DJ EuroSTOXX Select Dividend 30 and DJ STOXX Global Select Dividend 100 are great value large cap dividend funds that we think will become essential for any mainstream income investor. Both offer yields of 3% or more the last time we looked and the TER is low at 0.3% and 0.5% respectively.
  

Like Lyxor these funds use a method of replication called synthetic replication which means they use swap notes for a small proportion of the fund to guarantee very low tracking errors - like Lyxor, the Deutsche funds should have tracking errors of well below 0.5% per annum, even in the less liquid emerging markets.

We'll be bringing out briefing notes on many of these funds within the week so watch this space.

*Next week - the new Lyxor range of ETFs*