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Deutsche Asset Management Cuts Fees On 4 China ETFs

August 2, 2016 8:41 am
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Deutsche Asset Management Cuts Fees On 4 China ETFs

Deutsche Asset Management, the asset management and exchange-traded funds arm of German banking giant Deutsche Bank AG (USA)(NYSE: DB), said Monday it is lowering the annual expense ratios on four of its China ETFs.

That quartet includes the Deutsche X-Trackers Harvest CSI 300 China A-Shares ETF (NYSE: ASHR). The $406.5 million ASHR is the largest ETF offering exposure to China A-shares trading in New York. A-shares are the stocks trading in the mainland China markets of Shanghai and Shenzhen.


ASHR, which debuted in November 2013, will now charge 0.65 percent per year, or $65 for a $10,000 investment, down from an annual fee of 0.8 percent.

ASHR's currency hedged equivalent, the Deutsche X-trackers CSI 300 China A-Shares Hedged Equity ETF (NYSE: ASHX), is also getting a new expense ratio. ASHX's annual fee is also dropping 15 basis points, but in this case, the currency hedged A-shares ETF will be charging 0.7 percent on an annual basis.

Related Link: Problems Aplenty For The Nigeria ETF


ASHR's small-cap cousin, the Deutsche X-trackers Harvest CSI 500 China A-Shares Small Cap ETF (DBX ETF Trust (NYSE: ASHS)), will be charging 0.65 percent per year, down from 0.8 percent. The $27.3 million ASHS debuted in May 2014. ASHS follows the China Securities 500 Index.


The Deutsche X-trackers MSCI All China Equity ETF (DBX ETF Trust (NYSE: CN)), which features ASHR and ASHS as its two largest holdings, also has a new annual fee of 0.63 percent, down from 0.71 percent.

Deutsche’s Rationale

“The reduced net expense ratio for each of ASHR, ASHS and ASHX is directly due to the contractual reduction in their respective unitary management fees. The net expense ratio for each of ASHX (to the extent it invests in AHSR) and CN (to the extent it invests in ASHR and ASHS) is also reduced because ASHX and CN will benefit from the reduced unitary management fees of their respective underlying funds,” said Deutsche AM in a statement.

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