German asset manager Deka has expanded its US equity suite with the launch of an S&P 500 ETF.
The Deka S&P 500 UCITS ETF (D6RI) is listed on the Deutsche Boerse with a total expense ratio (TER) of 0.12%.
D6RI physically replicates the S&P 500 and becomes the eighteenth Europe-domiciled ETF to track the US large and mid-cap index, covering around 80% of US market capitalisation.
The ETF is a distributing share class, however, its German domicile status means it will be subject to 30% withholding tax (WHT) on US dividends, whereas rival physical ETFs domiciled in Ireland benefit from the halved WHT rate afforded by the Double Taxation Treaty.
D6RI’s headline fee of 0.12% also positions it at a higher price point than rival strategies such as the SPDR S&P 500 UCITS ETF (SPY5), which had its TER slashed from 0.09% to 0.03% – to become Europe’s lowest-fee ETF – last October.
Joerg Wucherpfennig, head of ETF management at Deka Investment, told ETF Stream: “The S&P 500 is the classic benchmark and now rounds off our ETF range.
“We are pleased to offer our investors simple and efficient market access with this ETF.”
The ETF expands Deka’s US offering to its German retail clients after it launched the Deka Nasdaq-100 UCITS ETF (D6RH) with a TER of 0.25% last October.
The firm has also offered the $318m Deka MSCI USA UCITS ETF (ETFUSAC) since 2009, carrying a fee of 0.30%.
