DWS is closing two fixed income ETFs and closing the share class on another due to their “permanently low levels” of demand.
The Xtrackers USD Overnight Rate Swap UCITS ETF (XUSD) and the Xtrackers II USD Asia ex-Japan Corporate Bond UCITS ETF (ALQD) will stop trading on 3 December and fully close on 8 December.
Meanwhile, the $3.1bn Xtrackers MSCI Japan UCITS ETF (XMJP) will close its sterling-hedged share class on the same day.
In a market statement, DWS said: “The board of directors deems it appropriate to terminate the terminating sub-fund and the share class because they have demonstrated permanently low levels of demand, and their net asset value has remained too low for an extended period of time.”
It added the low volumes meant the ETFs could not be operated “in an efficiently economic manner”.
Launched in 2007, XUSD has $8m assets under management (AUM), with investors redeeming $27.4m over the past three years, according to Logicly. It has returned 2.6% over the same period.
It tracks the DB FED Funds Effective Rate Total Return index and has a total expense ratio (TER) of 0.15%.
Having launched in 2016, ALQD has $20m AUM and has returned 19.4% over three years. It tracks the Markit iBoxx USD Liquid Asia ex-Japan Corporates Large Cap Investment Grade index with a TER of 0.30%.
