Aram Babikian, Head of Xtrackers Sales, US Onshore Wealth for Xtrackers by DWS, joined Keith Black, Managing Director of RIA Channel to discuss innovation, value, and access in the ETF market.
Xtrackers is the passive line of funds offered by DWS, a $1 trillion global asset manager. The three business lines of DWS include the alternatives platform, the active equity and fixed income platform, and the Xtrackers passive ETF platform. Xtrackers is one of the largest ETF providers in Europe, with $270 billion in global AUM.
Before launching a new ETF product, Xtrackers considers the principles of innovation, access, and value. Value is measured by the competitive fee structure of the ETF, access provides investors the ability to invest in less accessible markets, and innovative products include the first currency-hedged ETFs. Access is demonstrated in the Xtrackers Municipal Infrastructure Revenue Bond ETF (RVNU), while value is seen in the 5 basis point expense ratio for the Xtrackers USD High Yield Corporate Bond ETF (HYLB).
Babikian notes that today’s geopolitical landscape is more charged than ever, with the next ten years looking very different than the last ten years. The substantial distance that is being created between G7 countries and China, North Korea, Iran, and Russia can impact the fortunes of US-listed companies, such as Apple, which earns 20% of its revenue from China. Xtrackers partners with J.H. Whitney, a national defense consultant and data analytics provider, to access the geostrategic risk rating that is used to reduce portfolio risk.
Innovation is demonstrated in the US National Critical Technologies ETF (CRTC), which invests in 14 national US critical technologies, including biotech, AI, and hypersonics. CRTC tracks the Solactive Whitney US Critical Technologies Index. Companies like Apple, Tesla, and Meta are not included in the portfolio due to their geostrategic risk rating.
WEBCAST – America Post-Election: Where Do We Go From Here?
As America has (hopefully) decided on who will be the 47th President of the United States, join Xtrackers by DWS as we discuss the critical economic, geopolitical, and financial market implications of this presidential transition with two leading political strategists.
Topics to be covered include:
- Will the political gridlock that has dominated Washington potentially improve in 2025?
- What is the outlook for the global geopolitical risk environment to potentially change….and will it be for better or worse?
- Will the Tax Cuts and Jobs Act, set to expire in 2025, be extended?
- Can Congress finally agree to comprehensive immigration reform?
- What is the outlook for international trade post-election?
Accepted for 1 CFP® / IWI / CFA CE Credit