- Xtrackers by DWS creates an ETF providing dynamic exposure
between high yield bonds and cash equivalent investments - Tracking
the Adaptive Wealth Strategies Risk Managed High Yield Index -
Daily allocation algorithm uses market signals to control for
risk
Xtrackers by DWS has launched an ETF providing dynamic
risk-controlled exposure to US dollar high-yield corporate
bonds.
Xtrackers Risk Managed USD High Yield Strategy ETF (NYSE: HYRM)
tracks the Adaptive Wealth Strategies Risk Managed High Yield
Index, which uses a daily algorithm to dynamically adjust exposure
between bonds and cash equivalent investments. It is designed to
track the performance of the US dollar-denominated high yield
corporate bond market during normal market conditions, and the
performance of a US dollar cash position (accruing interest at the
Effective Federal Funds Rate) during periods of adverse market
conditions.
The Underlying Index uses a rules-based allocation mechanism to
allocate between either 100% exposure to the Solactive USD High
Yield Corporates Total Market Index or 100% exposure to the
Solactive Fed Funds Effective Rate Total Return Index, based on
quantitative market risk signals derived from measurements of price
changes in the market (see Notes to Editors).
“HYRM may be an interesting way for investors to gain exposure
to the USD high yield bond market with a built-in risk-management
process,” said Michael Curtis, Head of US Passive Product.
“Downside, or drawdown risks, are a key factor when allocating to
high yield bonds, which the allocation mechanism of HYRM’s
underlying index seeks to address effectively.”
The launch of this product is yet another example of Xtrackers’
continued partnership and collaboration with its key relationships
with US and global investors to bring innovative products to market
that serve as useful investment solutions.
“We are excited to see the continued development of Adaptive
Wealth Strategies Indexes into the fixed income markets,” said
Patrick Bobbins, CFA®, CIMA® of NorthCrest Asset Management*. “We
appreciate the opportunity to partner with DWS Xtrackers on this
risk-managed high yield strategy, and bringing our third index to
market.”
The ETF has a gross/net expense ratio of 0.45%/0.30% and is
designed to utilize investments in other Xtrackers ETFs in order to
gain exposure to USD high yield bonds, in particular Xtrackers USD
High Yield Corporate Bond ETF (NYSE: HYLB).
DWS offers a suite of six high yield bond ETFs (NYSE: HYLB,
HYUP, HYDW, SHYL, ESHY and HYRM), with approximately $7.5 billion
in assets under management that use rules-based methodologies to
provide exposure to different levels of credit and interest rate
risk. This includes Xtrackers Low Beta1 High Yield Bond ETF (NYSE:
HYDW), which targets higher quality issuers that may display
relatively low volatility compared with the broad market, and which
in recent weeks broke through the USD 1 billion in assets under
management threshold.
Notes to Editors
Xtrackers Risk Managed USD High Yield Strategy ETF (NYSE: HYRM)
tracks the Adaptive Wealth Strategies Risk Managed High Yield
Index. The index has a dynamic, rules-based allocation mechanism,
which allocates fully between a “risky” asset and a “risk-free”
asset based on market risk signals. The index aims to allocate to
the risky asset when market risk is considered relatively low and
to allocate to the risk-free asset when market risk is considered
to be relatively high.
On each business day, the weight of the risky asset is
determined by two signals derived from the Cboe Volatility Index2
(the VIX) and a trend-following momentum indicator called Moving
Average Convergence Divergence measurement. Each signal has an
equal vote (1) for market exit. Each signal will vote one (1) if it
triggers a market exit and zero (0) if otherwise. The total exit
vote is equal to the sum of all signal exit votes. If the total
exit vote is larger than or equal to one (1) then market exit is
deemed favorable. The weight is equal to exit vote decision unless
it is locked from changing. Once a decision to enter or exit has
been made, the position is locked into that decision for 10 days.
The weight becomes effective 4 trading days after it is
calculated.
*Adaptive Wealth Strategies Risk Managed High Yield Index is
licensed for use from NorthCrest Asset Management, LLC (NCAM), a
registered investment adviser and wholly owned subsidiary of Wealth
Enhancement Group, LLC (WEG). Registration does not imply a certain
level of skill or training. NCAM and WEG are not affiliated with
DWS Group or ALPS Distributors Inc .
About DWS Group
DWS Group (DWS) is one of the world's leading asset managers
with USD 1.05 trillion of assets under management (as of 31
December 2021). Building on more than 60 years of experience, it
has a reputation for excellence in Germany, Europe, the Americas
and Asia. DWS is recognized by clients globally as a trusted source
for integrated investment solutions, stability and innovation
across a full spectrum of investment disciplines.
We offer individuals and institutions access to our strong
investment capabilities across all major asset classes and
solutions aligned to growth trends. Our diverse expertise in
Active, Passive and Alternatives asset management – as well as our
deep environmental, social and governance focus – complement each
other when creating targeted solutions for our clients. Our
expertise and on-the-ground-knowledge of our economists, research
analysts and investment professionals are brought together in one
consistent global CIO View, which guides our investment approach
strategically.
DWS wants to innovate and shape the future of investing: with
approximately 3,600 employees in offices all over the world, we are
local while being one global team. We are investors – entrusted to
build the best foundation for our clients’ future.
IMPORTANT INFORMATION
ETF shares are not individually redeemable, and owners of shares
may acquire those shares from the Fund, or tender such shares for
the redemption to the Fund, in Creation Units only.
Consider each fund’s investment objectives, risk factors, and
charges and expenses before investing. This and other important
information can be found in the fund’s prospectus, which may be
obtained by calling 1-855-DBX-ETFS (1-855-329-3837) or by viewing
or downloading a prospectus at www.Xtrackers.com. Please read it
carefully before investing.
Xtrackers ETFs are managed by DBX Advisors LLC (the Advisor),
and distributed by ALPS Distributors, Inc. (ALPS). The Advisor is a
wholly owned subsidiary of DWS Group GmbH & Co. KGaA, and is
not affiliated with ALPS.
HYRM - Xtrackers Risk Managed USD High Yield ETF - Bond
investments are subject to interest rate, credit, liquidity and
market risks to varying degrees. When interest rates rise, bond
prices generally fall. Credit risk refers to the ability of an
issuer to make timely payments of principal and interest. Foreign
investing involves greater and different risks than investing in
U.S. companies, including currency fluctuations, less liquidity,
less developed or less efficient trading markets, lack of
comprehensive company information, political instability and
differing auditing and legal standards. Funds investing in a single
industry (or group of industries), country or in a limited
geographic region generally are more volatile than more diversified
funds. Investments in lower-quality ("junk bonds") and non-rated
securities present greater risk of loss than investments in
higher-quality securities. Performance of the Fund may diverge from
that of the Underlying Index due to operating expenses, transaction
costs, cash flows, use of sampling strategies or operational
inefficiencies. An investment in this fund should be considered
only as a supplement to a complete investment program for those
investors willing to accept the risks associated with that fund.
Please read the prospectus for more information.
Performance of a Fund may diverge from that of an Underlying
Index due to operating expenses, transaction costs, cash flows, use
of sampling strategies or operational inefficiencies. There are
additional risks associated with investing in high-yield bonds,
aggressive growth stocks, non-diversified/concentrated funds and
small- and mid-cap stocks which are more fully explained in the
prospectuses, as applicable. An investment in any Fund should be
considered only as a supplement to a complete investment program
for those investors willing to accept the risks associated with
that fund. Please read the prospectus for more information.
Past performance is no guarantee of future results.
This press release shall not constitute an offer to sell or a
solicitation to buy, nor shall there be any sale of these
securities in any state or jurisdiction in which such offer or
solicitation or sale would be unlawful prior to registration or
qualification under the laws of such state or jurisdiction. Certain
statements contained in this release may be forward-looking in
nature. These include all statements relating to plans,
expectations, and other statements that are not historical facts
and typically use words like “expect,” “anticipate,” “believe,”
“intend,” and similar expressions. Such statements represent
management’s current beliefs, based upon information available at
the time the statements are made, with regard to the matters
addressed. All forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially
from those expressed in, or implied by, such statements. Management
does not undertake any obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events, or otherwise. The following factors, among others,
could cause actual results to differ materially from
forward-looking statements: (i) the effects of adverse changes in
market and economic conditions; (ii) legal and regulatory
developments; and (iii) other additional risks and uncertainties,
including public health crises (including the recent pandemic
spread of the novel coronavirus), war, terrorism, trade disputes
and related geopolitical events.
NOT FDIC/ NCUA INSURED • MAY LOSE VALUE • NO BANK GUARANTEE NOT
A DEPOSIT • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
The brand DWS represents DWS Group GmbH & Co. KGaA and any
of its subsidiaries such as DWS Distributors, Inc. which offers
investment products or DWS Investment Management Americas, Inc. and
RREEF America L.L.C. which offer advisory services.
R- 088063 (2/22) DBX005108 (2/22)
1 Beta is a measure of a security’s volatility in relation to
the overall market it is a part of. 2 The Cboe Volatility Index, or
VIX, is a real-time market index representing the market’s
expectations for volatility over the coming 30 days.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220210005270/en/
Kenny Juarez DWS Phone: 1-212-454-9994 E-Mail:
kenny.juarez@dws.com
Xtrackers Short Duration... (AMEX:SHYL)
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