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Risk considerations

Investors should note that the Xtrackers ETFs & ETCs are not capital protected or guaranteed and investors in each Xtrackers ETF or ETC should be prepared and able to sustain losses up to the total capital invested. The value of an investment in an Xtrackers ETF or ETC may go down as well as up and past performance does not predict future returns. Investment in Xtrackers ETFs or ETCs involve risks. For a list of related risks please click on the Risks and Terms tab.

Emerging markets: One concept, many opportunities

Animation Emerging Markets

* Source: www.bertelsmann-stiftung.de Note: There is no uniform definition for this classification
** These are: Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, South Korea, Kuwait, Malaysia, Mexico, Pakistan, Peru, Philippines, Poland, Qatar, Russia, Saudi Arabia, South Africa, Taiwan, Thailand, Turkey, United Arab Emirates. Source: www.msci.com
*** As components of the MSCI Emerging Markets Asia: China, India, Indonesia, Malaysia, Pakistan, Philippines, South Korea, Taiwan, Thailand Source: www.imf.org

Did you know that ...

Invest in emerging markets – investments with potential

Emerging markets are economies that are undergoing a comprehensive transformation process and often enjoy strong economic growth[6] – hence the name “emerging markets.” Of course, these facts alone don’t amount to positive investment criteria, but many of these emerging markets have performed remarkably well in recent years. Investors who have narrowly associated China or Brazil with commodities or cheap counterfeit products until now should take a closer look. After all, the key reasons for investing in emerging markets have evolved significantly in recent times.

Strong economic growth

Social potential

Dynamic markets

Modern growth models

Things to bear in mind when investing in emerging markets

Emerging Market Risks

Exposure to emerging markets generally entails greater risks than exposure to well-developed markets, including potentially significant legal, economic and political risks. The prices of emerging market exchange rates, securities and other assets are often highly volatile. Movements in such prices are influenced by, among other things, interest rates, changing market supply and demand, external market forces (particularly in relation to major trading partners), trade, fiscal, monetary programmes, policies of governments, and international political and economic events and policies.

When investing for the long term, however, some risks can be mitigated, such as possible restrictions on the tradability of securities, or higher volatility during certain market phases.

Asia – core region for investors

Emerging markets expand the regional investment universe and enable exposure to countries with strong economic momentum and different currencies. In this context, Asia could be viewed as particularly interesting for an investment region, allowing for a compelling combination of an emerging market investment with future-oriented themes such as sustainability, big data and future mobility.

China – the world’s growth centre

India – on the path to new strength

South Korea – high-tech success

Xtrackers emerging market Exchange-Traded Funds (ETFs): An overview

Equity ETFs: Focus on the growth region of Asia

Emerging markets are located across the world, but a majority of important emerging markets – and those with very interesting growth potential – are in Asia. These include China, India and South Korea. Consequently, Asia offers investors one of the widest selections of interesting regional and country-specific funds.

 

Name TER p.a. ISIN
China, India, South Korea
LongNameSCIcon 0.60% LU0292109856
Xtrackers Harvest CSI300 UCITS ETF 1D 0.65% LU0875160326
LongNameSCIcon 0.65% LU1310477036
LongNameSCIcon 0.65% LU0514695690
LongNameSCIcon 0.75% LU0514695187
LongNameSCIcon 0.65% LU0292100046
LongNameSCIcon 0.85% LU0292109690
All Emerging Markets Equity ETFs 

 

Fixed income ETFs: Capturing the yield premium of emerging markets

Fixed income investments in emerging markets usually aim for higher yields compared with developed market bonds. Most emerging markets worldwide fulfil this criterion. A global approach is therefore more advisable than a regional focus with fixed income ETFs, unlike with equity ETFs.

 

Name TER p.a. ISIN
Emerging Markets
Xtrackers II Harvest China Government Bond UCITS ETF 1D 0.35% LU1094612022
LongNameSCIcon 0.40% LU0321462953
LongNameSCIcon 0.25% LU0677077884
All Emerging Markets Fixed Income ETFs 

 

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