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

The Capital Markets team is positioned centrally between ETF investors and the liquidity providers in Xtrackers products.
Our  aim is to maximise fund liquidity and minimise client transaction costs in Xtrackers ETFs.

Capital Markets Capabilities

ETF Trading – How are ETFs typically traded?

There are four main ways in which an ETF can be traded:

NAV Trading

OTC Risk Trading

Exchange Trading

Agency Trading Execution

 

What is

What is the difference between the primary and secondary market?

 

The primary market is the mechanism for the creation of new ETF shares or the redemption of existing ETF shares. When investors purchase a mutual fund, the transaction is settled with a creation of new mutual fund shares. This same mechanism applies in the primary market for an ETF.

The secondary market relates to all activity in ETF trading outside of the primary market with the transacting of existing shares in issue. This can include over the counter (“OTC) trading or the on-exchange trading activity of an ETF.

The secondary market provides investors with multiple options for methods of execution with the ability to trade ETFs with live prices, but also verses the Net Asset Value, comparable to trading a mutual fund.

Xtrackers ETFs are listed across major exchanges but can also be traded off exchange via various OTC venues.

 

FAQs

How do you measure primary market liquidity?

What is implied liquidity?

How do you measure secondary market liquidity?

Who are the most active market makers in specific funds?

More about ETFs

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