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.

Asset Classes

With an index tracking instrument such as an ETF, the diversification aspect of the Portfolio Selection Theory devised by Harry M. Markowitz in 1952 can be met simply and cost-effectively. Through Xtrackers, an exact index replication can be achieved (beta of virtually 1), so that the individual risk enclosed in single securities can be diversified away. Additionally, building a portfolio of ETFs with exposure to different markets (e.g. a variety of sectors, countries, durations etc.) can help to diversify away sector or country or duration specific risk.

The following section discusses the individual asset classes covered by Xtrackers ETFs in detail.


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