Deutsche launches municipal infrastructure, regulated utilities funds

By Toni Weeks

San Luis Obispo, Calif., June 4 - Deutsche Asset & Wealth Management announced it has launched the db X-trackers Municipal Infrastructure Revenue Bond Fund and the db X-trackers Regulated Utilities Fund.

According to a press release, the new funds offer investment opportunities in markets not previously served by exchange-traded funds.

The infrastructure fund, which invests in municipal infrastructure revenue bonds backed by dedicated revenue streams from infrastructure projects, is the only ETF on the market offering targeted access to municipal infrastructure revenue bonds. The utilities fund, which provides investors exposure to regulated utilities, an asset class that is backed by a government-regulated base that produces stable earnings, is the first ETF to provide investors with 100% exposure to regulated utilities.

According to Deutsche's head of Passive Asset Management, Martin Kremenstein, the two funds are "first-to-market products that fill gaps in investor demand."

As previously reported by Prospect News, the db X-trackers Municipal Infrastructure Revenue Bond ETF will seek investment results that correspond generally to the performance, before fees and expenses, of the DBIQ Municipal Infrastructure Revenue Bond index, which consists of long-term U.S. tax-exempt bonds that are backed by dedicated revenue streams and issued for infrastructure purposes.

The db X-trackers Regulated Utilities Fund seeks to track the DBIQ Regulated Utility index, which includes regulated companies from developed international markets whose primary business operations are in the regulated utility sector. The index includes companies whose non-utility businesses and/or unregulated utilities businesses represent 25% or less of EBITDA, net income or operating income, as applicable, in any year on a three-year look-back basis.

The infrastructure fund trades on the NYSE Arca under the ticker symbol "RVNU," and the ticker symbol for the regulated utilities fund is "UTLT."

Both funds fall under the DBX ETF Trust.

New York-based DBX Advisors LLC is the investment adviser to the funds.

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