db x-trackers, Deutsche Bank’s exchange-traded fund platform, has launched two ETFs linked to the DB Currency Returns Index. The new funds will be listed on the London Stock Exchange and offer exposure to currency as an asset class in either USD or GBP-hedged share class formats.

The DBCR Index equally weights the three most established currency trading strategies – carry, momentum and valuation. Utilising a rules-based process, the strategies take long and short positions in the G10 currencies with regular rebalancing of the components.

“We have taken a major step today towards giving UK investors the tools they need to harness the potential of the currency markets,” said Manooj Mistry, head of db x-trackers ETFs UK. “The db x-trackers Currency Returns ETF is ideal for investors who are increasingly recognising the benefits of allocating assets to investment classes that show low or negative performance correlation with equity and bond markets, as well as investors looking for an additional way to achieve alpha in a low growth environment.”