Deutsche Asset & Wealth Management has become the latest investment manager to launch a FTSE 100 exchange traded fund which weights the investment constituents by something other than market cap.
The FTSE 100 Equal Weight UCITS ETF (DR) is weighted equally to remove the market cap bias of a traditional replicated basket of assets.
In a press announcement today, the company said its FTSE 100 Equal Weight UCITS ETF (DR) would be the latest addition to its ‘strategic beta’ range for investors looking to invest with a range of factor exposures.
Michael Mohr, head of exchange traded product development, EMEA at Deutsche AWM, said: “This is a useful alternative for investors looking for adjusted beta exposure and complements our existing ETF on the FTSE 100.”
Deutsche AWM’s launch follows other ‘smart beta’ ETFs which aim to rejig the weights of FTSE 100 constituents in an investment basket.
Ossiam’s FTSE 100 Minimum Variance 1D ETF aims to smooth the volatility of large cap assets on the index through a smart beta replication strategy that tracks a FTSE 100 Minimum Variance Index.
PowerShares’ FTSE 100 UK 100 UCITS ETF aims to make the asset basket selection based on the book value, income, sales and dividends.
Last year, IntercontinentalExchange Group’s Liffe introduced futures based on the FTSE 100 Equally Weighted Net Total Return Index.