How to Capitalize on Deutsche Bank’s Access to Foreign Markets

[dice with euro, pound, yen, and dollar symbols]

by: Doug Fabian

Roughly one third of Deutsche Bank’s 30 exchange-traded fund (ETF) offerings provide investors with direct exposure to foreign markets, while also engaging in currency hedging to mitigate the risk of fluctuating exchange rates. While the dollar has not been particularly strong for the past decade, unpredictable quantitative-easing moves by both the European Central Bank and the Bank of Japan can affect currency valuations.

One of Deutsche Bank’s ETFs, db X-trackers MSCI EAFE Hedged Equity Fund (DBEF), seeks to reflect the stock performance of developed, non-U.S. economies, while limiting exposure to the fluctuation of strength between the U.S. dollar and other currencies. So far this year, DBEF has seen a small loss of 0.47%, but it has a dividend yield of 1.51%, with its dividends typically paid in June or December. In 2013, DBEF gained 24.30%.

While a currency hedge is not a top investing priority for Americans until the dollar shows signs of strength, Deutsche Bank’s db-Xtrackers hedged currency offerings provide a measure of protection for when that day comes. Until then, Deutsche Bank offers an array of broad-based commodity indices which may be more relevant to today’s market.


Deutsche Bank has a rich history in navigating international markets. For instance, German companies doing business in Shanghai or Chicago need to be able to receive their payments in dollars but issue their Berlin workers’ salaries in euros. When Deutsche Bank was founded in 1870, the euro did not exist, but funds still needed to be exchanged across borders. More than 140 years later, Deutsche Bank has established itself as an ETF provider that offers investors access to a variety of international markets.

Exclusive  Increasing Income with iShares Dividend ETFs

If you want my advice about buying and selling specific ETFs, including appropriate stop losses, please consider subscribing to my Successful Investing newsletter. As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an e-mail. You just may see your question answered in a future ETF Talk.

In case you missed them, I encourage you to read my articles from previous weeks about ETF providers ALPS, Direxion, Fidelity, Charles Schwab, Guggenheim, PowerShares, WisdomTree, First Trust, ProSharesVanguard, iShares and State Street. I also invite you to share your thoughts below.

Like This Article?
Now Get Doug's FREE Special Report:
The New Gold Rush of 2016-2017

With gold already up 20% in 2016, one of the best market timers in the business sees even bigger things ahead. His free special report will show you how to play the coming “gold rush” for serious profits.

Get Access to the Report, 100% FREE

previous article

After a seven-day run higher in the equity markets, stocks in the benchmark S&P 500 Index now have recovered a majority of the losses they sustained during the previous two weeks.


Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen publishes 4 different investment newsletter advisories, including the award-winning Forecasts & Strategies, which has beaten the market over the last 15 years.

Product Details


Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays. Bryan's four newsletter and trading services include:

Product Details


Nicholas Vardy

A Stanford and Harvard Law graduate, Nicholas Vardy scours over 40 different global markets every day to uncover new profit opportunities for subscribers. His 3 advisories and trading services include:

Product Details


Doug Fabian

A 30-year Wall Street veteran and famed market timer, Doug Fabian is one the nation's foremost experts on ETFs (Exchange Traded Funds). His two ETF-focused advisories include:

Product Details


Bob Carlson

In Bob's monthly newsletter, Retirement Watch, he provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details


Used by financial advisors and individual investors all over the world, is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.