Instruments for Passive Investment Strategies

ETFs (Exchange Traded Funds) are investment funds that pursue a passive investment strategy by tracking the performance of a specific index, such as the DAX^® or the EURO STOXX 50^®, as precisely as possible. Buying an ETF gives investors access to an entire market with just a single transaction while saving transaction costs, which would otherwise accrue for each individual investment.

The range of accessible indices is broad. The current product offering on Deutsche Börse Xetra includes more than 2,300 ETFs that provide access to asset classes such equities, bonds, commodities, and individual sectors. In addition, investors have the option of choosing indices that focus on special strategies or which include shares that meet high sustainability standards such as ESG (Environment, Social, Governance) or SRI (Socially Responsible Investing) criteria.  

Multi-currency trading for ETFs and ETPs: This service offers the possibility to trade the same ISIN in multiple trading currencies as stand-alone instruments on Xetra (see Focus: Multi-Currency)

Investors can either use ETFs as long-term investments or for strategy purposes, including cash equitization, speculation or to hedge portfolio risks. Private investors are increasingly using ETFs for asset accumulation and retirement investing. 

ETFs are traded on an exchange just like stocks

On Xetra, orders can be executed continuously from 9:00 until 17:30. All order types are accepted, and the minimum order size is just one share. Liquidity is provided continuously by Designated Sponsors with binding bid and ask prices. Investors can use the iNAV (indicate net asset value) that is updated at least every 60 seconds as a reference to verify the current bid and ask prices.

Xetra has been the leading European trading venue since launching the ETF segment in April 2000. It has the largest number of ETFs and highest trading volume in Europe.

Instruments for Active Investment Strategies

Active Exchange Traded Funds (Active ETFs) pursue an active investment strategy. This investment strategy may aim at outperforming a reference index or replicating the performance of a reference index with a variable participation rate. Like traditional ETFs, Active ETFs are continuously tradable on Deutsche Börse Xetra and thus offer investors a comparatively high degree of flexibility and wide range of investment opportunities.

Instruments for Tracking Commodities

ETCs are debt securities that track the development of commodities and commodity indices. They are similar to Exchange Traded Funds (ETFs) and share many of their advantages: they are open in structure, cost-effective, offer investors high liquidity, and the price setting process is transparent.

ETCs are available in four different product categories (precious metals, industrial metals, energy, agricultural products) and for different investment strategies (short and leveraged). Within individual categories, investors can choose from a broad variety of products. Metals are subdivided into industrial metals (aluminum, copper, nickel, zinc, tin) and precious metals (gold, silver, platinum, palladium and rhodium). In the energy category, investors can opt for ETCs on crude oil, heating oil, gasoline and natural gas. A wide spectrum of ETCs is also available in agricultural products, ranging from wheat, sugar, corn, soybeans and coffee to cotton and soy-bean oil – there are even ETCs on live cattle and lean hogs. 

Investors seeking to diversify risk may wish to buy into ETCs for entire commodity baskets; for example covering several metals or different energy sources, types of grains or livestock. The broadest investment is provided by ETCs on a basket of all commodities. Moreover, there are currency-hedged ETCs which allow investors to participate in the performance of individual commodities like gold, oil or industrial metals while eliminating currency risks.

Trading in ETCs is easy and comfortable within Deutsche Börse Xetra´s trading hours. Designated Sponsors offer buy and sell prices at high quotation volumes. Flexibility is enhanced through the use of different order types (e. g. limit and stop orders) and a minimum trade size of one share.

Instruments Tracking Reference Markets Outside the Commodities Sector

ETNs are debt securities that track the performance of underlying reference indices outside the commodities sector. They are similar to Exchange Traded Index Funds (ETFs) and share many of their advantages: they are open in structure, cost-effective, offer investors high liquidity, and the price setting process is transparent.

With ETNs, investors can further diversify their portfolios by participating in the development of asset classes such as volatility, traditional or crypto currencies and equity or bond indices with a leverage factor.

Trading in ETNs is easy and comfortable within trading hours of Deutsche Börse Xetra. Designated Sponsors offer buy and sell prices at high quotation volumes. Flexibility is enhanced by the use of different order types (e. g. limit and stop orders) and a minimum trade size of one share.