Deka launches S&P 500 ETF
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German asset manager Deka has expanded its US equity suite with the launch of an S&P 500 ETF.
The Deka S&P 500 UCITS ETF (D6RI) is listed on the Deutsche Boerse with a total expense ratio (TER) of 0.12%.
D6RI physically replicates the S&P 500 and becomes the eighteenth Europe-domiciled ETF to track the US large and mid-cap index, covering around 80% of US market capitalisation.
The ETF is a distributing share class, however, its German domicile status means it will be subject to 30% withholding tax (WHT) on US dividends, whereas rival physical ETFs domiciled in Ireland benefit from the halved WHT rate afforded by the Double Taxation Treaty.
D6RI’s headline fee of 0.12% also positions it at a higher price point than rival strategies such as the SPDR S&P 500 UCITS ETF (SPY5), which had its TER slashed from 0.09% to 0.03% – to become Europe’s lowest-fee ETF – last October.
The ETF expands Deka’s US offering to its German retail clients after it launched the Deka Nasdaq-100 UCITS ETF (D6RH) with a TER of 0.25% last October.
The firm has also offered the $318m Deka MSCI USA UCITS ETF (ETFUSAC) since 2009, carrying a fee of 0.30%.
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