Asian institutions are shunning fixed-income ETFs due to low liquidity and lack of product choice, hampering industry growth. Recent market volatility has exacerbated the situation.
Tag : db x-trackers
Korea Investment Management is about to introduce the first synthetic exchange-traded fund to Korea.
![Updated: Korea Investment to debut synthetic ETF](https://uat.cdn.i.haymarketmedia.asia/?n=asian-investor%2Fcontent%2FKorea%20door.jpg&c=1&h=194&q=100&v=20254115&w=344)
The bank's db X-trackers unit is set to launch a suite of physically backed ETFs, but says its aim has always been to provide a supermarket selection and the move is not solely related to flows.
![Deutsche denies physical ETF rollout is due to flows](https://uat.cdn.i.haymarketmedia.asia/?n=asian-investor%2Fcontent%2FMarco%20Montanari.jpg&c=1&h=194&q=100&v=20254115&w=344)
Lippo Investments Management awaits approval for its first exchange-traded fund, while db X-trackers expects to list more ETFs in Asia this year, and others look set to follow suit.
![ETF firms ready more products, mull strategies](https://uat.cdn.i.haymarketmedia.asia/?n=asian-investor%2Fcontent%2FChristine%20Huang%20-%20Lyxor%20-%20.jpg&c=1&h=194&q=100&v=20254115&w=344)
The combination of anaemic ETF trading volumes and rising funding costs means market-makers need to find a niche to survive in Asia’s heavily brokered markets.
They say the Singapore Exchange’s closing-price mechanism for ETFs can lead to portfolio mispricing, with the issue exacerbated by inactive secondary-market trading.
The bank unveils four new ETFs, including the first to be linked to Pakistan and Bangladesh. It sees demand for frontiers, and stresses that its ETFs are fully collateralised.
![Deutsche defends synthetic ETFs in latest product launch](https://uat.cdn.i.haymarketmedia.asia/?n=asian-investor%2Fcontent%2FMarco%20Montanari.jpg&c=1&h=194&q=100&v=20254115&w=344)