Tracking style of 18 ETFs switched by db x-trackers

Exchange traded fund (ETF) provider db x-trackers is set to switch 18 of its ETFs from synthetic to physical replication of their indices.

The change means that instead of using derivatives to track their chosen index, the ETFs will now directly invest in the securities.

The firm, the ETF branch of Deutsche Asset & Wealth Management, said the switches would be carried out between January 6 and June 30 2014.

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The changes affect a broad range of equity ETFs, including its FTSE 100, FTSE 250 and FTSE All-Share trackers and many ETFs tracking European equity markets.