Xtrackers MSCI All World ex U.S. Hedged Equity ETF (DBAW)

Overview

The Xtrackers MSCI All World ex U.S. Hedged Equity ETF (DBAW) aims to provide investment results that correspond generally to the performance, before fees and expenses, of the MSCI All World ex USA US Dollar Hedged Index. It seeks to mitigate the impact of currency fluctuations on international equity returns.

Reputation and Reliability

DWS is a reputable global asset manager with a long track record of providing investment products and services.

Management Expertise

DWS has experienced portfolio managers and analysts dedicated to managing international equity and currency hedging strategies.

Goal

The primary investment goal of DBAW is to replicate the performance of the MSCI All World ex USA US Dollar Hedged Index.

Investment Approach and Strategy

Strategy: DBAW tracks the MSCI All World ex USA US Dollar Hedged Index, which includes equities from developed and emerging markets excluding the U.S., while hedging against fluctuations between the U.S. dollar and the local currencies.

Composition The ETF holds a diversified portfolio of international stocks, primarily from developed markets, with a currency overlay strategy to mitigate currency risk.

Market Share: DBAW's market share within the currency-hedged international equity ETF segment is moderate.

Total Net Assets (AUM): 1026500000

Key Competitors

• iShares Currency Hedged MSCI EAFE ETF (HEFA)
• WisdomTree International Hedged Equity Fund (HEDJ)
• iShares Currency Hedged MSCI Emerging Markets ETF (HEEM)

Competitive Landscape

The currency-hedged international equity ETF market is competitive, with several major players offering similar products. DBAW offers broad diversification across developed and emerging markets. Its competitiveness hinges on tracking error, expense ratio, and liquidity relative to competitors. Competitors like HEFA focus on developed markets specifically.

Historical Performance: Historical performance data needs to be retrieved from financial data providers to showcase return over various time periods.

Benchmark Comparison: DBAW's performance is compared to the MSCI All World ex USA US Dollar Hedged Index. The tracking error measures the ETF's effectiveness in replicating the index.

Expense Ratio: 0.28

Average Trading Volume

The ETF's average trading volume is moderate, which could affect trading costs for large transactions.

Bid-Ask Spread

The bid-ask spread for DBAW is usually tight, indicating relatively low trading costs.

Market Environment Factors

DBAW is influenced by global economic growth, interest rate differentials, and currency movements. Geopolitical risks and trade tensions also play a significant role.

Growth Trajectory

DBAW's growth is tied to investor demand for international equity exposure and the perceived need for currency hedging. Changes in currency hedging strategies may affect performance.

Competitive Edge

DBAW offers a relatively low-cost way to access a broad range of international equities while mitigating currency risk. This can be particularly attractive to investors concerned about the impact of currency fluctuations on their returns. The ETF's comprehensive coverage of developed and emerging markets provides diversification benefits. DWS's established reputation and management expertise also contribute to its competitive edge.

Volatility

DBAW's volatility is influenced by the volatility of the underlying international equity markets and the effectiveness of the currency hedging strategy.

Market Risk

DBAW is subject to market risk, including the risk of declines in the value of the underlying international equities. Currency hedging may not completely eliminate currency risk.

Ideal Investor Profile

DBAW is suitable for investors seeking exposure to international equities while mitigating the risk of currency fluctuations. Investors with a neutral or bearish view on the U.S. dollar may find it appealing.

Market Risk

DBAW is best for long-term investors seeking international diversification and currency risk management. It may also be suitable for active traders who want to express a view on currency movements.

The Xtrackers MSCI All World ex U.S. Hedged Equity ETF offers a diversified portfolio of international equities with a built-in currency hedging mechanism. It is designed for investors seeking to mitigate the impact of currency fluctuations on their returns. While it faces competition from other currency-hedged ETFs, DBAW offers a cost-effective and comprehensive approach to international investing. Its performance is tied to global economic conditions and currency movements, making it suitable for long-term investors with a global perspective.

Data Sources:

• DWS Website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The information provided is for informational purposes only and should not be considered financial advice. Investment decisions should be made based on individual circumstances and consultation with a qualified financial advisor. Market share data is estimated and may not be exact. Past performance is not indicative of future results.