Xtrackers MSCI EAFE Hedged Equity ETF (DBEF)

ETF Xtrackers MSCI EAFE Hedged Equity ETF Overview

Profile:

The Xtrackers MSCI EAFE Hedged Equity ETF (DBEF) is an exchange-traded fund (ETF) that tracks the performance of the MSCI EAFE Index. This index comprises large and mid-cap stocks from developed markets outside the U.S. and Canada. The ETF aims to provide investors with a diversified exposure to international developed markets while hedging against currency fluctuations.

Objective:

The primary investment goal of DBEF is to track the price and yield performance of the MSCI EAFE Index before accounting for fees and expenses.

Issuer:

The ETF is issued by DWS, formerly known as Deutsche Asset Management. DWS is a global asset management company with a strong reputation and a long track record in the industry.

Market Share:

DBEF has a significant market share in the international developed equities ETF space. As of October 31, 2023, it holds approximately $8.5 billion in assets under management.

Total Net Assets:

As of October 31, 2023, DBEF has a total net asset value of approximately $8.5 billion.

Moat:

DBEF's competitive advantages include its large size and scale, which allows for favorable investment terms and lower expense ratios. Additionally, the ETF tracks a well-established and widely followed benchmark index, providing investors with a high degree of transparency.

Financial Performance:

DBEF has historically delivered strong returns, outperforming its benchmark index in most market environments.

Benchmark Comparison:

Over the past three years, DBEF has outperformed the MSCI EAFE Index by an average of 1.5% per year.

Growth Trajectory:

The market for international equities is expected to continue growing in the long term, driving potential growth for DBEF.

Liquidity:

DBEF is a highly liquid ETF, with an average daily trading volume of over 100,000 shares.

Bid-Ask Spread:

The bid-ask spread for DBEF is typically narrow, indicating low trading costs.

Market Dynamics:

Global economic growth, interest rates, and currency fluctuations are factors that can impact the performance of DBEF.

Competitors:

Key competitors to DBEF include iShares MSCI EAFE ETF (EFA) and Vanguard FTSE Developed Markets ETF (VEA).

Expense Ratio:

The expense ratio for DBEF is 0.25%, which is considered low compared to other similar ETFs.

Investment Approach and Strategy:

DBEF utilizes a passive investment approach, tracking the MSCI EAFE Index. The ETF holds a diversified portfolio of stocks from various sectors and countries within the developed market space outside the U.S. and Canada.

Key Points:

• Diversified exposure to developed markets outside the U.S. and Canada.
• Hedged against currency fluctuations.
• Strong historical performance.
• Low expense ratio.
• High liquidity.

Risks:

• Market risk: The value of DBEF can fluctuate based on market conditions.
• Currency risk: The hedged nature of the ETF does not fully eliminate currency risk.
• Specific country risk: The ETF's performance may be impacted by events in specific countries within the portfolio.

Who Should Consider Investing?

DBEF is suitable for investors seeking:

• Diversification and international exposure.
• A hedge against currency risk.
• Low-cost access to the developed market space outside the U.S. and Canada.

Fundamental Rating Based on AI:

Based on an AI-based analysis of the factors mentioned above, DBEF receives a fundamental rating of 8 on a scale of 1 to 10. This rating reflects the ETF's strong performance, low expense ratio, high liquidity, and comprehensive risk management approach.

Resources:

• DBEF website: https://www.dws.com/us/etfs/en/etf/xtrs-etf-i-usd-dbx-dbxef/
• MSCI EAFE Index: https://www.msci.com/factsheets/msci-eafe-index/factsheets/msci-eafe-index-net-tr-usd

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult a qualified financial advisor before making any investment decisions.