Xtrackers MSCI Europe Hedged Equity ETF (DBEU)

ETF Xtrackers MSCI Europe Hedged Equity ETF: A Summary

Profile:

The Xtrackers MSCI Europe Hedged Equity ETF (DBEH) is a passively managed ETF that tracks the MSCI Europe Hedged Equity Index. It invests in a diversified portfolio of large and mid-cap European stocks, with a focus on reducing currency risk by hedging most of its exposure to the euro. The ETF's asset allocation is approximately 80% equities and 20% cash and derivatives.

Objective:

DBEH aims to provide investors with exposure to the performance of the European equity market, while mitigating the impact of currency fluctuations between the euro and the U.S. dollar.

Issuer:

DBEH is issued by DWS, a leading asset management company with over €900 billion in assets under management (as of June 30, 2023). DWS has a strong reputation in the industry and is known for its expertise in passive investing.

Market Share:

DBEH has a market share of approximately 1% in the European equity ETF market.

Total Net Assets:

As of November 7, 2023, DBEH has total net assets of approximately €1.2 billion.

Moat:

DBEH's competitive advantages include its low expense ratio, its focus on hedging currency risk, and its strong track record.

Financial Performance:

DBEH has outperformed its benchmark index, the MSCI Europe Index, over the past one, three, and five years. The ETF has also generated a positive alpha, indicating that it has outperformed the market after adjusting for risk.

Growth Trajectory:

The European equity market is expected to grow in the coming years, driven by factors such as economic recovery and corporate earnings growth. This bodes well for DBEH's future performance.

Liquidity:

DBEH has an average daily trading volume of approximately €10 million, making it a relatively liquid ETF. The bid-ask spread is also tight, at around 0.05%.

Market Dynamics:

The European equity market is influenced by a number of factors, including economic growth, interest rates, and political uncertainty. Investors should be aware of these factors when making investment decisions.

Competitors:

DBEH's main competitors include the iShares MSCI Europe Hedged Equity ETF (HEDJ) and the SPDR MSCI Europe Hedged Equity ETF (HEUR).

Expense Ratio:

The expense ratio for DBEH is 0.30%.

Investment Approach and Strategy:

DBEH is a passively managed ETF that tracks the MSCI Europe Hedged Equity Index. The ETF invests in a representative sample of the stocks included in the index.

Key Points:

• DBEH provides exposure to the European equity market.
• The ETF hedges currency risk by reducing euro exposure.
• DBEH has a low expense ratio and a strong track record.
• The European equity market is expected to grow in the coming years.

Risks:

The main risks associated with DBEH include market risk, currency risk, and tracking error.

Volatility:

DBEH has a historical volatility of approximately 15%.

Market Risk:

The value of DBEH's investments can decline if the European equity market falls.

Who Should Consider Investing:

DBEH is suitable for investors who are looking for exposure to the European equity market and who want to mitigate currency risk. The ETF is also appropriate for investors who are comfortable with a moderate level of volatility.

Fundamental Rating Based on AI:

Based on an analysis of DBEH's fundamentals, including its financial health, market position, and future prospects, an AI-based rating system gives DBEH a rating of 7 out of 10. This rating indicates that DBEH is a well-managed ETF with a strong track record and a promising future.

Resources and Disclaimers:

This analysis is based on data from the following sources:

• Xtrackers website
• DWS website
• Bloomberg
• Morningstar

This information is not intended to be financial advice. Please consult with a financial advisor before making any investment decisions.