Xtrackers MSCI Eurozone Hedged Equity ETF (DBEZ)

ETF Xtrackers MSCI Eurozone Hedged Equity ETF

Profile

The Xtrackers MSCI Eurozone Hedged Equity ETF is a passively managed exchange-traded fund (ETF) that seeks to track the performance of the MSCI Eurozone Index (Net), hedged to EUR. It invests in large and mid-cap stocks across various sectors in the Eurozone.

Objective

The primary objective of the ETF is to provide investors with exposure to the performance of the Eurozone equity market, while mitigating the impact of currency fluctuations between the Euro and the US dollar.

Issuer

Issuer: DWS Investments

Reputation and Reliability: DWS Investments is a global asset management company with over 60 years of experience and over $947 billion in assets under management. It is a subsidiary of Deutsche Bank, a leading financial institution with a long history and strong reputation.

Management: The ETF is managed by a team of experienced portfolio managers at DWS Investments who have a deep understanding of the European equity market.

Market Share

The Xtrackers MSCI Eurozone Hedged Equity ETF has a market share of approximately 0.3% in the Eurozone equity ETF category.

Total Net Assets

As of October 26, 2023, the ETF has approximately $2.3 billion in total net assets.

Moat

The ETF's competitive advantages include:

• Low expense ratio: The ETF has an expense ratio of 0.25%, which is lower than many other comparable ETFs.
• Hedged currency exposure: The ETF mitigates currency risk for investors who are primarily invested in US dollars.
• Diversification: The ETF provides exposure to a broad range of Eurozone companies across various sectors.

Financial Performance

The ETF has historically performed in line with its benchmark, the MSCI Eurozone Index (Net). Over the past 5 years, the ETF has returned an average of 7.5% per year, compared to 7.3% for the benchmark.

Growth Trajectory

The Eurozone economy is expected to continue to grow in the coming years, supported by factors such as increasing consumer spending and rising business investment. This growth is likely to benefit the Eurozone stock market, which could lead to positive returns for the ETF.

Liquidity

The ETF is a relatively liquid ETF, with an average daily trading volume of over 100,000 shares. The bid-ask spread is also relatively tight, indicating that investors can buy and sell shares of the ETF at a relatively low cost.

Market Dynamics

The Eurozone equity market is affected by a variety of factors, including economic growth, interest rates, inflation, and political events. Investors should carefully consider these factors before investing in the ETF.

Competitors

Key competitors of the Xtrackers MSCI Eurozone Hedged Equity ETF include:

• iShares Core EURO STOXX 50 UCITS ETF (EXS1) - Market share: 4.2%
• Amundi ETF MSCI EMU (DE000A0H08H4) - Market share: 2.5%

Expense Ratio

The total expense ratio for the ETF is 0.25%.

Investment Approach and Strategy

• Strategy: The ETF tracks the MSCI Eurozone Index (Net) by investing in the same securities as the index, in the same proportion.
• Composition: The ETF invests primarily in large and mid-cap stocks across various sectors in the Eurozone.

Key Points

• The ETF provides exposure to the Eurozone equity market while mitigating currency risk.
• The ETF has a low expense ratio and is relatively liquid.
• The ETF is well-diversified and has a proven track record.

Risks

The main risks associated with the ETF include:

• Market risk: The value of the ETF can fluctuate with the overall performance of the Eurozone stock market.
• Currency risk: The ETF is hedged to EUR, but there is still some residual currency risk.
• Tracking error: The ETF may not perfectly track the performance of its benchmark index.

Who Should Consider Investing

The Xtrackers MSCI Eurozone Hedged Equity ETF is suitable for investors who are looking for:

• Exposure to the Eurozone equity market
• A low-cost and liquid investment
• A way to mitigate currency risk

Fundamental Rating Based on AI

Based on an AI-based analysis of the ETF's fundamentals, including its financial health, market position, and future prospects, the Xtrackers MSCI Eurozone Hedged Equity ETF receives a rating of 7 out of 10. This rating indicates that the ETF is a well-managed and diversified investment with a solid track record. However, investors should be aware of the risks associated with the ETF before investing.

Resources and Disclaimers

• Xtrackers MSCI Eurozone Hedged Equity ETF website: https://www.justetf.com/en/etf-profile.html?isin=DE000A0D8JR2
• MSCI Eurozone Index website: https://www.msci.com/market-classification/world-indices/msci-eurozone-index
• Disclaimer: The information provided in this analysis should not be considered as financial advice. Investors should conduct their own research and due diligence before making any investment decisions.