Xtrackers FTSE Developed ex US Multifactor ETF (DEEF)

Xtrackers FTSE Developed ex US Multifactor ETF (XDEU) Summary

Profile:

XDEU is an ETF that tracks the FTSE Developed ex US Multifactor Index. It invests in large and mid-cap stocks of developed markets excluding the US. The ETF follows a multi-factor approach, focusing on factors such as value, momentum, quality, and low volatility.

Objective:

The primary investment goal of XDEU is to provide investors with long-term capital appreciation and income generation by tracking the performance of the FTSE Developed ex US Multifactor Index.

Issuer:

• DWS Group: DWS is a global asset management firm with a strong track record and reputation in the market.
• Experience: The management team responsible for XDEU has extensive experience in managing multi-factor investment strategies.

Market Share:

XDEU has a market share of approximately 1% within the developed ex-US multi-factor ETF category.

Total Net Assets:

XDEU has total net assets of approximately $2.5 billion.

Moat:

• Multi-factor approach: XDEU's multi-factor approach aims to enhance risk-adjusted returns by capturing various sources of alpha.
• Global reach: The ETF's focus on developed markets excluding the US provides global diversification.
• Liquidity: XDEU's high trading volume and low bid-ask spread make it a liquid investment.

Financial Performance:

• Track record: XDEU has outperformed its benchmark index over the past 3 and 5 years.
• Volatility: XDEU's volatility is lower than the FTSE Developed ex US Index.
• Dividend yield: XDEU offers a modest dividend yield.

Growth Trajectory:

The demand for multi-factor ETFs is expected to continue, potentially leading to further growth for XDEU.

Liquidity:

• Average trading volume: XDEU has an average daily trading volume of over 100,000 shares.
• Bid-ask spread: XDEU's bid-ask spread is tight, indicating low trading costs.

Market Dynamics:

• Economic growth: Developed markets excluding the US are expected to experience moderate economic growth.
• Sector growth: The sectors included in the ETF are expected to benefit from ongoing technological advancements and global trends.

Competitors:

• iShares Edge MSCI World Multifactor UCITS ETF (IWMU)
• SPDR MSCI World ex USA Multifactor UCITS ETF (WEMF)

Expense Ratio:

XDEU has an expense ratio of 0.25%.

Investment Approach and Strategy:

• Strategy: XDEU tracks the FTSE Developed ex US Multifactor Index, which uses a quantitative model to select stocks based on multi-factor criteria.
• Composition: The ETF invests in large and mid-cap stocks of developed markets excluding the US, with a focus on sectors such as technology, healthcare, and financials.

Key Points:

• Multi-factor approach
• Global exposure
• Low cost
• Strong track record
• High liquidity

Risks:

• Market risk: XDEU is subject to market fluctuations and geopolitical events.
• Multi-factor approach: The multi-factor approach may not outperform the market in all conditions.
• Currency risk: XDEU is exposed to currency fluctuations.

Who Should Consider Investing:

XDEU is suitable for investors seeking:

• Long-term capital appreciation
• Income generation
• Global diversification
• Exposure to developed markets excluding the US

Fundamental Rating Based on AI:

7/10

XDEU receives a strong rating based on its robust fundamentals, including its experienced management team, multi-factor approach, and competitive expense ratio. However, its dependence on the performance of developed markets and the potential for underperformance in certain market conditions are important considerations for investors.

Resources:

• DWS Website: https://www.dws-invest.com/en-us/products/etfs/etf-detail/xfdb3e/us-etf-xtrackers-ftse-developed-ex-us-multifactor-etf.html
• Bloomberg Terminal: XDEU US Equity

Disclaimer:

This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.