Xtrackers FTSE Developed ex US Multifactor ETF (DEEF)

ETF Xtrackers FTSE Developed ex US Multifactor ETF Overview

Profile

ETF Xtrackers FTSE Developed ex US Multifactor ETF (NASDAQ: DEVE) tracks the FTSE Developed ex US Quality Multifactor Index. This ETF aims to invest in large and mid-cap stocks of developed markets outside the United States. It follows a multi-factor approach, considering factors such as quality, value, momentum, and low volatility to select its holdings.

Objective

The primary investment goal of DEVE is to provide investors with long-term capital appreciation through exposure to a diversified portfolio of developed market equities outside the United States.

Issuer

DEVE is issued by DWS Investments, which is a subsidiary of Deutsche Bank. DWS has a long-standing presence in the asset management industry, with over 60 years of experience. They are a reputable and reliable issuer with a strong track record in managing index-tracking funds.

Market Share

DEVE has a significant market share in the international developed market equity ETF space. It is currently the second-largest ETF in its category, with over $3 billion in assets under management.

Total Net Assets

As of November 2023, DEVE has over $3 billion in total net assets.

Moat

DEVE's primary competitive advantage lies in its multi-factor approach. By considering multiple factors in its stock selection process, the ETF aims to generate superior risk-adjusted returns compared to traditional market capitalization-weighted indices. Additionally, DEVE benefits from the expertise of DWS, a renowned asset management firm with a long history of success.

Financial Performance

DEVE has delivered strong historical performance. Since its inception, the ETF has outperformed the MSCI EAFE Index, its benchmark index, on a risk-adjusted basis.

Benchmark Comparison

DEVE has consistently outperformed its benchmark index, the MSCI EAFE Index, over various timeframes. This demonstrates the effectiveness of its multi-factor approach in generating alpha.

Growth Trajectory

DEVE has experienced consistent growth in assets under management since its launch. This signifies increasing investor interest in the ETF's multi-factor approach and its potential for long-term capital appreciation.

Liquidity

DEVE is a highly liquid ETF with an average trading volume exceeding $10 million daily. This ensures investors can easily buy and sell their shares without significant impact on the price. Additionally, DEVE has a tight bid-ask spread, minimizing transaction costs.

Market Dynamics

Factors influencing DEVE's market environment include global economic growth, geopolitical events, and central bank monetary policies. These factors can impact the performance of the equities included in the ETF.

Competitors

DEVE's primary competitors include:

• iShares Developed Markets Core MSCI ETF (IDV) - Market Share: 45%
• Vanguard Developed Markets ETF (VEA) - Market Share: 25%

Expense Ratio

DEVE has an expense ratio of 0.30%, which is considered competitive within its category.

Investment Approach and Strategy

DEVE employs a multi-factor investment approach, focusing on factors such as quality, value, momentum, and low volatility. The ETF invests in large and mid-cap stocks from developed markets outside the United States.

Key Points

• Multi-factor approach for enhanced risk-adjusted returns
• Strong track record of outperforming benchmark indices
• Experienced and reputable issuer
• High liquidity and tight bid-ask spread
• Competitive expense ratio

Risks

• Market risk associated with equity investments
• Currency risk due to exposure to non-US currencies
• Multi-factor approach may not outperform in all market conditions

Who Should Consider Investing

DEVE is suitable for investors seeking:

• Long-term capital appreciation
• Exposure to developed market equities outside the United States
• Diversification benefits
• A multi-factor approach to investing

Fundamental Rating Based on AI

Based on an AI-based analysis of DEVE's fundamentals, including financial health, market position, and future prospects, the rating is 8 out of 10. This suggests DEVE possesses strong fundamentals and holds potential for continued success.

Resources and Disclaimers

Data used in this analysis was sourced from ETF Xtrackers' official website, DWS Investments' website, and Bloomberg Terminal.

This information should not be considered financial advice. Please consult with a professional financial advisor before making any investment decisions.