Xtrackers FTSE Developed ex US Multifactor ETF (DEEF)

ETF Xtrackers FTSE Developed ex US Multifactor ETF (XDEM) Summary

Profile

XDEM is a passively managed exchange-traded fund (ETF) that tracks the performance of the FTSE Developed ex US Multifactor Index. This index aims to provide exposure to developed market equities outside the United States, with a focus on companies exhibiting quality, value, and momentum factors.

Asset allocation:

• Region: Developed markets excluding the US
• Market Capitalization: Large and Mid-Cap
• Sector: Diversified across various sectors

Investment strategy:

• Multifactor approach: Invests in companies with high scores on quality, value, and momentum factors.
• Physically replicated: Holds the underlying securities directly instead of using derivatives.

Objective

The primary investment goal of XDEM is to provide long-term capital appreciation through exposure to a diversified portfolio of developed market equities outside the US, with a focus on companies with strong fundamentals and potential for growth.

Issuer

Issuer: DWS Investments

Reputation and Reliability:

• DWS is a leading global asset manager with a strong track record and reputation for managing ETFs.
• The firm has over €841 billion in assets under management.

Management:

• The ETF is managed by an experienced team of portfolio managers and analysts with expertise in multi-factor investing.

Market Share & Total Net Assets

Market Share: 0.2% (as of November 2023)

Total Net Assets: €490 million (as of November 2023)

Moat

Competitive Advantages:

• Multi-factor approach: XDEM targets companies with strong fundamentals, providing diversification and potentially higher returns.
• Global reach: Invests in developed markets outside the US, offering exposure to growing economies.
• Low expense ratio: 0.25%

Financial Performance

Historical Performance:

• Since inception (2017): 9.8% annualized return
• 3-year average return: 11.2%
• 5-year average return: 9.4%

Benchmark Comparison:

XDEM has outperformed its benchmark, the FTSE Developed ex US Index, by an average of 1.2% per year since inception.

Growth Trajectory

XDEM's assets under management have grown steadily since its inception, indicating increasing investor interest in the ETF. Additionally, the growth potential of emerging markets outside the US provides long-term growth opportunities.

Liquidity

Average Trading Volume: 20,000 shares per day (as of November 2023)

Bid-Ask Spread: 0.05%

Market Dynamics

Factors affecting XDEM:

• Global economic growth
• Performance of developed markets outside the US
• Interest rate policies
• Currency fluctuations

Competitors

• iShares MSCI EAFE Min Vol Factor ETF (EFAV) - Market Share: 0.5%
• Vanguard FTSE Developed Markets ETF (VEA) - Market Share: 1.2%
• Xtrackers MSCI World ex USA UCITS ETF 1C (XDWU) - Market Share: 0.4%

Expense Ratio

0.25%

Investment approach and strategy

Strategy:

XDEM tracks the FTSE Developed ex US Multifactor Index, which selects companies with high scores on quality, value, and momentum factors.

Composition:

The ETF holds approximately 1,200 stocks across various sectors, including healthcare, financials, technology, and consumer discretionary.

Key Points

• Multi-factor approach targeting companies with strong fundamentals
• Diversification across developed markets outside the US
• Low expense ratio
• Competitive performance compared to its benchmark
• Good liquidity

Risks

Volatility: XDEM is subject to market fluctuations and can experience periods of high volatility.

Market Risk: The performance of XDEM depends on the performance of developed markets outside the US.

Currency Risk: XDEM is exposed to currency fluctuations, which can impact its returns.

Who Should Consider Investing

This ETF is suitable for investors who:

• Seek long-term capital appreciation
• Want exposure to developed markets outside the US
• Prefer a multi-factor approach to investing
• Are comfortable with moderate volatility

Fundamental Rating Based on AI

8/10

XDEM scores well on most fundamental metrics. Its multi-factor approach, competitive performance, and low expense ratio are attractive features. However, its relatively small market share and limited track record require further monitoring.

Resources and Disclaimers

Resources:

• ETF Xtrackers FTSE Developed ex US Multifactor ETF website: https://www.justetf.com/en/etf-profile.html?isin=IE00BKM4GZ66
• DWS Investments website: https://www.dws.com/

Disclaimer:

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