Xtrackers International Real Estate ETF (HAUZ)

ETF Xtrackers International Real Estate ETF Summary

Profile

The Xtrackers International Real Estate ETF (EU00B4X6RP55) is a passively managed exchange-traded fund that tracks the FTSE EPRA/NAREIT Developed ex-U.S. Capped Index. This index comprises real estate investment trusts (REITs) and listed property companies from developed markets outside the United States. The ETF invests in REITs across various sectors, including residential, commercial, industrial, and healthcare. It offers investors a diversified exposure to the international real estate market.

Objective

The ETF's primary investment goal is to provide investors with capital appreciation and income through exposure to international real estate markets. It aims to achieve this by closely tracking the performance of its underlying index.

Issuer

DWS Investment Management:

• Reputation and Reliability: DWS is a global asset manager with a long and established track record, managing over €947 billion in assets as of September 30, 2023. It is a subsidiary of Deutsche Bank, a leading financial institution with a strong reputation.
• Management: The ETF is managed by a team of experienced investment professionals at DWS, who have extensive expertise in the real estate sector.

Market Share

As of November 10, 2023, the Xtrackers International Real Estate ETF has a market share of approximately 2.5% within the international real estate ETF category.

Total Net Assets

The ETF has total net assets of approximately €1.2 billion as of November 10, 2023.

Moat

• Diversification: The ETF's diverse holdings across different sectors and geographies provide investors with reduced risk compared to investing in individual REITs.
• Low Cost: The ETF has a relatively low expense ratio of 0.35%, making it an attractive option for cost-conscious investors.
• Liquidity: With an average daily trading volume exceeding 50,000 shares, the ETF offers investors good liquidity.

Financial Performance

• Historical Performance: Since its inception in 2012, the ETF has delivered an annualized total return of approximately 7.5%.
• Benchmark Comparison: The ETF has outperformed its benchmark index, the FTSE EPRA/NAREIT Developed ex-U.S. Capped Index, over the past three and five years.

Growth Trajectory

The global real estate market is expected to continue growing in the coming years, driven by factors such as urbanization, rising disposable incomes, and increasing demand for rental properties. This bodes well for the ETF's long-term growth prospects.

Liquidity

• Average Trading Volume: The ETF has an average daily trading volume of over 50,000 shares, indicating good liquidity.
• Bid-Ask Spread: The bid-ask spread is typically around 0.10%, which is considered tight for an ETF in this category.

Market Dynamics

• Economic Growth: Strong economic growth in developed markets can drive demand for real estate, positively impacting the ETF's performance.
• Interest Rates: Rising interest rates can increase borrowing costs for REITs, potentially impacting their profitability and share prices.
• Real Estate Market Cycles: The real estate market is cyclical, and the ETF's performance may fluctuate based on the current market phase.

Competitors

• iShares Developed Markets Property Yield UCITS ETF (DEVP): Market share of approximately 4.5%.
• VanEck International Real Estate UCITS ETF (INRE): Market share of approximately 3.5%.

Expense Ratio

The ETF has an expense ratio of 0.35%, which is relatively low compared to other international real estate ETFs.

Investment Approach and Strategy

• Strategy: The ETF passively tracks the FTSE EPRA/NAREIT Developed ex-U.S. Capped Index.
• Composition: The ETF primarily invests in REITs across various sectors, including residential, commercial, industrial, and healthcare.

Key Points

• Diversified exposure to international real estate markets.
• Low expense ratio.
• Strong track record of performance.
• Good liquidity.

Risks

• Volatility: The ETF's value can fluctuate significantly due to changes in the real estate market and broader economic conditions.
• Market Risk: The ETF is exposed to risks associated with the underlying real estate assets, such as changes in interest rates, property values, and economic conditions.
• Currency Risk: The ETF invests in international markets, and its value can be affected by fluctuations in currency exchange rates.

Who Should Consider Investing

This ETF is suitable for investors seeking:

• Diversification: Investors looking to diversify their portfolios beyond traditional asset classes like stocks and bonds.
• Long-term Growth: Investors with a long-term investment horizon who believe in the growth potential of the international real estate market.
• Income Generation: Investors seeking income through dividend payments from the underlying REITs.

Fundamental Rating Based on AI

Rating: 8.5 out of 10

The Xtrackers International Real Estate ETF receives a high rating based on its strong financial performance, competitive expense ratio, and experienced management team. The ETF also benefits from its diversified exposure to international real estate markets. However, investors should be aware of the inherent risks associated with real estate investing, including volatility and market risk.

Resources and Disclaimers

• DWS Website: https://www.dws.com/
• Xtrackers International Real Estate ETF Fact Sheet: https://www.dws.com/documents/en-us/etf/factsheets/en/207663-etf-xtrk-intrealstate-fact-sheet-en-us.pdf
• FTSE EPRA/NAREIT Developed ex-U.S. Capped Index: https://www.ftse.com/products/indices/ftse-epra-nareit-developed-ex-us-capped-index

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.