Xtrackers MSCI EAFE High Dividend Yield Equity ETF (HDEF)

ETF Xtrackers MSCI EAFE High Dividend Yield Equity ETF (XDYE) Summary

Profile:

• Focus: Developed markets excluding the US and Canada, specializing in high-dividend-paying companies.
• Asset Allocation: Primarily stocks (99.99%) across various sectors, with the largest exposure to Financials, Information Technology, and Industrials.
• Investment Strategy: Tracks the MSCI EAFE High Dividend Yield Index, targeting companies with high dividend yields and above-average dividend growth potential.

Objective:

• Generate high current income through dividend payments from developed market companies outside the US and Canada.

Issuer:

• DWS Group: A leading asset management firm with a global presence, managing over €900 billion in assets.
• Reputation and Reliability: DWS has a strong reputation and is regulated by various financial authorities.
• Management: Experienced investment team with expertise in global equity markets and dividend investing.

Market Share:

• 2.5% of the International Developed ex-US Equity ETF category as of July 31, 2023.

Total Net Assets:

• $1.36 billion as of July 31, 2023.

Moat:

• Access to Developed Markets: Offers exposure to a diversified portfolio of high-dividend-paying companies outside the US.
• Experienced Management: DWS has a proven track record in managing index-tracking ETFs.
• Cost-Effective: Relatively low expense ratio compared to similar ETFs.

Financial Performance:

• Since inception (2/22/2017): 5.27% annualized total return.
• Trailing 1 year: 11.16% total return.
• Trailing 5 years: 4.47% annualized total return.

Benchmark Comparison:

• Outperformed the MSCI EAFE Index (5.0% annualized return since inception) and the MSCI World ex USA Index (4.7% annualized return since inception).

Growth Trajectory:

• Consistent dividend payouts and potential for capital appreciation from underlying holdings.
• Growth potential depends on the performance of developed market companies outside the US.

Liquidity:

• Average Daily Trading Volume: 10,800 shares.
• Bid-Ask Spread: 0.09%.

Market Dynamics:

• Global economic growth, interest rates, and sector performance can impact the ETF's returns.
• Political and economic events in developed markets outside the US can also affect the ETF's performance.

Competitors:

• iShares International Select Dividend ETF (IDV): 12.2% market share.
• SPDR S&P International Dividend ETF (DWX): 9.4% market share.
• Vanguard FTSE Developed Markets High Dividend Yield ETF (VYMI): 8.1% market share.

Expense Ratio:

• 0.3% per year.

Investment Approach and Strategy:

• Tracks the MSCI EAFE High Dividend Yield Index.
• Invests in large- and mid-cap companies with high dividend yields and above-average dividend growth potential.

Key Points:

• High dividend yield potential.
• Diversification across developed markets outside the US.
• Experienced management with a proven track record.
• Relatively low expense ratio.

Risks:

• Volatility: Stock markets can experience significant fluctuations, impacting the ETF's value.
• Market Risk: Economic downturns or sector-specific issues can negatively affect the ETF's performance.
• Currency Risk: The ETF's holdings are denominated in various currencies, exposing it to currency fluctuations.

Who Should Consider Investing:

• Investors seeking high dividend income from developed markets outside the US.
• Investors with a long-term investment horizon.
• Investors comfortable with moderate volatility.

Fundamental Rating Based on AI:

8.5: XDYE has strong fundamentals with a diversified portfolio, experienced management, and a relatively low expense ratio. Its track record and competitive advantages make it an attractive option for investors seeking international dividend exposure. However, investors should be aware of the risks associated with investing in international markets.

Resources and Disclaimers:

• Data sources: Xtrackers, ETF.com, DWS Group.
• Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a qualified financial professional before making any investment decisions.