Xtrackers MSCI EAFE High Dividend Yield Equity ETF (HDEF)

Overview

The Xtrackers MSCI EAFE High Dividend Yield Equity ETF (HDEF) seeks to provide investment results that correspond generally to the performance, before fees and expenses, of the MSCI EAFE High Dividend Yield Index. The fund invests in dividend-paying equities from developed market countries, excluding the U.S. and Canada. The asset allocation is primarily focused on developed international equities offering high dividend yields. The investment strategy involves replicating the underlying index.

Reputation and Reliability

DWS is a reputable global asset manager with a long track record in providing ETF solutions.

Management Expertise

DWS has a team of experienced professionals managing various ETF products, demonstrating expertise in index-tracking strategies.

Goal

To track the performance of the MSCI EAFE High Dividend Yield Index, providing exposure to high dividend-yielding equities in developed markets outside the US and Canada.

Investment Approach and Strategy

Strategy: The ETF aims to replicate the MSCI EAFE High Dividend Yield Index.

Composition The ETF primarily holds stocks of companies located in developed market countries within the EAFE region (Europe, Australasia, Far East) that exhibit relatively high dividend yields.

Market Share: HDEF has a moderate market share within the high dividend yield EAFE equity ETF market.

Total Net Assets (AUM): 120000000

Key Competitors

• Schwab International Dividend Equity ETF (SCHY)
• Vanguard International High Dividend Yield ETF (VYMI)
• SPDR Portfolio Developed World ex-US Dividend ETF (SPDW)

Competitive Landscape

The international high dividend yield ETF market is fairly competitive, with Vanguard and Schwab leading in AUM. HDEF differentiates itself by focusing exclusively on the EAFE region and using the MSCI index. Competitors may offer broader geographic diversification (including emerging markets) or different weighting methodologies. HDEF faces the challenge of attracting investors from larger, well-established funds.

Historical Performance: Historical performance data needs to be obtained from financial data providers.

Benchmark Comparison: Benchmark comparison requires accessing historical performance data for both the ETF and the MSCI EAFE High Dividend Yield Index.

Expense Ratio: 0.2

Average Trading Volume

The average trading volume of HDEF indicates moderate liquidity, suitable for most retail investors but possibly limiting for large institutional trades.

Bid-Ask Spread

The bid-ask spread on HDEF is typically tight, indicating relatively low transaction costs for investors.

Market Environment Factors

Economic conditions in Europe and Asia, interest rate policies of central banks in EAFE countries, and currency fluctuations all impact HDEF.

Growth Trajectory

HDEF's growth depends on the demand for international dividend-paying equities and the overall performance of the EAFE markets. Changes in dividend policies of constituent companies and index rebalancing affect its holdings.

Competitive Edge

HDEF benefits from DWS's brand recognition and index-tracking expertise. Its exclusive focus on the EAFE region provides targeted exposure to developed international markets excluding North America. The MSCI index is a well-recognized and respected benchmark. HDEF offers a cost-effective way to access high-dividend-yielding equities in the EAFE region. Its relative size, however, can be a disadvantage compared to larger competitors.

Volatility

HDEF's volatility reflects the volatility of the underlying EAFE equity markets.

Market Risk

Market risk includes the risk of declines in equity prices in the EAFE region due to economic downturns, political instability, or other factors. Currency risk is also present due to investments in foreign currencies.

Ideal Investor Profile

HDEF is suitable for investors seeking income from international equities and diversification beyond U.S. markets.

Market Risk

HDEF is best for long-term investors seeking dividend income and moderate capital appreciation.

The Xtrackers MSCI EAFE High Dividend Yield Equity ETF offers targeted exposure to high-dividend-paying equities in developed markets outside the US and Canada. It tracks the MSCI EAFE High Dividend Yield Index and provides a cost-effective way to diversify internationally. However, HDEF faces competition from larger, more established ETFs in the same space. Investors should consider their risk tolerance and investment goals before investing in HDEF.

• SCHY
• VYMI
• SPDW
• IDV
• DFAI

Data Sources:

• DWS Website
• ETF.com
• Morningstar

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Market data is delayed. Consult with a qualified financial advisor before making any investment decisions.