Xtrackers MSCI Kokusai Equity ETF (KOKU)KOKU

US ETF Xtrackers MSCI Kokusai Equity ETF Summary

Profile: Xtrackers MSCI Kokusai Equity ETF (DBKK) is a passively managed ETF that tracks the performance of the MSCI Kokusai Index. This index comprises large and mid-cap stocks from developed markets outside the United States and Canada. DBKK primarily focuses on equity investments across various sectors, including technology, financials, healthcare, and industrials.

Objective: The primary investment goal of DBKK is to provide investors with exposure to international developed market equities and track the performance of its benchmark index.

Issuer:

• Reputation and Reliability: Xtrackers is a subsidiary of DWS Group, a globally recognized asset manager with a strong reputation and long track record in the industry.
• Management: DWS has a team of experienced portfolio managers and analysts responsible for managing the ETF.

Market Share: DBKK holds a 0.14% market share in the Developed International Equity ETFs category.

Total Net Assets: As of October 26, 2023, DBKK has total net assets of approximately $119.7 million.

Moat:

• Low Fees: DBKK has a low expense ratio of 0.15%, making it an attractive option for cost-conscious investors.
• Diversification: The ETF provides broad exposure to international developed markets, reducing concentration risk.

Financial Performance:

• Historical Returns: DBKK has delivered an annualized return of 5.34% over the past 3 years, outperforming its benchmark index by 0.42%.
• Benchmark Comparison: DBKK's performance closely tracks the MSCI Kokusai Index, with a tracking error of 0.25%.

Growth Trajectory: The ETF's future growth potential is tied to the performance of international developed markets.

Liquidity:

• Average Trading Volume: DBKK has an average daily trading volume of approximately 10,400 shares.
• Bid-Ask Spread: The typical bid-ask spread for DBKK is around 0.03%, indicating good liquidity.

Market Dynamics: Factors affecting DBKK's market environment include global economic growth, interest rate fluctuations, and geopolitical events.

Competitors: Key competitors include iShares MSCI EAFE ETF (EFA) and Vanguard FTSE Developed Markets ETF (VEA).

Expense Ratio: DBKK has an expense ratio of 0.15%.

Investment Approach and Strategy:

• Strategy: DBKK passively tracks the MSCI Kokusai Index.
• Composition: The ETF holds a diversified portfolio of approximately 600 stocks from various sectors and countries.

Key Points:

• Low expense ratio
• Broad exposure to international developed markets
• Tracks the performance of the MSCI Kokusai Index
• Outperformed its benchmark index over the past 3 years

Risks:

• Volatility: DBKK's performance is subject to market volatility.
• Market Risk: The ETF is exposed to risks associated with international developed markets, including economic and political instability.

Who Should Consider Investing: Investors seeking:

• Exposure to international developed market equities
• Passive investment strategy
• Low-cost option

Fundamental Rating Based on AI: 8/10

DBKK receives a solid rating based on its strong fundamentals, including its low expense ratio, diversified portfolio, and historical performance record. Its competitive advantages and alignment with the MSCI Kokusai Index make it an attractive option for investors seeking international exposure. However, investors should be aware of the inherent risks associated with international markets.

Resources and Disclaimers:

• Xtrackers MSCI Kokusai Equity ETF website: https://www.dws.com/us/en/individual-investors/etfs/etf-finder/us-etf-xtrackers-msci-kokusai-equity-etf.html
• MSCI Kokusai Index website: https://www.msci.com/index/en/msci-kokusai-index

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