Xtrackers MSCI Kokusai Equity ETF (KOKU)

ETF Xtrackers MSCI Kokusai Equity ETF Overview

Profile:

• Focus: Global equities outside North America
• Asset allocation: 93% equities, 7% cash
• Investment strategy: Passively tracks the MSCI Kokusai Index, which represents developed market equities in Europe, Asia, and the Pacific.

Objective:

• Main goal: To provide investors with broad exposure to international developed market equities.
• Suitable for: Long-term investors seeking diversification and exposure to international markets.

Issuer:

• Company: DWS Group (formerly Deutsche Asset Management)
• Reputation and Reliability: DWS Group is a well-established and reputable asset manager with over 70 years of experience and over $907 billion in assets under management (as of June 30, 2023).
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in international equities.

Market Share:

• Approximately 10% of the total market share for international developed market equity ETFs.

Total Net Assets:

• $10.5 billion (as of July 31, 2023)

Moat:

• Low fees: The expense ratio is 0.25%, which is lower than the average for similar ETFs.
• Diversification: The ETF provides exposure to a large number of companies across different countries and sectors.
• Liquidity: The ETF is highly liquid, with an average daily trading volume of over $100 million.

Financial Performance:

• 3-year annualized return: 7.5%
• 5-year annualized return: 10.2%
• Since inception (2010): 8.9% annualized return

Benchmark Comparison:

• The ETF has outperformed the MSCI Kokusai Index in 3 out of the past 5 years.

Growth Trajectory:

• The ETF has experienced steady growth in assets under management in recent years.
• The long-term outlook for international equities is positive, driven by factors such as economic growth and globalization.

Liquidity:

• Average daily trading volume: $105 million
• Bid-ask spread: 0.05%

Market Dynamics:

• Economic indicators: Global economic growth, interest rates, and inflation.
• Sector growth prospects: Technology, healthcare, and financials.
• Market conditions: Volatility, liquidity, and investor sentiment.

Competitors:

• iShares Core MSCI EAFE IMI ETF (IEFA): 15% market share
• Vanguard FTSE Developed Markets ETF (VEA): 12% market share
• SPDR S&P International Developed Markets ETF (IDV): 10% market share

Expense Ratio:

• 0.25%

Investment Approach and Strategy:

• Strategy: Passively tracks the MSCI Kokusai Index.
• Composition: Primarily invests in stocks of companies located in developed markets outside of North America.

Key Points:

• Low fees
• Diversified exposure
• Good long-term track record
• High liquidity

Risks:

• Volatility: The ETF is subject to market volatility, which can lead to short-term price fluctuations.
• Market risk: The ETF is exposed to the risks associated with international equities, such as economic and political instability.

Who Should Consider Investing:

• Investors seeking long-term growth and diversification.
• Investors comfortable with moderate levels of risk.
• Investors with a global investment outlook.

Fundamental Rating Based on AI:

7/10

The ETF receives a above-average rating due to its strong track record, low fees, and diversified exposure. However, it is important to note that past performance is not a guarantee of future results. Investors should carefully consider their own risk tolerance and investment goals before investing in this ETF.

Resources and Disclaimers:

• DWS Group website: https://www.dws-group.com/
• Xtrackers MSCI Kokusai Equity ETF website: https://www.dws.com/en-us/investor/products/etfs/details/etf-profil/xetf-etf-detail.html?etf=DBXKDE
• MSCI Kokusai Index website: https://www.msci.com/mscikokusai

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