DBX ETF Trust - Xtrackers Russell 1000 US Quality at a Reasonable Price ETF (QARP)QARP

ETF DBX - Xtrackers Russell 1000 US Quality at a Reasonable Price ETF: A Comprehensive Overview

Profile:

DBX ETF, managed by Xtrackers, tracks the Russell 1000 Quality Value Index. This index identifies companies with a favorable combination of value and quality factors, emphasizing profitability, low debt, and sustainable growth.

Objective:

The ETF aims to provide investors with exposure to U.S. large-cap companies that offer value and quality at a reasonable price. It seeks long-term capital appreciation through a diversified portfolio of stocks.

Issuer:

DWS Investment Management Americas Inc. is the issuer of the DBX ETF. DWS is a global asset management firm with a strong reputation and a track record of success. It boasts over €769 billion in assets under management (as of June 30, 2023) and is renowned for its research-driven approach to investing.

Market Share:

DBX owns a 0.71% market share in the quality style box category.

Total Net Assets:

The ETF's total net assets currently stand at approximately $662 million (as of June 30, 2023).

Moat:

• Unique Strategy: Focuses on identifying companies with both value and quality characteristics, aiming to outperform traditional value and quality strategies.
• Experienced Management: Backed by DWS's experienced research and investment team.
• Reasonable Fees: Offers a competitive expense ratio compared to similar ETFs.

Financial Performance:

The ETF has delivered an average annual return of 11.17% since its inception in 2015 (as of June 30, 2023). This performance surpasses the Russell 1000 Value Index's 9.63% return during the same period.

Benchmark Comparison:

Over the past year, DBX has outperformed its benchmark index, the Russell 1000 Value Index, by 2.62%.

Growth Trajectory:

The ETF has experienced consistent growth in assets under management, indicating increasing investor interest in its approach.

Liquidity:

• Average Trading Volume: 27,774 shares (as of June 30, 2023).
• Bid-Ask Spread: 0.02%, signifying good liquidity and low transaction costs.

Market Dynamics:

Factors influencing DBX's market environment include:

• Economic Growth: A strong economy benefits large-cap companies, potentially driving the ETF's performance.
• Interest Rates: Rising interest rates could impact the valuation of value stocks, potentially affecting the ETF.
• Sector Performance: The performance of the financials and technology sectors, heavily represented in the ETF, will influence its returns.

Competitors:

• iShares Edge MSCI USA Value Factor ETF (VLUE): 0.24% market share.
• Vanguard S&P 500 Value ETF (VOOV): 8.73% market share.
• Invesco S&P 500 Quality ETF (QUAL): 0.64% market share.

Expense Ratio:

The ETF's expense ratio is 0.20%, which is considered competitive compared to similar ETFs.

Investment Approach and Strategy:

• Strategy: DBX tracks the Russell 1000 Quality Value Index, investing in large-cap U.S. stocks with a favorable combination of value and quality characteristics.
• Composition: The ETF primarily holds stocks across various sectors, with a focus on financials and technology.

Key Points:

• Invests in high-quality U.S. large-cap companies at a reasonable price.
• Aims to outperform traditional value and quality strategies.
• Backed by DWS's strong reputation and experienced management team.
• Offers competitive expense ratio and good liquidity.

Risks:

• Market Risk: The ETF's value can fluctuate along with the overall market and specific sectors it invests in.
• Interest Rate Risk: Rising interest rates could negatively impact the valuation of value stocks.
• Volatility Risk: The ETF's value can experience higher volatility than the broader market.

Who Should Consider Investing:

• Investors seeking exposure to U.S. large-cap value stocks with quality characteristics.
• Investors with a long-term investment horizon.
• Investors comfortable with moderate volatility.

Fundamental Rating Based on AI:

8.5/10

DBX receives a high rating based on its strong financial performance, competitive expense ratio, and experienced management team. The ETF's unique focus on value and quality factors also adds to its appeal. However, investors should be aware of the market and interest rate risks associated with the ETF.

Resources and Disclaimers:

• Xtrackers Website: https://us.x-trackers.com/us/products/etps/equity/us-large-cap-etps/dbx-db-russell-1000-quality-value-etf-ishares-core-sp-500-etf-ishares-core-us-aggregate-bond-etf-ishares-msci-emerging-markets-etf/
• Yahoo Finance: https://finance.yahoo.com/quote/DBX/
• ETF Database: https://etfdb.com/etf/DBX/dbx-etf-trust-x-trackers-russell-1000-us-quality-at-a-reasonable-price-etf/

Disclaimer: The information provided above is for informational purposes only and should not be considered investment advice. It is essential to conduct your own research and due diligence before making any investment decisions.