Xtrackers FTSE Developed ex US Multifactor ETF (DEEF)

Overview

The Xtrackers FTSE Developed ex US Multifactor ETF (DEEF) seeks investment results that correspond generally to the performance, before fees and expenses, of the FTSE Developed ex US Factor Index, which measures the performance of developed market equities, excluding the US, exhibiting characteristics associated with size, value, momentum, and quality factors.

Reputation and Reliability

DWS is a reputable global asset manager with a long history of providing investment products. They are known for their expertise in ETFs and quantitative investing.

Management Expertise

DWS has a dedicated team of investment professionals with expertise in quantitative analysis, portfolio management, and factor-based investing.

Goal

To provide investment results that correspond generally to the performance, before fees and expenses, of the FTSE Developed ex US Factor Index.

Investment Approach and Strategy

Strategy: The ETF aims to track the FTSE Developed ex US Factor Index, which selects and weights stocks based on size, value, momentum, and quality factors.

Composition The ETF primarily holds stocks of companies located in developed countries outside the United States. The underlying index uses a multi-factor model to select and weight stocks.

Market Share: DEEFu2019s market share within its sector is modest.

Total Net Assets (AUM): 231910630

Key Competitors

• iShares Edge MSCI Multifactor Intl ETF (INTF)
• Avantis International Equity ETF (AVDE)
• Dimensional International Value ETF (DFIV)

Competitive Landscape

The competitive landscape is characterized by several established players offering factor-based international equity ETFs. DEEF benefits from DWS's established presence, but has less AUM than INTF and AVDE. A key benefit is its factor focus, with factors weighted using a transparent, rules-based approach, which could be attractive to investors seeking factor exposure.

Historical Performance: Historical performance data is readily available through financial websites, reflecting market fluctuations and factor performance over time.

Benchmark Comparison: The ETF's performance should be compared against the FTSE Developed ex US Factor Index to evaluate tracking efficiency.

Expense Ratio: 0.29

Average Trading Volume

The ETF exhibits moderate average trading volume, which can affect the ease of buying and selling shares.

Bid-Ask Spread

The bid-ask spread is relatively small, indicating reasonable trading costs under normal market conditions.

Market Environment Factors

Economic growth in developed ex-US markets, interest rate changes, currency fluctuations, and geopolitical events can significantly affect DEEF's performance.

Growth Trajectory

DEEF's growth is tied to investor demand for factor-based international equity exposure and DWS's ability to attract assets.

Competitive Edge

DEEF provides a multi-factor approach to investing in developed ex-US equities, which can be attractive to investors seeking diversified factor exposure. The rules-based index methodology provides transparency and avoids discretionary biases. DWS's established reputation and distribution network may also provide a competitive advantage. A potential weakness relative to competitors is lower AUM and trading volume.

Volatility

The ETF's volatility is typical of international equity ETFs, with fluctuations depending on market conditions.

Market Risk

The primary market risks are associated with fluctuations in global equity markets, particularly in developed countries outside the United States. Currency risk is also a factor, as returns are affected by exchange rate movements.

Ideal Investor Profile

The ideal investor is seeking diversified exposure to developed ex-US equities, with a tilt towards factors such as size, value, momentum, and quality. The investor should be comfortable with international market risk and currency fluctuations.

Market Risk

DEEF is suitable for long-term investors who understand factor investing and want diversified exposure to international equities. It is best for passive index followers who want specific factor exposures. Active traders may find the trading volume lower than more liquid ETFs.

DEEF is a factor-based international equity ETF that provides exposure to developed markets outside the US. It tracks the FTSE Developed ex US Factor Index, which selects and weights stocks based on size, value, momentum, and quality factors. DEEF is suitable for long-term investors seeking diversified exposure to international equities with a factor tilt. The ETF's performance is subject to market risk, currency risk, and the performance of the underlying factors. With DEEF investors can diversify their portfolio into international equities that focus on the best attributes of growth stocks.

Data Sources:

• DWS Website
• FTSE Russell
• Morningstar
• ETF.com
• Bloomberg

Disclaimers:

Past performance is not indicative of future results. Investment involves risk, including the potential loss of principal. Consult with a financial advisor before making investment decisions.