Xtrackers FTSE Developed ex US Multifactor ETF (DEEF)

Overview

The Xtrackers FTSE Developed ex US Multifactor ETF (DEEF) seeks to provide investment results that correspond generally to the performance, before fees and expenses, of the FTSE Developed ex US Factor Completion Index. It focuses on developed markets outside the US, employing a multifactor strategy based on value, momentum, quality, and low volatility.

Reputation and Reliability

DWS is a reputable asset manager with a long history of providing investment products.

Management Expertise

DWS has experienced portfolio managers and research teams focused on quantitative 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 Completion Index.

Investment Approach and Strategy

Strategy: The ETF aims to track the FTSE Developed ex US Factor Completion Index, which is designed to represent the performance of stocks from developed countries excluding the U.S. that exhibit characteristics associated with higher long-term returns.

Composition The ETF holds stocks of companies from developed countries, excluding the U.S. Its holdings are diversified across sectors and countries, with weightings determined by the multifactor methodology.

Market Share: DEEF's market share is relatively small compared to broader developed ex-US ETFs.

Total Net Assets (AUM): 757400000

Key Competitors

• Vanguard FTSE Developed Markets ETF (VEA)
• iShares Core MSCI EAFE ETF (IEFA)
• Schwab International Equity ETF (SCHF)

Competitive Landscape

The competitive landscape is dominated by broad-market ETFs like VEA and IEFA. DEEF's advantage lies in its multifactor approach, which aims to outperform the broader market. A disadvantage is its higher expense ratio compared to some of the larger, passively managed competitors. DEEF also has a smaller AUM than its major competitors.

Historical Performance: Historical performance can be sourced from financial data providers. Performance varies based on market conditions and the effectiveness of the factor strategies.

Benchmark Comparison: The ETF's performance should be compared against the FTSE Developed ex US Factor Completion Index to assess tracking error and the effectiveness of the multifactor strategy.

Expense Ratio: 0.0029

Average Trading Volume

The average trading volume of DEEF is moderate, providing sufficient liquidity for most investors.

Bid-Ask Spread

The bid-ask spread is generally tight, indicating relatively low transaction costs.

Market Environment Factors

Economic growth in developed markets outside the US, currency fluctuations, and global trade policies can influence the ETF's performance. Sector growth within developed economies can also affect performance.

Growth Trajectory

The growth trajectory depends on the continued demand for factor-based investing and the performance of developed markets outside the US. The ETF's strategy has remained consistent.

Competitive Edge

DEEF's competitive edge lies in its multifactor approach, which aims to capture multiple sources of excess return. It targets value, momentum, quality, and low volatility factors, potentially outperforming the broader market. The ETF provides targeted exposure to developed markets outside the US, catering to investors seeking diversification and factor tilts. DWS's expertise in factor-based investing adds to its competitive advantage.

Volatility

The ETF's volatility is dependent on the volatility of its underlying holdings, which are primarily stocks from developed markets outside the US.

Market Risk

The ETF is subject to market risk associated with investing in equities, including economic downturns, geopolitical events, and currency fluctuations.

Ideal Investor Profile

The ideal investor is one seeking diversified exposure to developed markets outside the US, with a preference for a multifactor investment strategy and a willingness to accept moderate risk.

Market Risk

The ETF is suitable for long-term investors seeking capital appreciation and potential outperformance compared to broader market indexes. It may also appeal to active traders seeking to implement factor-based strategies.

DEEF offers exposure to developed markets outside the U.S., employing a multifactor strategy that targets value, momentum, quality, and low volatility. The ETF's objective is to track the FTSE Developed ex US Factor Completion Index. Its competitive edge lies in its smart-beta approach, but it faces competition from larger, passively managed ETFs. It is suitable for investors seeking diversified international exposure with a factor tilt, understanding that performance depends on the success of these factors and conditions in developed markets outside the US.

Data Sources:

• DWS Website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Investment decisions should be based on individual circumstances and consultation with a financial advisor. Market share and performance data are subject to change.