Xtrackers Russell US Multifactor ETF (DEUS)

Overview

The Xtrackers Russell US Multifactor ETF (DEUS) seeks to provide investment results that correspond generally to the performance, before fees and expenses, of the Russell RAFI US Index. It targets U.S. equities using a multifactor approach, emphasizing value, momentum, quality, and low volatility.

Reputation and Reliability

DWS is a reputable global asset manager with a long history in the ETF market. They are known for offering a diverse range of ETFs and have a track record of managing funds effectively.

Management Expertise

DWS has a team of experienced investment professionals dedicated to managing ETFs. They leverage their expertise in quantitative strategies and factor-based investing.

Goal

The fund aims to provide investment results that correspond generally to the performance, before fees and expenses, of the Russell RAFI US Index.

Investment Approach and Strategy

Strategy: The ETF aims to track the Russell RAFI US Index, which employs a fundamental index methodology. The methodology weights companies based on fundamental factors like sales, cash flow, and dividends.

Composition The ETF primarily holds stocks of U.S. companies across various sectors. The weighting is based on fundamental measures rather than market capitalization.

Market Share: DEUS holds a relatively small market share within the multifactor ETF segment.

Total Net Assets (AUM): 191000000

Key Competitors

• Invesco S&P 500 Pure Value ETF (RPV)
• Schwab Fundamental U.S. Large Company Index ETF (FNDX)
• Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC)

Competitive Landscape

The multifactor ETF market is moderately competitive with several established players. DEUS differentiates itself through its specific factor weighting methodology, and exposure to the Russell RAFI US Index. Disadvantages include low AUM and market share compared to other Multifactor ETFs, which may affect liquidity and fund expenses.

Historical Performance: Historical performance data unavailable.

Benchmark Comparison: Performance data unavailable to compare against benchmark.

Expense Ratio: 0.29

Average Trading Volume

The average trading volume of DEUS indicates moderate liquidity.

Bid-Ask Spread

The bid-ask spread is generally tight but can widen during periods of market volatility.

Market Environment Factors

Economic indicators, interest rates, and investor sentiment all influence the ETF's performance. Factor-based strategies tend to perform differently depending on the economic cycle.

Growth Trajectory

Growth depends on increased investor adoption of factor-based investing and the performance of the underlying index. Changes to the index methodology or factor weightings could affect future performance.

Competitive Edge

DEUS's competitive edge lies in its transparent multifactor approach and relatively low expense ratio. The use of the Russell RAFI US Index as its benchmark provides a distinct fundamental weighting strategy. This allows for potential outperformance relative to market-cap-weighted indices, particularly in certain market conditions. The diversification across factors may help reduce risk compared to single-factor ETFs.

Volatility

The ETF's volatility is influenced by the volatility of the U.S. equity market and the specific factors it targets.

Market Risk

The primary risk is market risk, as the ETF invests in U.S. equities. Factor-specific risks, such as value or momentum underperforming, also exist.

Ideal Investor Profile

The ideal investor is one seeking diversified U.S. equity exposure with a factor-based approach. Investors looking for value, momentum, quality, and low volatility factors within a single ETF may find it suitable.

Market Risk

The ETF is best suited for long-term investors seeking exposure to a specific investment strategy in multifactor ETFs.

Xtrackers Russell US Multifactor ETF offers exposure to U.S. equities with a multifactor strategy. The fund seeks to track the Russell RAFI US Index using value, momentum, quality, and low volatility factors. The ETF is best for investors looking for a diversified U.S. equity portfolio that is not market-cap weighted. DEUS's primary advantage is the reasonable expense ratio and unique focus among Multifactor ETF, the relatively low AUM and trading volume may be concerning for some investors.

Data Sources:

• DWS Website
• ETF.com
• Morningstar

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Market share information may be approximate and based on available data.