Xtrackers MSCI EAFE High Dividend Yield Equity ETF (HDEF)

Overview

The Xtrackers MSCI EAFE High Dividend Yield Equity ETF (HDEF) seeks investment results that correspond generally to the performance, before fees and expenses, of the MSCI EAFE High Dividend Yield Index. It primarily focuses on high dividend-yielding equity securities in developed markets, excluding the US and Canada, with an asset allocation weighted towards countries with high dividend yields. The investment strategy involves passively tracking the index, aiming to provide investors with exposure to developed international equities with a focus on income.

Reputation and Reliability

DWS is a reputable asset manager with a long track record and global presence, offering a wide range of investment products.

Management Expertise

DWS has extensive experience in managing ETFs and passive investment strategies, with a dedicated team of portfolio managers and analysts.

Goal

To track the performance, before fees and expenses, of the MSCI EAFE High Dividend Yield Index.

Investment Approach and Strategy

Strategy: Tracks a specific index, the MSCI EAFE High Dividend Yield Index.

Composition Primarily holds stocks from developed markets (excluding the US and Canada) that exhibit high dividend yields.

Market Share: HDEF has a moderate market share within the EAFE high dividend yield ETF category.

Total Net Assets (AUM): 214450000

Key Competitors

• Schwab International Dividend Equity ETF (SCHY)
• Vanguard International High Dividend Yield ETF (VYMI)
• SPDR EURO STOXX High Dividend ETF (SDY)
• WisdomTree International High Dividend Fund (DTH)

Competitive Landscape

The competitive landscape is moderately concentrated, with a few large players dominating the market. HDEF benefits from the DWS brand but competes with larger, more established ETFs with lower expense ratios. Advantages of HDEF could include differences in index construction, resulting in potentially different country and sector exposures. Disadvantages include a higher expense ratio compared to some competitors and a smaller AUM. HDEF market share (%) is estimated based on AUM data relative to total AUM in this market segment.

Historical Performance: Historical performance data should be sourced from reputable financial data providers.

Benchmark Comparison: Benchmark comparisons are best analyzed using historical data from reliable sources.

Expense Ratio: 0.2

Average Trading Volume

The ETF's liquidity is reflected in its average daily trading volume, which can be sourced from financial data providers.

Bid-Ask Spread

The bid-ask spread can be obtained from live market data feeds or financial data providers.

Market Environment Factors

Economic indicators in developed international markets, interest rate policies of central banks, and global trade dynamics significantly impact the performance of HDEF. Sector growth prospects in industries with high dividend yields, such as financials and utilities, also play a crucial role.

Growth Trajectory

Growth trends depend on the performance of EAFE equities and the dividend yields of the underlying companies. Changes to strategy and holdings are typically driven by index rebalancing.

Competitive Edge

HDEF benefits from the DWS brand and established ETF infrastructure, offering a credible option for investors seeking international dividend exposure. Its competitive edge lies in its specific index construction, focusing on high dividend yield equities within the EAFE region. This targeted approach can attract investors seeking income from developed international markets. However, it faces strong competition from ETFs with larger AUM and lower expense ratios, which poses a significant challenge.

Volatility

HDEF's volatility is influenced by the volatility of the underlying equities in the EAFE region and currency fluctuations.

Market Risk

Market risks include economic downturns in developed international markets, fluctuations in currency exchange rates, and sector-specific risks within the holdings.

Ideal Investor Profile

The ideal investor is seeking income from developed international markets and is willing to accept moderate risk. Investors seeking diversification beyond US equities and those looking for regular dividend income may find this ETF suitable.

Market Risk

Suitable for long-term investors seeking income and diversification. Not ideal for active traders seeking short-term gains.

Xtrackers MSCI EAFE High Dividend Yield Equity ETF (HDEF) offers exposure to high dividend-yielding equities in developed international markets, excluding the US and Canada. It passively tracks the MSCI EAFE High Dividend Yield Index, providing a relatively straightforward approach to international dividend investing. While it benefits from the DWS brand, it faces competition from larger ETFs with lower expense ratios. Investors should carefully consider its expense ratio and historical performance relative to its benchmark and competitors before investing. It is best suited for long-term investors seeking income and diversification from international equities.

Data Sources:

• DWS Website
• MSCI Index Fact Sheet
• ETF.com
• Morningstar

Disclaimers:

The data provided is for informational purposes only and does not constitute financial advice. Investment decisions should be based on individual circumstances and after consulting with a qualified financial advisor. Market share estimates are approximate and may vary based on the source and calculation methodology.