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Is Xtrackers Russell US Multifactor ETF (DEUS) a Strong ETF Right Now?
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A smart beta exchange traded fund, the Xtrackers Russell US Multifactor ETF (DEUS - Free Report) debuted on 11/24/2015, and offers broad exposure to the Style Box - Large Cap Blend category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Because the fund has amassed over $203.32 million, this makes it one of the average sized ETFs in the Style Box - Large Cap Blend. DEUS is managed by Deutsche Bank Ag. This particular fund, before fees and expenses, seeks to match the performance of the Russell 1000 Comprehensive Factor Index.
The Russell 1000 Comprehensive Factor Index provides exposure to domestic equities based on five factors Quality, Value, Momentum, Low Volatility and Size.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Operating expenses on an annual basis are 0.17% for this ETF, which makes it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.19%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Hp Inc (HPQ - Free Report) accounts for about 1.33% of total assets, followed by Netapp Inc (NTAP.O) and Interpublic Group Of Cos Inc (IPG.N).
Its top 10 holdings account for approximately 6.54% of DEUS's total assets under management.
Performance and Risk
The ETF has added roughly 20.53% and is up about 32.96% so far this year and in the past one year (as of 08/18/2021), respectively. DEUS has traded between $32.77 and $46.13 during this last 52-week period.
The ETF has a beta of 1.06 and standard deviation of 24.70% for the trailing three-year period, making it a medium risk choice in the space. With about 837 holdings, it effectively diversifies company-specific risk.
Alternatives
Xtrackers Russell US Multifactor ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Core S&P 500 ETF (IVV - Free Report) tracks S&P 500 Index and the SPDR S&P 500 ETF (SPY - Free Report) tracks S&P 500 Index. IShares Core S&P 500 ETF has $299.36 billion in assets, SPDR S&P 500 ETF has $387.90 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is Xtrackers Russell US Multifactor ETF (DEUS) a Strong ETF Right Now?
A smart beta exchange traded fund, the Xtrackers Russell US Multifactor ETF (DEUS - Free Report) debuted on 11/24/2015, and offers broad exposure to the Style Box - Large Cap Blend category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Because the fund has amassed over $203.32 million, this makes it one of the average sized ETFs in the Style Box - Large Cap Blend. DEUS is managed by Deutsche Bank Ag. This particular fund, before fees and expenses, seeks to match the performance of the Russell 1000 Comprehensive Factor Index.
The Russell 1000 Comprehensive Factor Index provides exposure to domestic equities based on five factors Quality, Value, Momentum, Low Volatility and Size.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Operating expenses on an annual basis are 0.17% for this ETF, which makes it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.19%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Hp Inc (HPQ - Free Report) accounts for about 1.33% of total assets, followed by Netapp Inc (NTAP.O) and Interpublic Group Of Cos Inc (IPG.N).
Its top 10 holdings account for approximately 6.54% of DEUS's total assets under management.
Performance and Risk
The ETF has added roughly 20.53% and is up about 32.96% so far this year and in the past one year (as of 08/18/2021), respectively. DEUS has traded between $32.77 and $46.13 during this last 52-week period.
The ETF has a beta of 1.06 and standard deviation of 24.70% for the trailing three-year period, making it a medium risk choice in the space. With about 837 holdings, it effectively diversifies company-specific risk.
Alternatives
Xtrackers Russell US Multifactor ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Core S&P 500 ETF (IVV - Free Report) tracks S&P 500 Index and the SPDR S&P 500 ETF (SPY - Free Report) tracks S&P 500 Index. IShares Core S&P 500 ETF has $299.36 billion in assets, SPDR S&P 500 ETF has $387.90 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.