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Is Xtrackers Russell US Multifactor ETF (DEUS) a Strong ETF Right Now?
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Designed to provide broad exposure to the Style Box - Large Cap Blend category of the market, the Xtrackers Russell US Multifactor ETF (DEUS - Free Report) is a smart beta exchange traded fund launched on 11/24/2015.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Because the fund has amassed over $210.35 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 seeks to match the performance of the Russell 1000 Comprehensive Factor Index before fees and expenses.
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.
Annual operating expenses for DEUS are 0.17%, which makes it one of the cheaper products in the space.
DEUS's 12-month trailing dividend yield is 1.12%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, 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).
DEUS's top 10 holdings account for about 6.54% of its total assets under management.
Performance and Risk
The ETF has added about 25.28% so far this year and it's up approximately 35.73% in the last one year (as of 11/05/2021). In the past 52-week period, it has traded between $36.10 and $47.48.
The fund has a beta of 1.05 and standard deviation of 24.62% for the trailing three-year period, which makes DEUS a medium risk choice in this particular 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 $322.64 billion in assets, SPDR S&P 500 ETF has $426.34 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?
Designed to provide broad exposure to the Style Box - Large Cap Blend category of the market, the Xtrackers Russell US Multifactor ETF (DEUS - Free Report) is a smart beta exchange traded fund launched on 11/24/2015.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Because the fund has amassed over $210.35 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 seeks to match the performance of the Russell 1000 Comprehensive Factor Index before fees and expenses.
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.
Annual operating expenses for DEUS are 0.17%, which makes it one of the cheaper products in the space.
DEUS's 12-month trailing dividend yield is 1.12%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, 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).
DEUS's top 10 holdings account for about 6.54% of its total assets under management.
Performance and Risk
The ETF has added about 25.28% so far this year and it's up approximately 35.73% in the last one year (as of 11/05/2021). In the past 52-week period, it has traded between $36.10 and $47.48.
The fund has a beta of 1.05 and standard deviation of 24.62% for the trailing three-year period, which makes DEUS a medium risk choice in this particular 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 $322.64 billion in assets, SPDR S&P 500 ETF has $426.34 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.