Back to top

Should Xtrackers Russell 1000 Comprehensive Factor ETF (DEUS) Be on Your Investing Radar?

Read MoreHide Full Article

Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the Xtrackers Russell 1000 Comprehensive Factor ETF (DEUS - Free Report) , a passively managed exchange traded fund launched on 11/24/2015.

The fund is sponsored by Deutsche Bank. It has amassed assets over $214.37 M, making it one of the average sized ETFs attempting to match the Large Cap Blend segment of the US equity market.

Why Large Cap Blend

Large cap companies typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.

Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.

Costs

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

Annual operating expenses for this ETF are 0.17%, making it one of the cheaper products in the space.

It has a 12-month trailing dividend yield of 1.55%.

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, Target Corp (TGT - Free Report) accounts for about 0.90% of total assets, followed by Autozone Inc (AZO - Free Report) and Darden Restaurants (DRI.N).

The top 10 holdings account for about 6.73% of total assets under management.

Performance and Risk

DEUS 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.

The ETF has gained about 15.34% so far this year and is up roughly 6.02% in the last one year (as of 04/10/2019). In the past 52-week period, it has traded between $27.13 and $34.12.

The ETF has a beta of 1 and standard deviation of 11.45% for the trailing three-year period, making it a medium risk choice in the space. With about 830 holdings, it effectively diversifies company-specific risk.

Alternatives

Xtrackers Russell 1000 Comprehensive Factor ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, DEUS is a sufficient option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.

The iShares Core S&P 500 ETF (IVV - Free Report) and the SPDR S&P 500 ETF (SPY - Free Report) track a similar index. While iShares Core S&P 500 ETF has $174.14 B in assets, SPDR S&P 500 ETF has $272.05 B. IVV has an expense ratio of 0.04% and SPY charges 0.09%.

Bottom-Line

An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.

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.

Published in