The Xtrackers Russell 1000 Comprehensive Factor ETF (DEUS - Free Report) was launched on 11/24/2015, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by Deutsche Bank. It has amassed assets over $205.10 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 usually have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
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 1.53%.
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, Lam Research Corp (LRCX.O) accounts for about 0.70% of total assets, followed by Cdw Corp (CDW.O) and Cummins Inc (CMI - Free Report) .
The top 10 holdings account for about 5.83% 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 22.14% so far this year and it's up approximately 4.05% in the last one year (as of 09/13/2019). In the past 52-week period, it has traded between $27.13 and $34.81.
The ETF has a beta of 0.98 and standard deviation of 11.69% for the trailing three-year period, making it a medium risk choice in the space. With about 845 holdings, it effectively diversifies company-specific risk.
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 reasonable 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 $187.77 B in assets, SPDR S&P 500 ETF has $274.83 B. IVV has an expense ratio of 0.04% and SPY charges 0.09%.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
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.