Should Xtrackers Russell US Multifactor ETF (DEUS) Be on Your Investing Radar?
Style Box ETF report for DEUS
Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the Xtrackers Russell US Multifactor ETF (DEUS), a passively managed exchange traded fund launched on 11/24/2015.
The fund is sponsored by Deutsche Bank Ag. It has amassed assets over $212.71 million, 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.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
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 1.18%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Hp Inc (HPQ) accounts for about 1.33% of total assets, followed by Netapp Inc (NTAP.O) and Interpublic Group Of Cos Inc (IPG.N).
The top 10 holdings account for about 6.54% 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 return is roughly 18.47% so far this year and was up about 26.74% in the last one year (as of 10/14/2021). In the past 52-week period, it has traded between $33.68 and $46.61.
The ETF has a beta of 1.06 and standard deviation of 24.72% 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.
Xtrackers Russell US Multifactor 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) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $291.43 billion in assets, SPDR S&P 500 ETF has $388.53 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
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.
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Xtrackers Russell US Multifactor ETF (DEUS): ETF Research Reports
HP Inc. (HPQ): Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
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