Xtrackers MSCI EAFE Hedged Equity ETF (DBEF)

Overview

The fund operates with a clear focus on providing investors with a way to participate in the performance of developed markets while actively reducing the risk associated with the volatility of the U.S. dollar against the currencies of the countries represented in its portfolio. By adhering to a "passive" or indexing investment approach, the fund aims to deliver investment results that closely mirror the outcomes of its underlying index, prior to the deduction of fees and expenses. This underlying index is specifically curated to reflect the performance of developed market equities but comes with an added layer of mitigating strategies against currency fluctuation impacts. This investment strategy showcases the fund's commitment to offering a robust vehicle for investors looking to gain exposure to international markets without the undue risk of currency volatility.

Products and Services

The fund provides an array of investment solutions designed to cater to the diverse needs of investors seeking exposure to developed markets with reduced currency risk. Each offering is structured to align with the fund's overarching investment philosophy of tracking developed market performance through a passive investment approach.

• Indexing Investment Approach

  This service focuses on replicating the performance of the fund's underlying index, which is specifically designed to track the equity markets of developed countries. This approach is characterized by its "passive" investment strategy, aimed at matching the investment returns of the underlying index before fees and expenses are taken into account. It's an ideal solution for investors who prefer a hands-off investment strategy that aligns closely with market returns.

• Currency Exposure Mitigation

  A key feature of the fund's investment strategy is its commitment to mitigating the impact of currency fluctuations between the U.S. dollar and the currencies of the countries in the underlying index. This is achieved through strategic investment decisions aimed at reducing the risk associated with currency exchange rate volatility. This service benefits investors by potentially lowering the fund's overall volatility and enhancing returns when adjusted for currency risk.

• Commitment to Major Holdings

  In line with its stated investment strategy, the fund commits at least 80% of its total assets to securities that are components of its underlying index. This high level of commitment to index-representative securities ensures that the fund's portfolio remains closely aligned with the performance and risk profile of developed markets, as reflected in the underlying index. This strategy is particularly appealing to investors looking for a straightforward way to invest in a diversified portfolio of developed market equities.