ETF Spotlight: Currency-Hedged Equity Fund | Page 2 of 2 | ETF Trends

What You Should Know:

  • Deutsche Bank sponsors the fund.
  • DBEF has an expense ratio of 0.36%.
  • The fund is up 3.20% in the last month and down 9.23% over the past three months.
  • Country allocations include: Japan 19%, United Kingdom 17%, France 9%, Switzerland 9%, Germany 9%, Australia 7%, United States 5%, Netherlands 5%, Hong Kong 4% and other 16%.
  • Sector weightings include: Banking 9%, Non-cyclical Consumer 7%, Energy 7%, Financial 6%, Futures 5%, Pharmaceuticals 5%, Telecommunications 5%, Basic Materials 4%, Insurance 3% and others 49%.
  • The MSCI EAFE tracks the performance of major international developed equity markets.
  • “This ETF invests in equities denominated in euro, yen, and pound, but since this is a currency-hedged fund, DBEF is not exposed to changes in exchange rates between the U.S. dollar and the aforementioned currencies,” Morningstar analyst Patricia Oey said.
  • “These companies still provide a very safe and stable investment in global growth and provide some diversification benefits through somewhat different geographic reach,” Oey added.

The Latest News:

  • On Oct. 18, trading volume in the DBEF fund surged up to 1.15 million shares compared to its average of around 27,000.
  • European equities rallied Wednesday on growing optimism that Europe’s leaders will raise the size of the financial-rescue fund during the summit this weekend, Bloomberg reports.
  • “All eyes are now on the Sunday meeting and if the European finance leaders are able to deliver a substantial enough bailout deal to effectively backstop the European credit concern,” Ian Lyngen, a government bond strategist at CRT Capital Group LLC, said. “There’s less certainty they’ll be able to reach a meaningful deal than there was into yesterday’s close.”

db-X MSCI EAFE Currency-Hedged Equity Fund

For past stories in this series, visit our ETF Spotlight category.

Max Chen contributed to this article.