DBES, which tracks the MSCI EAFE Small Cap US Dollar Hedged Index, holds just over 1,000 stocks. The ETF allocates a combined 48.5% of its weight to Japan and the U.K. The Japan exposure is boosted DBEF in 2017 as that country was home to some of the world’s best-performing small-caps. DBES’s top 10 geographic exposures combine for 84% of the fund’s weight.
The hedged ETF would outperform similar non-hedged strategies if foreign currencies depreciate against the greenback. DBES allocates nearly 37.5% of its combined weight to industrial and consumer discretionary stocks. Financial services, technology and real estate names combine for nearly a third of the ETF’s roster.
DBES charges 0.45% per year, or $45 on a $10,000 investment.
For more on Smart Beta ETFs, visit the Smart Beta Channel home page.