Venture Outside The U.S. With This Multi-Factor ETF

Ex-US developed markets equities and ETFs are outperforming their U.S. counterparts this year, a theme that many market observers believe will extend into 2018.

While cap-weighted ETFs are popular ways of playing this theme, there are some compelling smart beta avenues for accessing ex-US developed markets.

That includes the Deutsche X-trackers FTSE Developed ex US Comprehensive Factor ETF (NYSEArca: DEEF). DEEF can be used as a complement or alternative to traditional MSCI EAFE strategies. In either case, the Deutsche ETF is rewarding investors this year. After recently making a series of new highs, DEEF is higher by about 23% year-to-date, outpacing the MSCI EAFE Index by more than 250 basis points since the start of 2017.

DEEF tracks the “FTSE Developed ex US Comprehensive Factor Index. The index is designed to provide exposure to developed international equities based on five factors – Quality, Value, Momentum, Low Volatility and Size,” according to Deutsche Asset Management.

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