Launched on 11/24/2015, the Xtrackers Russell 1000 Comprehensive Factor ETF (DEUS) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by Deutsche Bank. It has amassed assets over $212.73 M, 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
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
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 1.54%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
Looking at individual holdings, Cummins Inc (CMI) accounts for about 0.71% of total assets, followed by Lam Research Corp (LRCX.O) and Cdw Corp (CDW.O).
The top 10 holdings account for about 5.72% 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 21.54% so far this year and it's up approximately 7.15% in the last one year (as of 07/31/2019). In the past 52-week period, it has traded between $27.13 and $34.81.
The ETF has a beta of 0.98 and standard deviation of 11.28% for the trailing three-year period, making it a medium risk choice in the space. With about 848 holdings, it effectively diversifies company-specific risk.
Xtrackers Russell 1000 Comprehensive Factor 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 good 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 $184.14 B in assets, SPDR S&P 500 ETF has $278.36 B. IVV has an expense ratio of 0.04% and SPY charges 0.09%.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
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 1000 Comprehensive Factor ETF (DEUS): ETF Research Reports
Cummins Inc. (CMI) : Free Stock Analysis Report
iShares Core S&P 500 ETF (IVV): ETF Research Reports
SPDR S&P 500 ETF (SPY): ETF Research Reports
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