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Should Xtrackers Russell 1000 Comprehensive Factor ETF (DEUS) Be on Your Investing Radar?

Zacks Equity Research

The Xtrackers Russell 1000 Comprehensive Factor ETF (DEUS) was launched on 11/24/2015, and is a passively managed exchange traded fund designed to offer 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 $231.78 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

Large cap companies typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows 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.

Costs

Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.

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 1.63%.

Sector Exposure and Top Holdings

While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

Looking at individual holdings, Phillips 66 (PSX) accounts for about 0.84% of total assets, followed by Western Union Co (WU) and Pultegroup Inc (PHM).

The top 10 holdings account for about 6.39% 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 has added roughly 1.38% so far this year and was up about 23.15% in the last one year (as of 01/27/2020). In the past 52-week period, it has traded between $30.54 and $37.22.

The ETF has a beta of 0.97 and standard deviation of 11.62% for the trailing three-year period, making it a medium risk choice in the space. With about 843 holdings, it effectively diversifies company-specific risk.

Alternatives

Xtrackers Russell 1000 Comprehensive Factor ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, DEUS is a great option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.

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 $206.53 B in assets, SPDR S&P 500 ETF has $314.98 B. IVV has an expense ratio of 0.04% and SPY charges 0.09%.

Bottom-Line

Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.

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.

Click to get this free report Xtrackers Russell 1000 Comprehensive Factor ETF (DEUS): ETF Research Reports PulteGroup, Inc. (PHM) : Free Stock Analysis Report iShares Core S&P 500 ETF (IVV): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports Phillips 66 (PSX) : Free Stock Analysis Report The Western Union Company (WU) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research