Morningstar - Q4 2021 - 64

Strategies
Risk Diversifier
Xtrackers Russell U.S. Multifactor ETF provides exposure
to several well-vetted factors.
Ryan Jackson
BEST IDEAS: PASSIVE
This article is adapted from the ETF's Morningstar Global Fund Report dated
Sept. 15, 2021.
Xtrackers Russell U.S. Multifactor ETF DEUS combines several well-vetted
risk factors to breed a portfolio that effectively diversifies risk and
should build a long-term advantage over the Russell Mid-Cap Index. It earns
a Morningstar Analyst Rating of Silver.
This index fund starts with Russell 1000 Index constituents and tilts toward
those with the best combination of value, quality, momentum, size, and
low-volatility characteristics. Each of these factors has historically been tied to
market-beating performance, but they can slump. Because some factors-
like quality and value, for example-tend to move in opposite directions,
combining them diversifies risk. It also shields the fund from stocks that score
well on one factor but poorly on the others.
Measuring stocks' factor traits holistically promotes more pronounced
factor exposure than combining distinct factor sleeves. So, the fund's
performance should be closely tied to the fate of its featured factors. That said,
the fund doesn't take on too much active risk because it tilts away from
stocks' market-cap weightings. The fund's moderate 47% active share versus
the Russell Mid Cap Index (its category index) indicates that, while it
won't stray too far from the benchmark, it has ample room to recoup its fee.
This fund casts a wide net that ensures it is well diversified along several
dimensions. It tallied about 840 stocks at the end of August 2021, and
the top 10 accounted for only 7% of the portfolio. No sector accounts for more
than one fifth of the portfolio. And while its small-size focus pulls it into
mid-cap territory, it features most of the large- and mega-cap stocks that
shape the Russell 1000. K
Top 5 Sectors 09/30/2021
Ryan Jackson is an associate manager research analyst at Morningstar Research
Services LLC.
Sector
a Technology
y Financial Services
p Industrials
t Consumer Cyclicals
d Healthcare
■ Fund % ❙ Category Average %
17.2
14.3
15.9
12.5
9.3
64
Morningstar Q4 2021
5
11.8
10
15
20
14.3
19.0
17.8
17.6
Xtrackers Russell U.S. Multifactor ETF DEUS
Stats 09/30/2021
Morningstar Analyst Rating
„
Total Assets
$213.4 Million
Process
Above Avg
Growth of 10K 09/30/2021
$20K
Morningstar US Mid Core
13.78
14.90
10/2018
Value
Xtrackers Russell US Multifactor ETF
10/2019
Morningstar Style Box 09/30/2021
Growth
Blend
Snapshot as
of most recent
portfolio.
10
15
5
10/2020
Morningstar Ratings 09/30/2021
Period
Mstar
Return
3-Yr Average
5-Yr Average
10-Yr -
Overall Rating
Mstar
Risk
Morningstar Category
Mid-Cap Blend
3-Yr Annlzd Return
12.70%
Morningstar Pillars 09/30/2021
People
Average
Parent
Average
Expense Ratio
0.17%
3-Yr % Rank in Cat
43
Mstar
Rating
Below Avg QQQQ
Below Avg QQQQ
-
-
QQQQ
Small
Mid
Large
https://www.morningstar.com/authors/2385/ryan-jackson https://www.morningstar.com/etfs/arcx/deus/quote https://www.morningstar.com/authors/2385/ryan-jackson
Morningstar - Q4 2021

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