Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Xtrackers Russell 1000 Comprehensive Factor ETF (DEUS) is a passively managed exchange traded fund launched on 11/24/2015.
The fund is sponsored by Deutsche Bank. It has amassed assets over $225.37 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 find themselves in the large cap category 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.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
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 1.65%.
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, Lam Research Corp (LRCX.O) accounts for about 0.85% of total assets, followed by Cdw Corp (CDW.O) and Cummins Inc (CMI).
The top 10 holdings account for about 6.14% 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 0.31% so far this year and is up about 29.83% in the last one year (as of 01/03/2020). In the past 52-week period, it has traded between $28.84 and $36.40.
The ETF has a beta of 0.97 and standard deviation of 11.64% for the trailing three-year period, making it a medium risk choice in the space. With about 840 holdings, it effectively diversifies company-specific risk.
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 an outstanding 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 $203.13 B in assets, SPDR S&P 500 ETF has $309.87 B. IVV has an expense ratio of 0.04% and SPY charges 0.09%.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they 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.
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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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.