 The
Xtrackers MSCI All World ex US Hedged Equity ETF (DBAW) is an
exchange-traded fund that seeks investment results that correspond
generally to the performance of the MSCI ACWI ex USA US Dollar Hedged
Index. The index includes large and mid-cap companies from developed
and emerging market countries, excluding the United States, and hedges
its foreign currency exposure back to the U.S. dollar.
DBAW
aims to provide investors with exposure to international equities
while managing currency risk. By hedging its foreign currency exposure
back to the U.S. dollar, the fund seeks to eliminate the impact of
currency fluctuations on returns. This can be particularly beneficial
for investors who want to avoid the added risk of currency
fluctuations when investing in international markets.
The fund
has an expense ratio of 0.41% and as of March 23, 2023, it held a
total net asset value of approximately $1.4 billion. Top holdings in
the fund include companies such as Nestle SA, Tencent Holdings Ltd.,
and Samsung Electronics Co., Ltd.
It's important to note that
while the hedging strategy used by DBAW can help manage currency risk,
it may also limit the fund's upside potential in the event that the
U.S. dollar weakens against foreign currencies. Additionally, like all
investments, DBAW comes with risk, including the potential for losses
if the underlying investments do not perform as expected. As with any
investment, investors should carefully consider their financial goals
and risk tolerance before investing in DBAW or any other fund.
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