 The
Xtrackers MSCI EAFE Hedged Equity ETF (DBEF) is an exchange-traded
fund that aims to provide investment results that correspond to the
performance of the MSCI EAFE US Dollar Hedged Index. The fund seeks to
achieve this objective by investing in a portfolio of equity
securities of companies located in Europe, Australasia, and the Far
East.
DBEF uses a hedging strategy to help mitigate the risk of
currency fluctuations between the U.S. dollar and foreign currencies.
The fund does this by entering into currency exchange contracts that
seek to provide exposure to the currencies in the MSCI EAFE Index
while hedging the fund's exposure to the U.S. dollar.
The MSCI
EAFE Index is a widely recognized benchmark of equity securities in
developed markets outside of North America, including Europe,
Australasia, and the Far East. The index includes large and mid-cap
companies across 21 developed market countries and covers
approximately 85% of the free float-adjusted market capitalization in
each country.
DBEF charges a low expense ratio, which makes it
an attractive option for investors seeking international exposure with
a currency hedge. Additionally, the fund has a relatively low tracking
error, meaning that it closely tracks the performance of its benchmark
index.
Investors in DBEF should keep in mind that investing in
international markets involves additional risks, such as currency
fluctuations, political and economic instability, and differences in
accounting standards. As with any investment, it's important to
conduct thorough research and consult with a financial professional
before making any investment decisions.
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