HDEF 📈 Xtrackers MSCI EAFE High - Overview

The Xtrackers MSCI EAFE High Dividend Yield Equity ETF, listed on the NYSE ARCA under the ticker HDEF, is designed to track the performance of a specific subset of equities within the MSCI EAFE Index. This subset is characterized by higher dividend income and quality characteristics that are not only superior to the average dividend yields of equities in the parent index but also sustainable and persistent over time. By focusing on these high dividend yield equities, the fund aims to provide investors with a regular income stream, potentially reducing reliance on capital appreciation for returns. The fund's investment strategy involves allocating at least 80% of its total assets to component securities of the underlying index, although in practice, this allocation is typically much higher.

The underlying index of the HDEF ETF is a tailored version of the MSCI EAFE Index, which itself is a widely recognized benchmark for international equity performance, excluding the US and Canada. The MSCI EAFE Index covers a broad spectrum of developed market equities, providing a comprehensive view of the international equity market. By filtering this broad index for equities with higher and more sustainable dividend yields, the HDEF ETF offers investors a way to tap into the potential for regular income from international equities, which can be an attractive feature for income-seeking investors. The fund is classified as non-diversified, meaning it can invest a significant portion of its assets in a smaller number of securities, which may increase its potential for gain but also its risk.

From a structural perspective, the Xtrackers MSCI EAFE High Dividend Yield Equity ETF is an exchange-traded fund (ETF) domiciled in the United States, with the ISIN US2330516301. It falls under the category of Foreign Large Value ETFs, indicating its focus on large-cap equities in developed markets outside of North America, with a value investment tilt due to its emphasis on dividend yield. Investors looking for international equity exposure with a regular income component may find this ETF appealing, especially those seeking to diversify their portfolios beyond US borders. The fund's issuer, DWS, provides more detailed information on the fund's strategy, performance, and other key characteristics on its website at http://dws.com.