Exchange-Traded Funds (ETFs) have transformed the investment landscape by providing investors with diversified exposure to various sectors and asset classes. In this article, we will conduct a thorough comparison between two prominent ETFs: EWG (iShares MSCI Germany ETF) and DBXD (Xtrackers MSCI EAFE Hedged Equity ETF). We'll delve into essential aspects such as ticker symbols, full names, issuers, sectors, top holdings, capitalization, investment strategies, tracking methods, and exposure.
The EWG and DBXD ETFs offer distinct approaches to international investing. While EWG focuses on tracking the performance of German equities, DBXD aims to provide exposure to equities from developed markets outside of the United States, while mitigating currency risk through a hedging strategy. Understanding these differences in focus and strategy is crucial for investors seeking international diversification.
The iShares MSCI Germany ETF (EWG) primarily comprises German companies spanning various sectors such as technology, finance, and manufacturing. In contrast, the Xtrackers MSCI EAFE Hedged Equity ETF (DBXD) includes equities from developed countries across Europe, Asia, and the Pacific, while employing a currency-hedging approach. Evaluating the sectors and top holdings of each ETF can aid investors in identifying potential sources of return and risk.
EWG overlap EWG VS DBXD: A Comprehensive Comparison of ETFs
With a substantial asset under management (AUM), the EWG demonstrates significant investor interest in gaining exposure to German equities. DBXD's investment strategy centers around managing currency risk by hedging against fluctuations in foreign exchange rates. The difference in capitalization and strategy underscores the varying investment objectives and risk profiles associated with each ETF.
EWG seeks to replicate the performance of the MSCI Germany Index, providing investors with exposure to a specific basket of German stocks. On the other hand, DBXD tracks the MSCI EAFE 100% Hedged to USD Index, which includes equities from multiple developed markets while mitigating currency volatility. Understanding these tracking methods and exposure strategies is essential for investors looking to align their portfolios with specific geographic regions and risk considerations.
EWG and DBXD present investors with diverse opportunities to access international markets. Whether you're interested in targeting German equities or seeking exposure to developed markets outside the United States while managing currency risk, these ETFs cater to different investment preferences. For those looking to gain deeper insights into holdings, correlations, overlaps, and more, ETF Insider offers a user-friendly app that provides comprehensive information on various financial instruments.
Disclaimer: This article does not provide any investment advisory services.
Sources:
iShares by BlackRock: iShares MSCI Germany ETF (EWG)
Xtrackers by DWS: Xtrackers MSCI EAFE Hedged Equity ETF (DBXD)
MSCI Inc.: Index Methodology for MSCI Germany Index and MSCI EAFE 100% Hedged to USD Index
EWG ETF issuer
EWG ETF official page
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