db X-trackers MSCI Germany Hedged Equity Fund (DBGR): Investing Ad

Find investing ad about db X-trackers MSCI Germany Hedged Equity Fund (DBGR) by Deutsche Asset & Wealth Management. It invests in German company equities and tracks the MSCI Germany US Dollar Hedged Index.

Investment Ad

Reading an investment news or magazine, you will find an ad about “Germany - Hedging the Euro.” The ad provides one ETF for investing,  db X-trackers MSCI Germany Hedged Equity Fund (DBGR). You can invest in this exchange traded fund (ETF) in your investment or brokerage account, or retirement account.

While the ad looks promising, you should do more research before investing in this equity ETF. Whether the investment is for your brokerage or retirement account, it is important to understand the risk and investment strategy of this ETF fund. I have provided a fund review below.

The investment ad is as follow:

Deutsche Asset & Wealth Management 

GERMANY – Hedging The Euro 

db X-trackers MSCI Germany Hedged Equity Fund (DBGR) 

Europe’s largest economy and number-one exporter belongs in any international portfolio.
Exchange-rate risk does not.

• Buy the first currency-hedged Germany ETF.
• Get the full power of Europe’s economic engine.

dbxus.com 

Carefully consider the fund’s investment objectives, risk factors, and charges and expense before investing. The fund’s prospectus is available at dbxus.com or by calling 1-855-DBX-ETFS (1-855-329-3837); read it carefully before investing. 

DBGR attempts to hedge exposure to fluctuations between the U.S. dollar and the euro. Prior to 6/1/13, this fund was known as the db X-trackers MSCI Canada Hedges Equity Fund.

Fund Review

The investment objective of this db X-trackers MSCI Germany Hedged Equity Fund (DBGR) is to seek investment results that correspond generally to the performance, before fees and expense, of the MSCI Germany US Dollar Hedged Index. This ETF fund has $10.75 million total net assets. The 12-month trailing yield is 4.95%. It has 0.50% annual expense ratio. It has just been incepted in June 9, 2011 therefore it has no rating from Morningstar yet. The CUSIP is 233051408.

This stock exchange traded fund’s YTD return is 2.32%. It returned 10.76% in the year of 2012 and the 1-year annualized return is 4.73%. It is currently traded at premium 0.21% and the current NAV is $23.91.

The top 5 stocks in its holdings as of October 18, 2013 are Bayer (8.78%), Siemens (8.38%), BASF (7.85%), Allianz (6.53%) and Daimler (6.52%). The top sectors are Materials (23.79%), Consumer Discretionary (20.18%) and Financials (17.32%).

Last Words

• This ETF has low assets and not popular among investors yet.
• If you want to buy, please use only limit order and not market order, hence it is illiquid ETF.
• Long term investment performance still needs to be observed.
• Tracking error to its index information is still lacking, additional time is needed to review in details.