HDAW Profile
The Xtrackers MSCI All World ex US High Dividend Yield Hedged Equity ETF is designed to provide investors with exposure to high dividend-paying equities outside the United States while mitigating currency risk. The fund will invest at least 80% of its total assets, and often a significantly higher percentage, in the component securities of its underlying index. This index aims to reflect the performance of non-U.S. equities that offer higher dividend yields and superior quality characteristics compared to the broader MSCI ACWI ex US Index.
The underlying index specifically targets equities that exhibit sustainable and persistent high dividend income. It excludes Real Estate Investment Trusts (REITs) to focus on companies with strong dividend-paying potential and high-quality financial metrics. By emphasizing dividend yield and financial robustness, the index seeks to capture opportunities in global markets that are likely to deliver consistent income and growth. The ETF’s strategy ensures that investors gain exposure to these high dividend yield stocks while managing the impact of currency fluctuations.
The fund's currency hedging strategy is a key feature, aiming to mitigate the impact of currency movements on returns. This approach helps to reduce the volatility associated with fluctuations in foreign exchange rates, making the fund particularly appealing to investors looking for stable income streams from international markets. The ETF’s focus on high dividend yield stocks outside the U.S. provides an opportunity to diversify income sources while maintaining a global investment perspective.
Through its investment in the MSCI All World ex US High Dividend Yield Hedged Equity Index, the ETF offers a strategic approach for investors seeking to benefit from global high dividend opportunities. The fund’s approach to selecting and weighting securities based on dividend yield and quality characteristics, combined with its currency hedging, aims to deliver robust income and potential capital appreciation. This makes it a suitable choice for investors looking to enhance their portfolio with high-yield international equities while managing currency risk.
|
