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Opinions and Features, How to Invest?

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Opinions and Features, How to Invest?

Xtrackers is a large supplier of ETF, the second largest in Europe. I mention it precisely because it offers a wide range of products across all asset classes – you will see that there is an Xtrackers ETF for almost every major index.

In addition to traditional equity and bond ETFs, Xtrackers offers a variety of Core ETFs, currency hedged ETFs and Strategic Beta ETFs.

If you want to build a winning portfolio of ETFs you should also consider the large Xtrackers family. Let’s see immediately what opportunities it offers you.

Enjoy the reading.

This article talks about:

Two information about the supplier

Xtrackers is a trademark owned by Deutsche Asset & Wealth Management (DWS), a subsidiary of Deutsche Bank and among the leading asset managers in Germany and throughout Europe, as well as worldwide.

Clearly the DWS group not only deals with ETFs, it is also a large provider of actively managed mutual funds and other investment solutions aimed at both private and institutional clients, for a total of 745 billion euros of assets under management.

The first Xtrackers ETF was launched in 2007, since then the family of passive funds has grown enough to conquer the first places in the sector.


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ETF offer

DWS issues to the market numerous funds listed on the main world stock exchanges, which can be purchased by both institutional investors and retail customers. Each fund is made up of a portfolio of securities which it tracks a particular market index.

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There are over 170 ETFs available covering a wide range of asset classes, economic sectors and geographic regions.

Specifically, you can choose between:

  • Equity portfolios, bonds, Multi-asset, commodity, thematic and structured ETFs;
  • Developed Market Indices (UK, USA, Europe, Japan, Canada, Australia) and indices of Emerging markets (Latin America, India, China, Brazil and Russia) – Xtrackers is among the leaders in this category, especially in the Chinese market;
  • ETF fixed incomeprofit distribution and accumulation.

It is very easy to find the ideal fund for your investment strategy, whether short or long term.

In addition, Xtrackers also owns a number of Special ETFs, designed to meet specific needs and strategies, let’s see them.

ETF Core

The Core ETF range has been around since 2014, it consists of funds selected to be the central elements of portfolios multi-asset investment; they are particularly suitable for medium to long-term time horizons.

Xtrackers Core have competitive commissions (all-encompassing, annual, starting at 0.07%), create exposure to major equity or bond benchmarks, and follow the direct physical replication method.

ETF Strategic Beta

These investment solutions, called “ETF Strategic Beta”, allow for greater risk weighting (risk adjusted) compared to traditional benchmarks.

These are equity, bond and commodity ETFs, whose portfolios are optimized in the selection of securities, made on the basis of numerous factors (quality, dividend, value, momentum o minimum volatility, yield plus, quality weighted).

With these ETFs every investor can effectively meet the own risk and return profile.

ESG funds

This other category of ETFs is aimed at sustainable investments according to ESG logic (environmental, social e governance). DWS is among the market leaders in ESG investing.

By choosing sustainable ETFs investors can positively impact the economy, knowing to invest not only starting from traditional financial metrics, but also according to factors concerning environmental protection, social issues and corporate governance.

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With the Xtrackers range of ESG products, you can invest sustainably in different countries, geographies and asset classes such as equities and corporate bonds.

Commissions

The management fees of Xtrackers ETFs they are competitive (starting from 0.07% per annum, up to 0.85% per annum).

Some ETFs have TERs that are much lower than the average, but considering that we are talking about a really large family of ETFs it is not possible to lump everything together.

There are many factors to determine the cost of an ETF, it is always advisable to compare the prices between several funds that replicate the same index.

How to find the right ETF

To access a complete list of products Xtrackers just visit the Italian official site. Inside you will find the list of all the ETFs marketed, but you can easily refine and speed up your search using the filters.

If you select a specific asset class (shares, bonds, commodities, multi-assets) and the sub-category you are interested in, specifying the geographical area or the country in which you want to act, only the ETFs that match the set parameters will appear in the list.

Finally, by clicking on the fund that interests you, you will be able to view its descriptive file, in which you will also find the information documentation to download: the KIID and the Factsheet.

Where to buy Xtrackers ETFs

For private investors it is not possible to buy ETFs directly from the DWS website, but they must go through a authorized intermediarya bank, a SIM or an online broker.

ETFs are naturally traded on regulated markets during official trading hours. Xtrackers funds are listed on the main world stock exchanges: Borsa Italiana, Frankfurt XETRA, London Stock Exchange and SIX Swiss Exchange.

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They can be traded in the same way as traditional shares are bought and sold.

Final opinions of Affari Miei

If you did not believe in the quality of funds Xtrackers I wouldn’t have put them in model portfolios by Fast Investments Planner, the advanced financial information service that helps you invest independently thanks to the advice of the Centro Studi di Affari Miei.

Clearly, an ETF is just an instrument, so it can be advantageous or disadvantageous based on your point of view and your competition. Before investing, you need to make sure that the ETF you select matches your needs, is cost-effective, and aligns with your strategy.

In addition to considering costs, liquidity and other parameters, you must also consider the associated risks to the financial instruments in the basket. Every investment carries a certain level of risk, therefore, you need to approach this world with a head on your shoulders!

I suggest you take the time to read these in-depth contents:

Conclusions

If you’re at the beginning of your investment journey, you might think that you don’t need great strategies and knowledge to operate on the markets with an ETF.

Wrong! There is no tool that frees you from your responsibilities – if you don’t know what you’re doing you can only invest badly, regardless of the medium you use.

If you don’t have the basics, stop and start reading the investing guides:

For now, I salute you and I wish you a good continuation.


Find out which Investor You are

I have created a short questionnaire to help you understand what kind of investor you are. At the end, I will guide you towards the best contents selected according to your starting situation:

>> Start Now <


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