ETF Research Center

The Xtrackers MSCI EAFE High Dividend Yield Hedged Equity ETF tracks a cap-weighted index of developed country stocks, ex-North America, selected by quality and dividend factors. The fund is currency hedged for USD investors.

FUND BASICS
Category	International Equities
Fund Sponsor	Deutsche Bank
Website	etfus.deutscheawm.com
Inception date	Aug 12, 2015
Assets (mns)	$392
Currency	USD
Expense ratio	20 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-End Investment Company
Custodian
Weighting	Market Cap
Index replication
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	118
Wgt avg mkt cap (mns)	$51,205
Large cap (>$10bn)	86.2%
Mid cap ($2-10bn)	13.8%
Small cap (<$2bn)	0.0%
Developed mkts	99.3%
Emerging mkts	0.7%

TOP TEN HOLDINGS
Total	42.4 %
ASTRAZENECA PLC	6.2 %
GLAXOSMITHKLINE PLC	5.2 %
SANOFI-AVENTIS	5.2 %
ALLIANZ SE-REG	4.9 %
TOTAL SA	4.7 %
BASF SE	3.8 %
RIO TINTO PLC	3.3 %
ZURICH FINANCIAL SERVICES AG	3.2 %
IBERDROLA SA	3.1 %
AXA SA	2.8 %

TOP COUNTRY EXPOSURE
	BRITAIN	24.7 %
	FRANCE	14.9 %
	GERMANY	11.8 %
	JAPAN	10.9 %
	AUSTRALIA	6.4 %
	SPAIN	6.0 %
	SWITZERLAND	5.0 %
	HONG KONG	4.7 %
	SINGAPORE	3.5 %
	FINLAND	3.5 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru November 30)
Year-to-date	1 year	5 years	10 years	Since Incep.
20.1%	14.7%	--	--	5.8%

Market Correlations
versus...	Beta	R-squared
S&P500	0.63	50%
MSCI EAFE	0.85	75%
MSCI Emg. Mkts.	0.54	49%

Technical Indicators
Recent close	$23.80
30d moving avg.	$23.83
Annualized volatility	10.8%
Short interest (ETF)	0.5%
Relative strength (RSI)	55

Liquidity measures
Avg. volume (thou.)	85
Turnover	0.5%
Bid/Ask (% of price)	0.15%
ADV underlying (mns)	$5,736

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the Xtrackers MSCI EAFE High Div Yld Hedged ETF based on the alternatives' overlap in portfolio holdings with HDEF. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

HDEF

Expense:

20 bp

ALTAR Score™:

8.7%

ALTERNATIVE ETFs BASED ON OVERLAP WITH HDEF
Ticker	Fund Name	Overlap¹ vs HDEF (%)	Expense ratio (bp)	Savings vs HDEF (bp)	ALTAR Score™ (%)	ALTAR vs HDEF (%)
HDAW	Xtrackers MSCI All World ex US High Div Yield	51.0	20	0	10.0	+1.3
DOO	WisdomTree Int'l Dividend Ex-Financials	33.7	58	-38	8.0	-0.7
DTH	WisdomTree DEFA Equity Income	32.2	58	-38	8.5	-0.2
LVHI	Legg Mason International Low Volatility High Dividend	28.5	40	-20	9.4	+0.7
RIDV	Invesco International Ultra Dividend Revenue ETF	26.0	42	-22	9.1	+0.4
IDOG	ALPS International Sector Dividend Dogs	24.3	50	-30	7.4	-1.3
EFV	iShares MSCI EAFE Value	24.1	38	-18	9.0	+0.3
CID	Victory CEMP International High Div Volatility Wtd	24.1	45	-25	8.8	+0.1
EWU	iShares MSCI United Kingdom	23.6	47	-27	7.4	-1.3
IDY	Pacific Global International Equity Income	23.6	39	-19	8.2	-0.5
QGBR	SPDR MSCI UK Quality Mix	23.2	14	6	7.8	-0.9
IQLT	iShares MSCI Int'l Developed Quality	22.6	30	-10	6.1	-2.6
IDHD	Invesco S&P Intl Developed High Div Low Volatility	22.3	30	-10	6.4	-2.3
FLGB	Franklin FTSE United Kingdom	22.2	9	11	7.8	-0.9
OEUR	O'Shares FTSE Europe Quality Dividend	21.8	48	-28	6.4	-2.3
IQDF	FlexShares Int'l Quality Dividend	21.6	47	-27	9.5	+0.8
EUMV	iShares MSCI Europe Min Volatility	21.3	25	-5	5.2	-3.5
DOL	WisdomTree Int'l Large Cap Dividend	20.7	48	-28	7.7	-1.0
FEZ	SPDR DJ Euro Stoxx 50	20.6	29	-9	6.9	-1.8
FDD	First Trust STOXX European Select Dividend	20.5	57	-37	7.6	-1.1

¹Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

	2014	2015	2016	2017	2018	2019E	2020E
Sales per share	**	**	**	**	**	**	**
Earnings per share	**	**	**	**	**	**	**
Dividends per share	**	**	**	**	**	**	**
Book value per share	**	**	**	**	**	**	**

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est.	**%		Debt-to-equity	**x
Asset turnover	**%		Assets-to-equity	**x

Return on equity

Revision activity*

*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS

	2018	2019E	2020E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	Xtrackers MSCI EAFE High Div Yld Hedged
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

SPECULATIVE

Deeply undervalued but risky. A rating of SPECULATIVE is assigned to ETFs with ALTAR Scores in the top quintile (the top 20%) of their category, indicating exceptional appreciation potential. However, often these are narrowly-focused funds or in industries with structural issues, which may also make them very risky. Nonetheless they may still be useful as part of a well-diversified portfolio.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	13.1	%
Divided by: Fwd. P/BV	1.5	x
Less: Expense ratio	20	bp
Equals: ALTAR Score	8.7	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.69	CATEGORY AVERAGE	1.63

The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale: BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3. Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.