Xtrackers MSCI All World ex US Hedged Equity ETF

Xtrackers MSCI All World ex US Hedged Equity ETF (DBAW), from DWS, tracks the MSCI ACWI ex USA US Dollar Hedged Index. The index holds about 2,000 stocks from developed and emerging markets outside the US. What sets the fund apart is currency hedging: it uses forward contracts to remove most of the effect of foreign currency moves against the dollar. That costs extra. Its 0.40% expense ratio is far above the 0.05% average for similar funds.

• Over the year to Oct 27, 2026, DBAW returned +16.7%, 4th of 9 among similar funds.
• Its 5-year annualized return was +10.9% and its 10-year +10.6%.
• In the 2020 COVID crash it fell 30.8% and regained its old high 8 months after the low.
• Its worst full calendar year was 2022 (-13.2%); its best was 2025 (+26.4%).
• The deepest fall in its price history was 31.4% (Jan 17, 2020 to Mar 16, 2020), recovered by Nov 20, 2020.

As of Aug 31, 2026, the fund held 1,725 securities; the ten largest made up 15.45% of assets.

• Over the three months to Aug 31, 2026, investors added a net $50.1M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +1.50%, -0.88%, +1.73%.

DBAW follows the MSCI ACWI ex USA US Dollar Hedged Index. As of July 31, 2026, the index held 2,042 stocks from developed and emerging markets outside the US, with an average company value of about $30.33 billion. DWS uses full replication, which means it buys the index's stocks in roughly the same weights as the index. The largest companies therefore count the most. As of August 31, 2026, the top holdings were Taiwan Semiconductor at 4.9% of assets, Samsung Electronics at 2.3% and SK Hynix at 1.8%. If a stock can't be bought, the fund may hold a representative sample instead. The index rebalances monthly, and portfolio turnover was 10%.

The hedge works mechanically. The fund uses forward contracts, which lock in an exchange rate for a future date. Some are non-deliverable forwards, used for currencies that are hard to trade. They are sized to the fund's currency weights at the start of each month. If the yen or pound falls against the dollar, the hedge offsets most of that loss. If those currencies rise, the fund gives up the gain. The hedge does not protect against falling stock prices.

The fund may also use futures and other derivatives to track the index. It held 172 derivative positions as of August 31, 2026. It can also lend up to one-third of its assets to approved institutions in exchange for collateral.

• DBAW charges 0.4% a year, versus an average of 0.05% for the similar funds below (9th of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $41 in the first year and $505 over 10 years (assuming a 5% annual return).

It spreads a US-heavy portfolio across about 1,700 foreign stocks while muting currency swings, but its high fee and small size make it a supporting piece rather than a core holding.

DBAW can add about 1,700 foreign stocks to a US-heavy portfolio. Japan was the largest country, at 13.9% of assets as of August 31, 2026. Hedging has not made it calm. It fell 30.8% from February 19 to March 16, 2020, and recovered about eight months later. In the 2022 bear market it dropped 17.6% and needed about 15 months from its October low to recover. Its prospectus shows 2018 as its weakest calendar year since 2016, at -9.48%. It launched in 2014, so it has no 2008 record. Selling shares to cover spending during such drops would lock in losses.

Income is modest: a 1.72% trailing yield as of October 27, 2026, paid twice a year. Costs are high for the category. The SEC's example puts 10-year costs on $10,000 at $505. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.