Xtrackers MSCI Europe Hedged Equity ETF

Xtrackers MSCI Europe Hedged Equity ETF (DBEU), from DWS, holds about 400 European stocks from the MSCI Europe US Dollar Hedged Index. It uses currency contracts to cancel out swings between the dollar and currencies such as the euro, pound and Swiss franc. That hedge is the main thing that sets it apart from unhedged Europe funds. So is its cost: a 0.46% expense ratio, against 0.06% to 0.09% for the cheapest of them.

• Over the year to Oct 27, 2026, DBEU returned +15.3%, 2nd of 9 among similar funds.
• Its 5-year annualized return was +11.2% and its 10-year +10.9%.
• In the 2020 COVID crash it fell 34.5% and regained its old high 11.1 months after the low.
• Its worst full calendar year was 2018 (-8.5%); its best was 2019 (+27.3%).
• The deepest fall in its price history was 34.5% (Feb 19, 2020 to Mar 16, 2020), recovered by Feb 16, 2021.

As of May 29, 2026, the fund held 401 securities; the ten largest made up 20.17% of assets.

• Over the three months to May 29, 2026, investors added a net $51.9M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: -7.08%, +4.99%, +3.27%.

DBEU is an index fund. It follows the MSCI Europe US Dollar Hedged Index, which tracks stocks in Europe's developed markets. As of July 31, 2026, the index held 414 securities with an average market value of about $42.1 billion. The fund uses full replication: it buys the index's stocks in roughly the same weights the index gives them. As of May 29, 2026, the largest were ASML (4.4%), HSBC (2.2%) and Roche (2.1%). The UK made up 20.6% of the fund and Switzerland 14.3%. The index is rebalanced monthly, and portfolio turnover was 11%.

The hedge is the key mechanical feature. The fund uses forward currency contracts, which are agreements to swap currencies at a set rate on a future date. These contracts offset changes between the dollar and the currencies the stocks trade in. The fund sizes the contracts at the start of each month based on the index's currency weights. If prices move during the month, the hedge can drift a little. When the dollar strengthens, the hedge helps. When it weakens, the fund lags unhedged Europe funds. The hedge does nothing to protect against falling stock prices.

The fund may also use futures. As of May 29, 2026, it held Euro Stoxx 50 index futures. It may lend up to one-third of its assets to approved institutions in exchange for collateral.

• DBEU charges 0.46% a year, versus an average of 0.26% for the similar funds below (7th of 9, cheapest first).
• Of that, 0.45% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $47 in the first year and $579 over 10 years (assuming a 5% annual return).

It adds large European companies to a portfolio that may lean heavily on US stocks, while removing most of the currency swings.

DBEU could add exposure to companies such as ASML, HSBC and Nestlé. The fund launched in 2013, so it has no record from 2008. In the 2020 COVID crash it fell 34.5% between February 19 and March 16, 2020, and took about 11 months to recover. In 2022 it dropped 17.7% and recovered in about four months. Its worst calendar year was 2018, at -8.5%. Anyone forced to sell shares in early 2020 would have taken a deep loss. Income is modest: the trailing yield was 1.41% as of October 27, 2026, paid once a year. On the SEC's $10,000 example, the 0.46% expense ratio comes to $579 over 10 years, well above unhedged Europe funds. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.

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