Xtrackers MSCI Eurozone Hedged Equity ETF

Xtrackers MSCI Eurozone Hedged Equity ETF (DBEZ), from DWS, tracks the MSCI EMU IMI US Dollar Hedged Index. As of July 31, 2026, that index held 593 stocks from countries that use the euro, and the fund uses currency contracts to offset most swings between the euro and the dollar. Its 0.45% expense ratio is above the 0.32% peer average. With $75.9 million in net assets as of August 31, 2026, it is the smallest fund in its peer group.

• Over the year to Oct 27, 2026, DBEZ returned +13.3%, 2nd of 9 among similar funds.
• Its 5-year annualized return was +11.3% and its 10-year +11.5%.
• In the 2020 COVID crash it fell 38.8% and regained its old high 9.8 months after the low.
• Its worst full calendar year was 2018 (-10.8%); its best was 2019 (+29.9%).
• The deepest fall in its price history was 38.8% (Feb 19, 2020 to Mar 16, 2020), recovered by Jan 8, 2021.

As of Aug 31, 2026, the fund held 595 securities; the ten largest made up 27.11% of assets.

• Over the three months to Aug 31, 2026, investors added a net $0.00 (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +3.59%, -0.25%, +1.10%.

DBEZ is an index fund. It doesn't pick stocks. It uses "full replication," which means it buys the stocks in its index in about the same weights the index gives them. If some shares are hard to buy, it may hold a representative sample instead. The index is the MSCI EMU IMI US Dollar Hedged Index. "IMI" means it covers large, mid-sized and smaller companies in the Eurozone. As of July 31, 2026, it held 593 securities. The smallest had a market value of about $350 million, and the average was about $18.03 billion. Bigger companies count for more. As of August 31, 2026, ASML was 7.6% of the fund, Siemens 2.8% and SAP 2.6%.

The "hedged" part works through forward currency contracts. These are agreements to swap euros for dollars at a set rate later. At the start of each month, the fund sizes these contracts to match its euro exposure. That way, returns roughly follow the stocks in local terms. The trade-off is that when the euro rises against the dollar, the fund gives up that gain. The hedge does nothing to cut stock market risk itself. The fund may also use futures. As of August 31, 2026, it held EURO STOXX 50 index futures.

The index is rebalanced monthly. Portfolio turnover was 11%. The fund may lend out up to one-third of its assets in exchange for collateral. As of July 31, 2026, much of the index was in France and Germany, and in the financials and industrials sectors.

• DBEZ charges 0.45% a year, versus an average of 0.32% for the similar funds below (6th of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $46 in the first year and $567 over 10 years (assuming a 5% annual return).

It adds a broad mix of Eurozone stocks to a portfolio centered on US stocks, while taking most euro-dollar currency swings out of the return.

DBEZ spreads stock exposure beyond the US. The hedge takes away one source of ups and downs, but the stocks can still fall hard. In the 2020 COVID crash, the fund dropped 38.8% between February 19 and March 16, 2020, and took about 9.8 months to recover. In 2022, it fell 23.4% and was back to its old high by February 15, 2023. Its worst calendar year was 2018, at -10.75%. The fund launched in December 2014, so it has no record from 2008. Anyone forced to sell in a slump like 2020 would lock in deep losses. The yield was 1.29% as of October 27, 2026, paid twice a year, so this is not an income fund. In the SEC's standard $10,000 example, costs come to $46 after one year and $567 over ten. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.

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