Xtrackers MSCI EAFE High Dividend Yield Equity ETF

Xtrackers MSCI EAFE High Dividend Yield Equity ETF (HDEF), run by DWS, tracks an MSCI index of about 111 higher-yielding, quality-screened stocks from developed markets in Europe, Australasia and the Far East. Its largest holdings include Roche, Shell and Novartis. Its 0.09% expense ratio was the lowest of seven similar funds, which averaged 0.34%. Its trailing 12-month yield was 3.74% as of October 27, 2026.

• Over the year to Oct 27, 2026, HDEF returned +17.8%, 5th of 7 among similar funds.
• Its 5-year annualized return was +12.9% and its 10-year +8.9%.
• In the 2020 COVID crash it fell 34.7% and regained its old high 8.8 months after the low.
• Its worst full calendar year was 2018 (-13.7%); its best was 2025 (+33.0%).
• The deepest fall in its price history was 36.4% (Jan 2, 2020 to Mar 23, 2020), recovered by Jan 6, 2021.

As of Aug 31, 2026, the fund held 112 securities; the ten largest made up 41.04% of assets.

• Over the three months to Aug 31, 2026, investors added a net $1.3M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.16%, +5.30%, +0.35%.

HDEF tracks the MSCI EAFE High Dividend Yield Index. That index starts from the MSCI EAFE Index, which covers large and midsize companies in developed countries outside North America. It leaves out real estate investment trusts (REITs). It keeps stocks whose dividend yields are above the parent index's average and that pass quality tests, so the dividends are more likely to last. As of July 31, 2026, the index held 111 stocks. Their average market value was about $37.62 billion.

Stocks are weighted by free-float market value, meaning only the shares available to the public count. Bigger companies get bigger weights. The index rebalances twice a year, in May and November. The fund buys nearly every stock in the index at close to the index's weights. As of August 31, 2026, Swiss stocks made up 19.6% of the fund, UK stocks 17.6% and French stocks 12.8%. The 10 largest positions made up 41% of assets. The prospectus says financial companies are a large share of the index.

The fund doesn't hedge currencies. When the US dollar rises against the euro, pound or Swiss franc, the value of its holdings falls in dollar terms. It holds small stock index futures, about 0.01% of assets, and it may lend up to one-third of its assets to other institutions. Annual portfolio turnover was 24%.

• HDEF charges 0.09% a year, versus an average of 0.34% for the similar funds below (1st of 7, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $9 in the first year and $115 over 10 years (assuming a 5% annual return).

HDEF pays quarterly dividends from established foreign companies at a very low cost, and its yield was well above that of a broad stock index fund.

HDEF could add foreign dividend income from companies such as Nestlé, Allianz and TotalEnergies. Its trailing yield was 3.74% as of October 27, 2026, paid quarterly. It costs 0.09% a year, or about $115 over 10 years in the SEC's standard $10,000 example. The fund launched in 2015, so it has no record from 2008. In the 2020 COVID crash it fell 34.7% and took 8.8 months to recover. In 2022 it dropped 23.7% and recovered in 6.3 months. Its deepest drop was 36.4%, in early 2020, and its worst calendar year was 2018, at -13.28%. Someone who has to sell during a drop like that locks in the loss. Dividends can also be cut, and a stronger dollar shrinks returns. 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.