Should Xtrackers Russell US Multifactor ETF (DEUS) Be on Your Investing Radar?

Launched on November 24, 2015, the Xtrackers Russell US Multifactor ETF (DEUS) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.

The fund is sponsored by Deutsche Bank Ag. It has amassed assets over $301.39 million, making it one of the average sized ETFs attempting to match the Large Cap Blend segment of the US equity market.

Why Large Cap Blend

Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.

Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.

Costs

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

Annual operating expenses for this ETF are 0.17%, making it one of the cheaper products in the space.

It has a 12-month trailing dividend yield of 1.38%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Energy sector -- about -999900% of the portfolio. Industrials and Materials round out the top three.

Looking at individual holdings, Allstate Corp (ALL) accounts for about 1% of total assets, followed by Archer-Daniels-Midland Co (ADM) and Mckesson Corp (MCK).

The top 10 holdings account for about 6.53% of total assets under management.

Performance and Risk

DEUS seeks to match the performance of the Russell 1000 Comprehensive Factor Index before fees and expenses. The Russell 1000 Comprehensive Factor Index provides exposure to domestic equities based on five factors Quality, Value, Momentum, Low Volatility and Size.

The ETF has added roughly 15.59% so far this year and was up about 17.3% in the last one year (as of 09/01/2026). In the past 52-week period, it has traded between $56.19 and $68.35.

The ETF has a beta of 0.86 and standard deviation of 12.97% for the trailing three-year period, making it a medium risk choice in the space. With about 867 holdings, it effectively diversifies company-specific risk.

Alternatives

Xtrackers Russell US Multifactor ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, DEUS is a sufficient option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.

The iShares Core S&P 500 ETF (IVV) and the Vanguard 500 Index Fund ETF Shares (VOO) track a similar index. While iShares Core S&P 500 ETF has $884.94 billion in assets, Vanguard 500 Index Fund ETF Shares has $1,024.64 billion. IVV has an expense ratio of 0.03% and VOO charges 0.03%.

Bottom-Line

Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

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This article originally published on Zacks Investment Research (zacks.com).

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