(DEEF) Xtrackers FTSE Developed ex - Ratings and Ratios

The Xtrackers FTSE Developed ex US Multifactor ETF (DEEF) is an investment vehicle that focuses on equity securities from developed markets outside the United States, allocating at least 80% of its net assets and borrowings towards this objective. The underlying index employs a multifaceted approach, selecting companies based on quality, value, momentum, low volatility, and size criteria, aiming to capture a broad spectrum of investment styles.

By concentrating on non-US developed markets and utilizing a multifactor strategy, DEEF offers a diversified exposure to international equities, potentially reducing reliance on any single market factor. The funds non-diversified nature implies that it may be more susceptible to significant price swings due to its investment concentration, but the multifactor approach is designed to mitigate some of this risk by spreading investments across various style factors.

Analyzing the technical data, the ETFs price action indicates a positive trend, with the last price of $32.63 exceeding both the 20-day and 50-day Simple Moving Averages (SMA20 and SMA50) of $31.86 and $30.79, respectively. The Average True Range (ATR) of 0.44, or 1.34%, suggests moderate daily volatility. Given the current price is at its 52-week high, it indicates a strong recent performance. The upward trajectory, supported by the SMA200 at $29.66, suggests a longer-term bullish trend.

Combining technical and fundamental insights, the relatively modest Assets Under Management (AUM) of $50.16M USD may indicate a less liquid market for the ETF, potentially leading to wider bid-ask spreads. However, this also presents an opportunity for growth as the multifactor strategy is designed to be attractive in various market conditions. Looking ahead, if the current trend continues and the multifactor index methodology effectively navigates market fluctuations, DEEF could potentially continue its upward trajectory, targeting new highs beyond $32.63. A forecast based on the current SMA20 and SMA50 trends, along with the low volatility factor of the index, might see the ETF testing resistance levels in the near term, with a potential target of $34-$35, representing a 4-7% increase from current levels, assuming the trend persists and the multifactor strategy continues to effectively manage risk.