(XDWM) db x-trackers MSCI World - Ratings and Ratios

The db x-trackers MSCI World Materials UCITS DR1C ETF (XETRA:XDWM) is a sector-specific exchange-traded fund that tracks the Morningstar Global Basic Materials TR USD Index, providing investors with exposure to a diversified portfolio of materials companies worldwide.

As a Germany-originated ETF, XDWM is designed to capture the performance of the global industrial materials sector, which includes companies involved in the production of raw materials, metals, and other commodities. The funds underlying index is a widely recognized benchmark for the global materials sector, making it a reliable choice for investors seeking to tap into this specific market segment.

Analyzing the ETFs recent price action, we observe that the current price of 53.35 is above its 20-day simple moving average (SMA20) of 50.66 and 50-day SMA of 52.31, indicating a potential bullish trend. However, the price is below its 200-day SMA of 54.81, suggesting that the long-term trend is still uncertain. The average true range (ATR) of 1.16, representing 2.17% of the current price, indicates moderate volatility.

With an assets under management (AUM) of 236.37M EUR, XDWM has a relatively modest size compared to other ETFs in the sector equity industrial materials category. Nevertheless, its liquidity on XETRA is sufficient for most investors.

Based on the technical and fundamental data, our forecast suggests that XDWM may experience a short-term bullish momentum, driven by the recent breakout above its 50-day SMA. However, the long-term trend remains uncertain, and investors should be cautious of potential pullbacks. If the global economy continues to grow, and demand for industrial materials increases, XDWM may benefit from the upward trend in the materials sector. Conversely, a decline in global economic growth or a downturn in commodity prices could negatively impact the ETFs performance. As such, we recommend closely monitoring the ETFs price action and adjusting investment decisions accordingly.