ETF Evaluator: Xtrackers MSCI EAFE High Div Yld Eq ETF () Follow This ETF

Xtrackers MSCI EAFE High Div Yld Eq ETF Overview

Xtrackers MSCI EAFE High Div Yld Eq ETF (HDEF) is a passively managed International Equity Foreign Large Value exchange-traded fund (ETF). Xtrackers launched the ETF in 2015.

The investment seeks investment results that correspond generally to the performance, before fees and expenses, of the MSCI EAFE High Dividend Yield Index. The fund will invest at least 80% of its total assets (but typically far more) in component securities of the underlying index. The underlying index is designed to reflect the performance of equities in its parent index, the MSCI EAFE Index, with higher dividend income and quality characteristics than average dividend yields of equities in the parent index, where such higher dividend income and quality characteristics are both sustainable and persistent. It is non-diversified.

About Xtrackers MSCI EAFE High Div Yld Eq ETF (HDEF)

There are 4 members of the management team with an average tenure of 6.00 years: Patrick Dwyer (2016), Shlomo Bassous (2017), Ashif Shaikh (2022) and Daniel Park (2024). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: MSCI EAFE NR USD index with a weighting of 100% and MSCI EAFE High Div Yld NR USD index with a weighting of 100%. Xtrackers MSCI EAFE High Div Yld Eq ETF has 141 securities in its portfolio. The top 10 holdings constitute 41.1% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a nondiversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

Xtrackers MSCI EAFE High Div Yld Eq ETF is part of the Equity global asset class and is within the International Equity ETF group. Xtrackers MSCI EAFE High Div Yld Eq ETF has 98.8% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0% There is 98.7% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Xtrackers MSCI EAFE High Div Yld Eq ETF has 0.4% of the portfolio in cash.

Assets Under Management

The fund has $2 billion in total assets, which is below the $2 billion average for the Foreign Large Value category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

HDEF Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Xtrackers MSCI EAFE High Div Yld Eq ETF expense ratio is low compared to funds in the Foreign Large Value category. Xtrackers MSCI EAFE High Div Yld Eq ETF has an expense ratio of 0.09%, which is 81% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Xtrackers MSCI EAFE High Div Yld Eq ETF has a portfolio turnover rate of 22%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 44% for the Foreign Large Value category.

Recently, in the month of July 2026, Xtrackers MSCI EAFE High Div Yld Eq ETF returned 5.3%, which earned it a grade of C, as the Foreign Large Value category had an average return of 4.5%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

Xtrackers MSCI EAFE High Div Yld Eq ETF has a trailing yield of 3.70%, which is above the 3.26% category average. The fund normally distributes its income quarterly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Xtrackers MSCI EAFE High Div Yld Eq ETF Grades

Year to date, the ETF has returned 12.2%, 2.9 percentage points worse than the category, which translates into a grade of D. The fund has returned 23.5% over the past year (grade of F), 17.1% over the past three years (grade of F) and 11.9% per year over the past five years (grade of C) and 8.9% per year over the past 10 years (grade of F).

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