Is Xtrackers Russell US Multifactor ETF (DEUS) a Strong ETF Right Now?

A smart beta exchange traded fund, the Xtrackers Russell US Multifactor ETF (DEUS) debuted on 11/24/2015, and offers broad exposure to the Style Box - Large Cap Blend category of the market.

What Are Smart Beta ETFs?

Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.

A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.

But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.

By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.

While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.

Fund Sponsor & Index

DEUS is managed by Deutsche Bank Ag, and this fund has amassed over $221.65 million, which makes it one of the average sized ETFs in the Style Box - Large Cap Blend. Before fees and expenses, DEUS seeks to match the performance of the Russell 1000 Comprehensive Factor Index.

The Russell 1000 Comprehensive Factor Index provides exposure to domestic equities based on five factors Quality, Value, Momentum, Low Volatility and Size.

Cost & Other Expenses

For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.

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

It's 12-month trailing dividend yield comes in at 1.47%.

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.

Looking at individual holdings, Mckesson Corp (MCK) accounts for about 1.15% of total assets, followed by Cash & Cash Equivalents and Altria Group Inc (MO).

DEUS's top 10 holdings account for about 7.36% of its total assets under management.

Performance and Risk

Year-to-date, the Xtrackers Russell US Multifactor ETF return is roughly 8.47% so far, and is up about 17.83% over the last 12 months (as of 03/02/2026). DEUS has traded between $48.13 $63.25 in this past 52-week period.

DEUS has a beta of 0.92 and standard deviation of 13.29% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 846 holdings, it effectively diversifies company-specific risk .

Alternatives

Xtrackers Russell US Multifactor ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.

iShares Core S&P 500 ETF (IVV) tracks S&P 500 Index and the Vanguard 500 Index Fund ETF Shares (VOO) tracks S&P 500 Index. iShares Core S&P 500 ETF has $748.86 billion in assets, Vanguard 500 Index Fund ETF Shares has $853.79 billion. IVV has an expense ratio of 0.03% and VOO changes 0.03%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend

Bottom Line

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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Xtrackers Russell US Multifactor ETF (DEUS): ETF Research Reports

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

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