DWS launches Europe’s first world ex-US ETF

Investing / Portfolios
1

The launch of this ETF is a really good news. It will allow more combinations and a reduction of the US withholding tax for the non-US stocks.

An exemple of combination to replicate the MSCI ACWI with a US based ETF:
VTI + EXUS + H410

An exemple of combination to replicate the MSCI ACWI without a US based ETF:
SPY5+ EXUS + H410
TER: 0.08

https://etf.dws.com/en-gb/IE0006WW1TQ4-msci-world-ex-usa-ucits-etf-1c/

2 Likes
2

For those looking to adress the us high valuations at msci world level with European ETFs: xtrackers recently launched a msci world ex usa etf. Looks like an interesting option, although AuM are still small.

7 Likes
3

Wow this is big! Thanks for the heads up…

2 Likes
4

That is an excellent news at it has a potential to simplify many portfolios.

1 Like
5

You can also now implement straightforward slightly leveraged ucits portfolios, without taking on margin.

With the CL2 (Amundi 2x leveraged msci USA) when you would normally do 60/40 USA/ex-USA (or potentially less, as in discussion ongoing in this thread)

You could do something like 40% CL2 60% EXUS.

That‘s like 58/42 US/ex-US leveraged 1.4 x

Or do 30% CL2 40% EXUS and then add 30% in Bonds.

For 70/30 global stocks/bonds leveraged 1.3x

2 Likes