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This ETF offers exposure to emerging markets, making DBEM one of many products offering exposure to an asset class that is often a core component of long-term, buy-and-hold portfolios. This fund is similar to products such as EEM and VWO as far as the underlying portfolio; the overlap between these ETFs is nearly perfect. But DBEM is unique from other emerging markets ETFs because it hedges out the currency exposure that an investment in international equities entails. In addition to establishing a long position in international stocks, investors using most emerging markets ETFs are also going long the currencies of the underlying stocks (including the Brazilian real, Indian rupee, and Russian ruble) and short the U.S. dollar. DBEM uses short term forward contracts to neutralize the impact of exchange rate fluctuations, essentially isolating the local performance of the emerging market stocks as the driver of returns. While this difference may seem minor, the impact of currency movements on equities can be a significant source of return--both positive and negative--to U.S. based investors. Though DBEM's portfolio is nearly identical to those of EEM and VWO, the risk/return profiles of these products can vary significantly. Investors who expect the U.S. dollar to strengthen relative to its developed market rivals may prefer DBEM as the optimal means of establishing exposure to the emerging markets region, as this fund should outperform EEM / VWO when the U.S. currency appreciates. Those with a bearish outlook for the greenback may prefer to leave currency exposure unhedged, utilizing a fund such as EEM instead. Those investors without a strong view in either direction might use a mix of both hedged and unhedged EAFE ETFs (eg 50% in DBEM and 50% in EEM). Given the broad focus of this ETF, DBEM might be very useful to those building a long-term portfolio; the EAFE region generally receives a big weighting in most portfolios. DBEM can also be useful for establishing a currency-neutral tactical tilt towards this corner of the global equity market.
The adjacent table gives investors an individual Realtime Rating for DBEM on several different metrics, including liquidity, expenses, performance, volatility, dividend, concentration of holdings in addition to an overall rating. The "A+ Metric Rated ETF" field, available to ETFdb Pro members, shows the ETF in the Emerging Markets Equities with the highest Metric Realtime Rating for each individual field. To view all of this data, sign up for a free 14-day trial for ETFdb Pro. To view information on how the ETFdb Realtime Ratings work, click here.View the Category Report
The following tables and charts contain in-depth metrics for this ETF and compare it to similar peer ETFs within its ETFdb Category.
This ETF is currently available for commission free trading on the following platforms: (E*TRADE)
There are 38 other ETFs in the Emerging Markets Equities ETFdb Category that are also eligible for commission free trading:
This section shows how this ETF has performed relative to its peer group ETFdb Category.
The following charts can be customized to display historical performance in a number of different formats, including line charts, bar charts, and candlesticks. Time periods can be adjusted to increase or decrease the period shown, ranging from five minutes to several months.
The following chart also includes the option to compare the performance of DBEM relative to other ETFs and benchmarks or to include indicators such as Bollinger Bands, relative strength, and moving averages.
This section shows how the volatility of this ETF compares to the peer group ETFdb Category.
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