Xtrackers Russell US Multifactor ETF

The fund seeks to replicate the total return performance of the benchmark index, before fees and expenses, by investing in companies in the United States.

The investment process starts with a list of companies in the benchmark index and the research team utilizes quantitative techniques and fundamental analysis to identify investment opportunities.

As part of its strategy, the fund employs a passive or indexing investment approach that is designed to track the performance of the Underlying Index.

The Underlying Index is designed to track the performance of companies in the United States selected on the investment style criteria (factors) of value, momentum, quality, low volatility and size.

Next, the research team invests significantly in component securities of the Underlying Index.

Additionally, the research team employs a representative sampling strategy to invest in a representative sample of securities that collectively has an investment profile similar to the Underlying Index.

Then the manager constructs a portfolio of stocks from a list of companies favored by the research team and allocates capital based on its conviction level.

The fund seeks to replicate the composition of the benchmark index, holding each security in approximately the same proportion as its weighting in the Index.

Also, the fund will concentrate its investments in a particular industry or group of industries to the extent that its Underlying Index is concentrated.