Q: What do you think of these ETFs? They seem to hold mostly the same stocks and have roughly the same performance - which is good. Where would you put them on the risk scale?
5i Research Answer:
DXG has slightly more international exposure (26%), whereas DXU only has 5% exposure to international stocks. DXG is more liquid ($591M AUM vs. DXU at $125M), and both have performed very similarly since inception, although DXG has slightly outperformed DXU. Both funds have 26 holdings each, mostly in tech, industrials, healthcare, financials, and communications. We would consider both to be medium risk, given the high concentration of names (26 holdings), but largely, these funds hold large or medium-cap companies that are mostly well-known, and their performances have been solid.