Aram Babikian, Head of Xtrackers Sales, US Onshore Wealth for Xtrackers by DWS, joined Keith Black, Managing Director of RIA Channel, to discuss global investments, currency hedging, and geopolitical risks.
DWS is a global asset manager with approximately $1 trillion in AUM. DWS manages three lines of business: alternatives, Xtrackers ETFs, and active fixed income and equity products.
Xtrackers manages approximately $335 billion, including a top-three market share in UCITS funds. In the US, Xtrackers manages $26 billion across 40 ETFs. Xtrackers operates on three principles: innovation, access, and value. The firm seeks to launch unique products in markets or strategies that were previously difficult to access. This includes Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR), and currency-hedged international and global equity ETFs, such as Xtrackers MSCI All World ex US Hedged Equity ETF (DBAW).
Investors employ a range of strategies to hedge their portfolios against rising geopolitical risk. Xtrackers US National Critical Technologies ETF (CRTC) directly addresses this issue by investing in 14 technologies identified as critical by the US Department of Defense. This fund is offered in partnership with JH Whitney, a defense contractor and data analytics firm that analyzes companies regarding geostrategic risks. For example, Apple ranks as higher risk, with 20% of revenue earned in China, where a substantial portion of the firm’s supply chain is located. Investors may face lower risks when avoiding investments in companies exposed to adversarial nations, such as China, Russia, Iran, and North Korea.
The Xtrackers Artificial Intelligence and Big Data ETF (XAIX) invests in both innovative companies driving AI and companies that will benefit from the technology. For example, Bank of America is one of the largest patent holders of artificial intelligence applications. The ETF research process creates a basket of stocks that hold AI-related patents, which are identified using natural language processing.
Babikian notes that US equities comprised 70% of global market capitalization at the end of 2024, which is much larger than the US share of global GDP. In 2025, non-US markets have been outperforming, partially due to their P/E ratios being as much as 40% lower than those of the US market, and investors seeking to enhance diversification. European markets may be driven by enhanced investments in infrastructure and defense, led by the German government’s stimulus plans.
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