AXEAX vs DBEU Fund Comparison

A comparison between AXEAX and DBEU based on their expense ratio, growth, holdings and how well they match their benchmark performance.

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Minafi's Take on AXEAX vs DBEU

Here's an in depth look at the differences between Columbia Contrarian Europe Fund Class A ($AXEAX) and Xtrackers MSCI Europe Hedged Equity ETF ($DBEU).

To start off, here's a look at the basics of each fund. Keep an eye on the FI Score. That's a custom score from 0 to 100 that we generate based on how good this fund is for the casual investor. Most investors only need a handful of total funds in their portfolio. The higher the score, the more likely this is one of those few. Score alone isn't enough! Keep reading on to see how different (or perhaps similar) these two funds are.

34% FI Score
  • axeax
  • Mutual Fund
  • International Stocks
  • Europe Stock

Columbia Contrarian Europe Fund Class A

Expenses: 1.34% (Better than 0% of similar funds)

This is a bad choice for a Europe Stock International Stocks fund. See why »

68% FI Score
  • dbeu
  • ETF
  • International Stocks
  • Europe Stock

Xtrackers MSCI Europe Hedged Equity ETF

Expenses: 0.45% (Better than 1% of similar funds)

This is an OK choice for a Europe Stock International Stocks fund. See why »

$AXEAX is classified as a Mutual Fund while $DBEU is classified as an ETF. Even though one of these is a mutual fund and the other is an ETF, that doesn't matter too much for their holdings. Both ETFs and mutual funds are just containers to hold lots of investments inside of them.

The biggest differences between these two is where they may be offered. ETFs are more widely availble from a larger number of investment apps and websites. Mutual funds, on the other hand, are generally offered by the platform they're issued by (Fidelity funds on Fidelity, Vanguard funds on Vanguard). Usually 401(k)'s will offer both ETFs and Mutual Funds. If you're investing outside of a 401(k), I'd recommend you verify the fees associated with ETF and mutual fund transactions. Some platforms charge an additional fee to purchase a mutual fund.

To learn more about the difference between these two, you can read about the difference between ETFs and Mutual Funds.

When evaluating a fund, the first things I look at are:

  • What it invests in
  • How much it charges in fees
  • How large the fund is

Let's look into these criteria one by one and see if either of these funds stands out.

Fund Holdings Comparison

Both of these funds are International Stocks Europe Stock funds – which means they're likely both investing in about the same investments behind the scenes.

Minafi's FI Score algorithm takes into account the category and market. The more niche a fund is, the lower the score. This doesn't mean it's a worse fund, but it does mean you should stop and make sure this a fund you need to diversify your portfolio.

AXEAX DBEU
Market Score 5.8 /10 7.4 /10
Category Score 5.0 /10 5.0 /10
Total 10.8 12.4

A score of 10 means this is a solid market and category that almost every investor will want to have investments in. The lower the score, the more specific the investment. These scores are based on when most investors would add these funds to their portfolio. A score of 10 means that this fund (or one like it) belongs in a three-fund portfolio. The lower the score, the farther down in your portfolio a fund would go.

Winner: $DBEU

Fee Comparison

Fees are one of the biggest killers of portfolio growth. The difference between a 2% fee and a 0.04% fee over 30 years can result in your portfolio having half the total value!

If you're just getting started investing and learning how fees impact your portfolio, I'd encourage you to read through my free investment course (specifically '2.2 - All About Fees') where I go over all the different types of fees you can be charged and how to lower them.

For these two funds, AXEAX has an expense ratio of 1.34% while DBEU has an expense ratio of 0.45%.

Winner: $DBEU

Fund Size Comparison

Both AXEAX and DBEU have a similar number of assets under management. AXEAX has 236 Million in assets under management, while DBEU has 487 Million.

Minafi categorizes both of these funds as medium funds. Fund size is a good indication of how many other investors trust this fund. A large fund by itself doesn't mean it's a good fund, but it is one thing to consider when figuring out how to choose the right fund.

Winner: tie

Which Should You Choose? AXEAX or DBEU?

Since both of these funds are International Stocks Europe Stock funds, you'll most likely only need to invest in one of these funds – not both. Running both of these funds through Minafi's FI Score algorithm, gives AXEAX a score of 34 and DBEU a score of 68.

Neither of these funds has an FI Score above 90 – which is a red flag. I'd look into more funds to find one with a higher FI Score.

Winner: Neither, I'd research more funds if you're looking to invest for retirement.

$AXEAX

Columbia Contrarian Europe Fund Class A

34

Read More
Ratings
Rating Type Rating
Expense Ratio Score 3 /10
Expense Rating 0 /10
Market Score 6 /10
Category Score 5 /10
Overview
Overview Details
Fund Type Mutual Fund
Inception Date Jun-26-2000
Exchange NMFQS
Expense Ratio 1.340%
Net Assets 236 Million
Yield 2.35%
Holdings
Description Info
Market International Stocks
Category Europe Stock
Sectors
  • Basic Materials 6.27%
  • Communication Services 7.00%
  • Consumer Cyclical 15.02%
  • Consumer Defensive 11.18%
  • Energy 2.15%
  • Financial Services 10.59%
  • Healthcare 21.40%
  • Industrials 9.92%
  • Real Estate 0.00%
  • Technology 15.15%
  • Utilities 1.32%
Regions
  • Europe Developed 79.14%
  • United Kingdom 20.86%

$DBEU

Xtrackers MSCI Europe Hedged Equity ETF

68

Read More
Ratings
Rating Type Rating
Diversification Score 8 /10
Expense Ratio Score 8 /10
Expense Rating 6 /10
Market Score 7 /10
Category Score 5 /10
Overview
Overview Details
Fund Type ETF
Inception Date Oct-1-2013
Exchange NYSE ARCA
Expense Ratio 0.450%
Net Assets 487 Million
Yield 3.21%
Holdings
Description Info
Market International Stocks
Category Europe Stock
Sectors
  • Basic Materials 7.45%
  • Communication Services 5.86%
  • Consumer Cyclicals 8.58%
  • Consumer Defensive 15.10%
  • Energy 5.07%
  • Financial Services 15.14%
  • Healthcare 16.98%
  • Industrials 12.61%
  • Real Estate 1.44%
  • Technology 7.06%
  • Utilities 4.70%
Regions
  • Asia Developed 0.21%
  • Europe Developed 75.45%
  • Europe Emerging 0.00%
  • Latin America 0.00%
  • North America 0.81%
  • United Kingdom 23.53%

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