Europe Synthetic Equity & Index Strategy European Monthly ETF Market Review Date 12 June 2017 Deutsche Bank Markets Research +€11.1bn in May - Europe, EM equity and Corporate Bonds benefit Data in this report is as of 31 May 2017. European ETP Monthly Highlights (Assets & Flows): ■ Assets: European ETPs AUM increased by €7.5bn on MoM basis and ended the month at €607bn. ■ Flows: European-domiciled ETPs registered strong inflows of +€11.1bn last month where year-to-date flows have reached +€48bn. New Product Launches – 40 New products European ETP market witnessed 40 new launches in May which includes 28 Commodities ETPs , 11 Equity and 1 Fixed Income ETFs. Investment Themes for the Month ■ European indices (Regional focused) recorded inflows of +€2.2bn. Indices that benefitted this month were Euro STOXX 50 (+€879mn), MSCI EMU (+€392mn) and MSCI Europe (+€233mn). EM also saw significant inflows (+€1.3bn). Country wise, Japan (+€255mn) benefited while Germany & UK saw outflows (-€498mn) & (-€258mn) respectively. ■ Smart Beta segment recorded inflows of +€1.3bn. Value Factor ETFs surged with inflows of +€772mn. Robotics & Automation continued to draw steady investment (+€307mn). In other segments, Mid Caps (+ €685mn), Financials (+€191mn) and Industrials (+€112mn) benefitted while Real Estate lagged (-€137mn). ■ Corporate bond ETF were the net largest contributer for Fixed income flows, attracting +€2.4bn. ■ Gold ETPs (+€609mn) commanded most of the overall commodity flows (+€1bn). ■ Activity in US listed ETFs suggests that US investors were positive on both European-focused regional and country ETFs (+$5.1bn, ytd +$10.4bn). Turnover: MoM turnover increased by 25% The total turnover activity into European ETPs increased by 25% (€76.1bn) compared to the previous month’s total (€60.7bn). Ari Rajendra Research Analyst +44-20-754-52282 Sebastian Mercado, CFA Strategist +1-212-250-8690 Deutsche Bank AG/London Deutsche Bank does and seeks to do business with companies covered in its research reports. Thus, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. DISCLOSURES AND ANALYST CERTIFICATIONS ARE LOCATED IN APPENDIX 1.MCI (P) 083/04/2017. Distributed on: 12/06/2017 16:48:09 GMT 0bed7b6cf11c
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12 June 2017
European Monthly ETF Market Review
Europe Synthetic Equity & Index Strategy
European MonthlyETF Market Review
Date12 June 2017
Deutsche BankMarkets Research
+€11.1bn in May - Europe, EM equityand Corporate Bonds benefitData in this report is as of 31 May 2017.
European ETP Monthly Highlights (Assets & Flows):■ Assets: European ETPs AUM increased by €7.5bn on MoM basis and
ended the month at €607bn.
■ Flows: European-domiciled ETPs registered strong inflows of +€11.1bnlast month where year-to-date flows have reached +€48bn.
New Product Launches – 40 New productsEuropean ETP market witnessed 40 new launches in May which includes 28Commodities ETPs , 11 Equity and 1 Fixed Income ETFs.
Investment Themes for the Month■ European indices (Regional focused) recorded inflows of +€2.2bn. Indices
that benefitted this month were Euro STOXX 50 (+€879mn), MSCI EMU(+€392mn) and MSCI Europe (+€233mn). EM also saw significant inflows(+€1.3bn). Country wise, Japan (+€255mn) benefited while Germany &UK saw outflows (-€498mn) & (-€258mn) respectively.
■ Smart Beta segment recorded inflows of +€1.3bn. Value Factor ETFssurged with inflows of +€772mn. Robotics & Automation continued todraw steady investment (+€307mn). In other segments, Mid Caps (+€685mn), Financials (+€191mn) and Industrials (+€112mn) benefittedwhile Real Estate lagged (-€137mn).
■ Corporate bond ETF were the net largest contributer for Fixed incomeflows, attracting +€2.4bn.
■ Gold ETPs (+€609mn) commanded most of the overall commodity flows(+€1bn).
■ Activity in US listed ETFs suggests that US investors were positive on bothEuropean-focused regional and country ETFs (+$5.1bn, ytd +$10.4bn).
Turnover: MoM turnover increased by 25%The total turnover activity into European ETPs increased by 25% (€76.1bn)compared to the previous month’s total (€60.7bn).
Ari Rajendra
Research Analyst
+44-20-754-52282
Sebastian Mercado, CFA
Strategist
+1-212-250-8690
Deutsche Bank AG/London
Deutsche Bank does and seeks to do business with companies covered in its research reports. Thus, investors should beaware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should considerthis report as only a single factor in making their investment decision. DISCLOSURES AND ANALYST CERTIFICATIONSARE LOCATED IN APPENDIX 1.MCI (P) 083/04/2017.
4. Product Review .......................................................... 25New Products Launched in the Month ........................................................ 25Average TERs ............................................................................................... 27
5. Provider Rankings ...................................................... 31Global Provider Rankings ............................................................................. 31European Provider Rankings - General ......................................................... 33European Provider Rankings - by Asset Class .............................................. 37European Provider Analysis by Replication Method ..................................... 40
6. Trading Perspective .................................................... 41ETP Monthly Turnover Analysis by Asset Class, by Instrument .................... 41Asset Class Analysis ..................................................................................... 41Product Rankings ......................................................................................... 47
7. European ETF Exchanges ........................................... 52
8. Assets ........................................................................ 54ETP Monthly AUM Analysis by Asset Class ................................................. 54Asset Class Analysis ..................................................................................... 54Product Rankings ......................................................................................... 60
Appendix A: How we define ETPs ................................. 64
Appendix B: The road from beta to alpha ...................... 66
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European Monthly ETF Market Review
European ETP Highlights
Assets: European ETPs AUM increased by €7.5bn on MoM basis and ended themonth at €607bn. At asset class level, Equity ETFs assets rose by €6.5bn (1.6%)followed by fixed income €1.5bn (1%) while assets in Commodity ETPs fell by€482mn (-1%) during last month. For more details please refer to Assets section.
Flows: European-domiciled ETPs registered strong inflows of +€11.1bn duringlast month where year-to-date flows have reached +€48bn. Equity ETFs benefittedmost this month with inflows of +€7.2bn followed by Fixed Income ETFs andCommodity ETPs with inflows of +€3bn and +€1bn respectively. For more detailsplease refer to Cash Flow Analysis section.
Global ETPs HighlightsGlobal ETPs assets increased by $103bn, ending around $4 trillion at the end ofMay'17, 2.7% up from last month-end levels. Globally, ETPs registered monthlyinflows +$46bn during May. US-listed ETPs had inflows of +$31bn in overallflows. Asia-Pacific-listed ETPs recorded inflows of +$2.8bn during last month.
Figure 1: Global ETPs Snapshot - | ETPs | Global |
Source: Source: Deutsche Bank, Bloomberg Finance LP, Reuters.*Cash Flow Market Share corresponds to May-17 Monthly Cash Flow / Endof Apr-17 AUM
New Launch Activity
40 New products launched dominated by CommoditiesBNP Paribas launched 27 Commodity ETCs on Deutsche Borse providingexposure to various commodities such as Industrial Metals, Energy & PreciousMetals. Within Equity, Amundi listed 4 ETFs while BlackRock and First Trust Eachlisted 2 equity ETFs during last month. BNP Paribas, Lyxor & PowerShares showedtheir presence with the launch of one equity ETF each.
BlackRock and Source listed a Fixed Income and Commodity ETF respectivelyduring the month of May. For additional information on new product launchesplease refer to Product Review section.
Investment Themes for the Month
Broad Europe, EM and Japanese equities benefitted in May, Germany & UKwitness outflowsETFs tracking European indices (Regional focused) recorded inflows of +€2.2bn(+€6.2bn inflows so far this year). Indices that benefitted this month were EuroSTOXX 50 (+€879mn), MSCI EMU (+€392mn) and MSCI Europe (+€233mn).European Equities (based on ETFs tracking traditional regional indices) havebenefitted from positive flows (+€9.7bn) since Sep'16 whereas country focusedETFs observed mix trends. On the other hand, for US listed ETFs, investors havebeen positive on both European-focused regional and country ETFs (+$10.4bnflows so far this year). For more details please refer to US Markets section below.
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In other regions, Emerging Markets equity ETFs also had material inflows (+€1.3bn). Interestingly a single ETF tracking the MSCI Emerging Markets IMI indexwhich includes small cap securities drew +€1.1bn of ytd inflows.
Figure 2: Regional/Country flows - May - | ETFs | Europe |
Source: Deutsche Bank,Bloomberg Finance LP, Reuters. *Europe (DM) includes all European regional & country focused ETFs.
Country wise, Japan-focused ETFs benefitted most with inflows of +€255mnwhereas Germany and UK focused ETFs saw redemptions of -€498mn and -€258mn amid political uncertainty in these countries. Deka DAX UCITS ETF(ETFDAX GY) and UBS ETF - MSCI United Kingdom UCITS ETF A-acc (UKGBPBSW) affected most with monthly outflows of -€653mn and -€225mn respectivelyover the last month.
Smart Beta: Value Factor ETFs flows surgeEurope listed Smart Beta ETFs continued their positive run and registered +€1.3bn of new money in May taking year-to-date inflows to +€5.3bn. Within SmartBeta, Factor ETFs remained popular amongst investors where we observed largeinflows into Value factor ETFs (+€772mn). In other Factor sub-segments, multi-factor ETFs also drew investment with inflows of +€148mn. US listed Smart BetaETFs had positive inflows but with differing trends to that observed in Europe.We saw material inflows into multi-factor ETFs (+$1.1bn) and Low Vol (+$659mn)while Value ETFs witness outflows of -$732mn over the last month.
Amongst other Smart Beta categories, ESG and Dividend strategies based ETFsalso recorded positive inflows worth of +€141mn and +€109mn during lastmonth.
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Figure 3: Quarterly Flows into Factor & Low-Vol Strategies - | ETFs | Europe |
Source: Deutsche Bank,Bloomberg Finance LP, Reuters.
Robotics & Automation continues to draw steady investment, Mid Caps,Financials performed well while Real Estate saw redemptionsAmong other equity sub-segments, Mid cap ETFs recorded monthly inflows of+€685mn during May which was primarily contributed by iShares MSCI EuropeMid Cap UCITS ETF (EUMD LN) with inflows of+€471mn. The thematic segmentalso benefitted from inflows (+€307mn) which were primarily attributed toRobotics & Automation related ETFs. We have seen steady inflows into this sectorsince last year particularly into two products; iShares Automation & RoboticsUCITS ETF (RBOT LN) (+€397mn) and Robo Global Robotics and AutomationUCITS ETF (ROBO LN) (+€244mn).
Sector-wise, Financials and Industrials sector ETFs benefitted most and recordedmonthly inflows of +€191mn and +€111mn respectively while Real Estate sawredemptions of -€137mn during last month. Year to date, Financial Sector ETFshas topped the flow ranking table with inflows of +€943mn while Real Estatefaced most of the redemptions so far this year (-€101mn).
Corporate Bonds witness surge in flows & asset growthFixed Income ETFs registered inflows of +€3bn last month. Corporate bond ETFscontributed most attracting +€2.4bn. However the two largest inflows were intoSovereign ETFs. iShares Emerging Markets Local Government Bond UCITS ETF(SEML LN) and iShares $ Treasury Bond 1-3yr UCITS ETF (IBTS LN) benefitted withmonthly inflows of +€521mn and +€296mn respectively. On a Year to date basis,all the FI sub segments reported positive flows except covered bonds (-€116mn).Sovereign bonds led the tally with inflows of +€6.2bn followed by CorporateBonds (+€5.9bn).
In terms of growth, Corporate Bonds ETFs led with 3.5% increase in assets whilecovered bonds suffered most with -3.4% decrease in assets during May. Further,Global EM bonds recorded another month of significant activity (+€1bn, ytd +€5.5bn). Figures below illustrate monthly flows and flows % in Fixed Incomesegments.
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Figure 4: Flow as % of AUM - Fixed Income Segments
Source: Deutsche Bank, Bloomberg Finance LP, Reuters.
Figure 5: Corp. ETFs vs Sov. ETFs Monthly Flows
Source: Deutsche Bank, Bloomberg Finance LP, Reuters.
Commodity ETPs inflows driven by Gold ETPsEuropean Commodity ETP market registered inflows of +€1bn (+€4.9bn YTD).Flows into Gold ETPs remained strong during the month of May with inflows of+€1bn (+€2.4bn so far this year). In asset terms, Gold ETPs assets reached at€30.3bn out of total commodity assets of €45.5bn which is almost 67% of overallcommodity assets. In terms of asset growth, Crude Oil led with 4.7% increase inassets followed by Gold ETPs (2%) While Broad ETPs saw flat asset growth.
Figure 6: Cum. Flows into Commodity ETPs for last 3 years
Source: Deutsche Bank, Bloomberg Finance LP, Reuters.
Turnover: MoM turnover activity increased by 25%
The total turnover activity into European ETPs increased by 25% (€76.1bn)compared to the previous month’s total (€60.7bn). All the major assets classessaw increased turnover activity where Equity ETFs increased by 32 % followedby Fixed Income (13%) and Commodity ETPs (7%). For more details please referto Trading Perspective section.
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Price discounts/premium to NAV Monitor
The price of ETFs may not trade in line with the respective NAVs driven bymultiple factors such as supply/demand, market access, duty and varying tradingtime zones of stocks within an index. In this section we highlight, for ETFs withEuropean equity exposure only, the median, maximum premium and maximumdiscount observed in varying categories for this month. Figures below illustratethe Price premium/discount to NAV for European ETFs.
■ Equities: Deepest discount in Sector (-0.40%) and highest premium(0.45%) occurred within Size ETFs.
■ Fixed Income: Broad Bonds had the deepest discount (-0.17%) andhighest premium (0.26%) occurred within Corporate Bond ETFs.
Figure 7: Price premium/discount to NAV - | ETFs | Europe |
Source: Deutsche Bank, Bloomberg Finance LP, Reuters
US Market: European-focused regional & country ETFsbenefit
US domiciled ETPs recorded inflows of +$30.8bn in May approaching +$200bninflows so far this year. Equity ETFs topped the flows ranking with inflows of +$20.4bn followed by inflows into fixed income ETFs (+$10.8bn). Commodity ETPsreversed the previous month positive trend and comes into negative zone withredemptions worth of -$0.6bn(+$0.7bn in Apr'17).
US investors have been positive to both European-focused regional and countryETFs where Europe DM broad recorded inflows of +$4.5bn and within countryfocused, only UK saw redemptions (-$203mn) during last month.
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1. Investment TrendsCross-Asset Class - | ETPs | Europe |
Figure 8: Cash flows by asset class – YTD
-6,000
0
6,000
12,000
18,000
24,000
30,000
36,000
42,000
48,000
54,000
€ m
illio
ns
Equity Fixed Income Commodity Others
Source: Deutsche Bank, Bloomberg Finance LP, Reuters.
Figure 9: Cash flows by asset class – Month
-2,000
0
2,000
4,000
6,000
8,000
10,000
12,000
€ m
illio
ns
Equity Fixed Income Commodity Others
Source: Deutsche Bank, Bloomberg Finance LP, Reuters.
Page 8 Deutsche Bank AG/London
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2. Market MetricsETF Industry Asset Evolution
Figure 10: Global ETP regional asset growth - | ETPs | Global |
Other 191 5.27% 2,399 3,572 16.78% 10,732 Other 21 4.30% 1,479 620 19.63% 7,393
Total 3,632 100.00% 11,860 21,290 100.00% 59,932 Total 483 100.00% 11,909 3,157 100.00% 60,053
Value Trade Summary Volume Trade Summary
May-17 YTD May-17 YTD
Source: Deutsche Bank, Bloomberg Finance LP.
Note: ETC broker statistics represent advertised volume as reported by brokers to Bloomberg. These numbers may be different from actual volume traded.
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Appendix A: How wedefine ETPsExchange-Traded Products (ETPs)We define an exchange-traded product (ETP) as a secure (funded or collateralized)open-ended delta-one exchange-traded equity or debt instrument with noembedded optionality and market-wide appeal to investors. This includesexchange traded funds, exchange-traded commodities (Europe) and exchange-traded vehicles (US).
Figure below gives a summary of our current coverage universe by region andstructure type as on 30 December 2016.
The vast majority of instruments are ETFs (97.4%, 4,779 products, $3,422bn) withthe remainder being ETCs (0.8%, 474 products, $26.5bn) in Europe and ETVs(1.8%, 64 products, $61.7bn) in the US.
Figure 92: ETP Coverage Universe Summary
Source: Deutsche Bank, Bloomberg Finance LP, Reuters.
Exchange-Traded Funds (ETFs, 97.4%)US (70.4%): Fund structures that issue shares that are traded on an exchangemuch the same way as equities. ETFs indexed to equity and fixed incomebenchmarks are registered under the investment company act of 1940. Onlyphysical index replication techniques are permissible by this legislation whilesynthetic replication is not allowed.
Europe (15.5%): Fund structures that issue units or shares that are traded on anexchange much the same way as equities. The vast majorities of European ETFsare UCITS III compliant and are primarily domiciled in Dublin and Luxemburg. TheUndertakings for Collective Investment in Transferable Securities (UCITS) are aset of European Union directives that aim to allow collective investment schemesto operate freely throughout the EU on the basis of a single authorization fromone member state. Both physical and synthetic index replication is permissible byUCITS and funds are allowed to track equity, fixed income as well as diversifiedcommodity indices.
Asia (8.9%): Both European and US ETFs are cross sold into the Asian market.
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Exchange-Traded Collateralized Instruments (2.6%)
Exchange-Traded Commodities (ETCs, 0.8%)In Europe as UCITS III does not permit the creation of funds tracking nondiversified commodity indices (for example wheat or oil), exchange-tradedproducts that track single commodity profiles are issued under the EU ProspectusDirective in two structures that have become widely known as exchange-tradedcommodities (ETCs). ETCs can either be physically backed or they can beissued through a bankruptcy remote special purpose vehicle (SPV). Both formsutilize offshore domiciles, such as Jersey, and are classed as debt instruments.Physically-backed ETCs are fully backed with securities that closely resemble thecomposition of a product’s benchmark index. SPV structures are collateralized byassets which could bear no resemblance to those of their respective benchmarkindex and ensure replication of their index return through a total return swapstructure or by holding other derivative instruments such as futures. In the vastmajority of cases, both types of ETCs are fully collateralized with secure assetssuch as money market instruments, government bonds and gold. For moreinformation, please refer to our research report issued on March 11 2010 titled‘The race for assets in the European Exchange-Traded Products Market”.
Exchange-traded vehicles (ETVs, 1.8%)This terminology typically refers to grantor trusts that exist in the US market.These instruments track primarily commodity benchmarks. They differ fromETFs in that they are registered under the Securities Act of 1933 and not theinvestment Company Act of 1940, hence they are not classed as funds. Vehiclesthat replicate commodity benchmarks, more often known as pools, and fundstargeting alternative index returns are formed under the Commodities ExchangeAct and are listed under the 33 Securities Act, and report under 34 Corporate Act.
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Appendix B: The road frombeta to alphaThe figure below illustrates the road from beta (diversified rule based marketaccess) to alpha (discretionary market access). Moving counter-clockwise frombeta, the potential for return increases, together with the potential risk.
Figure 93: The Roadmap From Beta (β) to Alpha (α)
Source: Deutsche Bank
The performance of beta products is measured against an index; a manager ismost successful when they manage to match the return of a product to its statedbenchmark. The performance of alpha products, or rather the performance of analpha product’s manager, is measured by the risk adjusted return it generates.The highest the return and the lowest the risk [typically measured by the standarddeviation of a product’s returns] the more successful a product is deemed to be.
There is however a whole host of products that fall between beta and alpha, wehave sought to create a classification system that classifies these products, takinginto consideration a number of variables, ranging from diversification to whatconstitutes a market segment.
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The authors of this report wish to acknowledge the contribution made by VibhorMahalwala and Varun Sachdeva, employees of Evalueserve, a third party providerto Deutsche Bank of offshore research support services.
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Appendix 1
Important Disclosures
*Other information available upon request
*Prices are current as of the end of the previous trading session unless otherwise indicated and are sourced fromlocal exchanges via Reuters, Bloomberg, and other vendors. Other information is sourced from Deutsche Bank, subjectcompanies, and other sources. For disclosures pertaining to recommendations or estimates made on securities other thanthe primary subject of this research, please see the most recently published company report or visit our global disclosurelook-up page on our website at http://gm.db.com/ger/disclosure/DisclosureDirectory.eqsr. Aside from within this report,important conflict disclosures can also be found at https://gm/db.com/equities under the "Disclosures Lookup" and "Legal"tabs. Investors are strongly encouraged to review this information before investing.
Analyst Certification
The views expressed in this report accurately reflect the personal views of the undersigned lead analyst(s). In addition,the undersigned lead analyst(s) has not and will not receive any compensation for providing a specific recommendationor view in this report. Ari Rajendra, Sebastian Mercado
Hypothetical Disclaimer
Backtested, hypothetical or simulated performance results have inherent limitations. Unlike an actual performancerecord based on trading actual client portfolios, simulated results are achieved by means of the retroactive applicationof a backtested model itself designed with the benefit of hindsight. Taking into account historical events the backtestingof performance also differs from actual account performance because an actual investment strategy may be adjustedany time, for any reason, including a response to material, economic or market factors. The backtested performanceincludes hypothetical results that do not reflect the reinvestment of dividends and other earnings or the deduction ofadvisory fees, brokerage or other commissions, and any other expenses that a client would have paid or actually paid.No representation is made that any trading strategy or account will or is likely to achieve profits or losses similar tothose shown. Alternative modeling techniques or assumptions might produce significantly different results and prove tobe more appropriate. Past hypothetical backtest results are neither an indicator nor guarantee of future returns. Actualresults will vary, perhaps materially, from the analysis.
Equity Rating Key Equity rating dispersion and banking relationships
Buy: Based on a current 12- month view of total share-holderreturn (TSR = percentage change in share price from currentprice to projected target price plus pro-jected dividend yield ) ,we recommend that investors buy the stock.Sell: Based on a current 12-month view of total share-holderreturn, we recommend that investors sell the stock.Hold: We take a neutral view on the stock 12-months out and,based on this time horizon, do not recommend either a Buyor Sell.
Newly issued research recommendations and target pricessupersede previously published research.
1.Additional InformationInformation on ETFs is provided strictly for illustrative purposes and should not be deemed an offer to sell or asolicitation of an offer to buy shares of any fund that is described in this document. Consider carefully any fund'sinvestment objectives, risk factors, and charges and expenses before investing. This and other information can be foundin the fund's prospectus. Prospectuses about db X-trackers funds and Powershares DB funds can be obtained by calling1-877-369-4617 or by visiting www.DBXUS.com. Read prospectuses carefully before investing. Past performance is notnecessarily indicative of future results. Investing involves risk, including possible loss of principal. To better understandthe similarities and differences between investments, including investment objectives, risks, fees and expenses, it isimportant to read the products' prospectuses. Shares of ETFs may be sold throughout the day on an exchange throughany brokerage account. However, shares may only be redeemed directly from an ETF by authorized participants, in verylarge creation/redemption units. Transactions in shares of ETFs will result in brokerage commissions and will generatetax consequences. ETFs are obliged to distribute portfolio gains to shareholders. Deutsche Bank may be an issuer,advisor, manager, distributor or administrator of, or provide other services to, an ETF included in this report, for which itreceives compensation. db X-trackers and Powershares DB funds are distributed by ALPS Distributors, Inc. The opinionsexpressed are those of the authors and do not necessarily reflect the views of DB, ALPS or their affiliates.
Aside from within this report, important conflict disclosures can also be found at https://gm.db.com/equities under the"Disclosures Lookup" and "Legal" tabs. Investors are strongly encouraged to review this information before investing.
?The information and opinions in this report were prepared by Deutsche Bank AG or one of its affiliates (collectively"Deutsche Bank"). Though the information herein is believed to be reliable and has been obtained from public sourcesbelieved to be reliable, Deutsche Bank makes no representation as to its accuracy or completeness. Hyperlinks to third-party websites in this report are provided for reader convenience only. Deutsche Bank neither endorses the content noris responsible for the accuracy or security controls of these websites.
If you use the services of Deutsche Bank in connection with a purchase or sale of a security that is discussed in this report,or is included or discussed in another communication (oral or written) from a Deutsche Bank analyst, Deutsche Bank mayact as principal for its own account or as agent for another person.
Deutsche Bank may consider this report in deciding to trade as principal. It may also engage in transactions, for itsown account or with customers, in a manner inconsistent with the views taken in this research report. Others withinDeutsche Bank, including strategists, sales staff and other analysts, may take views that are inconsistent with those takenin this research report. Deutsche Bank issues a variety of research products, including fundamental analysis, equity-linkedanalysis, quantitative analysis and trade ideas. Recommendations contained in one type of communication may differfrom recommendations contained in others, whether as a result of differing time horizons, methodologies or otherwise.Deutsche Bank and/or its affiliates may also be holding debt or equity securities of the issuers it writes on. Analysts arepaid in part based on the profitability of Deutsche Bank AG and its affiliates, which includes investment banking, tradingand principal trading revenues.
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