Exchange-Traded Funds
Deutsche X-trackers High Yield Corporate Bond—
Interest Rate Hedged ETF (HYIH)
Thoughtful options for a rising interest-rate environment
High yield remains attractive for those
on the hunt for additional yield
With spreads relatively higher and
default rates at low historical levels,
HYIH offers a potentially attractive
higher-yielding opportunity for fixedincome investors while limiting
sensitivity to rising rates, all in one ETF.
Reduced sensitivity to interest rates
Dial down exposure to interest-rate risk
When rates rise, bond prices typically
fall. With interest rates near historic
lows, investors weighing how to
position their bond portfolio in
anticipation of more rate hikes may
consider HYIH.1
Deutsche X-trackers ETFs offer
investors access to key segments of
the fixed-income market and may
serve as an efficient way for investors
to maintain desired exposures while
seeking to lower the overall interestrate risk of their portfolios.
A hedge against rising rates
——Interest-rate risk, the risk that bond prices may fall with rising rates, often remains in portfolios. Bonds with longer
durations tend to be more sensitive to these interest-rate fluctuations.
——Interest-rate-hedged investments seek to minimize the interest-rate risk of fixed-income investments across the yield curve
by matching the interest-rate sensitivity of long high-yield bonds with that of short positions in U.S. Treasury futures.
High-yield-bond exposure
High-yield spreads are wider, providing a potentially
attractive entry point for investors (1/31/04–3/31/17)2
High-yield spreads (bps)
2,500
Interest-rate hedged
Seeks to minimize interest-rate risk in a rising-rate
environment while preserving traditional credit exposure
Unhedged
exposure
Hedged
exposure
Credit
risk
Credit
risk
Interest-rate
Risk
Minimize
interest-rate
risk with hedge
2,000
1,500
1,000
500
0
Jan-04 Jan-06 Jan-08 Jan-10 Jan-12 Jan-14 Mar-17
Bank of America-Merrill Lynch U.S. High Yield
Constrained Index
1
2
ource: Federal Reserve economic data as of 3/31/17.
S
Source: Deutsche Asset Management and Bank of America as of 3/31/17. Past performance is no guarantee of
future returns.
Credit risk is the risk a company will default and represents the spread or extra risk an investor takes on depending on
a bond’s credit quality. This can be mitigated via bond selection.
Overview
ETF details (as of 3/31/17)
NYSE ticker
HYIH
Expense ratio
0.35%
Listing date
3/3/15
Distribution
Monthly
Net assets
$10.5 million
Looking for high-yield exposure, but have concerns about rising interest rates in
the near future? Gain exposure to high-yield bonds while potentially dialing down
your portfolio’s interest-rate risk with the Deutsche X-trackers High Yield Corporate
Bond—Interest Rate Hedged ETF (HYIH). HYIH seeks to track the performance,
before fees and expenses, of the Solactive USD High Yield Corporate Bond—
Interest Rate Hedged Index.
Index details (as of 3/31/17)
Index creator
Sector breakdown3 (3/31/17)
Solactive
Underlying index
Energy—13.00%
Solactive USD
High Yield
Corporate Bond
—Interest Rate
Hedged Index
Index ticker
Consumer discretionary—11.60%
Communications—10.91%
Financials—9.50%
SOLHYIH
Index inception
date
Consumer, Non-cyclical—9.16%
10/31/14
Industrials—8.85%
Number of
constituents
1,214
Modified duration
1
Yield to worst
2
0.02
0.98%
Source: Bloomberg, Solactive as of 3/31/17.
One cannot invest directly in an index.
Telecommunication
services—8.34%
Consumer staples—1.34%
Materials—2.07%
Basic materials—3.40%
Health care—4.16%
Utilities—4.74%
Information
technology—6.17%
Consumer, Cyclical—7.22%
Modified duration is the approximate percentage change in a bond’s price for a 100 basis point change
in yield, assuming that the bond’s expected cash flow does not change when the yield changes.
2
Yield to worst is the lowest potential yield that can be received on a bond without the issuer
actually defaulting.
3
Percentages may exceed 100% due to rounding. Holdings subject to change.
1
Spread refers to the excess yield various bond sectors offer over financial instruments with similar maturities. When spreads widen,
yield differences are increasing between bonds in the two sectors being compared. When spreads narrow, the opposite is true. The
Solactive USD High Yield Corporate Bond—Interest Rate Hedged Index tracks the performance of a basket of U.S. dollar-denominated,
high-yield, liquid corporate bonds. Bank of America Merrill-Lynch U.S. High Yield Constrained Index tracks the performance of U.S. dollar
denominated below investment grade corporate debt issued in the U.S. Basis point (bps) is a unit that is equal to 1/100th of 1%.
Carefully consider the fund’s investment objectives, risk factors, and charges and expenses before investing. This and
other information can be found in the fund’s prospectus, which may be obtained by calling 1-855-329-3837, or by viewing
or downloading a prospectus from deutsche-etfs.com. Read the prospectus carefully before investing.
Deutsche X-trackers ETFs (“ETFs”) are managed by DBX Advisors LLC or (the “Adviser”), and distributed by ALPS Distributors, Inc.
(“ALPS”). The Adviser is a subsidiary of Deutsche Bank AG, and is not affiliated with ALPS.
Nothing contained herein is investment advice nor shall it be relied upon as such. If an investment is made with any
Deutsche Bank AG affiliate, it is acknowledged that we are not providing investment advice of any kind, nor are we acting
in any fiduciary capacity.
Risk information: Investing involves risk, including the possible loss of principal. Bond investments are subject to interest rate, credit, liquidity
and market risks to varying degrees. When interest rates rise, bond prices generally fall. Credit risk refers to the ability of an issuer to make
timely payments of principal and interest. Investments in lower-quality (“junk bonds”) and non-rated securities present greater risk of loss than
investments in higher-quality securities. The fund seeks to mitigate the potential negative impact of rising Treasury interest rates by taking
short positions in U.S. Treasury notes or bonds, or futures relating to those instruments. These short positions are not intended to mitigate
credit risk or other factors that may have a greater impact on performance than rising or falling interest rates. The short positions may limit the
potential positive impact of falling interest rates and there is no guarantee that the short positions will completely eliminate the interest rate
risk of the long positions. Investing in derivatives entails special risks relating to liquidity, leverage and credit that may reduce returns and/or
increase volatility. Performance of the Fund may diverge from that of the Underlying Index due to operating expenses, transaction costs, cash
flows, use of sampling strategies or operational inefficiencies. An investment in this fund should be considered only as a supplement to
a complete investment program for those investors willing to accept the risks associated with that fund. See the prospectus for details.
Shares are not individually redeemable, and owners of Shares may acquire those Shares from the Fund, or tender such Shares for
redemption to the Fund, in Creation Units only.
Investment products: No bank guarantee | Not FDIC insured | May lose value
© 2017 Deutsche Bank AG. All rights reserved. ETF178735 (5/17) R-036605-4 DBX2684 (5/17) HYIH-STRAT-FACT