Exchange-Traded Funds
Deutsche X-trackers MSCI Eurozone Hedged Equity ETF
Mitigate currency exposure in your Eurozone equity investments
Europe working towards recovery
Despite market turmoil, we believe
European equities maintain relatively
attractive valuations, and stand
to benefit from accommodative
monetary and fiscal policies to come.
A weak euro equals eroded Eurozone
returns
Buy Eurozone equities, get
Eurozone equities
Continued shifts in central bank
policies may lead to heightened
currency risk. Exposure to currencies
can negatively affect returns and add
to portfolio volatility.
Deutsche X-trackers MSCI Eurozone
Hedged Equity ETF allows investors
to invest more directly in Eurozone
equities while mitigating currency
risks that exist in fluctuations
between the euro and U.S. dollar.
Diverging monetary policies: the Fed ending quantitative easing paired with ECB monetary policy expansion may lead
to continued dollar strength and a boost to the Eurozone economy
5,000
Balance sheet size (USD billions)
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
Dec-06
Dec-07
ECB balance sheet
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Fed balance sheet
Source: Bloomberg Finance LP, Deutsche AM as of 2/28/17. Past performance is no guarantee of future results.
ECB is the European Central Bank. Fed is the Federal Reserve or U.S. central bank.
Quantitative easing is the introduction of new money into the money supply by a central bank.
Dec-14
Dec-15
Feb-17
Overview
ETF details (as of 3/31/17)
NYSE ticker
DBEZ
Expense ratio
0.45%
Listing date
12/10/14
Distribution
Semi-annual
Net assets
$52,018,064
Index details (as of 3/31/17)
Creator
MSCI
Underlying index
Index ticker
MSCI EMU
IMI US Dollar
Hedged Index
MIMUEHR
Inception date
10/14/14
Total number of
constituents
702
Average market cap
Price to book ratio1
Dividend yield %
2
$6,627
million
1.66
2.98%
With active central banks, currency fluctuations are very prevalent in today’s market.
These fluctuations can lead international investors to take on additional currency
risk—the potential for diminished returns as foreign currencies move against the
U.S. dollar. Currency-hedged investments seek to minimize currency risk and provide
the potential for higher returns than their unhedged counterparts, especially during
periods of U.S. dollar strength. Deutsche X-trackers MSCI Eurozone Hedged Equity
ETF (DBEZ) seeks investment results that correspond generally to the performance,
before fees and expenses, of the MSCI EMU IMI U.S. Dollar Hedged Index. DBEZ
offers investors access to Eurozone equities while mitigating against currency
fluctuations between the U.S. dollar and the euro.
Sector breakdown (3/31/17)
Financials—18.95%
Industrials
—14.90%
Consumer
discretionary
—13.54%
Consumer
staples
—9.65%
Materials—8.14%
Healthcare
—7.83%
Information technology—7.70%
Utilities—4.78%
Energy
—4.63%
Telecom
services
—4.49%
Real estate
—2.10%
Other—3.28%
Country breakdown (3/31/17)
France—29.86%
Germany—
29.54%
Netherlands
—10.78%
Spain—
10.63%
Italy—
7.95%
Other—0.76%
Belgium—
4.01%
Finland—
3.26%
Ireland—
1.72%
Austria—
0.91%
Portugal
—0.58%
Source: Bloomberg Finance LP as of 3/31/17.
1
2
Price-to-book ratio is a valuation ratio of a stock’s market value compared to its book value.
Dividend yield is a weighted-sum of the annualized dividends of the index components divided by the most recent index value. Annualized dividends are
determined using a sum of all dividend announcements during the previous 12 months. Dividend yield is that of the MSCI EMU IMI Index and is the rate
of income generated by a stock in the form of dividends. The dividend yield of the index should not be considered the dividend yield of the fund.
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.
Deutsche X-trackers ETFs (“ETFs”) are managed by DBX Advisors LLC (the “Adviser”), and distributed by ALPS Distributors, Inc.
(“ALPS”). The Adviser is subsidiary of Deutsche Bank AG, and is not affiliated with ALPS.
Include the MSCI disclosure “MSCI and MSCI Index are servicemarks of MSCI Inc. and have been licensed for use by db-X. The ETFs
are not sponsored, endorsed, issued, sold or promoted by MSCI Inc. nor does this company make any representation regarding the
advisability of investing in the ETFs. Index data source: MSCI Inc.”
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 www.deutsche-etfs.com.
Read the prospectus carefully before investing.
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.
Investing involves risk, including the possible loss of principal. Stocks may decline in value. Foreign investing involves greater and
different risks than investing in U.S. companies, including currency fluctuations, less liquidity, less developed or less efficient trading
markets, lack of comprehensive company information, political instability and differing auditing and legal standards. In certain
situations, it may be difficult of impossible to sell an investment at an acceptable price. Funds investing in a single industry, country
or in a limited geographic region generally are more volatile than more diversified funds. 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 the fund. See the prospectus for details.
Investment products: No bank guarantee | Not FDIC insured | May lose value
© 2017 Deutsche Bank AG. All rights reserved. ETF178734 (5/17) R-045468-2 DBX2185 (7/17) DBEZ-STRAT-FACT