Xtrackers USD High Yield Corporate Bond ETFs

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1 Exchange-Traded Funds Xtrackers USD High Yield orporate ond ETFs Robust high yield toolbox to help you meet your income needs Potential income opportunity with higher-yielding bonds With interest rates near all-time lows, high-yield bonds can help fixedincome investors on the hunt for additional yield. Dynamic toolbox to access highyield bond market exposure ETFs can give investors more diversified exposure to the broader high-yield bond market. Our suite of high-yield ETFs allows investors to manage both credit and duration exposure for a more customized solution. ost effective solutions with Xtrackers Each Xtrackers high-yield ETF offers the most cost-effective solution for the given exposure. Manage your risk with a high-yield toolbox High-yield bond risk can be broken into two parts: redit risk the risk that an issuer may default by failing to make required payments Interest-rate risk the risk that prices of fixed-rate bonds tend to fall when interest rates rise HYDW Higher-credit quality, lowest-yielding half of HYUP + HYDW = Interest-rate hedged version of + short treasury futures = Total USD HY corporate bond market Short duration (0 5yr maturity) alternative to subset + additional 0 1yr maturity bonds HYUP Lower-credit quality, highest-yielding half of HYUP + HYDW = 5 building blocks for efficient high-yield exposure HYUP Highest yielding half HYDW Lowest yielding half Total USD high yield corporate bond universe +interest-rate hedge overlay Interest rate hedged total USD HY corp bond universe 0 5yr USD high yield bonds Source: Deutsche Asset Management as of 12/31/17.

2 1 ustomize your credit risk We break down the total -Yield Total Market orporates Index by yield. We start with the complete 1 high-yield fixed-income sector universe. 2 For each sector, we find the median yield to worst. Then the bonds are classified above or below the median. 3 onds are then added into higherand lower-yielding fund buckets based on this classification. Yield Total Market orporates Index asic Materials onsumer Goods onsumer Services Financials Healthcare Oil and Gas Industrials Technology Telecommunications Utilities Median Highest Yield Yield Lowest Yield Total Market Low eta Index Number of onds 523 Yield to Worst 4.05% Modified Duration 4.22 eta to total HY 0.72 Total Market High eta Index Number of onds 574 Yield to Worst 7.21% Modified Duration 4.89 eta to total HY 1.25» Vary exposures to HYUP and HYDW to achieve an optimal level of high-yield credit risk As of 12/31/17. Diversification does not guarantee a profit or protect against a loss. Hypothetical example for illustrative purposes only. All new securities must have a 30-day moving average yield to worst which is lower (low beta) or higher (high beta) than the 30-day moving average median yield of the respective securities sector. A security is removed from the low beta index and added to the high beta index when the 30-day moving average yield to worst rises above 105% of the 30-day moving average of the median yield to worst of said securities sector. Index yield to worst breakdown (as of 12/29/17) High-yield market yield-beta relationship (as of 12/29/17) <3% 3-4% 4-5% 5-6% 6-7% 7-8% >8% 5% 1 15% 2 25% 3 35% 4 45% 5 Total Market High eta Low eta Yield to Worst (%) 8% 7% 6% 5% 4% 3% 2% 1% Yield orporate Total Market Index Yield orporate Total Market High eta Index Yield orporate Total Market Low eta Index eta to Total High Yield Market Source: Solactive as of 12/31/17. Past performance does not guarantee future results. The performance data is a result of the deduction of fees and charges applicable to the ETF. It s not possible to invest directly in an index. Deutsche X-trackers USD High Yield orporate ond ETFs 2

3 Index ratings breakdown NR Total Market High eta Low eta ommunications onsumer discretionary onsumer staples Energy Financials Health care Industrials Materials Technology Utilities 5% 1 15% 2 25% 3 Total Market High eta Low eta Source: Solactive as of 12/31/17. Total Market represented by Total Market Index, High eta represented by Total Market High eta Index, Low eta represented by Total Market Low eta Index. redit ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). All fund securities except for those labeled Not Rated and Other have been rated by Moody s, S&P or Fitch, which are each a Nationally Recognized Statistical Rating Organization (NRSRO). All Index securities except for those labeled Not Rated have been rated by Moody s or S&P. redit ratings are subject to change. 2 ustomize your interest-rate risk Maintain exposure to the high-yield bond market while reducing or minimizing exposure to interest-rate risk. Total HY bond market exposure Short duration (0 5 yr) Long bond short treasury strategy redit risk redit risk redit risk ond yield Interest-rate Risk Interest-rate Risk Minimize risk with interest-rate hedge Interest-rate risk (duration) For illustrative purposes only. Deutsche X-trackers USD High Yield orporate ond ETFs 3

4 reaking down our high-yield toolbox indices Index 1 Yield orporates Total Market Index Yield orporate ond Interest Rate Hedged Index Yield orporates Total Market 0 5 Year Index Yield orporates Total Market Low eta Index Yield orporates Total Market High eta Index orresponding ETF HYDW HYUP High-yield exposure Total market USD Interest-rate hedged Short duration Low beta (lower yield) High beta (higher yield) Yield to Worst 5.75% 3.57% 5.78% 4.05% 7.21% Modified duration Average maturity Number of bonds 1,098 1, Standard deviation % 2.95% 3.03% 5.18% Return / risk Number of issuers Xtrackers USD High Yield orporate ond ETF Total Market Index Number of bonds 1,098 Number of issuers 569 Average maturity 5.61 Average adjusted duration 3.65 Yield to worst 5.71% 30-day SE yield 5.41% Listing date 12/07/16 Expense ratio 0.2 Xtrackers USD High Yield orporate ond ETF seeks investment results that correspond generally to the performance, before fees and expenses, of the Total Market Index. ETF sector breakdown ommunications 23.4% onsumer Discretionary 13.7% onsumer Staples 18.4% Energy 12.4% Financials 9.1% Industrials 8.4% Materials 5.6% Technology 6. Utilities 3.1% ETF distribution by maturity bucket 4 ETF rating breakdown 0.6% 0.2% % 25.7% 12.4% 0.8% % 11.6% 49.8% Source: Solactive, loomberg as of 12/31/17. 1 It s not possible to invest directly in an index. Yield to worst is the lowest potential yield that can be received on a bond without the issuer actually defaulting. Duration which is express in years measures sensitivity of the price of the bond or bond fund to a change of interest rates. The 30-day SE yield is a standard yield calculation developed by the U.S. Securities and Exchange ommission (SE) that allows for fairer comparisons of bond funds. It is based on the most recent 30-day period covered by the fund s filings with the SE. The loomberg omposite credit rating is lend of a security s Moody s, S&P, Fitch, and DRS ratings. The rating agencies are evenly weighted when calculating the composite. It is calculated by taking the average of the existing ratings, rounded down to the lower rating in case the composite is between two ratings. A composite will not be generated if the bond is rated by only one of the four rating agencies. This composite is not intended to be a credit opinion. Deutsche X-trackers USD High Yield orporate ond ETFs 4

5 HYDW Xtrackers High Yield Low eta ETF Total Market Low eta Index Number of bonds 523 Number of issuers 229 Average maturity 5.01 Average adjusted duration 4.22 Listing date 1/11/18 Expense ratio 0.25% Index distribution by maturity bucket 4 Xtrackers USD High Yield Low eta ETF seeks investment results that correspond generally to the performance, before fees and expenses, of the Low eta Index. Index rating breakdown (Low eta) ommunications 19.2% onsumer Discretionary 14.7% onsumer Staples 3.1% Energy 13.3% Financials 12.1% Health are 12.6% Industrials 5.5% Materials 9.1% Technology 6.8% Utilities 3.5% % 33.9% 1.3% % % 23.8% Source: Solactive, loomberg arclays POINT, loomberg as of 12/31/17. redit rating is loomberg omposite. Holdings subject to change. HYUP Xtrackers High Yield High eta ETF Total Market High eta Index Number of bonds 574 Number of issuers 302 Average maturity 6.20 Average adjusted duration 4.89 Listing date 1/11/18 Expense ratio 0.35% Index distribution by maturity bucket 4 Xtrackers USD High Yield High eta ETF seeks investment results that correspond generally to the performance, before fees and expenses, of the High eta Index. Index rating breakdown (High eta) ommunications 24. onsumer Discretionary 15.6% onsumer Staples 3.5% Energy 11.5% Financials 9.7% Health are 10.6% Industrials 6.1% Materials 8.9% Technology 6.9% Utilities 3.1% % 31.2% 23.6% 8.9% 6.4% % 0.3% 21.1% 27.9% 49.6% Source: Solactive, loomberg arclays POINT, loomberg as of 12/31/17. redit rating is loomberg omposite. Holdings subject to change. Deutsche X-trackers USD High Yield orporate ond ETFs 5

6 Xtrackers Short Duration High Yield orporate ond ETF Index distribution by maturity bucket 8 Total Market 0 5 Year Index Number of bonds 461 Number of issuers 247 Average maturity 3.36 Average adjusted duration 2.91 Listing date 1/10/18 Expense ratio 0.2 Xtrackers USD Short Duration High Yield orporate ond ETF seeks investment results that correspond generally to the performance, before fees and expenses, of the Total Market Index. Index rating breakdown (Low eta) ommunications 21.2% onsumer Discretionary 14.5% onsumer Staples 2.6% Energy 11.7% Financials 12.8% Health are 12.8% Industrials 5. Materials 9.4% Technology 7.7% Utilities 2.2% % 64.5% % 35.3% 0.3% 15.5% 47.6% Source: Solactive, loomberg arclays POINT, loomberg as of 12/31/17. redit rating is loomberg omposite. Holdings subject to change. Xtrackers High Yield orporate ond Interest Rate Hedged ETF Yield orporate ond Interest Rate Hedged Index Number of bonds 1,102 Number of issuers 435 Average maturity 5.65 Average adjusted duration Yield to worst 3.58% 30-day SE yield 5.02% Listing date 3/3/15 Expense ratio 0.35% Xtrackers High Yield orporate ond Interest Rate Hedged ETF seeks investment results that correspond generally to the performance, before fees and expenses, of the Interest Rate Hedged Index. ETF sector breakdown ommunications 23.4% onsumer Discretionary 13.7% onsumer Staples 18.4% Energy 12.4% Financials 9.1% Industrials 8.4% Materials 5.6% Technology 6. Utilities 3.1% ETF distribution by maturity bucket 4 ETF rating breakdown 0.6% 0.2% % 25.7% 12.4% 0.8% % 11.6% 49.8% Source: Solactive, loomberg arclays POINT, loomberg as of 12/31/17. redit rating is loomberg omposite. Holdings subject to change. Deutsche X-trackers USD High Yield orporate ond ETFs 6

7 Nothing contained herein is fiduciary or impartial investment advice that is individualized or directed to any plan, plan participant, or IRA owner regarding the advisability of any investment transaction, including any IRA distribution or rollover. On 10/2/17 Deutsche X-trackers ETFs changed its name to Xtrackers ETFs. A complete list of the new names is available at Xtrackers ETFs ( ETFs ) are managed by DX Advisors LL (the Adviser ), and distributed by ALPS Distributors, Inc. ( ALPS ). The Adviser is a subsidiary of Deutsche ank AG, and is not affiliated with ALPS. This material must be accompanied or preceeded by a prospectus. Investing involves risk, including the possible loss of principal. ond investments are subject to interest rate, credit, liquidity and market risks to varying degrees. When interest rates rise, bond prices generally fall. redit risk refers to the ability of an issuer to make timely payments of principal and interest. 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. Funds investing in a single industry (or group of industries), country or in a limited geographic region generally are more volatile than more diversified funds. Distressed securities are speculative and involve substantial risks beyond the risks of investing in junk bonds, such as no interest payments or repayment of principal, or the loss of the entire investment in the distressed security. 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. Investment products: No bank guarantee Not FDI insured May lose value 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 reation Units only. Indexes are unmanaged and you cannot invest directly in an index. Deutsche Asset Management represents the asset management activities conducted by Deutsche ank AG or any of its subsidiaries Deutsche ank AG. All rights reserved. ETF (1/18) R DX3126 (4/18) HY-STRAT-FAT