ETPs entered uncharted territory with $245bn inflows in H1 Sebastian Mercado, CFA

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1 Deutsche Bank Markets Research North America Date Synthetic Equity & Index Strategy July ETPs entered uncharted territory with $bn inflows in H Sebastian Mercado, CFA June turned a positive, but mixed month for risky assets Global Equities were up by.8 during last month, mainly driven by US and EM equities with returns of.% and.%, respectively; meanwhile, DM Intl equities were also positive, but less significant (+.%). Fixed Income was mixed with rates pointing to a flattening of the curve, and credit spreads tightening. Long US Treasuries (+.%), IG Corporates (+.8%), and EM Gov. Debt in local currency (+.%) were among the best performers; while US Inflation (.8%), and EM Gov. Debt in USD (.%) were among the weak debt areas for June. Commodities registered losses of almost., dragged by most sectors except Industrial Metals (+.%) and Palladium (+.). On the currency side, although it appreciated against the JPY, the USD weakened against most major foreign currencies, particularly the EUR. Strategist +86 Hallie Martin Strategist + Srineel Jalagani, CFA Strategist +6 Strong inflows during June boosts ETP assets by.% ETPs received $6.bn in new cash, helping assets rise by.% from one month earlier, reaching a total of $.6 trillion at the end of June. Equity and Fixed Income attracted inflows of $.bn and $.bn, respectively, while, Commodity ETPs posted inflows of $.bn. Among the most relevant inflow trends, we saw US and DM exus Equities with $.bn and $.6bn, respectively; meanwhile, Europe and Eurozonefocused ETPs attracted $.6bn and $.bn in new cash, respectively. Furthermore, on the fixed income space, Corporates and Broad exposure recorded $.bn and $.6bn in positive flows, respectively. ETPs get $bn inflows in H, lay the ground for $$bn more in H ETPs attracted $bn in what it is usually the weak half of the year for ETP flows. This figure was not only the largest H inflows ever, but also the second largest full year inflow, just behind last year's record inflow ($8bn), with the difference that we still have the strong half to continue adding inflows. We believe that based on historical trends, inflows in the magnitude of $bn to $bn could be a real possibility during the second half. ETFs suggest USD weakness, particularly against the EUR Flow trends for currency hedged and unhedged ETFs offering exposure to Global ex US, Europe, Eurozone, and Japan focused equities suggest that investors see the USD weakening, and the EUR strengthening, while they remain indifferent to the JPY. Distributed on: // :: GMT 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.MCI (P) 8//. bedb6cfc

2 July Table Of Contents ETF Monthly Insights... June turned a positive, but mixed month for risky assets... Strong inflows during June boosts ETP assets by.%... ETPs get $bn inflows in H, lay the ground for $$bn mor... ETFs suggest USD weakness, particularly against the EUR... 6 Asset ocation Heatmaps... 8 Global Multi Asset ocator heatmaps... 8 US Equity ocator heatmaps... International Equity ocator heatmaps... Cross Asset Correlations... Month Relative Performance Monitor... House View Portfolio: Monthly Brief... 6 Business Intelligence... New Listings... Delistings... Trends in products launched in the last months... Popular Product Segments: Smart & Currency Hedged... Average Performance by Products Type and Size (Equity)... Total Expense Ratio XRay... ETF Statistics... 6 Global ETF Assets and Provider Ranking... US Historical ETF Trends... ETF Issuer and Index Provider league tables... Monthly Snapshot... Top ETFs (includes ETNs) Appendix A: ETN Snapshot... Appendix B: ETF List... 8 Appendix C: Definitions... ETP Universe Definitions... Management Style or Product Strategy Definitions... Product Type Definitions... Page

3 July ETF Monthly Insights June turned a positive, but mixed month for risky assets June recorded another positive, albeit much discrete, month for risky assets; while fixed income and commodity assets experienced mostly weak to negative returns. Global Equities were up by.8 during last month, mainly driven by US and EM equities with returns of.% and.%, respectively; meanwhile, DM Intl equities were also positive, but less significant (+.%). Fixed Income was mixed with rates pointing to a flattening of the curve, and credit spreads tightening. Long US Treasuries (+.%), IG Corporates (+.8%), and EM Gov. Debt in local currency (+.%) were among the best performers; while US Inflation (.8%), and EM Gov. Debt in USD (.%) were among the weak debt areas for June. Commodities registered losses of almost., dragged by most sectors except Industrial Metals (+.%) and Palladium (+.). On the currency side, although it appreciated against the JPY, the USD weakened against most major foreign currencies, particularly the EUR. Returns and flows weren't very consistent across major asset classes. Flows were positive for Europe (+8.% of assets) and Eurozonefocused (+.%) equity ETFs, but performance came on the negative side. Flows were negative or weak for US equities, but performance was positive and particularly strong for Small Caps. Furthermore, US Treasury ETFs had notable inflows (from.% to 6.% of assets), but mostly negative performance. Meanwhile EM debt ETFs received strong inflows (between % and 6.% of assets), but mixed returns depending on debt currency. Finally, the commodity space also experienced significant mixed readings with inflows of over of assets for Energy, and negative returns. Within US equities, performance and flows were mixed across most sectors and industries during last month. Financials and Healthcare were the top sectors by performance with gains of 6.% and.6%, respectively; meanwhile Utilities and Consumer Staples recorded the largest losses of.% and.%, respectively. However, Consumer Staples recorded the strongest inflows (+. of assets), followed by Healthcare (+.%), and Financials (+.); while Materials (.8%), and Industrials (.%) registered the most significant outflows. Moreover, at the industry level, Healthcare industries such as Biotech were the most consistent in terms of both strong inflows and performance; while Semiconductors led the losses and the outflows with.8% and 6.% of assets, respectively. In international equity markets, China AShare ETFs received the strongest inflows at % of assets last month following the news on the future inclusion of AShares in MSCI EM indices, performance was also strong with a.% gain for June. Mexico was also another highlight among foreign countries with strong inflows (+.% of assets), and positive returns of.6%. Meanwhile, performance and flows were mixed in developed Europe, while Japan and Canada were strong with inflows of.%, and.% of assets, and gains of.% and.% for June, respectively. On the other hand, BRIC countries experienced weak performance, and flows. In terms of correlation trends, Global Equities continue to become less and less correlated to other asset classes, recently. Page

4 July Strong inflows during June boosts ETP assets by.% June flows were led by Equity and followed by Fixed Income ETPs, with the remaining asset classes also receiving positive flows. ETPs received $6.bn in new cash, helping assets rise by.% from one month earlier, reaching a total of $.6 trillion at the end of June. Equity and Fixed Income attracted inflows of $.bn and $.bn, respectively, while, Commodity ETPs posted inflows of $.bn. Among the most relevant inflow trends, we saw US and DM exus Equities with $.bn and $.6bn, respectively; meanwhile, Europe and Eurozonefocused ETPs attracted $.6bn and $.bn in new cash, respectively. Furthermore, on the fixed income space, Corporates and Broad exposure recorded $.bn and $.6bn in positive flows, respectively. On the outflow side, Russia and Brazilfocused ETPs posted negative flows of $.bn and $.bn, respectively., Smart, Active, and + (leveraged and inverse) products experienced inflows of $.bn $.6bn, $.bn, and $.bn, respectively. Within Equity Smart products, Equal and Low Risk ETFs were the most popular categories in June, attracting $.8bn and $.bn in fresh new cash, respectively. In the negative side, Style and Multifactor ETFs posted outflows by $.bn and $.bn, respectively. Currency Hedged ETFs attracted $.bn in fresh new cash; while, the largest outflows were experienced by ETFs offering FX hedged exposure to JPY ($.bn), the inflows were led by FX hedged exposure to Multiple currencies which registered inflows of $.6bn. In term of product types, Cash Management, Asset ocation, Pseudo Futures, and Leveraged & Inverse posted inflows of $.bn, $8.bn, $.bn, and $.bn, respectively. Total ETP turnover was $.6 trillion last month, up % from the previous month. Furthermore, ETF turnover represented.8% of all cash equity traded in the US during June, under its month average of.%. ETPs get $bn inflows in H, lay the ground for $$bn more in H First, let us begin by pointing out that we have entered uncharted territory in ETF land at least when it comes to flows. As you may remember from previous reports, we have discussed extensively the seasonal nature of ETF flows as an industry in the US, which usually begin discrete on Q and end up on a high note on Q. Nevertheless, this year we have already accumulated $bn billion on the first half (H) of with the addition of $bn of inflows during Q. Just to put this into perspective, $bn would be the second largest full year for ETP inflows, just behind 6 when the record was set at $8bn for the full year figure. Nevertheless there is still one full half ahead, which usually tends to be the strongest one. Historically, in the last years H ETP flows have represented between % and 8% of the full year flows (all halves have been positives), with an average of %. And if history provides any guidance, I would say that it is unlikely that H inflows will tilt towards the lower end of the historical levels. Most likely, we believe that H flows will represent between % and 8% of the full year flows, this would Page

5 July suggest that full year inflows could be anywhere between $bn and $bn for the current year, in the absence of any significant market pullback (>). Figure : Quarterly ETP flows Multiperiod averages (in ) Figure : Quarterly ETP flows Multiperiod averages (as % of ),. Y Avg. Y Avg. Y Avg., Quarterly ETP Net CF % of Quarterly ETP Net CF, 8, 6,,, Y Avg. Y Avg Q Q Q Q Source: Deutsche Bank, Bloomberg Finance LP Q Q Q Q Source: Deutsche Bank, Bloomberg Finance LP Figure : SemiAnnual ETP flows Multiperiod averages (in ) Figure : SemiAnnual ETP flows Multiperiod averages (as % of ),. Y Avg. Y Avg. Y Avg. SemiAnnual ETP Net CF % of SemiAnnual ETP Net CF Y Avg. 6.,,,,, H Source: Deutsche Bank, Bloomberg Finance LP Y Avg. Y Avg. Y Avg H H H Source: Deutsche Bank, Bloomberg Finance LP The ETF question is not an optional one, but rather an existential one At a low cost of.% assetweighted average expense ratio, and fees under constant pressure to the downside, ETFs still remain a product seen with skepticism through the lens of the traditional active management industry. However, if we take a look at the numbers more closely and the state of the industry, $bn of new assets equal $.bn of new revenue at average ETF rates, and more than $m in revenue at half those rates (most new assets actually go to the cheaper ETFs). And although these figures may not seem as impressive to those active managers accostumed to last decade's revenue standards, the truth is that in a new era where traditional active management business models are under pressure; ETFs can provide a healthy balance as we transition into a new investment management era. In fact, several traditional active managers have already taken steps to join the ETF race, many of which have already raised billions of dollars in ETF assets. The latest to this list being American Century Investment which recently announced plans to launch their own ETF business. Although mostly an industry related to the word passive, the ETF industry cannot be more fluid nowadays. Day after day, more and more investors come to the Page

6 July ETF industry to use these products for anything from strategic or tactical asset allocation to liquidity tools. Furthermore, asset managers both in and out of the ETF world make bold decisions everyday, whether it is to launch a new ETF product, significantly cut alreadylow fees, or launch a new ETF range. Some decisions have seemed very radical, like offering Smart products at the cost of low cost beta products, or cutting alreadylow fees in half, or a traditional active manager entering a passive ETF world. However, no matter the decision, industry participants need to understand that the ETF decision is not a product decision, or a distribution channel decision; the ETF decision is a decision about the future, a decision about survival, and sustainability of business models. This is like a retailer trying to decide whether they sell online or not, and although in the beginning this may had seemed as an option, in due time this became more of a when and how. ETFs suggest USD weakness, particularly against the EUR As of July th the USD had weakened about % so far this year against a basket of major currencies dominated by EUR exposure. In fact, the EUR had strengthened particularly against the USD (+8.6%), while other majors such as the JPY had strengthened against the greenback more moderately (+.%). Furthermore, ETF flow trends among main international exposures including Global ex US, Europe, Eurozone, and Japan currency hedged and unhedged versions provide additional insights of investors' currency sentiment. Within Global equity markets outside the US, we see that ETFs point to a weakening of the USD given a slowdown in FX hedged flows in 6 relative to unhedged flows which remained fairly constant and positive. Furthermore, this year we have seen allocations into unhedged Global ex US exposure accelerate, while inflows to hedged exposures have slowed down and recently experienced significant redemptions. In Europe we noticed a preference for unhedged exposure both in Europe and Eurozone allocations during. This has been manifested by flat flows in hedged vehicles, and by healthy and consistent inflows into unhedged products with European and Eurozone exposure. Overall, this suggests ETF investors see the EUR strengthening versus the USD. Finally, in Japan we don't see major flow discrepancies between ETF FX hedged and unhedged versions. In fact we believe that flows mostly suggest that ETF investors may be more indifferent about currency direction in Japan. Page 6

7 July Long USD 8, EUR 6, JPY 8 Global ex US (Hedg),,,,, 8,, 6,,,, 6 8, Jun Dec6 Mar Jun6 Sep6 Dec Mar6 Jun Sep Dec Mar Japan, Cum. Net Cash Flows, Jun Figure 8: Equity ETF cum. net cash flow trend by FX hedging Japan Eurozone (Hedg) Europe Eurozone Europe (Hedg), Sep Dec Source: Deutsche Bank, Bloomberg Finance LP. Data as of July th. Figure : Equity ETF cum. net cash flow trend by FX hedging Europe & Eurozone, Mar Apr Jun Feb Oct6 Dec6 Aug6 Apr6 Jun6 Feb6 Oct Dec Aug Apr Jun Feb Oct Dec Aug Apr Jun Feb,,, Japan (Hedg) 6,,,,,, (,) (,) Apr Jun Feb Oct6 Dec6 Jun6 Aug6 Apr6 Feb6 Dec Oct Aug Apr Jun Feb Oct Dec Aug Apr Dec Jun Apr Feb Dec6 Oct6 Aug6 Jun6 Apr6 Feb6 Oct Dec Jun Aug Apr Feb Dec Oct Jun Aug Apr Feb Dec Jun (,) (,) Feb Dec Source: Deutsche Bank, Bloomberg Finance LP. Prices normalized at on Dec,, and derived from representative ETFs or ETPs. Long USD: UUP, JPYUSD (JPY): FXY, and EURUSD (EUR): FXE. Data as of July th. Cum. Net Cash Flows, Global ex US Cum. Net Cash Flows (Hedged) Figure 6: Equity ETF cum. net cash flow trend by FX hedging Global ex US Cum. Net Cash Flows Cum. Net Cash Flows Figure : Normalized prices based on select currency ETPs Source: Deutsche Bank, Bloomberg Finance LP. Data as of July th. Source: Deutsche Bank, Bloomberg Finance LP. Data as of July th. The following table provides a list of the largest ETF for each geographic focus discussed, and for each currency hedging version. Figure : Select list of Currency hedged and unhedged ETFs Investment Focus FX Unhedged Global ex US Europe Eurozone Japan FX Hedged Global ex US Europe Eurozone Japan Ticker ETF Name Listing Date Aug Mar Jul Mar6 TER D ADV $M $M Implied Liq. $M Total Liq. $ Avg. Bid/Ask Spreads Day Day $ bps EFA VGK EZU EWJ ishares MSCI EAFE ETF Vanguard FTSE Europe ETF ishares MSCI Eurozone ETF ishares MSCI Japan ETF.%..8%.8% 8,6 6,86,8 6,, 6,,66, DBEF DBEU HEDJ DXJ Deutsche Xtrackers MSCI EAFE CurrencyHedged Jun.% Deutsche Xtrackers MSCI Europe Hedged Equity Oct.% WisdomTree Europe Hedged Equity Fund Dec.8% WisdomTree Japan Hedged Equity Fund 6Jun6.8%,8,6, 8, 6,8 6, Source: Deutsche Bank, Bloomberg Finance LP. Data as of July th Page

8 July Asset ocation Heatmaps Global Multi Asset ocator heatmaps Figure : Global Multi Asset Performance and Net Cash flow Trends Ticker Asset Class ACWI VTI SPY MDY IWM EFA VGK EZU EWJ EPP EEM ILF EEMA GUR AFK FM BKF AGG GOVT SHV SHY IEI TLT TIP MUB MBB LQD HYG FLOT BKLN F CWB BWX WIP EMB EMLC EMCB HYEM DBC DBE USO UNG DBA DBB DBP GLD SLV PPLT PALL UUP FXY FXE Global Equities US Total Market S&P (Large Cap) S&P (Mid Cap) Russell (SM Cap) Intl DM Europe Eurozone Japan Pacific ex JP EM Latin America EM Asia EM Europe Africa Frontier Market BRIC Fixed Income (Broad) US Treasury Very Short Short Intermediate Long US Inflation Municipal Securitized IG Corporates HY Corporates Corp. Floater Senior Loans Preferred Convertible Intl DM Debt Intl Inflation EM Gov Debt USD EM Gov Debt Local EM Corp USD EM HY Corp USD Commodities Energy Cmdty Crude Oil WTI Natural Gas Agriculture Industrial Metals Precious Metals Gold Physical Silver Physical Platinum Physical Palladium Physical Bull USD JPYUSD EURUSD M Chg.8.%.6%.%.%.%.%.%.%.%.%.6%.%.%.%.%.6%.%..8%.8%.%.%.8%.%.%.8%.%..6%.8.%.%.8%.%.%.%.6%.6%.68%.6%.%.6%.%.8.6%.%.%.%.%.8%.% M Chg.68%.%.%.8%. 6.8% 8.% 8.%.8%.%.%. 8.%.%.%.%.%.8%.%.%.8%.%.%.6%.6%.8%.%.%.%.%.6%.6%.%.%.%.%.%.%..8%.%.%.%.6%.%.% 8.%.8%.%.6%.% 6.8% Total Return 6M Chg Y Chg.% 8.8% 8. 8.%.%.8%.% 8..8.%.8%.%.8%.% 8.%.6%.% 8.6%.% 8.% 8.8%.%.%.6%.% 6.% 6.6%.6%.%.6% 6..%.%...%.%.%.%.6%.%.%.%.68% 6.%.%.8%.%.8%.8%.%.8%.%.%.%.8%.%.8%.%.8%.86%.%.8% 8. 6.%. 6.8%.6%.%.%.%.%.%.8%.6%.% 8.8%.86%.%.6% 8.%.8%.%.%.6.6%.%.6% 6.%..6% 6.68%.%.6%.%.6%.%.6% 6.6%.6%.6% %.% Y Ann.%.%.% 8.%.%.%..8%..88%.%.%.8% 6.%.86%.%.%.%.%.%.8%.8%.6%.%.8%.8%.%.%.8%.%.6% 6..6%.%.%.8%.6%. 8.8%.%.8%.%.%.%.8%.68% 8.%.%.6%..86% 6.% Y Ann.%.%.%.%.% 8.8%.6%.6% 8.% 6.%..8%..68%.%.%.6%.%.%.%.%..%.6%.%.%.%.8%.% 6.%.%.%.%.6.8%.% 6.%.%.%.8% 8.8% 6.%.%.%.%.%.%.%.%..8% M.%.6%.%.%.%.% 8.%.%.%.%.%.%.%..%.%..6%.8% 6.%.%.6%.%.%..%.%.%.%.%.%.%.8%. 6.%..6% ETF Net Cash Flows as % of Initial M 6M Y Y Ann Y Ann.% 8.6%.%.%.%.%. 8.6%.% 6.%.%.6%.%.%.6%.%.%.%.%.%.%.%.%.% 8.6%.%.8%.% 8.8%.%.%.6% 6.%.8%.%.% 8.%.%...%.%.%.%.%.%.%.%.%.%..%.8%.6%.%.%.%.%.%.%.% 8.6%.8%.6%.%.8% 6.%.%.6%.%.%.8%...%.%.6%..6% 8.%.%.%.%.%.8%.%.8% 6.%. 8.% 8.8% 8.%.%.6%.%.8%.% 6.%.%.%..% 8.8%.8%.%.%..%.8%.%.%.%..%.8%.%.6%.%.% 6.%.% 8.8%.% 8.%..%.%.%.8%.%.8%.%.%.% 8.%.%.%.% 8.%.%.%.%.%.%.%..%.%.%..% 8.%. 8.6%.% 68.%.% 6.6%.%.%.%.8% 8.%.% 6..% 8.%.%.%.8% 8.6%.%.6%.%.%.%.%.%.%.6%.%.%.%.%.% 8..8%.%.%.8%.%.8%.%.%.%.%.%.%.%.6%..%.8%.%.%.% 6.%.%.%.%.% 6.%..%.%.8%.%.%..%.%.8%.%.%.%.%.%.%.8% 8.6%. 6.%.8%.6%.% 6.6%..%.%.%.%.%.%.%.%.%..% Source: Deutsche Bank, FactSet, Bloomberg Finance LP. Note: Data as of the end of last month; performance is Total Returns; Cash flows are based on USlisted ETFs and ETVs excluding leveraged, inverse products, and ETNs. Asset Classes that had less than $ million in at the beginning of all periods are excluded from the Net Cash flow calculations. Green cells correspond to largest values, while red cells correspond to lowest values. Figures over Y are annualized. The ETFs mentioned in this figure are provided as reference and have been selected as investable and representative vehicle for each asset class considering the product's asset class representation, liquidity, size, cost, and ease to borrow for tactical or risk hedging purposes; however, they should not be seen as the only or best alternative for each asset class as finding the right product will depend on the specific investor's objective and intended usage. Please refer to "Product Type Definitions" on Appendix C for further details on products selection criteria depending on product usage. Page 8

9 July Figure : Global Multi Asset Risk and Riskadjusted Performance Measures Ticker Asset Class ACWI VTI SPY MDY IWM EFA VGK EZU EWJ EPP EEM ILF EEMA GUR AFK FM BKF AGG GOVT SHV SHY IEI TLT TIP MUB MBB LQD HYG FLOT BKLN F CWB BWX WIP EMB EMLC EMCB HYEM DBC DBE USO UNG DBA DBB DBP GLD SLV PPLT PALL UUP FXY FXE Global Equities US Total Market S&P (Large Cap) S&P (Mid Cap) Russell (SM Cap) Intl DM Europe Eurozone Japan Pacific ex JP EM Latin America EM Asia EM Europe Middle East Africa Frontier Market BRIC Fixed Income (Broad) US Treasury Very Short Short Intermediate Long US Inflation Municipal Securitized IG Corporates HY Corporates Floater Senior Loans Preferred Convertible Intl DM Debt Intl Inflation EM Gov Debt USD EM Gov Debt Local EM Corp USD EM HY Corp USD Commodities Energy Cmdty Crude Oil WTI Natural Gas Agriculture Industrial Metals Precious Metals Gold Physical Silver Physical Platinum Physical Palladium Physical Bull USD JPYUSD EURUSD M.%.6%.%.%.%.%..%.6%.%.%.%.%.% Annualized Volatility 6M Y.6%.% 8.6%.6%.% 8.%.%.% 8.%.6%.8%.%.%.%..% 8.%.%.%.%.%.8%.%.% 8.% 8.6%.%.%.%.%.%.%.%.% 6.% 6.%.%..% 6.% 6.% 6.% Y.%.%..% 6.%.%.%.% 6.6%.%.% 8.% 8.%.% Y..%.%..%.% 6.6% 8.8%.% 6.% 8.%.%.6%.%.%.%.%.%..%.%.%.%.8%..%.%.%.%.%..%.% 6.%.%.%.%.%.%.%.%.%.%.8%. 8.%.6%. 6.% 6..%.6%.8%..%.8%..%.8%.%.%.6%..%..6%.6%.8%.%.%.8% 6.%.% 8.% 6..%.%.% 8.8% 8.6%.%.6%.%.8%.6% 6.6%.% 6.% 8.%.6%.%.%.%.%.8%.%.%.%.%.8%.8%.6%.%..8%.%.%.8%.6% 8.% 6.%.6%.% 6.8% 6.% 8.%.%.%.%.%.%.6%.%.%.% 8..%.6% 8.% M.%.%.%.%.%.%.%.8%.%.%.%.%.%.%.6%.%.% 6.%.%.%.% 8.% 6..6%.% 8.% 6..6%.8% 6.8%.8%.% 6.%.%.% 6.8%.%.%.%.%.%.%.%.%.%.8%.6%.%.%.8%.%.%.8%.%.8%.6%.8% 8. 6.%.6%.%.%.%.8%.%.%.6% 6.6%..6%.%.%.% 6.8%.%.6%..%.6%.%.8%..%..8%.8%.% 6.%.%.%.%.%.%.%...%..6%..8% 8.%.% 6.8%.%.%.%.%.%.%.% 8.6% Max Drawdown Y Y Y.8%.%.%.8%.%.%.%.. 6.%.%.% 8.%.%.% 6.%.%.% 8.%.%.%.% 6.%.%..6%.6%.6%.%.%.% 6.% 6.%.% 6.% 6.8%.%.%.% 6.% 8.%.%.%.%..%.%.%..%.%.6% 6.%.%.%.%.%..%.%.%.%.6%.%.6%.8%.%.% 6.%.%.% 8.%.6%.8%.%.%.6%.%.% 8.8%. 6.6%.%.%.%.%..%.%.% 6.%.% 6..%.6%.%.%.%.%.%.6%.6%.%..%.%.% 6.%.. 6.%. 6.% 6.% 8.%.%.%.%..%.%.%.%..%.%.%.%.8% 8.6%.%.6%.% 8.%.%.%.%.%..%. 6..%.8%.% 8.%.% 8.%.% 6.%.6% 8.%.%. 6.% Sharpe (TR / Vol) Y Y Y (.) (.).8... (.) (.) (.) (.). (.) (.6) (.) (.) (.) (.) (.) (.) (.) (.6) (.) (.). (.) (.6) (.6) (.6).6 (.) (.8). (.) (.) (.) (.). (.)..6 (.) (.) (.) (.) (.) (.) (.) (.) (.) (.8) (.).6 (.) (.) (.) (.).. (.).. (.) (.6) (.) (.) (.6) (.) (.) (.) (.) (.).. (.) (.) Source: Deutsche Bank FactSet. Note: Data as of the end of last month; Calculations based on total returns; Volatility based on daily total returns annualized using a day factor; Sharpe ratio calculation assumes Risk free equal to zero. For Max DD and Sharpe calculation, green cells correspond to largest value, while red cells correspond to lowest values. For Volatility calculations, green cells are the least volatile (lowest values), while red cells are the most volatile (highest values). The ETFs mentioned in this figure are provided as reference and have been selected as investable and representative vehicle for each asset class considering the product's asset class representation, liquidity, size, cost, and ease to borrow for tactical or risk hedging purpose; however, they should not be seen as the only or best alternative for each asset class as finding the right product will depend on the specific investor's objective and intended usage. Please refer to "Product Type Definitions" on Appendix C for further details on product selection criteria depending on product usage. Page

10 July US Equity ocator heatmaps Figure : US Equity Performance and Net Cash Flow Trends Ticker Asset Class VTI SPY DIA QQQ IWF IWD MDY IWM VIG DVY VYM SDY XLY PEJ XHB ITB PBS XRT XLP PBJ XLE OIH XES IEZ XOP IEO AMLP XLF KBWB KRE KCE KIE XLV IBB BBH IHI IHF PPH XLI ITA IYT XLB XME VNQ VGT IGN FDN SMH IGV VOX XLU US Total Market S&P (Large Cap) DJI NASDAQ Russell Growth Russell Value S&P (Mid Cap) Russell (SM Cap) Div. Growth Div. Yield Div. Yield Div. Yield & Growth Cons. Discretionary Hotels, Rest & Leisure Home Builders Household Durables Media Retail Cons. Staples Food Products Energy Energy Eq. & Serv. Energy Eq. & Serv. Energy Eq. & Serv. Energy E&P Energy E&P MLPs Financials Large Banks Regional Banks Capital Markets Insurance Healthcare Biotech & Pharma Large Biotech HC Eq. & Supplies HC Providers & Serv Large Pharma Industrials Aerospace & Def Transportation Materials Metals & Mining Real Estate Technology Comm. Equipment Int. Software & Serv. Semiconductors Software Telecom Utilities M Chg.%.6%.%.%.%.66%.%.%.8%.%.%.%.6%.%.%.8%.6%.%.%.%.%.%.%.%.%.%.% 6.%.8% 6..%..% 8.8%.%.6% 6.6%.8%.%.%.%.8%.8%.%.%.%.%.8.%..% M Chg.%.%.%.6%.%..8%..6%.%.%.%.%.%.6% 6.%.%.%.%.% 6..%.8%.6%.%.%.%.6%.%.%.8.8% 6.8%.%.%.%.86% 8.%.8% 6.6%.%.%.%.%.%.88%.6%. 8..%.8% Total Return 6M Chg Y Chg 8. 8.%.%.8%.%.6% 6.%.%.%.6%.6%..% 8..8.%.%.%.%.8%.6%.%..%.8% 6.6%.%.%.%.%.%.% 6.6%.8% 6..%.6%..%.%..%.6%.%.6%.%.%.8.6.%.6%.8%.%.6% 6..8%..%.%.8%.%.% 6.%.88%.8%.%.%.6% 6.%.%.%.% 8. 6.%.%.%.8%.6%.%.% 6.8%.6%.% 8.%.%.8%.%.8% 6.6%.6%.%.8% 8.68%.6%.%.%.%.% 6.8%.% 8.66%. Y Ann.%.%.86%.8%.%. 8.%.% 8.%.6% 8.%.%.%.6% 6.%.6%.8%..8%.%.%.%.%.% 6.6% 6.%.%.%.%.8%.%.%.86% 6.%.8% 8.6%..%.% %.% 8.%.%.% 6.%.8%.%.%. Y Ann.%.%.%.%.8%.%.%.%.%.%.6%.8%.%.6%.8%.%..%.%.%.%.%.88%.6%.6%.%.8%.8% 6.6%.% 8.%.6%.%.88%.% 8.%.8% 6.%.%.%.%.%.% 6.%.%.8%.8%.8%.6%.8% M.6%.%.%.%.%.%.%.%.6%.6%.6%.6%.% ETF Net Cash Flows as % of Initial M 6M Y Y Ann Y Ann.%. 8.6%.% 6.%.%.6%.%.%.6%.%.6%.%.%.6%.%.6%.%.%.6%.8%.%.%.%.%.%..8%.%..%.%.%.%.%.%.%.%.% 8.6%.%..6%.% 6.%.%..6%.% 6.%.%..6%.% 6.%.%..6%.% 6.%.%.%.%.%.%.6%.6%.%.%.%.% 6.% 6.%.%.%.%.%... 6.% 8.6% 8..%.%..6%.% 6.%.%.%.%.%.6%.6%...%.%.%.8%.%...6%.%.%.%.%.%.8% 6.%.%.8%.%....%.%.%.%.%.%.%.6%..%.%.%.% 8.6%.%.% 6.6% 6.%.8%.%.%.%.%.%.%.8%.8%.% 8.% 8.% 8.%.%.%.% 8.% 8.%.%.%.%.%.%..8% 8.%.% 6.%.% 6.% 6.% 6.%.%.%.%.%.%.%. 8.%.8%.%.%.% 8.%. 6.%.8%.%.%.8%.%.% 6.% 6.% 6.% 6.% 6.% 6.%.%.%.%.%.8%.%.%.6%.6% 8.8%.%.%.% 8.%.%.%.%.%.%.%....%.%.% 6.%.8%.8%.%.%.% 6.% 6.%.8%.%.%.% 8.%.8%.6%.%..%.% 6.%.%... 6.%.%.%.%. 8.%.%.%.%.%.%.6%. 8.% 6.%.%.%.6%..%.%.%.%.% Source: Deutsche Bank, FactSet, Bloomberg Finance LP. Note: Data as of the end of last month; performance is Total Returns; Cash flows are based on USlisted ETFs and ETVs excluding leveraged, inverse products, and ETNs. Asset Classes that had less than $ million in at the beginning of all periods are excluded from the Net Cash flow calculations. Green cells correspond to largest values, while red cells correspond to lowest values. Figures over Y are annualized. The ETFs mentioned in this figure are provided as reference and have been selected as investable and representative vehicle for each asset class considering the product's asset class representation, liquidity, size, cost, and ease to borrow for tactical or risk hedging purposes; however, they should not be seen as the only or best alternative for each asset class as finding the right product will depend on the specific investor's objective and intended usage. Please refer to "Product Type Definitions" on Appendix C for further details on products selection criteria depending on product usage. Page

11 July Figure : US Equity Risk and Riskadjusted Performance Measure Ticker Asset Class VTI SPY DIA QQQ IWF IWD MDY IWM VIG DVY VYM SDY XLY PEJ XHB ITB PBS XRT XLP PBJ XLE OIH XES IEZ XOP IEO AMLP XLF KBWB KRE KCE KIE XLV IBB BBH IHI IHF PPH XLI ITA IYT XLB XME VNQ VGT IGN FDN SMH IGV VOX XLU US Total Market S&P (Large Cap) DJI NASDAQ Russell Growth Russell Value S&P (Mid Cap) Russell (SM Cap) Div. Growth Div. Yield Div. Yield Div. Yield & Growth Cons. Discretionary Hotels, Rest & Leisure Home Builders Household Durables Media Retail Cons. Staples Food Products Energy Energy Eq. & Serv. Energy Eq. & Serv. Energy Eq. & Serv. Energy E&P Energy E&P MLPs Financials Large Banks Regional Banks Capital Markets Insurance Healthcare Biotech & Pharma Large Biotech HC Eq. & Supplies HC Providers & Serv Large Pharma Industrials Aerospace & Def Transportation Materials Metals & Mining Real Estate Technology Comm. Equipment Int. Software & Serv. Semiconductors Software Telecom Utilities M.6%.%.% 6.%.% 6.%.%.%.%.% 6.% 8.%.%.6%.%.8%.% 8.% 8.%.%.% 8.% 8.8%.%.%.%.%.%.%.%.%.%.6%.%.%.8%.6%.%.%.%.%.% 6.% 8.% 6.%.% 8.%.% 8.%.% 8.6% M.6%.%..% 8.6%.6%.6%.%.%.% 6.6%.%..%..%.%.6%.%.%.8% 6.6%.%.% 8.%.%.%. 6.%.8%.%.% 8.%.%.%.%...6%.8%.%.%.%.%. 6.%.% 8.6%.%..% Annualized Volatility 6M Y.% 8.%.% 8.% 6.8%.8%..%.% 8.%.8% 8.%.8%.%.%. 6.%.%.6%.% 6.6%.8%.% 8.6% 8.%.6%.%.8%.%.%. 6.%.8%.6%.8%.6%.%.% 8.%.%.6%.%.6% 8.%..%.% 8.% 6...%.%...%.6%.% 8.%.%.%.%.%.6%.% 8.6%.%.%.8% 6..%.%.%.%.%.%.%.%.6%.%.%.%.%.%. 6..%.%.8%.%.%.%.%.%.% 6.%.%.%.%.%..%.% Y.%..%.%.%.%.% 6.%.%.8%.%.8%. 6.6%.%.%.%.%.6%.%..%.6%.% 8.8%.% %.%.%.%.%.% 6.%.8%.%.% 6.%.%.%.% 6.%.%.%.8%.% 8.%.%.%.%.% Y.%.%.8%.%.6%.%..%.%.%.%.%.6% 6.%..%.% 6.%.%.8%.%.8%.%.%.%.%.%.8%.%.%.6%.%.%.%.%.%.8%.6%..6% 6.8%.%.%.%.%.% 8.%.% 6.%.%. Max Drawdown Y Y Y.8%.%.%.%...6%.%.%. 6.% 6.%.%.8%.8%.% 6.% 6.% 6.%.%.% 8.%.%.%.%.%.%.6%...%.. 6.%.8%.8% 6.%.8%.8%.%.%.%.% 8.% 8.%.% 6.% 6.%.%.%.% 8.6%.%.%.%.%.% 8.%.. 6.% 6.% 6.%.% 6.% 6.% 8..8%.8%.% 6.8% 6.8%.%.6%..%.% 6.8%.%.%.% 8.%.%.%.%.%.%.6% % 6.% 6.%..%.%.%.%.%.%.%.% 6.%.8%.8%.6%.%.%.% 6.% 6.%.8%.%.%..%.%..%.% 8.%.%.%.% 6.% 6.%.%.8%.%.%.% 8..% 6.% 6.% 8.%.%.% 6.%.8%.8% 8.%.%.%.%.%.%.%.%.%.%.%.% Sharpe (TR / Vol) Y Y Y (.) (.).... (.).. (.) (.). (.) (.) (.) (.) (.8) (.) (.) (.) (.) (.) (.) (.) (.) (.).. (.) (.) (.) (.) (.) Source: Deutsche Bank, FactSet. Note: Data as of the end of last month; Calculations based on total returns; Volatility based on daily total returns annualized using a day factor; Sharpe ratio calculation assumes Risk free equal to zero. For Max DD and Sharpe calculation, green cells correspond to largest value, while red cells correspond to lowest values. For Volatility calculations, green cells are the least volatile (lowest values), while red cells are the most volatile (highest values). The ETFs mentioned in this figure are provided as reference and have been selected as investable and representative vehicle for each asset class considering the product's asset class representation, liquidity, size, cost, and ease to borrow for tactical or risk hedging purpose; however, they should not be seen as the only or best alternative for each asset class as finding the right product will depend on the specific investor's objective and intended usage. Please refer to "Product Type Definitions" on Appendix C for further details on product selection criteria depending on product usage. Page

12 July International Equity ocator heatmaps Figure : International Equity Performance and Net ETF Cash Flow Trends Ticker Asset Class EFA EWC EIS VGK EDEN NORW EWD EWL EWU EZU EWO EWK EFNL EWQ EWG EIRL EWI EWN PGAL EWP EWJ EPP EWA EWH ENZL EWS EEM ILF EWZ ECH GXG EWW EPU EEMA FXI ASHR INDA EIDO EWM EPHE EWY EWT THD GUR GREK EPOL RSX TUR QAT UAE AFK EGPT EZA FM ARGT NGE PAK VNM BKF Intl DM Canada Israel Europe Denmark Norway Sweden Switzerland UK Eurozone Austria Belgium Finland France Germany Ireland Italy Netherlands Portugal Spain Japan Pacific ex JP Australia Hong Kong New Zealand Singapore EM Latin America Brazil Chile Colombia Mexico Peru EM Asia China H China A India Indonesia Malaysia Philippines South Korea Taiwan Thailand EM Europe Greece Poland Russia Turkey Middle East Qatar UAE Africa Egypt South Africa Frontier Market Argentina Nigeria Pakistan Vietnam BRIC M Chg.%.%.86%.%.%.%.88%.%.%.%..6%..%.%.%.6%.6%.68%.6%.%.%..% 6.%.8.%.6%.%.%.%.6%.%.%.6%.%....8%.%.%.%.%.%.%.%. M Chg 6.8%.% 6. 8.%.%.%.88%.8%.6% 8.% 8.6% 6.%.%.6%.%.%.%.%.6%.%.8%.%..%.6%.6%.%. 8.%.6%. 6.8%. 8.%.6% 8.8%.% 6.8.8%.%.6.6%.%.%.%.8%.6% 8.88% Total Return 6M Chg Y Chg.8%.%.8%.8%.8%.%.8%.%.8%.%.6%.%.% 6.86% 8.% 8.6%.%.% 8.%.6%.%.68%.8%.6.%.8% 8.% 8.% 6.% 8.6% 6.%.% 6.%.6%.6% 8.%.8%.%.6% 6.%.% 8.6%.% 8.%.% 6.6%.%. 8.6%..8%.% 8.8%.%.%.6%.6%.%.%.% 6.%..% 8.6%.%.6%.% 6.%.% 8.% 6.%.%.%.%.%.%.%.%.8%.%.%.8.6%.8%.% 6.% 6.6%.6%.8%.%.6% 6.%.66%.8%.%.% 8.%.6%.%.%.8%.%.% 6.%.%.%.6%.8%.%.%..6%.%.6% 8.6%.% 6.%.%..%.%.%.% 6..%.%.%.%.%.% 6..6%.%..%.8%.6%.6%.6%. Y Ann.%.6%.%..%..%.%.%.8%.68% 6.%.%.%.% 8.%.8% 6.%.%.%..88%.6% 6.% 8..%.%.% 8.%..%.%.%.8%.% 6.%.%.6%..%.% 6.%.% 6.%.8%..%.%..%.86%.%..%.6%.8%.%.% Y Ann 8.8%.8%.%.6%.%.8.%.%.68%.6%.%.% 6.%.8%.% 8.% 6.%.% M.%.%.8% 8.% 6.%.8%.6%.%.88%..8%.%.%..%.%..8% 8.%.%.6%.6%.6%.%.%.68%.6%.%..%.% 8.%.% ETF Net Cash Flows as % of Initial M 6M Y Y Ann Y Ann.%.8%.% 8.8%.%.%.%.6%.8%.% 8.%.%.6% 6.%.8%.%.%.%.%.% 8.%.% 6.8%.8% 8.%.%.%.%.% 6.%..% 8.%.. 6.6%.%.6% 8.% 6...6%.%.%..%.%.%.%.%.% 6.%.%.%.%.%.%.%.%.6%.% 6.%.%.%.6%.%.6%.%.%..% 6.%.%.% 6.%.%.%.%.%..% 8...%.6% 6.%..%.%.%.8%.%.8%.%..%.%.6%.%.%.8%..%.%.%.%.% 6.%.%.%.%...6%.%.%.%.%.% 6.% 6.%..%.% 8.6%.8%.%.%.8%.%.% 8.%.8% 6.%.%.6%.%..6% 8.%.6%.% 8.%.%..%.% 8.%.%.%.%.8%. 6.% 6.%..8%..%.6%.8%.8%...% 6.%...%.%.6%.%..6%. 6.%.%.%.%.6%.8%.6%.% 8.%.%.% 6.%.%.%.8%.%.%.8%...%.%.%.%.%.%.6%.%..%.6%.% 8.%.%..%.%.%.%.%.%.%.%.%.8%...% Source: Deutsche Bank, FactSet, Bloomberg Finance LP. Note: Data as of the end of last month; performance is Total Returns; Cash flows are based on USlisted ETFs and ETVs excluding leveraged, inverse products, and ETNs. Asset Classes that had less than $ million in at the beginning of all periods are excluded from the Net Cash flow calculations. Green cells correspond to largest values, while red cells correspond to lowest values. Figures over Y are annualized. The ETFs mentioned in this figure are provided as reference and have been selected as investable and representative vehicle for each asset class considering the product's asset class representation, liquidity, size, cost, and ease to borrow for tactical or risk hedging purposes; however, they should not be seen as the only or best alternative for each asset class as finding the right product will depend on the specific investor's objective and intended usage. Please refer to "Product Type Definitions" on Appendix C for further details on products selection criteria depending on product usage. Page

13 July Figure : International Equity Risk and Riskadjusted Performance Measure Ticker Asset Class EFA EWC EIS VGK EDEN NORW EWD EWL EWU EZU EWO EWK EFNL EWQ EWG EIRL EWI EWN PGAL EWP EWJ EPP EWA EWH ENZL EWS EEM ILF EWZ ECH GXG EWW EPU EEMA FXI ASHR INDA EIDO EWM EPHE EWY EWT THD GUR GREK EPOL RSX TUR QAT UAE AFK EGPT EZA FM ARGT NGE PAK VNM BKF Intl DM Canada Israel Europe Denmark Norway Sweden Switzerland UK Eurozone Austria Belgium Finland France Germany Ireland Italy Netherlands Portugal Spain Japan Pacific ex JP Australia Hong Kong New Zealand Singapore EM Latin America Brazil Chile Colombia Mexico Peru EM Asia China H China A India Indonesia Malaysia Philippines South Korea Taiwan Thailand EM Europe Greece Poland Russia Turkey Middle East Qatar UAE Africa Egypt South Africa Frontier Market Argentina Nigeria Pakistan Vietnam BRIC M.%.%.%..%.%.%.8%.8%.%.%.%.%.%.8%.%.%.%.%.8%.6%.%.%.6%.6%.%.%.%.6%.% 6.% 6.%.6%.%.%.8%.%.%.%...% 8.8%.%.% 8.6%. 8.% M.%.%.%.%.6%.%.%.%.8%.8% 6.%.%.%.%.%.%..% 6.8% 8.% 8.%.%.6%.%.% 8.6%.%.%.%.%.%.%.%.%.%..8%...%.%.6%.% 6.%.%.6%..% 8.%.8%.%.6%.%.% 8.%..%.8%.% 6.6%.%.8% 8.%.8%.. 6.%.%.%.% Annualized Volatility 6M Y 8.%.%.%.%.%.%.%.%.%.%.8% 6..%.%.%.%...%.%.%.%.%.%.%.%.%.%.%.%.%.% 8.%.8%.%.%.%.6% 6.6% 6.8% 8.6%.%.%.%.%.6%.%.8%.%.%..6%.%.% 6.% 6.% 6.%.%.% 6.%.8%.% 8.%.%. 6.%..%.%.%.6%.%.%.6%.%.% 8.6%..% 8.%.%.%.%.6%.6%. 6.% 6.%.%.%.%.%.%.%.% 8..% 6.6%.% 8.%.%.%.% %.%.% 6.%.%.%..% 6.%.% 6..%.% Y.%.6%.8%.% 6.8%.%.%.% 8.%.%.%.8% 8.%.% 8.%.8%.%.%.6%.% 6.6%.%.6%.%.%.%.% 8.%.% 8.% 6...% 8.%. 6.%.%..%.8% 8.8%.%..% 6.%.%.6%.%.%.8%.%.6%.%.%.8%..6%.% Y.%.%.% 6.6% 6.6%. 8.8%.% 6.% 8.8% 8.%.8%.% 8.% 8.%.8%.% 6.8%.%.% 6.%.% 6.%.%.% 8.%.%.% 8.6%.%.%.%.6%.%.6% 6.% 8..% 8.%.%.%.%.%.%.6%. 8.% 8.% 8.%.8%.. Max Drawdown Y Y Y 6.%.%.%.%.%.%.6%.%.% 8.%.%.%.% 8.% 8.% 8.%.%.% 8.%.%.6%.%.%.%.%.%.%.% 6.%.%.%..6%.%.%..% 8.6%.% 6.%.%.8%.% 6.6% 6.6% 8.%.%.%..%.% 8.%.6%.6%.% 6.%.%.%.%..6%.6%.6%.%.% 8.6%.%.%.%.%.%.%.%.%.%.%.%.% 6.% 6.%.% 6.% 6.8%. 66.% 6..%.%.% 8.% %.%.%.6%.%.6% 6.6%.%.%.%.%.6%.6%.8%.%.% 8.%.6% 6.%.8%.% 6.%.%.%.%.%.8%..8%.8%.%.%.%.%.% 8. 6.% 8.%.%.%.%.%.6%.%..%.6% 6.%.% 8..%.%..%.%.%.%.%.8% 6.%.%..%.%. 6.%. 6.6%..%.%.%. 6.%...%.% Sharpe (TR / Vol) Y Y Y...6. (.) (.) (.) (.) (.). (.) (.) (.)..... (.) (.). (.) (.). (.) (.). (.8) (.). (.) (.). (.) (.) (.) (.) (.) (.) (.) (.).6 (.) (.). (.).. (.) (.). (.) (.) (.)..6 (.)..6. (.).8..6 (.) (.) (.) (.8) (.) (.). (.) (.). (.) (.)..6 (.). Source: Deutsche Bank FactSet. Note: Data as of the end of last month; Calculations based on total returns; Volatility based on daily total returns annualized using a day factor; Sharpe ratio calculation assumes Risk free equal to zero. For Max DD and Sharpe calculation, green cells correspond to largest value, while red cells correspond to lowest values. For Volatility calculations, green cells are the least volatile (lowest values), while red cells are the most volatile (highest values). The ETFs mentioned in this figure are provided as reference and have been selected as investable and representative vehicle for each asset class considering the product's asset class representation, liquidity, size, cost, and ease to borrow for tactical or risk hedging purpose; however, they should not be seen as the only or best alternative for each asset class as finding the right product will depend on the specific investor's objective and intended usage. Please refer to "Product Type Definitions" on Appendix C for further details on product selection criteria depending on product usage. Page

14 AGG GOVT TIP MUB MBB LQD HYG FLOT BKLN F CWB BWX WIP EMB EMLC EMCB DBC DBE DBA DBB DBP UUP FXY FXE Source: Deutsche Bank, FactSet. Data as of the end of last month. Green cells denote highest correlations, while red cells denote lowest correlations. Figure : 6W Rolling Correlation for selected asset class pairs (Y) Global Equities 6W Rolling Correlation US Fixed Income 6W Rolling Correlation US Equities 6W Rolling Correlation Apr. Apr Apr US Agg Bond IG Apr Apr Commodities Apr Real Estate Apr6 Bull USD Apr Gold Apr Apr Apr Apr DM Intl EM Japan Apr Apr6 Pacific ex JP Apr Europe Apr US Treasury Apr Apr IG Corp Apr HY Corp Apr6 Apr Sr Loans Source: Deutsche Bank, FactSet. Correlations based on weekly total returns of USlisted ETFs: Global Equities (ACWI), US Agg Bond IG (AGG), Commodities (DBC), Real Estate (VNQ) and Gold (GLD). US Equity (VTI), DM Intl (EFA), EM (EEM), Japan (EWJ), Pacific ex JP (EPP), and Europe (VGK). US Fixed Income (AGG), US Treasury (GOVT), IG Corp (LQD), HY Corp (HYG), and Sr Loans (BKLN). July Figure 6: Year Cross Asset Class Correlations of Weekly Total Returns Y Cross Asset Class Correlation of Weekly Total Returns ACWI VTI EFA EEM Category Ticker Global Equities ACWI...86 US Total Market VTI..8. Intl DM EFA..8.8 EM EEM US Agg Bond IG AGG...6. US Treasury GOVT US Inflation TIP....8 Municipal MUB..6.. MBS MBB...6. IG Corporates LQD....6 HY Corporates HYG Floater FLOT Senior Loans BKLN..8.. Preferred F.... Convertible CWB Intl DM Debt BWX..6.. Intl Inflation WIP...8. EM Gov Debt USD EMB EM Gov Debt Local EMLC..8.. EM Corp USD EMCB.... Commodities DBC.... Energy Cmdty DBE Agriculture DBA Industrial Metals DBB.... Precious Metals DBP.... Bull USD UUP.... JPYUSD FXY.... EURUSD FXE.... Page Cross Asset Correlations

15 July Month Relative Performance Monitor Figure 8: Selected relative performance pairs Cross Asset Class. Global Equities... US Equity Size and Style. US Total Market/Intl DM US Total Market/EM.... Jun Apr May Mar Jan Dec6 Feb May Jun May Jun Mar Feb Jan Dec6 Nov6 Oct6 Apr... UST Short/UST Long EM Gov Debt USD/EM Gov Debt Local. Sep6 Aug6 Jul6 Precious Metals Fixed Income duration and EM debt. Oct6 China H/China A.6 Jun6 Jun Apr May Mar Feb Jan Dec6 Nov6 Sep6 Aug6 EM Asia/Latin America. Apr Fixed Income Credit. Nov6 Sep6 Jul6 Jun6 Jun.8 Eurozone/Europe Japan/Pacific ex JP Jun6 Jun May Apr Mar Feb Jan Dec6.6 Nov6 Apr..8 Oct6 May...8 Sep6 Mar...8 Aug6 Jan.. Jul6 Feb.. Jun6 Dec6. Jul6. EM Equities Intl DM Equities Healthcare/Energy Technology/Industrials Financials/Real Estate Financials/Utilities. Oct6. US Equity Sectors.6 S&P /Russell (SM Cap) Russell Growth/Russell Value.8 Aug6.8 Nov6 Jun Apr May Mar Jan Feb Dec6 Oct6 Nov6 Sep6 Jul6 Aug6 Jun6. Oct6.8.. Sep6 Global Equities/Fixed Income (Broad) Global Equities/Commodities Jul6... Aug6. Jun Gold/Silver Gold/Platinum Gold/Palladium.6 Mar Feb Jan Jul6. Jun6 Jun May Apr Mar Feb Jan Dec6 Nov6 Oct6 Sep6 Aug6 Jul6 Jun May Apr Mar Feb Jan Dec6 Nov6 Oct6 Sep6 Aug6 Jul6 Jun6 Jun6.8.8 Dec Nov6... Oct6 HY Corporates/US Treasury HY Corporates/IG Corporates Sep6. Aug6. Source: Deutsche Bank, FactSet Performance for each asset class is based on the ETFs mentioned in the heatmaps presented earlier in this section. Total return data is as of the end of last month Page

16 July House View Portfolio: Monthly Brief Our House View Portfolio (HVP) was up by.%, almost in line with its benchmark (.6%), and underperforming Global Equities (ACWI) which was up by.% during the same period. Figure : House View Portfolio Weight Target Position Actual Direction Type Asset Class Exposure DIA.%.% Long Core Equity Mega Cap QQQ.%.% Long Core Equity Mega Cap Tech Tilt XLF.% %.% Long Satellite Equity US Financials VGK.8% %.8% Long Core Equity Europe EEMA.%.% Long Satellite Equity EM Asia Short High Yield SJNK.% %.% Long Core Credit TIP. %.% Long Satellite Inflation US TIPs UUP.8.6% Long Core FX Long USD Source: Deutsche Bank. Actual weights as of the end of last month. Last rebalance as of May Figure : Portfolio performance vs. Global Equities and Benchmark since inception (//) Figure : Monthly performance of portfolio and benchmark positions House View Port. ACWI Inflation (TIP) Bnchmk Eq. EM Asia (EEMA) Eq. Europe (VGK) Eq. US Mega Cap Tech (IBB) Eq. US Mega Cap (DIA) Eq. US Financials (XLF) Short HY Credit (QQQ) FX Long USD (UUP) Equity (ACWI) Bnchmk Normalized Level () 6 House View Port. Comdty (DBC) Fixed Income (BND) Performance Source: Deutsche Bank, FactSet. Benchmark is Global Equities (ACWI), Fixed Income (BND), and Commodities (DBC) rebalanced at the end of each calendar quarter. Data as of the end of last month. % % % % 6% 8% Source: Deutsche Bank, FactSet. Data as of the end o last month. Performance only applicable while positions help in the portfolio. Figure : Portfolio ocations Asset Class 8 6 Equity Target Actual Fixed Income Global Equity Alternatives US Intl Source: Deutsche Bank, FactSet. Actual data as of the end of last month. Page 6

17 July Business Intelligence New Listings There were twentyfour new ETFs and one new ETN listed during the previous month; were listed at BATS, and eight were listed in each the NYSE and the Nasdaq. The new equity funds offer exposure to multi factor, dividend, free cash flow, short, and low risk strategies, multiple market cap segments, dividend payers, ESG screening, multiple geographic markets, and thematic exposures such as brand value and Gold/Precious Metals miners. We also highlight a couple of MLP exposures, one of which offers an Oil Hedge using Crude Oil futures. Outside equities we find products offering access to IG corporate debt, California municipal debt, multisector income, and multi asset strategies. Figure : Products listed during last month Ticker Name AMLX FFHG FFTI NUDM NUEM GIGB BVAL PPLN CALF ICOW GMFL FCAL RNDM RNDV RNEM RNLC RNMC RNSC VSMV OCIO VESH TTAI GOAU USMF GSSC Amplify Yieldshares Oil Hedged MLP Income ETF Formula Folios Hedged Growth ETF Formula Folios Income ETF NuShares ESG International Developed Markets Equity ETF NuShares ESG Emerging Markets Equity ETF Goldman Sachs Access Investment Grade Corporate Bond ETF Brand Value ETF J.P. Morgan Cushing MLP Index ETN Pacer US Small Cap Cash Cows ETF Pacer Developed Markets International Cash Cows ETF Guggenheim MultiFactor Large Cap ETF First Trust California Municipal High Income ETF First Trust Developed International Equity Select ETF First Trust US Equity Dividend Select ETF First Trust Emerging Markets Equity Select ETF First Trust Large Cap US Equity Select ETF First Trust Mid Cap US Equity Select ETF First Trust Small Cap US Equity Select ETF VictoryShares US MultiFactor Minimum Volatility ETF ClearShares Ocio ETF Virtus Enhanced Short US Equity ETF TrimTabs Cap International Free CashFlow ETF U.S. Global GO Gold & Precious Metal Miners ETF WisdomTree US Multifactor Fund Goldman Sachs Activebeta US Small Cap Equity ETF Asset Class & Structure Equity ETF Equity ETF Fixed Income ETF Equity ETF Equity ETF Fixed Income ETF Equity ETF Equity ETN Equity ETF Equity ETF Equity ETF Fixed Income ETF Equity ETF Equity ETF Equity ETF Equity ETF Equity ETF Equity ETF Equity ETF Multi Asset ETF Equity ETF Equity ETF Equity ETF Equity ETF Equity ETF Listing Date TER Jun 6Jun 6Jun Jun Jun 8Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun 8Jun 8Jun 8Jun Jun Jun.8%.%.8..%.%.6%.%.%.6%.%..6%..% %.%.%.%.6.8%. 6 Source: Deutsche Bank, Bloomberg Finance LP. Equity First Trust listed seven new ETF during June. Six of them, offer exposure to Developed Markets (RNDM), Emerging Markets (RNEM), US largecap companies (RNLC), US largecap companies focused on high dividends (RNDV), US midcap companies (RNMC), and US smallcap companies (RNSC). RNDM tracks the Nasdaq Riskalyze Developed Markets Index; meanwhile, RNEM tracks the Nasdaq Riskalyze Emerging Markets Index, both funds offering access to a diversified portfolio of equity stocks based on factors such as low volatility and liquidity. RNLC tracks the Nasdaq Riskalyze US Large Cap Index offering access to a portfolio of dividendpaying largecap companies; meanwhile, RNDV tracks the Page

18 July Nasdaq Riskalyze US Large Cap Select Dividend Index which offers access to a portfolio of high dividendpaying large companies. Last but not least, RNMC and RNSC track the Nasdaq Riskalyze US Mid Cap and Nasdaq Riskalyze US Small Cap Indexes, respectively. RNDM, RNDV, and RNEM come with annual expense ratios of.6%,., and.%, respectively; while, RNLC, and RNMC, and RNSC come with an expense ratio of.6. Page 8 Nuveen listed two new ETF during last month. The funds offer exposure to Developed Markets exus and Canada (NUDM) and Emerging Market companies (NUEM) with positive environmental, social, and governance attributes. NUDM tracks the TI ESG International Developed Markets Equity Index and comes with an annual expense ratio of.; meanwhile, NUEM tracks the TI ESG Emerging Markets Equity Index and comes with an annual expense ratio of.%. Pacer Advisors listed two new ETFs during June. The funds offer exposure to US smallcap (CALF) and Developed Markets exus (ICOW) companies selected and weighted by free cash flow. CALF tracks the Pacer U.S. Small Cap Cash Cows Index and comes with an annual expense ratio of.%; meanwhile, ICOW tracks the Pacer Developed Markets International Cash Cows Index and comes with an annual expense ratio of.6%. ACSI Funds listed one new ETF (BVAL) which offers exposure to US companies whose brand is undervalued relative to its share price. The equallyweighted ETF tracks the BrandTransact Index which includes the Top companies with the highest brandvaluetoshareprice ratio from year to year. The ETF has a distinct bias towards Consumer sectors allocating as much as to these sectors at times, which could make it an alternative to other US consumer ETFs, or a core position with a consumer bias. BVAL comes with an annual expense ratio of.6%. Guggenheim Investments listed one new ETF last month. The fund (GMFL) offers exposure to US largecap companies focused on multifactor including: value, growth, quality, momentum, short interest, volatitliy, and liquidity. GMFL tracks the Guggenheim MultiFactor LargeCap Index and comes with an annual expense ratio of.%. Victory Capital Management listed one new ETF (VSMV) which is designed to provide exposure to US large and midcap equity stocks selected and weighted based on different factors such as: earnings quality, growth, momentum, and profitability; while, seeking to minimize the overall portfolio volatility. VSMV tracks the Nasdaq Victory US MultiFactor Minimum Volatility Index and comes with an annual expense ratio of.%. Virtus Investment listed one new actively managed ETF (VESH) offering inverse leveraged exposure to the S&P Index, which is composed by US largecap equities. The fund comes with an annual expense ratio of.%. TrimTabs listed one new ETF (TTAI) offering actively managed exposure to a portfolio of Developed Market exus equity stocks focused on companies that are generating strong free cash flows, decreasing shares outstanding, and maintaining healthy balance sheets due shrinking leverage. TTAI comes with an annual expense ratio.%.

19 July U.S. Global Investors listed one new ETF (GOAU) which offers exposure to Global precious metal companies. The fund tracks the U.S. Global GO Gold and Precious Metal Miners Index including mining, production, royalty, and streaming firms selected by fundamental factors and weighted in fixed tiers. GOAU comes with an annual expense ratio of.6. WisdomTree listed one new ETF (USMF) which offers exposure to US equities selected and weighted based on multiple factors including: value, quality, momentum, and correlation to the broad market. USMF tracks the WisdomTree U.S. Multifactor Index and comes with an annual exposure of.8%. Goldman Sachs listed one new equity ETF (GSSC) offering equallyweighted exposure to US smallcap stocks focused one fourfactors: value, momentum, quality, and low volatility. GSSC tracks the Goldman Sachs Active U.S. Small Cap Equity Index and comes with an annual expense ratio of.. JPMorgan listed one new ETN (PPLN) which offers equallyweighted exposure to MLPfocused securities. The note tracks the Cushing MLP Index and comes with an expense fee of.%. Amplify Investments listed one new ETF (AMLX) which offers actively managed exposure to an equallyweighted basket of highyielding energy MLPs with a WTI crude oil hedge to reduce the negative impact of oil price declines. AMPLX comes with an annual expense ratio of.8%. FormulaFolio Investment made its debut in the ETF Market listing two new funds. One of them (FFHG) offers actively managed exposure to broad US equity ETFs including inverse and leveraged products, and US Treasury debt. This ETF of ETFs comes with an annual expense ratio of.%. Fixed Income The second fund listed by FormulaFolio Investment last month (FFTI) offers actively managed exposure to Global fixed income ETFs with various maturities from five major asset classes, including: US Treasury debt, investment grade US bonds, high yield US debt, US aggregate bonds, and International government bonds. The ETF of ETFs selects the three assets classes with the most positive combination of yield spreads and momentum characteristics. FFTI comes with an annual expense ratio of.8. Goldman Sachs listed one new ETF (GIGB) in the fixed income space last month. GIGB offers exposure to USDdenominated investment grade corporate bonds. GIGB tracks the Citi Goldman Sachs Investment Grade Corporate Bond Index which selects the holdings by EBIT margin change and leverage. GIGB comes with annual expense ratio of.%. First Trust listed one new ETF (FCAL) which offers actively managed exposure to a portfolio of municipal debt securities issued by the state of California with broad maturities and credit quality. FCAL provides access to current income free from regular federal income taxes and California income taxes; while, it comes with an annual expense ratio of.. MultiAssets ClearBrook Global Advisors listed one new multiasset ETF (OCIO) which offers actively managed exposure to a multiasset strategy based on Page

20 July a broad range of asset classes including Global equities, US and International fixed income debt, and alternative investments such as commodities, volatility derivatives, and managed funds. The fund of funds comes with an annual expense ratio of.%. Delistings Figure : Delisted products during last month Ticker Name EMSA QEH HVPW CSCR FIBG MAUI JUNE GHE ipath Short Enhanced MSCI Emerging Markets Index ETN AdvisorShares QAM Equity Hedge ETF ALPS U.S. Equity High Volatility Put Write Index Fund Credit Suisse XLinks Commodity Rotation ETN Credit Suisse FI Enhanced Big Cap Growth ETN AdvisorShares Market Adaptive Unconstrained Income ETF Dhandho Junoon ETF REX Gold Hedged FTSE Emerging Markets ETF Asset Class & Structure Equity ETN Alternative ETF Alternative ETF Commodity ETN Equity ETN Fixed Income ETF Equity ETF Equity ETF Delisting date Jun 6Jun 6Jun Jun Jun 6Jun Jun Jun TER.8..%.8%.8%.%.%.% at Delisting Source: Deutsche Bank, Bloomberg Finance LP. Page

21 July Trends in products launched in the last months Figure : Main trends among those products launched in the last months Net Cash Flows Jun ' M 6, 6,6 Total () By Asset Class Equity, Fixed Income,8 Commodities Currency Multi Asset Alternative By Management Strategy, + Smart, Active,8 Net Cash Flows M Top by Geographic Focus (Equities) US US,66 DM Global (reg) 6 Global Global (reg) DM Global ex US (reg) 8 EM Global (reg) Top by Category (Fixed Income) Corporates 6 Broad 6 US Treasury 6 Municipal 6 Preferred New Funds Asset Class Focus last M,,86 6 6, 8,, 6 Jun ' New Funds last M, Source: Deutsche Bank, Bloomberg Finance LP Figure 6: Top products by net cash flow raised in the last months Ticker Name FTXO UWT GDVD CLTL PSC HYLB First Trust Nasdaq Bank ETF VelocityShares x Long Crude Oil ETN Principal Active Global Dividend Income ETF PowerShares Treasury Collateral Portfolio ETF Principal US Small Cap Index ETF Deutsche XTrackers USD High Yield Corporate Bond ETF.6..8%.8%.8%.% BOTZ FDRR BLHY FLQL LVHB CSML CCOR JPGB FLEU FFTI GBIL JPHF HYLV VRIG Global X Robotics & Artificial Intelligence Thematic ETF Fidelity Dividend ETF for Rising Rates Virtus Newfleet Dynamic Credit ETF Franklin LibertyQ US Equity ETF Elkhorn Lunt Low Vol/High Tactical ETF IQ Chaikin US Small Cap ETF Cambria Core Equity ETF JPMorgan Global Bond Opportunities ETF Barclays ETN+ FI Enhanced Europe ETN Series B Formula Folios Income ETF Goldman Sachs Treasury Access Year ETF JPMorgan Diversified Alternatives ETF IQ S&P High Yield Low Volatility Bond ETF PowerShares Variable Rate Investment Grade Portfolio.68%.%.68%.%.%.6%.%.%.6%.8.%.8.. Source: Deutsche Bank, Bloomberg Finance LP. Includes ETNs TER Net CF M, Figure : Top Issuers by inflows to products launched in the last months Top Issuers First Trust Principal Financial PowerShares Fidelity Investments JPMorgan Global X Funds Deutsche AM Franklin Templeton IndexIQ Advisors Goldman Sachs Virtus Investment Nuveen BlackRock Elkhorn Inv. Cambria Funds State Street DirexionShares WisdomTree ArrowShares Millington Securities Net Cash Flows M, Jun ', New Funds last M 6 6 Source: Deutsche Bank, Bloomberg Finance LP Page

22 July Popular Product Segments: Smart & Currency Hedged Figure 8: Summary statistics for Smart Equity ETFs Smart (Equities) Dividend Equal ESG Fundamental Low Risk Multifactor Singlefactor Style Other Total Net Cash Flows Jun ',6,,, ,6,, (66),8 6 (8), (),,8 Turnover Jun ' Chg %,68 % 6,6 % %,88, %, %,8 %,6 % %, % % % % % % % % Jun ' Chg %,, 6%, % 8, %,8 % 6, %,66 %, 6 % 6,86 % # of Funds Jun ' % 8 % % % % % % % 6 % 6% 68 6% % % % 6 % 6 New 6 6 Source: Deutsche Bank, Bloomberg Finance LP Figure : Summary statistics for CurrencyHedged Equity ETFs Net Cash Flows Currency Hedged (Equities) Jun ' 6 () () (8), () (8) () () () (), Multiple AUD BRL CAD CHF CNY EUR GBP JPY KRW MXN Total Turnover Jun ' Chg %,86,,,6 % 8% % 6% % % 8% 8% % 8% % % % % Jun ' Chg %,,66 6, 6, % % % % % % % % % # of Funds Jun ' % % % 8 % % % % % % 6% % % % % New Source: Deutsche Bank, Bloomberg Finance LP Figure : Top Issuers in Equity Smart Top Issuers (Equity Smart ) BlackRock Vanguard State Street WisdomTree PowerShares First Trust Charles Schwab Guggenheim Inv. FlexShares Goldman Sachs Source: Deutsche Bank, Bloomberg Finance LP Page Jun ',,8,, 6,,6,8,6,, Net Cash Flows M,6,,68 (,),,,68,,6, Figure : Top Issuers in Equity Currency hedged # of Funds Jun ' Top Issuers (Equity Currency Hedged) WisdomTree Deutsche AM BlackRock IndexIQ Advisors First Trust JPMorgan FlexShares State Street O'Shares Investments Franklin Templeton Jun ',, 8, 6 Net Cash Flows M (,) (,8), 6 () # of Funds Jun ' Source: Deutsche Bank, Bloomberg Finance LP

23 July Average Performance by Products Type and Size (Equity) Month Comparisons Figure : US Equity ETFs Month Total Returns Figure : US Equity ETFs # of Funds in M sample.8%.%...% Source: Deutsche Bank, FactSet. Total Return corresponds to last month. Size.8%.%..% Product Type Smart Active.%.%.%.%.%.%.%.%.%.%.%.% Size.6%.8%.%.6% Product Type Smart Active..%.%.% Source: Deutsche Bank, FactSet. Total Return corresponds to last month DM Equity, Broad sector, regional, non levered, # of funds by Large Cap Mid Cap Small Cap Broad 6 8 Product Type Smart Active Source: Deutsche Bank. Figure 6: EM Equity ETFs Month Total Returns Large Cap Mid Cap Small Cap Broad Figure : DM Equity ETFs # of Funds in M sample Source: Deutsche Bank, FactSet. Total Return corresponds to last month. EM Equity, Broad sector, regional, non levered, M Total Return by Large Cap Mid Cap Small Cap Broad Product Type Smart Active 8 6 Source: Deutsche Bank. Figure : DM Equity ETFs Month Total Returns DM Equity, Broad sector, regional, non levered, M Total Return by Large Cap Mid Cap Small Cap Broad Size US Equity, Broad sector, non levered, # of funds by Size.6%.%.%.%.% Product Type Smart Active.8%.%.6%..6%..%.%.%.%.% Figure : EM Equity ETFs # of Funds in M sample.6%..6%.% EM Equity, Broad sector, regional, non levered, # of funds by Large Cap Mid Cap Small Cap Broad Size Size US Equity, Broad sector, non levered, M Total Return by Large Cap Mid Cap Small Cap Broad Product Type Smart Active 6 Source: Deutsche Bank. Page

24 July Year Comparisons 8.%.%.6%.%. Figure : US Equity ETFs # of Funds in Y sample.6%.%.% 6.% 8.% Source: Deutsche Bank, FactSet. Total Return corresponds to last month. Size.8%.%.%.% Product Type Smart Active.%.% 6.%.%.% 8.% 8.8%.%.% 8.%.% Size.6% 8.6% 8.%. Product Type Smart Active.%.%.%.8% Source: Deutsche Bank, FactSet. Total Return corresponds to last month. Page 8 8 DM Equity, Broad sector, regional, non levered, # of funds by Large Cap Mid Cap Small Cap Broad Product Type Smart Active 8 88 Source: Deutsche Bank. Figure : EM Equity ETFs Year Total Returns Large Cap Mid Cap Small Cap Broad Figure : DM Equity ETFs # of Funds in Y sample Source: Deutsche Bank, FactSet. Total Return corresponds to last month. EM Equity, Broad sector, regional, non levered, Y Total Return by Large Cap Mid Cap Small Cap Broad Product Type Smart Active 8 6 Source: Deutsche Bank. Figure : DM Equity ETFs Year Total Returns DM Equity, Broad sector, regional, non levered, Y Total Return by Large Cap Mid Cap Small Cap Broad US Equity, Broad sector, non levered, # of funds by Size Product Type Smart Active.% 6.%.6%.%..% 8..%.%.%.% Figure : EM Equity ETFs # of Funds in Y sample 8.%.6% 8.% 8.% EM Equity, Broad sector, regional, non levered, # of funds by Large Cap Mid Cap Small Cap Broad Size Size US Equity, Broad sector, non levered, Y Total Return by Large Cap Mid Cap Small Cap Broad Size Figure 8: US Equity ETFs Year Total Returns Product Type Smart Active 6 Source: Deutsche Bank.

25 July Total Expense Ratio XRay Figure : Average TER analysis by asset class and management style TER By Equity Fixed Income Commodity Currency Multi Asset Alternative.6%.%.%.%.6%.%.6% Simple Average Smart.%.%.8%.8.8%.8.%.%.% +.%.8%.%.% Active.86%.%.6%.%.%.8%.6%.%.6%.86%.6%.6%..%.%..%.%.%.8. Weighted Average + Smart Active.%.6%.8%.%.%.%.%.8%.6%.%.8..%.%.%.6%..%.%.%.%.%.8%.6.%.%.% Source: Source: Deutsche Bank, Bloomberg Finance LP. Figure : Selected TER averages for the top Issuers by Simple Average Top Issuers Jun ' BlackRock Vanguard State Street PowerShares Charles Schwab First Trust WisdomTree Guggenheim Inv. VanEck Vectors ProShares Deutsche AM ALPS FlexShares PIMCO DirexionShares,,,6,, 8, 8,68,8,8,6 8,,,,886,8,8 Equity Smart.6%.%..%.%.%.%..8%.%.6%.6%..%.6%.%.6%.%.%.%.%.%.6%.6.8%.%.8% Weighted Average Fixed Income Active.%.%.%..%.%.%.%..%.%.%.%.%.8%..%.%..%.6%.%.%.%.6%..%.6%.68%.88%.%.%.%.%.8% Equity Smart.6%.%.8%.%.%.%.%.%.6%.%.6.6%.8%..6%.%.%.%.%.6%.%.%.8%....6% Fixed Income Active.%.%..%.6%.%.6..8%.%.8%.6%.6%...8%..%.%..%.8%.8%.8%..66%..%.%.8%..%.%.%.% Source: Deutsche Bank, Bloomberg Finance LP. Page

26 July ETF Statistics Global ETF Assets and Provider Ranking Figure 6: Historical Growth of Global ETP Asset* 6,,, $billion,,,,,,,,, ' '8 ' ' ' ' ' ' ' '6 '* Asia Pacific ($) Europe ($) US ($) 6 8,6,,68,,,,6 US, Europe & Asia Pacific ($) 8,,,,88,6,6,,, Europe ( ) 66 66,,666,,8,,,,,6,8,6 Number of ETPs** Number of ETPs,, Source: Deutsche Bank, Bloomberg Finance LP. *These figures don't include the ETF markets in the Americas ex US and in the Middle East and Africa regions. data as of the end of last month. Figure : Top Global ETP Provider Ranking and Summary Statics Issuer BlackRock Vanguard State Street PowerShares Nomura Asset Management Deutsche AM Charles Schwab Lyxor First Trust Nikko Asset Management Total Top Others Global Total Current. Share 6 6. Share,, 68,8 8, 6,6, 8,66 8, 6,6 8,,,,6 68,6,,6.%.%.%.%.%.%.%.%.%.% 8.%.%.,6, 6,8 8,6,8,,,,66,,,8,8,66,, 6.% 8.%.8%.%.%.%.%.6%.%. 8.%.%. Current Month CF ,6,6,6 8,68, 6,6,,8,,,8 6,,,686 6,8 Current Month TO CF, 8,8, 8,68 6,,8,8,,8,, 6,,8,,,6 6,66,,86,, 8,8 8, 8,6,86,8, Source: Deutsche Bank, Bloomberg Finance LP, FactSet. data as of the end of last month. Page 6

27 July US Historical ETF Trends Figure : Monthly ETF Volume $ growth vs. VIX and ETF Volume, Source: Deutsche Bank, Bloomberg Finance LP. ETPs include ETFs and ETVs; ETVs represent about % of ETP assets and track mostly nonequity and nonfixed Income exposures. * data as of the end of last month. Net Cash Flows $million, %,, %,, Source: Deutsche Bank, ICI, Bloomberg Finance LP. *Data as of the end of May. Mutual Funds only include Long Term Mutual Funds. ETF trading as % of all US Cash Equity trading and VIX Level (end of month) Apr Sep6 Jul Feb6 Dec Oct May Mar Jan Aug Jun Apr 6 6,, Active MF+ETF, Passive / Active % Passive MF+ETF,,,,,,,, Passive as % of Active ETF/MF %,, Source: Deutsche Bank, Bloomberg Finance LP. ETF Turnover excludes ETVs and ETNs. Data as of the end of last month. Net Cash Flows $million % ETF CF Figure : Net Cash Flows and historical comparison between Active and Passive mgmt style* ETF as % of Mutual Fund Figure : Net Cash Flows and historical comparison between Mutual Funds and ETFs* MF CF Nov 8 6 *,, Jan, Sep Jul8 6, Feb 8 6 Dec, VIX, Oct6,, ETF % Cash Eqty, May,6 ETF Turnover Mar6,8 Monthly ETF Turnover $billion, Others Fixed Income Equity # Funds Aug,,,8,6,,,,8,6,,, 8 6 Number of ETPs $billion Figure 8: Annual ETP historical growth in and # of funds Source: Deutsche Bank, ICI, Bloomberg Finance LP. *Data as of the end of May. Mutual Funds only include Long Term Mutual Funds. Page

28 July ETF Issuer and Index Provider league tables Figure : ETP Issuer league table (excludes ETN assets) Assets Under Management Jun ' Fixed Equity Income BlackRock,,.8% 8, 66,6 Vanguard,6.% 6,,6 State Street, 8.%,8 6, PowerShares,.%,, Charles Schwab 8,.6% 6, 8,6 First Trust 8,68.6%, 6, WisdomTree,8.%,6 6 Guggenheim Inv.,8.%,8, VanEck Vectors,6.%,6, ProShares 8,.%,,6 Deutsche AM,.%, ALPS,.%,8 FlexShares,886.%,8,8 PIMCO,8.%,8 DirexionShares,8.%, Fidelity Investments 6,8.% 6, Global X Funds,88.%, US Commodity Funds,8.% Goldman Sachs,8.%, ETC,8.%,6 IndexIQ Advisors,68.% 6 ETF Securities,6.% OppenheimerFunds,6.%,6 JPMorgan,8.%,6 Victory Capital Mgt.,8.%,8 ETFMG,., Columbia Mgmt,.,8 AdvisorShares Trust,6. 6 Pacer Advisors,6.,6 Principal Financial,. Millington Securities. Virtus Investment. 6 8 John Hancock Inv KraneShares 6. 6 Franklin Templeton. 8 Highland Capital. O'Shares Investments 8. 8 Cambria Funds 6. Legg Mason 6. 6 ARK Inv. Mgmt 6. 6 Empowered Funds 8. Hartford Funds. 8 6 Blue Sky Asset Management. Horizons Management ArrowShares 6. 8 Teucrium Trading 6. Elkhorn Inv Davis Advisors 6. 6 Nuveen. 8 FormulaFolio Inv.. Other,. 868,,6, 6,,,6 6, 8,,8 668,6,8 8, Total 6,8,8 Top Issuers Total,6,,6,, Cmdty Other Net Cash Flows Jun ', 8,,,6,, (,6),86,, 6,6, (,) 8, (),6 (8),6 6,8 () 8, 6, , () () 8 () (8) 8 8 () () () () 6 6,88,8 Turnover # of Funds Jun ' Jun ' New,86.8%,.% 6,6.6%,.%,8.% 6,6.% 8,.%,.%,6.% 6 6,6.%,.%,8.%,.%,.%,.% 8 8,.%,6.% 8,.% ,8,86,8 Source: Deutsche Bank, Bloomberg Finance LP, FactSet. Data as of the end of last month. Page 8

29 July Figure : Index Provider league table (excludes ETN assets) Assets Under Management Jun ' Fixed Equity Cmdty Income Top Index Providers S&P Dow Jones Total Other Net Cash Flows Turnover Jun ' Jun ' # of Funds Jun ' New,,6.%,,,,68,,6,86.% MSCI,.,, 8,6 8,.% FTSE Russell 6,.8%,6,6,,8 8,.% Bloomberg Barclays,.%,,6,,.8% CRSP,.%, 88,,.% Nasdaq OMX,.%,8 88 6,8 8,.% 6 Markit iboxx 6,6.% 6,6,6 8,,.% Commodity Physical,86.%,86,,6,8. WisdomTree,.%,6 8,6.% ICE,6.%,6,,. Active 6,,,6 Morningstar, NYSE Euronext J.P. Morgan,6.%,8 8, %,8,.8%, 6,.% 6, BofA Merrill Lynch,.% 6, Market Vectors,.%,6 Alerian,.%,,.%,, Deutsche Bank Accretive AM 8,6 6,.% 8,,.% 6 (,888) (,8),.%,,8 8,68.%,,.% (6) 8,88.% () (6),.% 6 6 (),.% 8,6.% 8,6 6, 6. 8 Other,8.%,8, 6 6,,,,.% Total,6,,6,, 6,8,8 6,88,8,8,86,8 Source: Deutsche Bank, Bloomberg Finance LP, FactSet. Data as of the end of last month. Page

30 July Monthly Snapshot Figure : ETP Summary Statistics by Asset Class Asset Class Equity Fixed Income Commodities Currency Multi Asset Alternative Total Net Cash Flows Jun ',,,,,, 6 (6) 8 6,88,8 Turnover # of Funds Jun ' Jun ' Jun ' Chg % Chg %,, % 8%,6, % %,6 %, 8% %, % 8% %, % % 6,8 % 6 %, %,6 % % %,6 % %,6 8% %,6 % 8 %,8, %,6,.%,8 New 6 Source: Deutsche Bank, Bloomberg Finance LP, FactSet. Data as of the end of last month. Figure : ETP Summary Statistics by Management Style (ActivePassive) Passive>Active + Smart Active Total Net Cash Flows Jun ',, 8,8,6,, 6, 6,88,8 Turnover # of Funds Jun ' Jun ' Jun ' Chg % New Chg %,6,8 % 8%,, % 6% 6 8% 6, % %, % %, 6% % 6,8 % % % 6, % 6,86 % % 8,8, %,6,.%,8 Source: Deutsche Bank, Bloomberg Finance LP, FactSet. Data as of the end of last month. Figure 6: ETP Summary Statistics by Product Type Product Type Asset ocation Cash Management Pseudo Futures Leveraged & Inverse Total Net Cash Flows Jun ' 8,,6,,, (,) 8.,8 6,88,8 Turnover # of Funds Jun ' Jun ' Jun ' Chg % Chg % 6,6 %,, % %,8 8%,6 8% %,8, % 6 %,8, 8% 68%,6 % % % 6, % %,8 % %,8, %,6,.%,8 New Source: Deutsche Bank, Bloomberg Finance LP, FactSet. Data as of the end of last month. Page

31 July Equity Breakdowns Figure : ETP Summary Statistics by Geographic Focus Global and Developed Market Equities Geographic Focus (Equities) Global Markets Equities Global (reg) Global ex US (reg) Asia Pacific (reg) Asia Pacific ex JP (reg) Total GME Developed Market Equities Global (reg) Global ex US (reg) Global ex JP (reg) Europe & Middle East Europe (reg) Denmark Norway Sweden Switzerland UK Eurozone (Reg) Austria Belgium Finland France Germany Ireland Israel Italy Netherlands Portugal Spain North America North America (reg) Canada US Asia Pacific Pacific (reg) Japan Pacific ex JP (reg) Australia Hong Kong New Zealand Singapore Total DME Total Equities Net Cash Flows Jun ' Turnover Jun ' Chg % Jun ' Chg % # of Funds Jun ' New (),6,,6 8,8 66,86 68,8,,8 6,6 % % 8% % % %, 8,6,8, % % % % % % % % % % % 8 6,6 (6),66,8 (),,6 % % % %,66 8, % % % % % %,8 (6) (8) 8 (), (8) 8 () 6 () (), () (8) 6 6,8 8 () () 8 6 () () () 6,88 6,,8 8, % % % % % % % % % % % % % % 8% 8% % % 8, 6,,66 8,8 88 6, , % % % 6% % % % % % % % % % % % % % 8 % % % % 6, (),6 6,,, % % % 8%,68,,68, % 6% % % 6 8 % 6 6 (6) 6 (),86, 8 8 () (86) () 6,, 8, 8,,8 8,8,8,, 6% % % % % 8% % % % 86% %,,,,6, 68 8,,8,6, 6% % % % % % % 88% % 6 8 6,6 % % 6 6 Source: Deutsche Bank, Bloomberg Finance LP, FactSet. Data as of the end of last month. Page

32 July Figure 8: ETP Summary Statistics by Geographic Focus Emerging Market Equities Geographic Focus (Equities) Emerging Market Equities Global (reg) BRIC (reg) Asia Asia (reg) China China A India Indonesia Malaysia Philippines South Korea Taiwan Thailand Europe Europe (reg) Poland Russia Turkey Greece Middle East & Africa ME & Africa (reg) Middle East (reg) Africa (reg) Egypt South Africa Qatar UAE Latin America Latin America (reg) Brazil Chile Colombia Mexico Peru Frontier Markets Frontier (reg) Argentina Nigeria Pakistan Saudi Arabia Vietnam Total EME Total Equities Net Cash Flows Jun ',8, Turnover Jun ' Chg % Jun ' Chg % # of Funds Jun ' New 6,666 % %,68 % 6% 6 % (6) () (6) () 8 88 (6) 6 (),866 8, 8,88,6 6 % % % % % % % % 6% % 8 8,6 8 8, 8 8,8,6 % % % % 6% % % % 6 % % % 6 () 6 6 () (8) 6, 8 % % %,6 8 % % % % % 6 () (6) 6 (6) () () () % % % % % % 8 8 % % % % 6% % % (88) () (6) 8 () (6), () (88) (),, 6 6% % % % % 6% %,,8 6, 66 8% % % % % 8% 6 % % % 6% 8% % 8% % % % ,,6, % % % % % % % 8% % 8,6 % () (),, 8,, 8,,, 6 Source: Deutsche Bank, Bloomberg Finance LP, FactSet. Data as of the end of last month. Page

33 July Figure : ETP Summary Statistics by Size and Market Equities Market Cap Segment (Equities) US Equities Large Cap Mid Cap Small Cap Broad Total US Equities DM Intl Equities Large Cap Mid Cap Small Cap Broad Total DM Intl Equities EM Equities Large Cap Mid Cap Small Cap Broad Total EM Equities Total Equities Net Cash Flows Jun ' Turnover Jun ' Chg % Jun ' Chg % # of Funds Jun ' New, (),6,,,,,8,,6 88,,8 6,6,,, % % % % % 8% % 8% % 8% 86,,,86,8,68, % % % % % % 6% % % % % % 6% % % 6,8,,, 6, 6,,, 8,6,8 % % % % % %,8, 8,8, % % % % % % % 6% 8 86 % % 8% %,86,, 8 88,,,, 6 6,,,, % % % 8% 8% % % 6,8,, 8,,6, % % % % % % 8% % 6 8,6 % % % % Source: Deutsche Bank, Bloomberg Finance LP, FactSet. Data as of the end of last month. Figure 6: ETP Summary Statistics by Style and Market Equities Style (Equities) US Equities Growth Value Dividend Blend Total US Equities DM Intl Equities Growth Value Dividend Blend Total DM Intl Equities EM Equities Dividend Blend Total EM Equities Total Equities Net Cash Flows Jun ' Turnover Jun ' Chg % Jun ' Chg % # of Funds Jun ' New () (6) 88,86,, 6,8,8 6,,6,6 8,8 8,,,,, % % % % % % % % % 8%, 6,,,,8,68, % % % % 6% 6% % % % % % % % % 6 8 8,,,686 8, 6,6 6,8 6,, 6% 6% 8% % % %,,6,,8, % % % % % % % 6% 8 % % %,,, 6,,, 8,8,,, % % % %,88 8,6 8,,6, % % 8% % 8% % 8,6 % % % 6 Source: Deutsche Bank, Bloomberg Finance LP, FactSet. Data as of the end of last month. Page

34 July Figure 6: ETP Summary Statistics by Sectors US Equities Sector (US Equities) Consumer Discretionary Consumer Staples Energy Financials Healthcare Industrials Materials Real Estate Technology Telecom Utilities Theme Overall Total US Equities Net Cash Flows Jun ' () 6,,6,,6,,8, (6) 66 (88) (6), (8), () (6) () 6 6,6 6,88,, Turnover # of Funds Jun ' Jun ' Jun ' Chg % Chg % 8, 6% %, % % % 6, % %,8 6% % %, 8% % 8, % % 8 % 6, % 6%,8 % % 6%, 6% %,8 % % %, 6% %,66 % % %,88 % %,8 % %, % %, % % %,6 %, % % % %,6 % %, % %,8 % % %, %, % % 6 % 8,6 % %,, % 8 %,, %,68,6 % New 8 Source: Deutsche Bank, Bloomberg Finance LP, FactSet. Data as of the end of last month. Commodity Breakdowns Figure 6: ETP Summary Statistics by Sectors and Sub Sectors Commodity Sector (Commodities) Diversified Broad Agriculture Energy Crude Oil Natural Gas Industrial Metals Precious Metals Gold Silver Platinum Palladium Total Commodities Net Cash Flows Jun ' (8) (6) (), () (),8,8 () () () () (),, Turnover # of Funds Jun ' Jun ' Jun ' Chg % Chg % 6 %, % % % % % 86 % % %,8 8% %,6 6% % 8, 6% %, 8% 8% 6%,6 % % 8 % % % 6 % % %,8 % 6%, % 8% %, % 8%,8 % 6%,8 % 6% 6, % 8% 8 8% % % % 6 % % %, % 6,8 6 New Source: Deutsche Bank, Bloomberg Finance LP, FactSet. Data as of the end of last month. Page

35 July Fixed Income Breakdowns Figure 6: ETP Summary Statistics by Category Fixed Income Categories (Fixed Income) Broad Convertible Corporates EM debt Inflation International Municipal Preferred Securitized Senior Loans US Treasury Total Fixed Income Net Cash Jun ',,, 6 () (),, Flows 8,8 668, 6,,86 (),86,8,, 8,, Turnover # of Funds Jun ' Jun ' Jun ' Chg % Chg % 8, % % 8,6 % 6 8 6% %, % % %,86 % % 6, % % %, %, % % %, % %, % %, % % %,6 % %,8 % % 8 %, % %, % 6% %,6 % % 6, % % %,88 % %,68 % % %, % 6%,86 % % %, 8%, % New Source: Deutsche Bank, Bloomberg Finance LP, FactSet. Data as of the end of last month. Figure 6: ETP Summary Statistics by Credit Quality Fixed Income Credit Quality (Fixed Income) Investment Grade High Yield Mixed Total Fixed Income Net Cash Jun ',,6, Flows,,,, Turnover # of Funds Jun ' Jun ' Jun ' Chg % New Chg % 86,8 % 6%,8 % 6% 6%, % 8% 6,8 % %,8 % 6,6 % % %, 8%, % Source: Deutsche Bank, Bloomberg Finance LP, FactSet. Data as of the end of last month. Figure 6: ETP Summary Statistics by Duration Fixed Income Duration (Fixed Income) Short Intermediate Long Broad Set Maturity Total Fixed Income Net Cash Jun ',66,, 8, Flows, 8,,8,6,, Turnover # of Funds Jun ' Jun ' Jun ' Chg % Chg %,8 6% %,8 % 6% 8 6%,6 %,8 % % % 6, % %,8 % % %, % %,6 % % %,6 % %,8 % % %, 8%, % New Source: Deutsche Bank, Bloomberg Finance LP, FactSet. Data as of the end of last month. Page

36 July Top ETFs (includes ETNs) Figure 66: Top by M Total Return Gain (nonlevered) Ticker Name NGE WEAT BBC XBI SBIO PTH BTEC BBP ARKG KSA PBE GREK SLIM KFYP FBT Global X MSCI Nigeria ETF Teucrium Wheat Fund BioShares Biotechnology Clinical Trials Fund SPDR S&P Biotech ETF ALPS Medical Breakthroughs ETF PowerShares DWA Healthcare Momentum Portfolio Principal Healthcare Innovators Index ETF BioShares Biotechnology Products Fund ARK Genomic Revolution MultiSector ETF ishares MSCI Saudi Arabia Capped ETF PowerShares Dynamic Biotechnology & Genome Global X MSCI Greece ETF The Obesity ETF KraneShares Zacks New China ETF First Trust NYSE Arca Biotechnology Index Fund TER.68%.%.8%.%..6%.%.8%.%.%.6%.6%..%.6 Total Return 6.%.%.6%.%.%.8%.6%.%..%.8%.%.%.%. Source: Deutsche Bank, FactSet. Total Return corresponds to last month. IVV IEFA AGG VEA LQD VGK EFA IWM XLF VOO IBB XLP IEMG EWJ VCIT ishares Core S&P ETF ishares Core MSCI EAFE ETF ishares Core U.S. Aggregate Bond ETF Vanguard FTSE Developed Markets ETF ishares iboxx $ Investment Grade Corporate Bond Vanguard FTSE Europe ETF ishares MSCI EAFE ETF ishares Russell ETF Financial Select Sector SPDR Fund Vanguard S&P ETF ishares Nasdaq Biotechnology ETF Consumer Staples Select Sector SPDR Fund ishares Core MSCI Emerging Markets ETF ishares MSCI Japan ETF Vanguard IntermediateTerm Corporate Bond ETF TER.%.8%.%.%.%..%..%.%.%.%.%.8%.% SPDR S&P ETF ishares Core S&P ETF Vanguard Total Stock Market ETF ishares MSCI EAFE ETF Vanguard S&P ETF Vanguard FTSE Emerging Markets ETF Vanguard FTSE Developed Markets ETF PowerShares QQQ ishares Core U.S. Aggregate Bond ETF ishares Core S&P MidCap ETF ishares Russell ETF ishares Russell Value ETF ishares iboxx $ Investment Grade Corporate Bond ishares Russell Growth ETF Vanguard Total Bond Market ETF Source: Deutsche Bank, Bloomberg Finance LP. as of the end of last month. Page 6 ipath Bloomberg Natural Gas Subindex Total Return ipath Pure Sugar ETN ipath Series B Bloomberg Natural Gas Subindex Total ipath Dow JonesUBS Sugar Subindex Total Return ETRACS CI Energy Total Return REX VolMAXX Long VIX Weekly Futures Strategy ETF ishares MSCI Qatar Capped ETF Global X MSCI Pakistan ETF PowerShares Dynamic Semiconductors Portfolio ELEMENTS Linked to the MLCX Biofuels Index Teucrium Sugar Fund First Trust Nasdaq Semiconductor ETF ipath Dow JonesUBS Cotton Subindex Total Return ipath Dow JonesUBS Cocoa Subindex Total Return ipath Dow JonesUBS Softs Subindex Total Return.%.%.%.%.6%.%.6%.88%.6%.%.%.6.%.%.% Total Return.6%.%.%.6% 8.6% 8.% 8.%.8%.%.6%.%.%.%.. Ticker Name SPY QQQ IWD GDX IJH XLK GVI IWF XLI SMH MBB HYG DXJ VNQ XLY TER SPDR S&P ETF PowerShares QQQ ishares Russell Value ETF VanEck Vectors Gold Miners ETF ishares Core S&P MidCap ETF Technology Select Sector SPDR Fund ishares Intermediate Government/Credit Bond ETF ishares Russell Growth ETF Industrial Select Sector SPDR Fund VanEck Vectors Semiconductor ETF ishares MBS ETF ishares iboxx $ High Yield Corporate Bond ETF WisdomTree Japan Hedged Equity Fund Vanguard REIT ETF Consumer Discretionary Select Sector SPDR Fund.%...%.%.%...%.%.%..8%.%.% Outflows (,) (,) () (68) (8) (6) (6) () () () () () (6) () (8) Source: Deutsche Bank, Bloomberg Finance LP. Outflows correspond to last month. Figure : Top by SPY IVV VTI EFA VOO VWO VEA QQQ AGG IJH IWM IWD LQD IWF BND GAZ SGAR GAZB SGG UBN VMAX QAT PAK PSI FUE CANE FTXL BAL NIB JJS TER Figure 6: Top by M Outflows Inflows,,8,,,,,8,,8,,6,6,, Source: Deutsche Bank, Bloomberg Finance LP. Inflows correspond to last month. Ticker Name Ticker Name Source: Deutsche Bank, FactSet. Total Return corresponds to last month. Figure 68: Top by M Inflows Ticker Name Figure 6: Top by M Total Return Loss (nonlevered) Figure : Top by $ Volume traded last month TER.%.%.%.%.%.%.%..%.%...%..% 6,,,8 6,,,6,6,6,,, 6, 6,6,, Ticker Name SPY QQQ IWM EEM XLF EFA XLE GDX HYG XIV TLT IVV VXX GLD XLK TER SPDR S&P ETF PowerShares QQQ ishares Russell ETF ishares MSCI Emerging Markets ETF Financial Select Sector SPDR Fund ishares MSCI EAFE ETF Energy Select Sector SPDR Fund VanEck Vectors Gold Miners ETF ishares iboxx $ High Yield Corporate Bond ETF VelocityShares Daily Inverse VIX ShortTerm ETN ishares + Year Treasury Bond ETF ishares Core S&P ETF ipath S&P VIX ShortTerm Futures ETN SPDR Gold Shares Technology Select Sector SPDR Fund.%...6%.%.%.%.%..%.%.%.8%..% Volume 8,86 6,,,,,6 6,8,66,,,8,8,8,,86 Source: Deutsche Bank, Bloomberg Finance LP. Volume $ corresponds to total traded last month.

37 July Appendix A: ETN Snapshot Figure : ETN Summary by Asset Class ($ MM) End of %Chg Asset Class Jun Equity Fixed income Commodity Currency Multi Asset Alternative Total,6,88,,,6,6 6,68,66.%.%.%.8%.%.%. Cash Flow ($ MM) Jun May 66 () () 8 8 () () 66, Turnover ($ MM) Chg %.%.%.6%.8%.%.6% 6.6% Jun May %Chg,8, 6 8, 6,8,8, 8,8 6,.% 6.6%..%.%.8%.% Jun # of ETNs End of %Chg.%..%...%.% Market Share % # of Turnover ETNs 6.%.6%.%.%..%.% 6.6% 8.%.%..%.%.%.6%..%.%... Source: Deutsche Bank, Bloomberg Finance LP, FactSet. Data as of the end of last month. Figure : ETN Summary by Issuer ($ MM) Issuer Jun Barclays Bank UBS Credit Suisse JPMorgan Citigroup Deutsche Bank Swedish Export CC Goldman Sachs Morgan Stanley BMO Capital Markets VanEck Vectors Guggenheim RBC GAM Total 6,6,8,, 8, End of 6,8 6,8,, ,66 Cash Flow ($ MM) %Chg 6.%..%.8% 6.6%..%..% 6.8%.%.%.. Jun (8) () () May () 8 (8) () 8 Turnover ($ MM) Chg % 8 8 () () () (),.%.6% 8.8%.%.%.% 8.6%......% 6.6% # of ETNs Jun May %Chg,8 6,8,,8 6,8, 6,,, 6 6 6,.6%.6%.%.% 8.%.%.% 8.%.% 6.%..%.% Jun 8 6 End of Market Share % %Chg 8..% 8.% % 8..%.%.6%.%.%.%.%.%.%.%... # of ETNs Turnover.%.% 6.%.% 6.%.%.% %..%..6%.%.6%.%.%.%.%.%.. Source: Deutsche Bank, Bloomberg Finance LP, FactSet. Data as of the end of last month. Page

38 July Appendix B: ETF List Figure : Global and US Equities Reference list Product Listing Date Type $M Total Liq. $M Avg. Bid/Ask Spreads Ticker ETF Name Global Equities ACWI ishares MSCI ACWI ETF 8Mar8.% 6, US Total Market VTI Vanguard Total Stock Market ETF May.% 8,6 6, 6,6..8 S&P (Large Cap) SPY SPDR S&P ETF Jan.%,86,,,.. DJI DIA SPDR Dow Jones Industrial Average ETF Jan8.% 6,,,..6 NASDAQ QQQ PowerShares QQQ Mar.,,,,.. Russell Growth IWF ishares Russell Growth ETF May. 6, 6,,6.. Russell Value IWD ishares Russell Value ETF May. 6, 6,8,.. S&P (Mid Cap) MDY SPDR S&P MidCap ETF May.%,,8,.. Russell (SM Cap) IWM ishares Russell ETF May. 6,, 8,.. Div. Growth Vanguard Dividend Appreciation ETF Apr6.8%, 68.. VIG TER D ADV Implied $M Liq. $M Asset Class Day $ Day bps Div. Yield DVY ishares Select Dividend ETF Nov.%, Div. Yield VYM Vanguard High Dividend Yield ETF 6Nov6.8% 8, 6,,.. Div. Yield & Growth SDY SPDR S&P Dividend ETF Nov.%, 6.. Cons. Discretionary XLY Consumer Discretionary Select Sector SPDR Fund Dec8.%,,,68.. Hotels, Rest & Leisure PEJ PowerShares Dynamic Leisure and Entertainment Portf Jun.6%.6.8 Home Builders XHB SPDR S&P Homebuilders ETF Feb6.%,.. Household Durables ITB ishares U.S. Home Construction ETF May6.%, 6.. Media PBS PowerShares Dynamic Media Portfolio Jun.6%..6 Retail XRT SPDR S&P Retail ETF Jun6.% Cons. Staples XLP Consumer Staples Select Sector SPDR Fund Dec8.%,6 8,,6.. Food Products PBJ PowerShares Dynamic Food & Beverage Portfolio Jun.6%...6 Energy XLE Energy Select Sector SPDR Fund Dec8.% 6,,,6. Energy Eq. & Serv. OIH Market Vectors Oil Services ETF Feb.%, Energy Eq. & Serv. XES SPDR S&P Oil & Gas Equipment & Services ETF Jun6.% Energy Eq. & Serv. IEZ ishares U.S. Oil Equipment & Services ETF May6.% 6..8 Energy E&P XOP SPDR S&P Oil & Gas Exploration & Production ETF Jun6.%, 8.. Energy E&P IEO ishares U.S. Oil & Gas Exploration & Production ETF May6.% 6..8 MLPs AMLP Alerian MLP ETF Aug.8%, Financials XLF Dec8.%,,68,6,.. Large Banks KBWB PowerShares KBW Bank Portfolio Nov.% Regional Banks KRE SPDR S&P Regional Banking ETF Jun6.%, Capital Markets KCE SPDR S&P Capital Markets ETF Nov.% Insurance KIE SPDR S&P Insurance ETF Nov.% Healthcare XLV Health Care Select Sector SPDR Fund Dec8.%,,66,6.. Biotech & Pharma IBB ishares Nasdaq Biotechnology ETF Feb.%, Large Biotech BBH Market Vectors Biotech ETF Nov.% HC Eq. & Supplies IHI ishares U.S. Medical Devices ETF May6.%,6.8. HC Providers & Serv IHF ishares U.S. Healthcare Providers ETF May6.%. 8. Large Pharma PPH Market Vectors Pharmaceutical ETF Feb.% Industrials XLI Industrial Select Sector SPDR Fund Dec8.%,,,.. Aerospace & Def ITA ishares U.S. Aerospace & Defense ETF May6.%,6. 6. Transportation IYT ishares Transportation Average ETF Oct.%.. Materials XLB Materials Select Sector SPDR Fund Dec8.%, Metals & Mining XME SPDR S&P Metals and Mining ETF Jun6.% 6.. Real Estate VNQ Vanguard REIT ETF Sep.%, Technology VGT Vanguard Information Technology ETF Jan.,8 6,86,.. Comm. Equipment IGN ishares North American TechMultimedia Networking E Jul.% Int. Software & Serv. FDN First Trust Dow Jones Internet Index Fund Jun6.6, Semiconductors SMH Market Vectors Semiconductor ETF May.% Software IGV ishares North American TechSoftware ETF Jul.%,6 6.. Telecom VOX Vanguard Telecommunication Services ETF Sep.,8.8. Utilities XLU Utilities Select Sector SPDR Fund Dec8.%, 6 6,.. Financial Select Sector SPDR Fund Source: Deutsche Bank, Bloomberg Finance LP, FactSet. Data as of Jul. Bid/Ask Spreads are provided only as reference, actual spreads are tradespecific. Product Type: Asset ocation (), Cash Management (), Pseudo Futures (). Page 8

39 July Figure : International Equities Reference list Product Listing Date Type TER $M D ADV Implied $M Liq. $M Total Liq. $M Avg. Bid/Ask Spreads Asset Class Ticker ETF Name Intl DM EFA ishares MSCI EAFE ETF Aug.% 8,,6,,.. Canada EWC ishares MSCI Canada ETF Mar6.8%, 6.. Israel EIS ishares MSCI Israel Capped ETF 8Mar8.6%. 8. Europe VGK Vanguard FTSE Europe ETF Mar. 6, Denmark EDEN ishares MSCI Denmark Capped ETF 6Jan.% Norway NORW Global X FTSE Norway ETF Nov... Sweden EWD ishares MSCI Sweden ETF Mar6.8% 8.. Switzerland EWL ishares MSCI Switzerland Capped ETF Mar6.8%, 8.. UK EWU ishares MSCI United Kingdom ETF Mar6.8%,,,.. Eurozone EZU ishares MSCI Eurozone ETF Jul.8%, 8,.. Austria EWO ishares MSCI Austria Capped ETF Mar6.8% Belgium EWK ishares MSCI Belgium Capped ETF Mar6.8%.. Finland EFNL ishares MSCI Finland Capped ETF 6Jan.%. 6. Day $ Day bps France EWQ ishares MSCI France ETF Mar6.8% 8.. Germany EWG ishares MSCI Germany ETF Mar6.8%,.. Ireland EIRL ishares MSCI Ireland Capped ETF May.8% Italy EWI ishares MSCI Italy Capped ETF Mar6.8% 66.. Netherlands EWN ishares MSCI Netherlands ETF Mar6.8% 8.. Portugal PGAL Global X FTSE Portugal ETF Nov.6%.. Spain EWP ishares MSCI Spain Capped ETF Mar6.8%, 8.. Japan EWJ ishares MSCI Japan ETF Mar6.8% 6,8,6,6.. Pacific ex JP EPP ishares MSCI Pacific ex Japan ETF Oct.%,.. Australia EWA ishares MSCI Australia ETF Mar6.8%, Hong Kong EWH ishares MSCI Hong Kong ETF Mar6.8%, New Zealand ENZL ishares MSCI New Zealand Capped ETF Sep.8%.. Singapore EWS ishares MSCI Singapore ETF Mar6.8% EM EEM ishares MSCI Emerging Markets ETF Apr.6%,88,, Latin America ILF ishares Latin America ETF 6Oct.% Brazil EWZ ishares MSCI Brazil Capped ETF Jul.6%, Chile ECH ishares MSCI Chile Capped ETF 6Nov.6% Colombia GXG Global X FTSE Colombia ETF Feb.68%.. Mexico EWW ishares MSCI Mexico Capped ETF Mar6.8%,.. Peru EPU ishares MSCI Peru Capped ETF Jun.6% 6.8. EM Asia EEMA ishares MSCI Emerging Markets Asia ETF Feb.%.6.6 China H FXI 8Oct.%,.. China A ASHR Deutsche Xtrackers Harvest CSI China AShares ET 6Nov.6% ishares China LargeCap ETF India INDA ishares MSCI India ETF Feb.68%, 8.. Indonesia EIDO ishares MSCI Indonesia ETF May.6% 8.. Malaysia EWM ishares MSCI Malaysia ETF Mar6.8%.. Philippines EPHE ishares MSCI Philippines ETF Sep.6% 8... South Korea EWY ishares MSCI South Korea Capped ETF May.6%,86. Taiwan EWT ishares MSCI Taiwan ETF Jun.6%,6..8 Thailand THD ishares MSCI Thailand Capped ETF 8Mar8.6%.8.8 EM Europe GUR SPDR S&P Emerging Europe ETF Mar.%.. Greece GREK Global X FTSE Greece ETF 8Dec.6% Poland EPOL ishares MSCI Poland Capped ETF 6May.6% 6..8 Russia RSX Market Vectors Russia ETF 6Apr.6%, Turkey TUR ishares MSCI Turkey ETF 8Mar8.6% 6.. Qatar QAT ishares MSCI Qatar Capped ETF May.6%. 8. UAE UAE ishares MSCI UAE Capped ETF May.6%.. Africa AFK Market Vectors Africa Index ETF Jul8.8%. 88. Egypt EGPT Market Vectors Egypt Index ETF 8Feb.8% South Africa EZA ishares MSCI South Africa ETF Feb.6% 6.. Frontier Market FM ishares MSCI Frontier ETF Sep.% Argentina ARGT Global X MSCI Argentina ETF Mar.% Nigeria NGE Global X MSCI Nigeria ETF Apr.68%..6 Pakistan PAK Global X MSCI Pakistan ETF Apr.88%.8. Vietnam VNM Market Vectors Vietnam ETF Aug.6%.. BRIC BKF ishares MSCI BRIC ETF 6Nov.6% Middle East Source: Deutsche Bank, Bloomberg Finance LP, FactSet. Data as of Jul. Bid/Ask Spreads are provided only as reference, actual spreads are tradespecific. Product Type: Asset ocation (), Cash Management (), Pseudo Futures (). Page

40 July Figure 6: NonEquity Reference list Product Listing Date Type TER $M D ADV Implied $M Liq. $M Total Liq. $M Avg. Bid/Ask Spreads Asset Class Ticker ETF Name Fixed Income (Broad) AGG ishares Core U.S. Aggregate Bond ETF 6Sep.% 8,.. US Treasury GOVT ishares Core U.S. Treasury Bond ETF 6Feb.%, Day $ Day bps Very Short SHV ishares Short Treasury Bond ETF Jan.%,8.. Short SHY ishares Year Treasury Bond ETF 6Jul.%,.. Intermediate IEI ishares Year Treasury Bond ETF Jan.%,8.. Long TLT ishares + Year Treasury Bond ETF 6Jul.% 8,..8 US Inflation TIP ishares TIPS Bond ETF Apr.,.. Municipal MUB ishares National AMTFree Muni Bond ETF Sep.% 8,.. Securitized MBB ishares MBS ETF Mar.%, 6.. IG Corporates LQD ishares iboxx $ Investment Grade Corporate Bond ETF 6Jul.%, HY Corporates HYG ishares iboxx $ High Yield Corporate Bond ETF Apr. 8,8,.. Floater FLOT ishares Floating Rate Bond ETF Jun. 6,.. Senior Loans BKLN PowerShares Senior Loan Portfolio Mar.6% 8,8.. Preferred F ishares U.S. Preferred Stock ETF Mar.% 8,..6 Convertible CWB SPDR Barclays Convertible Securities ETF 6Apr., 6.. Intl DM Debt BWX SPDR Barclays International Treasury Bond ETF Oct.,.. Intl Inflation WIP SPDR DB International Government InflationProtected Mar8... EM Gov Debt USD EMB ishares J.P. Morgan USD Emerging Markets Bond ETF Dec., 6.. EM Gov Debt Local EMLC Market Vectors Emerging Markets Local Currency Bon Jul.%,6.. EM Corp USD EMCB WisdomTree Emerging Markets Corporate Bond Fund 8Mar EM HY Corp USD HYEM Market Vectors Emerging Markets High Yield Bond ET May... Commodities DBC PowerShares DB Commodity Index Tracking Fund Feb6.8%,6.. Energy Cmdty DBE PowerShares DB Energy Fund Jan.8%.. Crude Oil WTI USO United States Oil Fund LP Apr6.%,8 8.. Natural Gas UNG United States Natural Gas Fund LP 8Apr.%.. Agriculture DBA PowerShares DB Agriculture Fund Jan.8% 8.. Industrial Metals DBB PowerShares DB Base Metals Fund Jan.8%. 8. Precious Metals DBP PowerShares DB Precious Metals Fund Jan.8%.. Gold Physical GLD SPDR Gold Shares 8Nov.,8.. Silver Physical SLV ishares Silver Trust Apr6.,6. 6. Platinum Physical PPLT ETFS Physical Platinum Shares 8Jan.6.. Palladium Physical PALL ETFS Physical Palladium Shares 8Jan.6.. Bull USD UUP PowerShares DB US Dollar Index Bullish Fund Feb.8.. JPYUSD FXY CurrencyShares Japanese Yen Trust Feb... EURUSD FXE CurrencyShares Euro Currency Trust Dec. 6.. Source: Deutsche Bank, Bloomberg Finance LP, FactSet. Data as of Jul. Bid/Ask Spreads are provided only as reference, actual spreads are tradespecific. Product Type: Asset ocation (), Cash Management (), Pseudo Futures (). Page

41 July Appendix C: Definitions ETP Universe Definitions ExchangeTraded Products (ETPs) We define an exchangetraded product (ETP) as a secure (funded or collateralized) openended exchangetraded equity with no embedded optionality and marketwide appeal to investors. This includes exchange traded funds (ETF), and exchangetraded vehicles (ETV). The vast majority of instruments are ETFs (~8% in ). ExchangeTraded Funds (ETFs) ETFs are openended funds which are listed on an exchange and offer intraday dual liquidity to access diversified investments in a transparent, cheap, and tax efficient way. ETFs indexed to equity and fixed income benchmarks are registered under the investment company act of. Only physical index replication techniques are permissible by this legislation while synthetic replication is not allowed. Exchangetraded vehicles (ETVs) This terminology typically refers to grantor trusts that exist in the US market. These instruments track primarily commodity benchmarks. They differ from ETFs in that they are registered under the Securities Act of and not the Investment Company Act of, hence they are not classed as funds. Vehicles that replicate commodity benchmarks, more often known as pools, and funds targeting alternative index returns are formed under the Commodities Exchange Act and are listed under the Securities Act, and report under Corporate Act. Management Style or Product Strategy Definitions This is the main group with the largest number of products and assets. Within this category we account for all those ETFs that track an index which employs a market capitalization weighting methodology, and a simple selection methodology usually involving screenings such as minimum market cap and liquidity levels, or profitability levels. ETFs in this group are also referred to as plainvanilla ETFs. Some examples of indices falling within this category are: S&P, S&P, S&P 6, MSCI EAFE, MSCI EM, Russell, and Russell, to name a few. + In this group we include every product that offers any level of leverage or inverse implementation. For example, an ETF offering access to twice the daily returns of the S&P on either direction (long or short) would be classified under this category. Active Classifying products in this group is still easy; basically if the ETF doesn t track any index then we classify the fund as active. Enhanced (aka Smart ) This category is reserved for those ETFs that also track an index, but which follow more elaborated strategies. After defining an index universe, there are two main levers that determine most of the risk/return profile of the index: () Page

42 July the selection criteria, and () the weighting criteria. In their selection process, enhanced beta ETFs usually employ additional screening processes and scoring systems involving multiple factors beyond just minimum market cap and liquidity levels. For example, they could include growth or value scores, dividends paid or dividend yield, earnings, volatility, or momentum screens, to name a few. The weighting methodology of enhanced beta ETFs is usually anything but market cap weighted, it can include simple equal weighting or variations of it, optimized weights, and other metricspecific weights such as those based on dividends paid, inverse volatility, dividend yield, fundamental multi factor scores, earnings, and revenues, to name a few. An enhanced beta ETF will either have a nontraditional selection methodology, a nontraditional weighting methodology, or a combination of both. Product Type Definitions Asset ocation ETFs This group covers all ETFs with exception of levered and inverse products. These are usually good products for market access strategies, portfolio completion, and core positions. They are also efficient building blocks for multi asset strategies. When selecting these products, major emphasis should be set on the desired exposure, tracking efficiency, primary liquidity (i.e. the liquidity of the underlying basket), and cost. Cash Management ETFs This group covers a more selected group of ETFs which in addition to being good asset allocation tools, also serves a series of cash management portfolio needs. For example, these products are very good for equitizing cash between transitions, around reporting periods (window dressing), and during tax loss harvesting. These ETFs usually have good liquidity, large fund size, and low cost, all of which makes it easier to execute sizeable shortterm transactions, therefore secondary market liquidity and fund size tend to be a more relevant factor compared to asset allocation ETFs. The most popular asset allocation usage of these funds is as core building blocks. Pseudo Futures ETFs This group covers an even more selected sample of ETFs which in addition to being good asset allocation and cash management tools can also be used for fulfilling risk management functions such as risk hedging, portable alpha strategies, or tactical shorts. Many times they also trade at a cheaper level than their underlying basket, and offer large amounts of liquidity which can make them attractive for market making activities as well. Secondary and short liquidity (ease to borrow), and fund size tend to be more relevant characteristics at the moment of selecting this type of ETFs. There is usually no more than one pseudo futures ETF per asset class. The most popular asset allocation usage of these funds is among portfolios that require more liquidity given their size or more tactical nature. Page

43 July Figure : Selection Criteria depending on intended ETF usage Criteria Secondary Liquidity (quantity) Secondary Liquidity (cost) Primary Liquidity Short Liquidity (quantity) Short Liquidity (cost) Size Ownership: Brokers+Hedge Funds Mutual Funds+Pension Funds Invest. Adviser+Private Bank/WM+Retail Flow Activity Cost Exposure/Benchmark Tracking efficiency to Index Tracking efficiency to NAV Product Provider Measured by Avg. Daily Value traded in $ Avg. Bid/Ask Spreads Implied liquidity of basket Short Interest/ s. Out. % Avg. Borrow Rate $ Source FactSet Bloomberg Finance LP Bloomberg Finance LP Bloomberg Finance LP Deutsche Bank Bloomberg Finance LP Pseudo Futures More Relevant More Relevant Less Relevant More Relevant More Relevant More Relevant Cash Mgmt More Relevant More Relevant Less Relevant Less Relevant Less Relevant More Relevant Asset ocation Less Relevant Less Relevant More Relevant Less Relevant Less Relevant Less Relevant Ownership % Ownership % Ownership % Abs(Daily Flows Median) $ Total Expense Ratio Investor's objective NAVIndex Performance dif. PriceNAV premium/discounts Assets, products, years FactSet FactSet FactSet Bloomberg Finance LP ETF Issuer Investor Bloomberg Finance LP Bloomberg Finance LP Combination of above More Relevant Relevant Less Relevant More Relevant Less Relevant Relevant Less Relevant Less Relevant Less Relevant Relevant More Relevant Less Relevant Less Relevant Relevant Relevant Relevant Relevant Less Relevant Less Relevant Relevant More Relevant Less Relevant More Relevant More Relevant More Relevant More Relevant Relevant Source: Deutsche Bank. Page

44 July The authors of this report wish to acknowledge the contribution made by Alfonso Delgado Valdivia, employee of Evalueserve, a thirdparty provider of offshore research support services to Deutsche Bank. Page

45 July Appendix 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 from local exchanges via Reuters, Bloomberg, and other vendors. Other information is sourced from Deutsche Bank, subject companies, and other sources. For disclosures pertaining to recommendations or estimates made on securities other than the primary subject of this research, please see the most recently published company report or visit our global disclosure lookup page on our website at Aside from within this report, important conflict disclosures can also be found at 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 recommendation or view in this report. Sebastian Mercado, Hallie Martin, Srineel Jalagani Hypothetical Disclaimer Backtested, hypothetical or simulated performance results have inherent limitations. Unlike an actual performance record based on trading actual client portfolios, simulated results are achieved by means of the retroactive application of a backtested model itself designed with the benefit of hindsight. Taking into account historical events the backtesting of performance also differs from actual account performance because an actual investment strategy may be adjusted any time, for any reason, including a response to material, economic or market factors. The backtested performance includes hypothetical results that do not reflect the reinvestment of dividends and other earnings or the deduction of advisory 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 to those shown. Alternative modeling techniques or assumptions might produce significantly different results and prove to be more appropriate. Past hypothetical backtest results are neither an indicator nor guarantee of future returns. Actual results will vary, perhaps materially, from the analysis. Equity Rating Key Equity rating dispersion and banking relationships Buy: Based on a current month view of total shareholder return (TSR = percentage change in share price from current price to projected target price plus projected dividend yield ), we recommend that investors buy the stock. Sell: Based on a current month view of total shareholder return, we recommend that investors sell the stock. Hold: We take a neutral view on the stock months out and, based on this time horizon, do not recommend either a Buy or Sell. Newly issued research recommendations and target prices supersede previously published research. Regulatory Disclosures.Additional Information Page