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Deutsche Bank Markets Research

North America

United States

Synthetic Equity & Index Strategy

US ETF Compass

Date

18 July 2016

June saw $20bn of strong ETP inflows despite Brexit headwinds

ETF Monthly 2.0: Evolving content for an evolving industry

________________________________________________________________________________________________________________

Deutsche Bank Securities Inc.

Deutsche Bank does and seeks to do business with companies covered in its research reports. Thus, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. DISCLOSURES AND ANALYST CERTIFICATIONS ARE LOCATED IN APPENDIX 1.MCI (P) 057/04/2016.

Author

Sebastian Mercado, CFA

Strategist

(+1) 212 250-8690

[email protected]

Team Contacts

Hallie Martin

Strategist

(+1) 212 250-7994

[email protected]

Srineel Jalagani

Strategist

(+1) 212 250-2060

[email protected]

Recent research Date

TAARSS says continue in Comdty in Q3 and add risk in July

06 Jul 2016

House View Portfolio - Mid Year Update 2016

05 Jul 2016

Source: Deutsche Bank

Find out the latest ETF developments in our monthly insights, navigate the markets with our asset allocation dashboards, get ideas for your product strategy from our business intelligence analysis, and get a clean industry picture from our ETF statistics.

Markets hit a speed bump in June Last month’s victory of the “Leave” camp during the Brexit referendum has worked as a reminder to investors of how fragile the economic outlook can be. In addition, future global growth prospects had already turned less favourable on the back of US recession fears given recent disappointing payrolls print in early June, slowdown in China with policy shifting from aggressive to neutral, and Europe facing potential Brexit-vote headwinds. Global Equities and US Equities recorded flat to slightly positive performance last month with total returns of -0.05% and 0.27%, respectively; while, DM Intl Equities sold off by 2.42% and EM Equities soared by 4.56%. On the other hand, traditional safe haven assets rallied with Gold advancing by almost 9%, and the 10Y US Treasury yield dropping 37bps, the largest drop since Jan 2015. In the currency side, the USD against major trade-weighted currencies remained mostly flat last month; while it underperformed the JPY by 7.1% and outperformed the EUR by 0.4%.

Healthy flows across asset classes despite Brexit ETP flows were strong during June reaching almost $20bn in net creations; while, ETP assets ended June at $2.24 trillion, registering a 1.2% of growth compared to May figures. Fixed Income and Commodity ETPs continued adding new money with inflows of $8.4bn and $4.0bn, respectively; similarly, Equity ETPs also recorded inflows of $6.7bn, with inflows among most regions and countries with the most notable exceptions being Europe (-$2.6bn) and Japan (-$1.3bn). At the conclusion of June, ETP flows ended at +$65.0bn YTD, with $49.7bn received by Fixed Income ETPs and $16.3bn received by Commodity ETPs, which more than offset the $1.4bn outflows from Equity and $0.5bn outflows from other asset class products.

Understanding the Low Risk ETF trend ETFs focusing on reducing volatility were the top equity trend in H1 2016. The Low Risk ETF trend accumulates almost $25bn in new flows since the end of 2014, with over $14bn in 2016 so far. Low Risk ETF inflows have been remarkably consistent during the first half, in an otherwise erratic year for equity flows. Dividend ETFs with higher yield usually have low volatility, but not the other way around. Furthermore, Dividend ETFs are driven by the income trade, while Low Risk ETFs are driven by the fear trade. Investors should make sure their Dividend or Low Risk ETF is not really a Utilities ETF. We continue to like USMV for navigating the current state of the US markets; it has a dividend yield just about the same than the S&P 500, and low risk focus without overconcentration in Utilities.

Distributed on: 07/18/2016 16:06:44GMT

18 July 2016

US ETF Compass


Table Of Contents

ETF Monthly Insights ........................................................... 3 Markets hit a speed bump in June ..................................................................... 3 Healthy flows across asset classes despite Brexit .............................................. 4 Understanding the Low Risk ETF trend .............................................................. 5 Asset Allocation dashboard ................................................................................ 6 Global Multi Asset Allocator heatmaps .............................................................. 6 US Equity Allocator heatmaps ............................................................................ 8 International Equity Allocator heatmaps ........................................................... 10 Cross Asset Correlations (3Y) ........................................................................... 12 12-Month Relative Performance Monitor ......................................................... 13 House View Portfolio: Monthly Brief ................................................................ 14

Business Intelligence ......................................................... 15 New Listings ..................................................................................................... 15 Delistings .......................................................................................................... 18 Trends in products launched in the last 12 months .......................................... 19 Popular Product Segments: Smart Beta & Currency Hedged ........................... 20 Average Performance by Product Type and Size (Equity) ................................. 21 Total Expense Ratio X-ray ................................................................................. 23

ETF Statistics ..................................................................... 24 Global ETF Assets and Provider Ranking .......................................................... 24 US Historical ETF trends ................................................................................... 25 ETF Issuer and Index Provider league tables .................................................... 26 Monthly Snapshot ............................................................................................ 28 Top 15 ETFs (includes ETNs) ............................................................................ 34

Appendix A: ETN Snapshot ............................................... 35

Appendix B: ETF List ......................................................... 36

Appendix C: Definitions ..................................................... 39 ETP Universe Definitions .................................................................................. 39 Management Style or Product Strategy Definitions ......................................... 39 Product Type Definitions .................................................................................. 40

18 July 2016

US ETF Compass


ETF Monthly Insights

Markets hit a speed bump in June

Last month’s victory of the “Leave” camp during the Brexit referendum has

worked as a reminder to investors of how fragile the economic outlook can be.

In addition, future global growth prospects had already turned less favourable

on the back of US recession fears given recent disappointing payrolls print in

early June, slowdown in China with policy shifting from aggressive to neutral,

and Europe facing potential Brexit-vote headwinds. Global Equities and US

Equities recorded flat to slightly positive performance last month with total

returns of -0.05% and 0.27%, respectively; while, DM Intl Equities sold off by

2.42% and EM Equities soared by 4.56%. On the other hand, traditional safe

haven assets rallied with Gold advancing by almost 9%, and the 10Y US

Treasury yield dropping 37bps, the largest drop since Jan 2015. In the currency

side, the USD against major trade-weighted currencies remained mostly flat

last month; while it underperformed the JPY by 7.1% and outperformed the

EUR by 0.4%.

Flows were consistent with performance within most Equity segments.

Eurozone-focused ETFs experienced more than 5% of assets in outflows, with

Japan following with 4.8%, last month; while on the positive side EM ETFs

received inflows equal to 2.7% of assets. In the fixed income space, inflows

were again strong across the board with US Treasuries with Long duration

attracting more than 6% of assets in new money in June; while in

commodities, Broad commodities and Gold received the most relevant inflows

with 6.6% and 9% of assets attracted in new flows last month.

Within US equities, performance and flows favored mainly defensive sectors

last month. The following sectors experienced the most significant inflows:

Real Estate (2.6% of assets), Telecom (2.6%), and Utilities (2.5%); while

Consumer Discretionary and Financials experienced the largest outflows losing

5.5% and 4.3% of their assets in June, respectively. On the other hand, at the

industry level, Metals & Mining experienced the largest return of 11.2%;

meanwhile, Capital Markets registered negative returns of 11.8%.

In international equity markets, we saw mixed performance. Europe,

particularly Eurozone countries, registered the largest losses last month

ranging from slightly negative down to 14%; while EM countries advanced the

most during the same period. Among the most relevant price moves we found:

Brazil (+19.5%), Indonesia (+10.5%), Ireland (-11.0%), Greece (-14.0%), and

Nigeria (-22.2%).

In terms of correlation trends, we continue to see weakening correlations

among most asset classes suggesting higher level of differentiation in

investors’ behavior.

For full details please refer to the information contained in Figure 1 through

Figure 19 within the Asset Allocation dashboard section.

18 July 2016

US ETF Compass


Healthy flows across asset classes despite Brexit

ETP flows were strong during June reaching almost $20bn in net creations;

while, ETP assets ended June at $2.24 trillion, registering a 1.2% of growth

compared to May figures. Fixed Income and Commodity ETPs continued

adding new money with inflows of $8.4bn and $4.0bn, respectively; similarly,

Equity ETPs also recorded inflows of $6.7bn, with inflows among most regions

and countries with the most notable exceptions being Europe and Japan.

At the conclusion of June, ETP flows ended at +$65.0bn YTD, with $49.7bn

received by Fixed Income ETPs and $16.3bn received by Commodity ETPs,

which more than offset the $1.4bn outflows from Equity and $0.5bn outflows

from other asset class products.

Smart Beta products continued gathering assets at a strong pace in June,

adding $6.0bn in cash flows, and helping to register $10.6bn in inflows YTD.

Beta and Active products also experienced positive flows last month and

continued to add to their respective positive flows balances YTD. On the other

hand, Beta+ (leveraged and inverse) products experienced outflows of $1.2bn

during June. Within Equity Smart Beta products, Low Risk ETFs still remain the

most popular category, adding $2.2bn in fresh new cash during June for a

total of $14.2bn YTD. Furthermore, in the smart beta segment the largest

outflows were again experienced by Multi-factor products (-$0.4bn), last

month.

June was another negative month for Equity Currency Hedged ETFs, which

experienced $3.5bn in outflows, for a total of $13.6bn YTD. The largest

negative flows were experienced by ETFs offering FX hedged exposure to EUR

(-$1.7bn).

In terms of product types, Asset Allocation, and Cash Management ETP flows

continue to be more resilient standing at +$12bn each during June. In the

meantime flows into Leveraged & Inverse, and Pseudo Futures ETPs were

more volatile recording outflows of $3.8bn and $1.2bn last month.

Total ETP turnover was $1.8 trillion last month, up 30% from the previous

month as volatility picked up around Brexit in June. Furthermore, ETP turnover

represented 28% of all cash equity traded in the US during June, above its 12-

month average of 26.8%.

Through the end of April, organic growth was positive for passive investments

(+$107.9bn), ETFs (+$32.9bn), and Mutual Funds (+$1.2bn); while it was weak

for active vehicles (-$73.7bn).

Additional details can be found in the Business Intelligence and ETF Statistics

sections.

18 July 2016

US ETF Compass


Understanding the Low Risk ETF trend

ETFs focusing on reducing volatility were the top equity trend in H1 2016

How significant has this trend been? What is driving this trend? What should I

know about Low Risk ETFs? Which are the most relevant ETFs in this trend?

and more…

Low Risk ETF trend accumulates almost $25bn in new flows since the end of 2014, over $14bn in 2016 so far

With $10.7bn of inflows in 2015, and $14.3bn in the first half of 2016, Low

Risk ETFs have been the most popular equity trend within US-listed ETFs.

Furthermore, investors have been allocating to Low Risk strategies across

every equity region or market, with the US representing about 70% of the

inflow market share.

Low Risk ETF inflows have been remarkably consistent during the first half, in an otherwise erratic year for equity flows

Equity ETFs excluding Low Risk experienced erratic flows with cumulative YTD

flows bottoming at over $35bn outflows in February and ending at over $15bn

outflows at the end of June. Low Risk ETFs, on the other hand, accumulated

inflows at a very consistent pace of about $2.4bn/month in H1 2016.

Dividend ETFs with higher yield usually have low volatility, but not the other way around

Because Dividend ETFs usually have lower volatility, it is easy to assume that

the same is true in the other way around: that is, low risk ETFs should have a

higher dividend yield. This, however, is not always true. In fact, most Low Risk

methodologies (e.g. Minimum Volatility or Low Volatility) do not take into

account dividends; therefore the focus on yield is mostly neutral.

Dividend ETFs are driven by the income trade, while Low Risk ETFs are driven by the fear trade

Dividend yield ETF flows are usually driven by the income trade as investors

seek higher yields amid fed-induced low yields. Therefore, these strategies

have a very high flow and performance sensitivity to anything affecting the

outlook of rates. In contrast, Low Risk ETF flows have been less dependent on

Central Bank rhetoric and more dependent on economic outlook and investors’

fear factor as investors seek shelter in these strategies during volatility shocks.

Make sure your Dividend or Low Risk ETF is not really a Utilities ETF

If sector concentration is not controlled, it is very easy that a methodology

focused on high dividend yield or low volatility ends up heavily over-weighted

in Utilities. Thus, investors should avoid any Dividend or Low Risk ETF with a

significant sector over-weight, unless they actively want that specific

overweight or understand the rationale and risks behind it.

Some guidance going forward, USMV continues to be our preferred choice

Investors should be very cautious in their allocations as they should try to

avoid being over-exposed to Low Risk, High Dividend Yield, and Utilities at the

same time. We would expect Low Risk to be more resilient than Utilities or

High Dividend Yield equity during an unwinding-induced sell off. In ETFs we

continue to like USMV for navigating the current state of the US markets, it

has a dividend yield just about the same than the S&P 500, and low risk focus

without overconcentration in Utilities.

Report published on Jul 11th 2016, click here for full report

http://pull.db-gmresearch.com/cgi-bin/pull/DocPull/1032-0CB5/64689185/0900b8c08b6429d4.pdf

18 July 2016

US ETF Compass


Asset Allocation dashboard

Global Multi Asset Allocator heatmaps

Figure 1: Global Multi Asset Performance and Net ETF Cash Flow Trends

1M Chg 3M Chg 6M Chg 1Y Chg 3Y Ann 5Y Ann 1M 3M 6M 1Y 3Y Ann 5Y Ann

ACWI Global Equities -0.05% 1.63% 2.06% -2.94% 6.38% 5.51% 0.5% 0.5% -0.2% 5.7% 13.1% 13.5%

VTI US Total Market 0.27% 2.68% 3.68% 2.14% 11.13% 11.58% 0.2% 0.8% 0.3% 6.9% 11.3% 13.2%

SPY S&P 500 (Large Cap) 0.35% 2.46% 3.82% 3.99% 11.53% 11.98% -0.7% -1.3% -1.8% 6.3% 8.1% 10.2%

MDY S&P 400 (Mid Cap) 0.47% 3.95% 7.84% 1.03% 10.38% 10.25% 0.5% 1.9% 0.5% 5.1% 13.5% 10.8%

IWM Russell 2000 (SM Cap) -0.02% 3.93% 2.41% -6.56% 7.30% 8.43% 0.1% 1.3% -0.5% 4.4% 10.1% 9.7%

EFA Intl DM -2.42% -0.34% -2.98% -9.49% 2.09% 1.60% 0.1% -1.8% -4.1% 4.9% 28.9% 23.4%

VGK Europe -4.04% -1.88% -4.02% -10.53% 2.49% 1.39% -2.0% -3.8% -7.7% 2.7% 40.0% 30.7%

EZU Eurozone -2.69% -3.83% -5.61% -11.70% 2.26% -0.86% -5.2% -16.7% -26.5% -17.2% 59.4% 46.2%

EWJ Japan -1.69% 1.59% -4.36% -8.86% 2.19% 3.54% -4.8% -16.4% -24.8% -21.6% 8.2% 26.2%

EPP Pacific ex JP 2.01% 1.65% 3.85% -5.87% 1.07% 0.45% 0.1% -0.7% -7.8% -20.7% -8.5% -7.7%

EEM EM 4.56% 1.11% 7.58% -11.25% -1.74% -4.38% 2.7% 0.0% 3.1% -2.5% 0.8% 3.2%

ILF Latin America 11.93% 5.13% 24.82% -9.73% -8.43% -10.30% -3.4% -2.2% 15.1% 15.2% -6.7% -5.8%

EEMA EM Asia 3.66% 1.48% 4.14% -11.40% 2.50% 0.5% -9.0% -10.0% -19.9% 6.4% 3.9%

GUR EM Europe 1.41% -1.05% 12.55% -7.27% -9.47% -10.63% -5.0% -10.6% -8.4% -7.0% 20.7% 4.2%

MES Middle East 2.03% -0.84% 0.34% -17.03% -0.31% 3.65%

AFK Africa 1.47% 6.03% 12.76% -15.84% -7.05% -6.31% -2.4% -17.6% 7.7% -0.5% -3.5% -3.1%

FM Frontier Market -2.73% 1.74% 0.43% -14.31% -0.39% -0.4% 1.3% -12.0% -14.9% 22.7% 23.3%

BKF BRIC 4.01% 3.70% 5.15% -16.22% -1.25% -6.31% -2.8% -6.0% -11.7% -18.2% -29.8% -16.9%

AGG Fixed Income (Broad) 1.93% 2.21% 5.30% 6.17% 4.10% 3.72% 2.1% 4.2% 14.0% 26.5% 17.9% 21.2%

GOVT US Treasury 2.21% 2.07% 5.33% 6.32% 3.42% 2.1% -6.2% 11.4% 41.8% 19.8% 15.3%

SHV Very Short 0.10% 0.15% 0.29% 0.26% 0.11% 0.06% 5.7% -10.4% 1.2% 62.0% -4.1% 1.1%

SHY Short 0.60% 0.52% 1.43% 1.16% 0.86% 0.69% -0.7% -9.7% -7.2% 16.1% 11.3% 7.2%

IEI Intermediate 1.81% 1.45% 4.45% 5.01% 3.05% 2.86% 0.1% -1.8% 17.0% 40.7% 33.1% 25.7%

TLT Long 6.93% 7.00% 16.35% 21.24% 11.00% 11.20% 6.4% -8.6% 38.6% 80.4% 28.1% 24.3%

TIP US Inflation 2.25% 1.80% 6.41% 4.50% 2.22% 2.53% 0.3% 7.0% 16.4% 20.8% 5.7% 1.8%

MUB Municipal 1.61% 2.57% 3.84% 7.80% 5.52% 4.82% 3.2% 7.5% 18.0% 32.1% 20.4% 22.9%

MBB Securitized 0.74% 0.97% 3.00% 4.17% 3.51% 2.72% 2.9% 11.0% 17.2% 31.1% 21.2% 30.1%

LQD IG Corporates 3.09% 4.16% 9.19% 9.75% 6.23% 6.02% 1.6% 5.0% 11.9% 23.1% 16.4% 24.0%

HYG HY Corporates 1.79% 5.15% 7.68% 0.98% 3.32% 4.72% -0.6% -6.9% 7.7% 13.1% 12.1% 20.8%

FLOT Corp. Floater 0.25% 0.60% 0.67% 0.60% 0.52% 0.82% -2.7% -7.1% -11.2% 1.1% 20.2%

BKLN Senior Loans -0.02% 2.37% 5.00% 0.93% 1.65% 2.89% 2.6% 12.2% 11.7% -3.3% 10.7%

PFF Preferred 1.18% 3.65% 5.14% 7.93% 6.99% 6.43% 2.9% 10.2% 16.3% 31.0% 16.0% 17.1%

CWB Convertible 0.54% 2.26% 2.79% -0.43% 7.20% 6.73% -2.5% -0.6% -12.7% -19.5% 23.7% 20.0%

BWX Intl DM Debt 3.77% 2.53% 10.69% 9.86% 1.45% 0.18% 5.8% -1.2% 8.4% 2.8% 2.3% 10.1%

WIP Intl Inflation 3.19% 1.16% 9.03% 1.14% 0.04% -0.01% 0.0% 3.9% 0.3% -21.1% -18.0% -7.6%

EMB EM Gov Debt USD 4.17% 5.56% 11.01% 10.03% 6.50% 5.77% 8.2% 20.6% 37.1% 35.5% 20.0% 22.6%

EMLC EM Gov Debt Local 6.11% 2.88% 13.55% 2.15% -2.87% -2.37% 11.2% 21.6% 18.0% 9.1% -7.2% 16.0%

EMCB EM Corp USD 2.27% 4.32% 8.08% 0.88% 3.04% -1.1% 27.6% 15.9% -21.5% 5.0%

HYEM EM HY Corp USD 2.31% 5.32% 10.51% 5.85% 4.82%

DBC Commodities 4.35% 15.50% 14.90% -14.72% -15.15% -11.92% 6.6% 11.3% 37.7% 29.7% 2.8% -0.5%

DBE Energy Cmdty 2.53% 20.40% 12.26% -27.09% -22.66% -15.82% -0.6% -18.4% 0.6% 66.5% 40.0% 12.2%

USO Crude Oil WTI -2.53% 19.28% 5.18% -41.80% -30.31% -20.85% 0.6% -20.8% -1.4% 78.5% 62.7% 20.2%

UNG Natural Gas 25.40% 29.73% -0.35% -36.28% -23.03% -27.81% -18.5% -17.2% 1.6% 24.9% -2.9% -0.9%

DBA Agriculture 3.57% 7.14% 7.08% -5.48% -3.94% -7.01% 1.2% 23.3% 22.6% -1.5% -9.6% -11.9%

DBB Industrial Metals 7.36% 8.05% 12.96% -6.74% -6.01% -10.89%

DBP Precious Metals 10.71% 10.02% 27.06% 13.44% 0.43% -5.72% 7.8% 13.8% 44.9% 29.3% 0.8% -1.3%

GLD Gold Physical 8.97% 7.51% 24.65% 12.55% 2.02% -2.83% 9.0% 15.7% 52.3% 34.4% 1.0% -1.8%

SLV Silver Physical 17.61% 21.70% 35.44% 18.86% -1.98% -11.99% -0.7% 0.5% 5.8% 3.0% 2.0% 2.0%

PPLT Platinum Physical 5.13% 5.19% 15.25% -5.07% -8.96% -10.38% 2.0% 3.0% 10.8% -1.6% -6.3% 4.3%

PALL Palladium Physical 9.40% 6.12% 6.35% -11.57% -3.77% -5.27% -0.1% -1.6% -7.1% -26.7% -31.3% -17.0%

UUP Bull USD 0.00% 1.22% -3.16% -0.76% 3.26% 3.20% 2.0% -4.7% -18.3% -29.7% 3.3% -2.5%

FXY JPYUSD 7.12% 8.79% 16.06% 17.93% -1.74% -5.25%

FXE EURUSD -0.39% -2.71% 1.66% -1.18% -5.68% -5.60%

Ticker Asset ClassTotal Return ETF Net Cash Flows as % of Initial AUM

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 US-listed ETFs and ETVs excluding leveraged, inverse products, and ETNs. Asset Classes that had less than $500 million in AUM 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 1Y are annualized. The ETFs mentioned in this figure are provided as reference and have been selected as investable and representative vehicles 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 product selection criteria depending on product usage.

18 July 2016

US ETF Compass


Figure 2: Global Multi Asset Risk and Risk-adjusted Performance Measures

1M 3M 6M 1Y 3Y 5Y 1Y 3Y 5Y 1Y 3Y 5Y

ACWI Global Equities 25.5% 17.8% 18.8% 18.4% 14.2% 17.1% -17.5% -19.4% -22.5% (0.2) 0.5 0.3

VTI US Total Market 19.2% 14.1% 16.6% 17.3% 13.6% 16.1% -14.9% -15.1% -20.1% 0.1 0.8 0.7

SPY S&P 500 (Large Cap) 18.6% 13.7% 16.2% 17.1% 13.4% 15.7% -13.0% -13.0% -18.4% 0.2 0.9 0.8

MDY S&P 400 (Mid Cap) 23.2% 17.3% 19.1% 18.2% 14.7% 18.3% -17.9% -19.3% -26.2% 0.1 0.7 0.6

IWM Russell 2000 (SM Cap) 24.0% 18.6% 21.1% 20.0% 16.8% 20.5% -24.4% -25.7% -28.5% (0.3) 0.4 0.4

EFA Intl DM 38.2% 25.5% 23.4% 21.0% 16.1% 19.6% -20.8% -23.1% -23.6% (0.5) 0.1 0.1

VGK Europe 48.5% 30.7% 26.8% 22.8% 17.7% 22.7% -21.1% -24.9% -27.4% (0.5) 0.1 0.1

EZU Eurozone 49.3% 32.1% 27.9% 23.9% 19.4% 25.2% -22.0% -27.1% -35.1% (0.5) 0.1 (0.0)

EWJ Japan 23.4% 22.9% 23.7% 22.4% 18.1% 19.1% -20.8% -21.6% -21.6% (0.4) 0.1 0.2

EPP Pacific ex JP 28.0% 21.2% 23.3% 24.0% 17.8% 21.1% -21.9% -30.4% -30.4% (0.2) 0.1 0.0

EEM EM 31.0% 23.4% 25.2% 24.8% 20.1% 22.8% -27.9% -36.1% -36.1% (0.5) (0.1) (0.2)

ILF Latin America 39.4% 34.0% 37.1% 33.0% 27.2% 26.4% -37.9% -56.1% -60.5% (0.3) (0.3) (0.4)

EEMA EM Asia 27.0% 20.5% 22.1% 24.7% 18.9% -25.2% -31.5% (0.5) 0.1

GUR EM Europe 42.2% 30.0% 30.7% 28.5% 26.2% 28.4% -29.4% -51.8% -57.2% (0.3) (0.4) (0.4)

MES Middle East 17.0% 17.5% 22.0% 23.6% 22.0% 20.7% -29.9% -42.4% -42.4% (0.7) (0.0) 0.2

AFK Africa 35.1% 29.8% 27.9% 24.5% 18.6% 19.4% -37.3% -54.0% -54.0% (0.6) (0.4) (0.3)

FM Frontier Market 25.0% 16.5% 16.1% 16.6% 14.6% -25.0% -36.6% (0.9) (0.0)

BKF BRIC 27.0% 22.5% 26.0% 26.8% 22.0% 24.1% -33.4% -39.4% -43.5% (0.6) (0.1) (0.3)

AGG Fixed Income (Broad) 3.3% 2.8% 2.8% 3.1% 3.3% 3.3% -1.5% -2.9% -5.1% 2.0 1.2 1.1

GOVT US Treasury 5.0% 4.0% 4.0% 4.0% 3.7% -2.0% -3.5% 1.6 0.9

SHV Very Short 0.3% 0.2% 0.2% 0.2% 0.2% 0.2% -0.1% -0.1% -0.1% 1.3 0.7 0.4

SHY Short 1.2% 1.0% 1.0% 1.0% 0.9% 0.7% -0.7% -0.7% -0.7% 1.1 1.0 0.9

IEI Intermediate 4.1% 3.2% 3.2% 3.2% 3.2% 3.1% -2.0% -2.2% -4.2% 1.6 1.0 0.9

TLT Long 15.5% 12.5% 12.8% 13.4% 13.2% 15.1% -5.8% -15.8% -20.5% 1.6 0.8 0.7

TIP US Inflation 4.6% 4.4% 4.7% 4.6% 5.2% 5.6% -3.2% -5.3% -11.1% 1.0 0.4 0.5

MUB Municipal 3.2% 2.4% 2.3% 2.3% 3.2% 4.5% -1.1% -3.9% -9.7% 3.3 1.7 1.1

MBB Securitized 1.6% 1.3% 1.6% 2.1% 2.9% 2.7% -1.0% -2.2% -4.8% 2.0 1.2 1.0

LQD IG Corporates 4.5% 4.3% 4.6% 4.9% 5.3% 5.5% -2.9% -6.0% -8.6% 2.0 1.2 1.1

HYG HY Corporates 11.4% 8.2% 9.5% 8.8% 6.8% 8.2% -12.1% -13.4% -13.4% 0.1 0.5 0.6

FLOT Floater 0.6% 0.7% 0.9% 1.0% 0.8% 1.3% -0.5% -0.6% -2.6% 0.6 0.6 0.6

BKLN Senior Loans 5.0% 4.0% 4.2% 4.1% 3.3% 4.4% -6.7% -7.1% -8.0% 0.2 0.5 0.7

PFF Preferred 6.3% 4.8% 7.3% 6.5% 5.2% 8.3% -6.8% -6.8% -14.9% 1.2 1.4 0.8

CWB Convertible 13.5% 10.0% 11.6% 11.4% 10.0% 10.7% -13.4% -15.9% -16.0% (0.0) 0.7 0.6

BWX Intl DM Debt 8.1% 7.2% 7.5% 7.3% 7.2% 7.4% -5.2% -15.4% -15.4% 1.3 0.2 0.0

WIP Intl Inflation 12.2% 8.7% 8.4% 7.7% 7.5% 7.7% -8.9% -19.1% -19.1% 0.1 0.0 (0.0)

EMB EM Gov Debt USD 7.2% 5.6% 6.2% 6.3% 6.8% 7.2% -4.6% -7.4% -14.5% 1.6 1.0 0.8

EMLC EM Gov Debt Local 19.7% 14.9% 13.4% 12.0% 10.3% 10.7% -13.7% -27.6% -32.0% 0.2 (0.3) (0.2)

EMCB EM Corp USD 11.2% 8.5% 7.7% 8.0% 7.7% -9.9% -13.3% 0.1 0.4

HYEM EM HY Corp USD 5.8% 5.0% 5.9% 6.1% 6.9% -7.7% -14.0% 1.0 0.7

DBC Commodities 18.4% 18.2% 19.5% 19.1% 15.1% 15.4% -34.0% -56.0% -61.5% (0.8) (1.0) (0.8)

DBE Energy Cmdty 29.7% 29.0% 34.9% 33.5% 25.8% 23.7% -48.4% -71.4% -71.7% (0.8) (0.9) (0.7)

USO Crude Oil WTI 36.6% 35.4% 47.9% 44.9% 34.5% 31.5% -60.0% -79.8% -81.1% (0.9) (0.9) (0.7)

UNG Natural Gas 35.0% 42.6% 44.6% 40.7% 38.8% 39.2% -58.7% -79.1% -87.3% (0.9) (0.6) (0.7)

DBA Agriculture 16.9% 14.8% 12.5% 12.2% 11.4% 12.1% -15.9% -33.2% -42.6% (0.4) (0.3) (0.6)

DBB Industrial Metals 17.7% 17.4% 18.6% 19.7% 16.6% 19.1% -24.8% -39.0% -56.4% (0.3) (0.4) (0.6)

DBP Precious Metals 21.8% 18.6% 19.3% 17.3% 17.7% 19.9% -12.5% -32.2% -53.9% 0.8 0.0 (0.3)

GLD Gold Physical 22.2% 18.0% 18.7% 16.5% 16.2% 18.0% -11.7% -26.5% -45.6% 0.8 0.1 (0.2)

SLV Silver Physical 23.6% 24.3% 23.5% 22.9% 24.6% 29.6% -15.3% -44.6% -69.4% 0.8 (0.1) (0.4)

PPLT Platinum Physical 21.7% 22.5% 23.8% 23.0% 18.7% 19.7% -24.5% -47.7% -58.2% (0.2) (0.5) (0.5)

PALL Palladium Physical 29.0% 27.3% 30.1% 33.9% 25.1% 27.6% -33.7% -48.4% -48.4% (0.3) (0.1) (0.2)

UUP Bull USD 12.6% 8.7% 8.4% 8.6% 7.7% 7.7% -7.9% -9.4% -9.4% (0.1) 0.4 0.4

FXY JPYUSD 16.8% 14.6% 12.9% 10.9% 9.4% 9.6% -4.1% -24.0% -40.6% 1.7 (0.2) (0.5)

FXE EURUSD 13.5% 9.4% 9.5% 10.3% 9.2% 9.3% -9.0% -25.1% -28.7% (0.1) (0.6) (0.6)

Sharpe (TR / Vol)Ticker Asset Class

Annualized Volatility Max Drawdown

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 252 day factor; Sharpe ratio calculation assumes Risk Free rate equal to zero. For Max DD and Sharpe calculations, green cells correspond to largest values, 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 vehicles 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 product selection criteria depending on product usage.

18 July 2016

US ETF Compass


US Equity Allocator heatmaps

Figure 3: US Equity Performance and Net ETF Cash Flow Trends


VTI US Total Market 0.27% 2.68% 3.68% 2.14% 11.13% 11.58% 0.2% 0.8% 0.3% 6.9% 11.3% 13.2%

SPY S&P 500 (Large Cap) 0.35% 2.46% 3.82% 3.99% 11.53% 11.98% -0.7% -1.3% -1.8% 6.3% 8.1% 10.2%

DIA DJI 0.96% 1.97% 4.19% 4.39% 8.87% 10.24% -0.7% -1.3% -1.8% 6.3% 8.1% 10.2%

QQQ NASDAQ-100 -2.28% -1.26% -3.32% 1.57% 16.13% 14.88% -0.7% -1.3% -1.8% 6.3% 8.1% 10.2%

IWF Russell 1000 Growth -0.44% 0.58% 1.26% 2.82% 12.91% 12.14% -0.3% -1.3% -5.5% 2.5% 11.7% 10.1%

IWD Russell 1000 Value 0.84% 4.47% 6.14% 2.66% 9.64% 11.13% 2.2% 5.6% 6.4% 13.4% 14.9% 15.8%

MDY S&P 400 (Mid Cap) 0.47% 3.95% 7.84% 1.03% 10.38% 10.25% 0.5% 1.9% 0.5% 5.1% 13.5% 10.8%

IWM Russell 2000 (SM Cap) -0.02% 3.93% 2.41% -6.56% 7.30% 8.43% 0.1% 1.3% -0.5% 4.4% 10.1% 9.7%

VIG Div. Growth 2.37% 3.00% 8.17% 8.34% 10.27% 10.66% 3.7% 7.7% 12.7% 13.7% 11.7% 25.0%

DVY Div. Yield 3.70% 5.26% 15.29% 17.39% 13.66% 13.81% 3.7% 7.7% 12.7% 13.7% 11.7% 25.0%

VYM Div. Yield 2.18% 4.35% 8.69% 9.67% 11.61% 13.14% 3.7% 7.7% 12.7% 13.7% 11.7% 25.0%

SDY Div. Yield & Growth 3.22% 5.64% 15.44% 17.14% 13.72% 13.95% 3.7% 7.7% 12.7% 13.7% 11.7% 25.0%

XLY Cons. Discretionary -1.14% -0.96% 0.64% 3.68% 13.05% 15.91% -5.5% -9.5% -18.8% -16.0% 2.2% 13.2%

PEJ Hotels, Rest & Leisure -3.96% -8.95% -8.40% -7.90% 6.86% 11.89%

XHB Home Builders -1.72% -0.74% -1.57% -7.88% 4.99% 13.94% -4.8% -9.9% -22.8% -23.8% -19.7% -1.5%

ITB Household Durables 0.32% 2.21% 2.27% 1.14% 7.67% 17.37% -4.8% -9.9% -22.8% -23.8% -19.7% -1.5%

PBS Media -2.73% 0.74% -2.35% -8.27% 6.01% 10.83%

XRT Retail -0.46% -8.80% -2.28% -13.88% 4.11% 10.72% -17.4% -8.1% -20.1% -41.2% -23.4% -22.5%

XLP Cons. Staples 5.36% 4.57% 10.46% 18.81% 14.49% 15.10% -0.2% -3.8% 7.4% 20.5% 13.2% 16.7%

PBJ Food Products 5.66% 5.08% 6.04% 6.30% 12.87% 12.47%

XLE Energy 2.71% 10.98% 14.68% -6.41% -2.11% 0.20% 0.6% 3.0% 9.0% 18.8% 25.0% 17.4%

OIH Energy Eq. & Serv. 4.06% 9.92% 10.59% -14.13% -10.15% -8.99% -2.4% -1.1% -14.1% 4.5% -2.3% -4.3%

XES Energy Eq. & Serv. 3.48% 8.50% 7.39% -26.94% -20.72% -13.79% -2.4% -1.1% -14.1% 4.5% -2.3% -4.3%

IEZ Energy Eq. & Serv. 3.39% 8.36% 8.59% -18.24% -10.72% -8.58% -2.4% -1.1% -14.1% 4.5% -2.3% -4.3%

XOP Energy E&P -1.79% 14.93% 15.75% -24.27% -14.73% -8.90% -2.2% 7.8% -6.0% 39.4% 36.8% 17.1%

IEO Energy E&P 0.09% 9.45% 7.81% -18.47% -6.26% -2.88% -2.2% 7.8% -6.0% 39.4% 36.8% 17.1%

AMLP MLPs 4.18% 18.86% 11.55% -9.84% -3.70% 2.37% 1.0% 1.8% 5.8% 16.8% 21.6% 58.0%

XLF Financials -3.25% 2.12% -3.06% -4.16% 7.51% 10.29% -4.3% -3.5% -15.4% -9.9% 2.4% 14.0%

KBWB Large Banks -8.31% 1.51% -10.42% -14.46% 3.55% -3.2% -4.0% -20.9% -14.9% -0.1% 9.5%

KRE Regional Banks -7.33% 2.55% -7.51% -11.31% 6.08% 10.57% -3.2% -4.0% -20.9% -14.9% -0.1% 9.5%

KCE Capital Markets -11.83% -6.56% -15.95% -26.92% -1.28% 3.09% -4.6% -11.5% -42.4% -49.5% -1.9% 5.9%

KIE Insurance -2.28% 3.11% 3.12% 6.35% 11.49% 13.29% 0.0% 13.1% -5.0% 44.1% 10.5% 12.4%

XLV Healthcare 0.91% 6.22% 0.31% -2.10% 16.34% 17.05% 0.4% 0.8% -11.4% -14.0% 16.3% 16.3%

IBB Biotech & Pharma -7.96% -1.27% -23.84% -30.16% 14.08% 19.47% 3.0% 1.4% -9.1% -7.4% 21.5% 17.6%

BBH Large Biotech -7.36% -1.29% -19.39% -23.90% 14.42% 23.64% 3.0% 1.4% -9.1% -7.4% 21.5% 17.6%

IHI HC Eq. & Supplies 3.49% 10.80% 10.84% 14.60% 20.93% 15.91% 4.5% 30.3% 45.5% 44.9% 30.1% 12.4%

IHF HC Providers & Serv 1.69% 4.49% 2.55% -10.68% 15.14% 14.75% 1.3% 0.2% 6.8% -7.8% 28.7% 15.8%

PPH Large Pharma -0.42% 3.06% -9.26% -15.28% 11.06% 13.26% -2.0% -5.1% -15.9% -25.2% 2.6% 5.3%

XLI Industrials 0.71% 1.53% 6.78% 5.93% 11.75% 10.81% -1.7% 1.6% 1.8% -8.7% 5.0% 6.6%

ITA Aerospace & Def 0.98% 7.15% 6.23% 5.85% 16.66% 15.31% 2.4% 10.1% 3.4% 30.0% 86.7% 33.9%

IYT Transportation -3.80% -5.48% 0.15% -6.39% 7.95% 7.69% -4.4% -13.5% -21.6% -36.7% -4.2% -4.7%

XLB Materials -0.79% 3.93% 7.63% -2.14% 8.70% 5.57% -4.2% 13.4% 22.8% 11.4% -3.2% -2.6%

XME Metals & Mining 11.17% 19.70% 64.51% 2.68% -8.05% -17.51% -15.1% 8.0% 62.0% 70.1% -0.2% 2.4%

VNQ Real Estate 6.92% 6.76% 13.48% 24.03% 13.41% 12.43% 2.6% 6.9% 10.8% 20.2% 12.1% 16.5%

VGT Technology -2.32% -1.91% -0.41% 2.88% 14.72% 12.46% -0.1% -3.0% -11.7% -7.1% 5.6% 6.5%

IGN Comm. Equipment -2.53% -4.34% -5.34% -7.48% 7.40% 2.65%

FDN Int. Software & Serv. -1.42% 5.61% -3.34% 7.32% 16.68% 14.76% -1.7% -2.6% -29.0% 4.5% 33.4% 35.3%

SMH Semiconductors 0.19% 3.50% 7.00% 6.70% 16.65% 13.86% 9.4% 27.5% 11.5% -14.7% 10.6% -9.3%

IGV Software -0.90% 4.53% 2.16% 6.73% 16.28% 11.12% 4.5% 6.7% -22.8% -31.9% -14.7% -8.0%

VOX Telecom 7.17% 6.79% 18.65% 18.73% 11.77% 10.57% 2.6% 13.2% 41.2% 44.8% 30.7% 11.0%

XLU Utilities 7.62% 6.60% 23.14% 31.13% 15.78% 13.58% 2.5% 4.2% 55.8% 57.4% 14.8% 13.1%



18 July 2016

US ETF Compass


Figure 4: US Equity Risk and Risk-adjusted Performance Measures

1M 3M 6M 1Y 3Y 5Y 1Y 3Y 5Y 1Y 3Y 5Y

VTI US Total Market 19.2% 14.1% 16.6% 17.3% 13.6% 16.1% -14.9% -15.1% -20.1% 0.1 0.8 0.7

SPY S&P 500 (Large Cap) 18.6% 13.7% 16.2% 17.1% 13.4% 15.7% -13.0% -13.0% -18.4% 0.2 0.9 0.8

DIA DJI 17.2% 12.9% 15.5% 16.6% 13.1% 14.7% -13.2% -13.9% -15.8% 0.3 0.7 0.7

QQQ NASDAQ-100 21.0% 16.4% 19.9% 20.5% 16.0% 17.5% -16.1% -16.1% -16.1% 0.1 1.0 0.9

IWF Russell 1000 Growth 17.9% 13.5% 16.3% 17.3% 13.8% 15.9% -13.8% -13.8% -18.3% 0.2 0.9 0.8

IWD Russell 1000 Value 20.2% 14.7% 17.0% 17.6% 13.5% 16.2% -15.3% -16.2% -20.5% 0.2 0.7 0.7

MDY S&P 400 (Mid Cap) 23.2% 17.3% 19.1% 18.2% 14.7% 18.3% -17.9% -19.3% -26.2% 0.1 0.7 0.6

IWM Russell 2000 (SM Cap) 24.0% 18.6% 21.1% 20.0% 16.8% 20.5% -24.4% -25.7% -28.5% (0.3) 0.4 0.4

VIG Div. Growth 15.7% 12.0% 13.7% 15.2% 12.4% 14.3% -10.8% -12.1% -16.9% 0.5 0.8 0.7

DVY Div. Yield 15.2% 12.3% 13.4% 14.5% 12.0% 13.6% -9.1% -12.0% -15.6% 1.2 1.1 1.0

VYM Div. Yield 16.8% 12.5% 14.6% 16.2% 12.6% 13.9% -12.0% -13.0% -15.1% 0.6 0.9 0.9

SDY Div. Yield & Growth 15.8% 12.4% 14.1% 15.1% 12.1% 14.2% -10.0% -10.8% -16.1% 1.1 1.1 1.0

XLY Cons. Discretionary 18.6% 14.7% 17.3% 18.1% 14.8% 16.8% -15.8% -15.8% -18.4% 0.2 0.9 0.9

PEJ Hotels, Rest & Leisure 21.6% 16.1% 20.7% 20.5% 17.5% 19.6% -21.4% -21.7% -23.9% (0.4) 0.4 0.6

XHB Home Builders 24.6% 19.6% 22.1% 21.6% 19.0% 24.2% -28.2% -28.2% -32.0% (0.4) 0.3 0.6

ITB Household Durables 23.6% 20.1% 24.5% 24.1% 22.6% 27.7% -26.4% -26.4% -35.1% 0.0 0.3 0.6

PBS Media 22.9% 17.1% 20.4% 19.6% 16.6% 19.3% -23.2% -23.2% -27.3% (0.4) 0.4 0.6

XRT Retail 19.8% 21.1% 21.5% 20.9% 16.9% 19.8% -24.2% -24.2% -24.2% (0.7) 0.2 0.5

XLP Cons. Staples 12.6% 12.5% 12.7% 14.4% 11.7% 12.3% -10.1% -10.1% -11.0% 1.3 1.2 1.2

PBJ Food Products 15.9% 15.1% 15.2% 16.2% 13.6% 14.9% -11.0% -11.0% -15.7% 0.4 0.9 0.8

XLE Energy 25.5% 21.8% 29.0% 29.1% 21.9% 23.2% -30.0% -46.7% -46.7% (0.2) (0.1) 0.0

OIH Energy Eq. & Serv. 45.1% 37.4% 40.1% 39.2% 29.3% 30.2% -37.3% -61.3% -61.3% (0.4) (0.3) (0.3)

XES Energy Eq. & Serv. 52.4% 44.5% 50.9% 49.0% 35.3% 35.0% -49.4% -72.8% -72.8% (0.5) (0.6) (0.4)

IEZ Energy Eq. & Serv. 45.3% 38.4% 41.2% 39.8% 29.5% 30.9% -39.4% -61.8% -61.8% (0.5) (0.4) (0.3)

XOP Energy E&P 42.3% 37.9% 48.0% 46.8% 36.6% 36.2% -48.9% -71.0% -71.0% (0.5) (0.4) (0.2)

IEO Energy E&P 37.0% 31.3% 40.0% 37.4% 27.9% 29.1% -40.2% -56.8% -56.8% (0.5) (0.2) (0.1)

AMLP MLPs 24.9% 26.6% 48.3% 43.8% 27.2% 22.5% -46.0% -53.1% -53.1% (0.2) (0.1) 0.1

XLF Financials 27.5% 20.1% 22.0% 21.1% 16.3% 21.0% -22.3% -22.3% -27.7% (0.2) 0.5 0.5

KBWB Large Banks 38.6% 29.1% 30.2% 27.3% 20.2% -29.1% -29.1% (0.5) 0.2

KRE Regional Banks 40.2% 30.3% 30.3% 26.8% 21.2% 24.6% -28.0% -28.0% -28.6% (0.4) 0.3 0.4

KCE Capital Markets 41.8% 32.0% 31.9% 27.9% 21.2% 24.9% -35.3% -36.4% -36.4% (1.0) (0.1) 0.1

KIE Insurance 26.7% 19.2% 18.6% 17.3% 14.3% 18.9% -15.2% -15.2% -28.4% 0.4 0.8 0.7

XLV Healthcare 17.8% 15.4% 17.5% 19.6% 15.9% 16.0% -17.1% -17.1% -17.1% (0.1) 1.0 1.1

IBB Biotech & Pharma 32.5% 31.0% 34.4% 33.7% 27.7% 26.0% -39.2% -39.2% -39.2% (0.9) 0.5 0.7

BBH Large Biotech 29.4% 27.4% 30.1% 30.5% 26.3% 24.7% -33.8% -33.8% -33.8% (0.8) 0.5 1.0

IHI HC Eq. & Supplies 20.7% 16.0% 18.2% 18.6% 15.0% 17.9% -14.2% -14.2% -21.3% 0.8 1.4 0.9

IHF HC Providers & Serv 20.1% 16.4% 20.2% 21.8% 17.0% 18.9% -25.5% -26.3% -26.4% (0.5) 0.9 0.8

PPH Large Pharma 21.7% 18.8% 20.2% 20.4% 15.7% 15.4% -24.1% -24.1% -24.1% (0.7) 0.7 0.9

XLI Industrials 21.4% 15.6% 17.4% 17.9% 14.9% 18.0% -12.8% -15.7% -25.4% 0.3 0.8 0.6

ITA Aerospace & Def 19.0% 15.0% 17.3% 17.6% 15.5% 18.1% -15.2% -17.2% -23.2% 0.3 1.1 0.8

IYT Transportation 25.2% 19.4% 21.9% 21.2% 17.7% 20.2% -21.0% -27.3% -28.1% (0.3) 0.4 0.4

XLB Materials 23.3% 18.4% 22.0% 21.9% 16.9% 20.3% -22.4% -26.9% -29.2% (0.1) 0.5 0.3

XME Metals & Mining 42.7% 42.2% 46.9% 43.8% 31.7% 33.7% -50.0% -71.8% -82.0% 0.1 (0.3) (0.5)

VNQ Real Estate 10.7% 13.6% 17.2% 17.4% 15.1% 18.3% -11.4% -17.2% -22.6% 1.4 0.9 0.7

VGT Technology 22.2% 16.8% 20.2% 20.2% 16.0% 18.0% -16.4% -16.4% -18.2% 0.1 0.9 0.7

IGN Comm. Equipment 28.9% 21.7% 24.3% 22.1% 18.1% 22.2% -23.1% -24.9% -30.0% (0.3) 0.4 0.1

FDN Int. Software & Serv. 24.5% 18.8% 24.9% 23.6% 20.1% 21.7% -25.8% -25.8% -26.0% 0.3 0.8 0.7

SMH Semiconductors 29.6% 23.1% 25.2% 24.2% 19.9% 21.6% -17.9% -23.7% -23.7% 0.3 0.8 0.6

IGV Software 26.3% 19.4% 23.8% 21.9% 18.0% 20.8% -21.5% -21.5% -26.3% 0.3 0.9 0.5

VOX Telecom 16.7% 14.4% 16.3% 16.9% 14.0% 15.5% -9.3% -12.3% -19.8% 1.1 0.8 0.7

XLU Utilities 10.3% 13.4% 13.9% 15.8% 14.7% 14.4% -10.7% -15.7% -15.7% 2.0 1.1 0.9

Ticker Asset ClassMax DrawdownAnnualized Volatility Sharpe (TR / Vol)


18 July 2016

US ETF Compass


International Equity Allocator heatmaps

Figure 5: International Equity Performance and Net ETF Cash Flow Trends


EFA Intl DM -2.42% -0.34% -2.98% -9.49% 2.09% 1.60% 0.1% -1.8% -4.1% 4.9% 28.9% 23.4%

EWC Canada 0.92% 4.20% 14.91% -6.11% -0.03% -2.87% 0.2% 4.7% 43.6% 19.9% -5.2% -8.1%

EIS Israel -1.25% -1.25% -4.04% -7.02% 5.06% -0.84%

VGK Europe -4.04% -1.88% -4.02% -10.53% 2.49% 1.39% -2.0% -3.8% -7.7% 2.7% 40.0% 30.7%

EDEN Denmark -4.43% -0.95% 0.24% 4.08% 18.64%

NORW Norway -0.85% 5.01% 8.26% -11.37% -6.23% -4.86%

EWD Sweden -3.78% -3.45% -2.56% -10.42% 1.01% 0.72%

EWL Switzerland -0.33% 2.39% -1.94% -7.06% 3.63% 4.72% -2.1% -5.3% -5.6% -5.7% 11.9% 15.7%

EWU UK -2.30% 0.44% -2.42% -11.98% 0.09% 1.24% 0.4% -1.3% -11.9% -29.4% 9.8% 16.2%

EZU Eurozone -2.69% -3.83% -5.61% -11.70% 2.26% -0.86% -5.2% -16.7% -26.5% -17.2% 59.4% 46.2%

EWO Austria -6.44% -8.22% -7.81% -8.76% -2.16% -6.72%

EWK Belgium -2.27% 1.10% -1.13% 3.27% 11.75% 8.10%

EFNL Finland -0.37% 0.70% -1.44% -1.10% 9.74%

EWQ France -5.02% -2.98% -3.10% -8.49% 2.05% -0.88%

EWG Germany -5.00% -4.26% -5.94% -11.64% 1.16% -0.06% -1.2% -15.6% -28.7% -38.1% 13.3% 10.2%

EIRL Ireland -11.00% -9.91% -12.86% -6.76% 9.82% 11.81%

EWI Italy -8.16% -8.53% -18.78% -24.83% -0.30% -6.69% -2.9% -11.0% -21.6% -6.4% 16.3% 49.5%

EWN Netherlands -5.72% -4.53% -1.49% -8.02% 5.63% 3.59%

PGAL Portugal -6.83% -7.20% -6.92% -12.92%

EWP Spain -8.74% -6.19% -9.81% -22.59% 0.35% -5.26% -7.3% -17.5% -34.3% -33.7% 69.8% 45.6%

EWJ Japan -1.69% 1.59% -4.36% -8.86% 2.19% 3.54% -4.8% -16.4% -24.8% -21.6% 8.2% 26.2%

EPP Pacific ex JP 2.01% 1.65% 3.85% -5.87% 1.07% 0.45% 0.1% -0.7% -7.8% -20.7% -8.5% -7.7%

EWA Australia 1.42% 2.10% 4.04% -3.58% -0.37% -0.88% 2.9% 7.1% 23.8% 13.7% -0.1% -7.0%

EWH Hong Kong 1.14% 1.04% 0.79% -10.49% 5.27% 4.24% -0.4% -13.7% -34.8% -44.9% -6.9% -4.2%

ENZL New Zealand 3.83% 5.95% 16.27% 28.06% 13.38% 11.12%

EWS Singapore 4.94% 0.69% 6.37% -10.87% -2.15% -1.01% -3.4% 4.4% 0.1% -14.9% -19.8% -14.8%

EEM EM 4.56% 1.11% 7.58% -11.25% -1.74% -4.38% 2.7% 0.0% 3.1% -2.5% 0.8% 3.2%

ILF Latin America 11.93% 5.13% 24.82% -9.73% -8.43% -10.30% -3.4% -2.2% 15.1% 15.2% -6.7% -5.8%

EWZ Brazil 19.50% 15.59% 47.00% -6.19% -9.28% -13.93% 0.4% 7.4% 31.8% 27.5% -6.9% -6.7%

ECH Chile 6.50% 1.59% 17.44% -1.31% -10.31% -11.93% -4.4% -6.0% 44.7% 28.3% 1.0% -4.0%

GXG Colombia 8.69% 0.33% 22.39% -13.16% -18.40% -13.41%

EWW Mexico 2.16% -5.11% 2.26% -9.45% -6.46% -2.61% -10.7% -24.5% -15.8% -13.7% -10.2% 2.1%

EPU Peru 6.56% 17.96% 54.03% 7.47% -1.92% -1.91% -9.3% 2.8% 33.4% 5.9% -7.3% -9.6%

EEMA EM Asia 3.66% 1.48% 4.14% -11.40% 2.50% 0.5% -9.0% -10.0% -19.9% 6.4% 3.9%

FXI China H 2.44% 2.09% -2.32% -23.61% 3.96% -2.10% -1.3% -17.9% -20.8% -22.4% -2.7% 1.3%

ASHR China A -1.90% -3.22% -15.08% -33.01% 19.1% 0.9% 5.0% -25.4% 114.7% 77.4%

INDA India 1.67% 3.58% 2.15% -6.49% 6.93% 0.9% -1.2% -3.1% -14.4% 47.7% 26.6%

EIDO Indonesia 10.52% 4.94% 18.47% 6.91% -6.44% -3.83% 15.3% 2.4% 68.2% 24.6% 1.6% 4.6%

EWM Malaysia 6.03% -5.75% 8.49% -5.43% -7.67% -3.10% -0.6% 5.2% 45.8% 12.9% -14.9% -10.3%

EPHE Philippines 5.25% 7.26% 16.51% 2.48% 4.62% 10.80%

EWY South Korea 4.64% -1.42% 4.83% -3.27% 0.94% -3.13% -4.4% -11.7% -6.7% -15.4% 5.4% -1.6%

EWT Taiwan 5.32% 1.37% 10.02% -8.21% 4.20% 1.05% 0.7% -6.8% -18.8% -29.4% -1.9% -3.3%

THD Thailand 3.50% 3.95% 19.46% -5.04% -1.74% 4.30% 3.2% -0.7% 40.1% 6.3% -18.6% -10.3%

GUR EM Europe 1.41% -1.05% 12.55% -7.27% -9.47% -10.63% -5.0% -10.6% -8.4% -7.0% 20.7% 4.2%

GREK Greece -14.03% -3.98% -9.17% -27.06% -21.79%

EPOL Poland -2.30% -15.94% -5.95% -24.56% -8.91% -11.39%

RSX Russia 3.57% 6.48% 18.91% -1.29% -8.51% -12.12% -5.5% -14.8% -14.3% -8.2% 29.4% 3.7%

TUR Turkey 2.22% -7.53% 11.49% -10.17% -10.79% -5.89% -7.0% 3.2% 8.5% -8.0% -7.4% 0.2%

MES Middle East 2.03% -0.84% 0.34% -17.03% -0.31% 3.65%

QAT Qatar 2.28% -6.89% -1.98% -17.61%

UAE UAE 3.25% 2.07% 7.49% -14.39%

AFK Africa 1.47% 6.03% 12.76% -15.84% -7.05% -6.31% -2.4% -17.6% 7.7% -0.5% -3.5% -3.1%

EGPT Egypt -5.85% -6.00% -7.47% -25.58% 0.39% -7.18%

EZA South Africa 8.43% 2.80% 16.67% -15.24% -0.23% -2.79% -2.5% -21.5% 7.2% 4.0% -5.7% -3.8%

FM Frontier Market -2.73% 1.74% 0.43% -14.31% -0.39% -0.4% 1.3% -12.0% -14.9% 22.7% 23.3%

ARGT Argentina 7.21% 15.42% 23.34% 12.24% 12.02% -4.56%

NGE Nigeria -22.22% -11.64% -23.65% -41.94% -25.16%

PAK Pakistan 5.92% 15.50% 16.75% 1.43%

VNM Vietnam 1.52% 4.42% -1.15% -18.58% -4.70% -4.44% -0.8% -1.3% -8.5% -12.5% 8.3% 12.5%

BKF BRIC 4.01% 3.70% 5.15% -16.22% -1.25% -6.31% -2.8% -6.0% -11.7% -18.2% -29.8% -16.9%



18 July 2016

US ETF Compass


Figure 6: International Equity Risk and Risk-adjusted Performance Measures

1M 3M 6M 1Y 3Y 5Y 1Y 3Y 5Y 1Y 3Y 5Y

EFA Intl DM 38.2% 25.5% 23.4% 21.0% 16.1% 19.6% -20.8% -23.1% -23.6% (0.5) 0.1 0.1

EWC Canada 22.0% 19.1% 23.7% 22.6% 17.0% 19.0% -29.2% -41.4% -41.4% (0.3) (0.0) (0.2)

EIS Israel 21.5% 15.8% 15.3% 16.5% 14.5% 19.0% -20.9% -20.9% -34.9% (0.4) 0.3 (0.0)

VGK Europe 48.5% 30.7% 26.8% 22.8% 17.7% 22.7% -21.1% -24.9% -27.4% (0.5) 0.1 0.1

EDEN Denmark 38.4% 24.4% 23.2% 20.2% 17.6% -14.1% -17.2% 0.2 1.1

NORW Norway 47.2% 32.9% 33.3% 29.7% 24.2% 27.7% -30.3% -50.9% -50.9% (0.4) (0.3) (0.2)

EWD Sweden 47.1% 31.3% 28.6% 24.9% 19.9% 26.5% -21.2% -25.6% -31.8% (0.4) 0.1 0.0

EWL Switzerland 31.4% 21.1% 19.5% 17.7% 14.4% 17.7% -19.5% -21.4% -22.7% (0.4) 0.3 0.3

EWU UK 54.3% 34.3% 29.9% 25.4% 18.6% 20.5% -23.0% -29.3% -29.3% (0.5) 0.0 0.1

EZU Eurozone 49.3% 32.1% 27.9% 23.9% 19.4% 25.2% -22.0% -27.1% -35.1% (0.5) 0.1 (0.0)

EWO Austria 43.9% 28.9% 26.3% 22.6% 19.2% 25.1% -17.5% -32.6% -43.6% (0.4) (0.1) (0.3)

EWK Belgium 37.5% 23.6% 21.5% 18.8% 16.0% 20.5% -13.5% -15.0% -28.0% 0.2 0.7 0.4

EFNL Finland 42.6% 28.2% 25.5% 22.7% 19.5% -14.5% -19.2% (0.0) 0.5

EWQ France 48.3% 31.0% 27.0% 23.6% 19.1% 25.3% -20.7% -25.8% -35.1% (0.4) 0.1 (0.0)

EWG Germany 42.1% 28.0% 25.6% 23.0% 19.2% 25.3% -21.5% -26.6% -35.7% (0.5) 0.1 (0.0)

EIRL Ireland 53.0% 33.1% 27.6% 22.3% 18.3% 22.1% -19.5% -22.7% -26.3% (0.3) 0.5 0.5

EWI Italy 62.9% 41.3% 36.6% 30.7% 25.5% 31.7% -34.7% -41.5% -46.1% (0.8) (0.0) (0.2)

EWN Netherlands 41.9% 26.9% 24.5% 21.8% 17.7% 22.2% -19.3% -19.6% -28.7% (0.4) 0.3 0.2

PGAL Portugal 45.3% 30.1% 29.1% 26.5% -22.2% (0.5)

EWP Spain 63.6% 40.5% 34.6% 28.3% 23.7% 29.6% -31.4% -42.5% -48.6% (0.8) 0.0 (0.2)

EWJ Japan 23.4% 22.9% 23.7% 22.4% 18.1% 19.1% -20.8% -21.6% -21.6% (0.4) 0.1 0.2

EPP Pacific ex JP 28.0% 21.2% 23.3% 24.0% 17.8% 21.1% -21.9% -30.4% -30.4% (0.2) 0.1 0.0

EWA Australia 31.5% 24.2% 27.0% 27.6% 20.8% 23.6% -21.9% -35.4% -35.4% (0.1) (0.0) (0.0)

EWH Hong Kong 22.7% 18.3% 19.8% 22.7% 18.1% 19.4% -25.6% -29.5% -29.5% (0.5) 0.3 0.2

ENZL New Zealand 24.1% 18.8% 18.5% 18.2% 15.7% 18.7% -11.2% -23.2% -23.2% 1.5 0.9 0.6

EWS Singapore 28.4% 20.6% 23.0% 21.5% 16.1% 18.8% -27.0% -32.5% -32.5% (0.5) (0.1) (0.1)

EEM EM 31.0% 23.4% 25.2% 24.8% 20.1% 22.8% -27.9% -36.1% -36.1% (0.5) (0.1) (0.2)

ILF Latin America 39.4% 34.0% 37.1% 33.0% 27.2% 26.4% -37.9% -56.1% -60.5% (0.3) (0.3) (0.4)

EWZ Brazil 41.4% 40.6% 46.8% 43.3% 34.7% 31.9% -46.9% -66.5% -73.4% (0.1) (0.3) (0.4)

ECH Chile 29.6% 22.3% 22.8% 22.7% 20.1% 21.7% -22.0% -43.0% -58.4% (0.1) (0.5) (0.5)

GXG Colombia 36.2% 28.6% 31.4% 32.5% 25.0% 22.8% -37.7% -67.0% -68.3% (0.4) (0.7) (0.6)

EWW Mexico 36.8% 26.9% 27.9% 24.4% 20.5% 22.5% -22.7% -37.6% -39.2% (0.4) (0.3) (0.1)

EPU Peru 25.7% 35.6% 30.9% 28.0% 20.9% 21.1% -38.1% -50.6% -60.6% 0.3 (0.1) (0.1)

EEMA EM Asia 27.0% 20.5% 22.1% 24.7% 18.9% -25.2% -31.5% (0.5) 0.1

FXI China H 30.0% 25.5% 28.4% 30.7% 25.3% 26.6% -37.0% -44.6% -44.6% (0.8) 0.2 (0.1)

ASHR China A 21.3% 23.1% 36.4% 50.3% -40.3% (0.7)

INDA India 22.9% 20.6% 22.7% 22.7% 23.3% -24.3% -28.7% (0.3) 0.3

EIDO Indonesia 35.6% 25.9% 26.5% 32.5% 30.0% 30.2% -30.1% -45.1% -52.1% 0.2 (0.2) (0.1)

EWM Malaysia 27.3% 21.5% 25.0% 26.8% 20.1% 19.5% -23.8% -40.2% -40.2% (0.2) (0.4) (0.2)

EPHE Philippines 28.3% 25.3% 23.6% 24.3% 22.1% 22.5% -24.8% -31.1% -31.8% 0.1 0.2 0.5

EWY South Korea 32.5% 23.3% 24.2% 23.5% 18.7% 23.4% -19.8% -32.8% -33.4% (0.1) 0.1 (0.1)

EWT Taiwan 27.6% 21.9% 24.0% 24.3% 19.0% 20.8% -27.0% -31.3% -31.3% (0.3) 0.2 0.1

THD Thailand 25.0% 20.6% 22.0% 23.2% 23.2% 24.7% -25.6% -33.5% -38.0% (0.2) (0.1) 0.2

GUR EM Europe 42.2% 30.0% 30.7% 28.5% 26.2% 28.4% -29.4% -51.8% -57.2% (0.3) (0.4) (0.4)

GREK Greece 82.1% 55.9% 50.3% 48.6% 47.7% -48.9% -77.4% (0.6) (0.5)

EPOL Poland 49.9% 34.2% 30.2% 27.3% 24.3% 29.8% -30.4% -47.0% -50.2% (0.9) (0.4) (0.4)

RSX Russia 38.3% 31.1% 38.9% 37.4% 36.5% 35.7% -30.9% -55.1% -64.7% (0.0) (0.2) (0.3)

TUR Turkey 40.3% 35.4% 33.2% 33.6% 32.2% 32.7% -27.9% -43.1% -53.9% (0.3) (0.3) (0.2)

MES Middle East 17.0% 17.5% 22.0% 23.6% 22.0% 20.7% -29.9% -42.4% -42.4% (0.7) (0.0) 0.2

QAT Qatar 21.0% 18.1% 21.5% 23.4% -30.2% (0.8)

UAE UAE 24.4% 18.9% 26.2% 27.8% -35.1% (0.5)

AFK Africa 35.1% 29.8% 27.9% 24.5% 18.6% 19.4% -37.3% -54.0% -54.0% (0.6) (0.4) (0.3)

EGPT Egypt 35.4% 27.8% 31.6% 32.4% 28.2% 29.3% -33.4% -55.7% -55.7% (0.8) 0.0 (0.2)

EZA South Africa 54.1% 39.9% 41.2% 38.2% 29.7% 30.2% -39.7% -45.0% -45.0% (0.4) (0.0) (0.1)

FM Frontier Market 25.0% 16.5% 16.1% 16.6% 14.6% -25.0% -36.6% (0.9) (0.0)

ARGT Argentina 29.4% 24.5% 24.5% 27.2% 24.5% 26.6% -22.9% -34.0% -49.5% 0.5 0.5 (0.2)

NGE Nigeria 57.8% 45.0% 38.2% 32.2% 28.4% -42.2% -64.7% (1.3) (0.9)

PAK Pakistan 28.5% 21.2% 19.1% 17.3% -22.9% 0.1

VNM Vietnam 24.6% 21.4% 24.0% 26.3% 22.2% 26.3% -32.9% -42.9% -42.9% (0.7) (0.2) (0.2)

BKF BRIC 27.0% 22.5% 26.0% 26.8% 22.0% 24.1% -33.4% -39.4% -43.5% (0.6) (0.1) (0.3)

Ticker Asset ClassAnnualized Volatility Max Drawdown Sharpe (TR / Vol)


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Cross Asset Correlations (3Y)

Figure 7: 3-Year Cross Asset Class Correlations of Weekly Total Returns

3Y - Cross Asset Class Correlation of Weekly Total Returns

Category Ticker ACWI VTI EFA EEM AGG GOVT TIP MUB MBB LQD HYG FLOT BKLN PFF CWB BWX WIP EMB EMLC EMCB DBC DBE DBA DBB DBP UUP FXY FXE

Global Equities ACWI 0.96 0.96 0.85 -0.19 -0.32 -0.02 -0.14 -0.14 -0.01 0.67 0.13 0.59 0.41 0.89 0.00 0.26 0.57 0.59 0.48 0.49 0.46 0.26 0.41 -0.11 0.03 -0.37 -0.06

US Total Market VTI 0.96 0.86 0.73 -0.21 -0.34 -0.04 -0.16 -0.16 -0.01 0.67 0.12 0.58 0.41 0.91 -0.08 0.15 0.49 0.48 0.43 0.41 0.41 0.20 0.32 -0.17 0.11 -0.41 -0.12

Intl DM EFA 0.96 0.86 0.80 -0.19 -0.31 -0.03 -0.12 -0.16 -0.03 0.61 0.13 0.54 0.37 0.81 0.04 0.30 0.53 0.57 0.44 0.48 0.45 0.26 0.43 -0.08 -0.04 -0.35 0.01

EM EEM 0.85 0.73 0.80 -0.07 -0.18 0.08 -0.07 -0.02 0.07 0.59 0.17 0.51 0.31 0.69 0.14 0.41 0.63 0.74 0.53 0.50 0.42 0.30 0.47 0.04 -0.04 -0.17 -0.01

US Agg Bond IG AGG -0.19 -0.21 -0.19 -0.07 0.95 0.86 0.76 0.89 0.89 0.01 -0.03 -0.07 0.28 -0.15 0.61 0.52 0.32 0.23 0.16 -0.22 -0.27 -0.02 -0.11 0.26 -0.31 0.51 0.24

US Treasury GOVT -0.32 -0.34 -0.31 -0.18 0.95 0.80 0.73 0.81 0.80 -0.16 -0.10 -0.22 0.15 -0.29 0.58 0.46 0.17 0.12 0.03 -0.32 -0.36 -0.09 -0.19 0.30 -0.30 0.53 0.24

US Inflation TIP -0.02 -0.04 -0.03 0.08 0.86 0.80 0.65 0.80 0.81 0.16 -0.02 0.06 0.32 -0.02 0.60 0.60 0.44 0.41 0.29 -0.01 -0.05 0.05 0.06 0.25 -0.32 0.41 0.25

Municipal MUB -0.14 -0.16 -0.12 -0.07 0.76 0.73 0.65 0.74 0.66 0.02 0.03 -0.09 0.26 -0.11 0.45 0.39 0.22 0.19 0.09 -0.22 -0.27 -0.05 -0.09 0.23 -0.23 0.41 0.18

MBS MBB -0.14 -0.16 -0.16 -0.02 0.89 0.81 0.80 0.74 0.76 0.06 -0.01 -0.05 0.32 -0.09 0.55 0.48 0.35 0.25 0.24 -0.21 -0.24 -0.05 -0.09 0.22 -0.29 0.45 0.22

IG Corporates LQD -0.01 -0.01 -0.03 0.07 0.89 0.80 0.81 0.66 0.76 0.27 0.00 0.17 0.44 0.06 0.51 0.51 0.46 0.33 0.29 -0.07 -0.10 0.04 -0.05 0.19 -0.22 0.39 0.15

HY Corporates HYG 0.67 0.67 0.61 0.59 0.01 -0.16 0.16 0.02 0.06 0.27 0.15 0.77 0.54 0.69 0.06 0.24 0.67 0.56 0.56 0.51 0.51 0.23 0.33 0.02 0.00 -0.16 -0.05

Floater FLOT 0.13 0.12 0.13 0.17 -0.03 -0.10 -0.02 0.03 -0.01 0.00 0.15 0.16 0.03 0.07 0.11 0.11 0.06 0.12 0.20 0.16 0.12 0.17 0.11 0.11 -0.13 0.06 0.09

Senior Loans BKLN 0.59 0.58 0.54 0.51 -0.07 -0.22 0.06 -0.09 -0.05 0.17 0.77 0.16 0.46 0.61 0.00 0.17 0.52 0.46 0.47 0.43 0.41 0.21 0.33 -0.04 0.07 -0.20 -0.10

Preferred PFF 0.41 0.41 0.37 0.31 0.28 0.15 0.32 0.26 0.32 0.44 0.54 0.03 0.46 0.48 0.09 0.23 0.47 0.32 0.39 0.17 0.18 0.15 0.10 -0.06 0.04 -0.06 -0.08

Convertible CWB 0.89 0.91 0.81 0.69 -0.15 -0.29 -0.02 -0.11 -0.09 0.06 0.69 0.07 0.61 0.48 -0.06 0.14 0.51 0.43 0.43 0.41 0.40 0.18 0.30 -0.15 0.09 -0.35 -0.11

Intl DM Debt BWX 0.00 -0.08 0.04 0.14 0.61 0.58 0.60 0.45 0.55 0.51 0.06 0.11 0.00 0.09 -0.06 0.88 0.30 0.51 0.20 0.12 0.01 0.22 0.19 0.50 -0.88 0.69 0.80

Intl Inflation WIP 0.26 0.15 0.30 0.41 0.52 0.46 0.60 0.39 0.48 0.51 0.24 0.11 0.17 0.23 0.14 0.88 0.49 0.72 0.34 0.28 0.16 0.28 0.33 0.43 -0.76 0.46 0.67

EM Gov Debt USD EMB 0.57 0.49 0.53 0.63 0.32 0.17 0.44 0.22 0.35 0.46 0.67 0.06 0.52 0.47 0.51 0.30 0.49 0.73 0.72 0.31 0.29 0.20 0.26 0.05 -0.10 0.01 0.03

EM Gov Debt Local EMLC 0.59 0.48 0.57 0.74 0.23 0.12 0.41 0.19 0.25 0.33 0.56 0.12 0.46 0.32 0.43 0.51 0.72 0.73 0.56 0.43 0.31 0.33 0.43 0.25 -0.37 0.14 0.31

EM Corp USD EMCB 0.48 0.43 0.44 0.53 0.16 0.03 0.29 0.09 0.24 0.29 0.56 0.20 0.47 0.39 0.43 0.20 0.34 0.72 0.56 0.30 0.30 0.18 0.24 -0.07 -0.05 0.00 -0.02

Commodities DBC 0.49 0.41 0.48 0.50 -0.22 -0.32 -0.01 -0.22 -0.21 -0.07 0.51 0.16 0.43 0.17 0.41 0.12 0.28 0.31 0.43 0.30 0.93 0.53 0.56 0.19 -0.21 -0.07 0.16

Energy Cmdty DBE 0.46 0.41 0.45 0.42 -0.27 -0.36 -0.05 -0.27 -0.24 -0.10 0.51 0.12 0.41 0.18 0.40 0.01 0.16 0.29 0.31 0.30 0.93 0.33 0.43 0.00 -0.11 -0.14 0.06

Agriculture DBA 0.26 0.20 0.26 0.30 -0.02 -0.09 0.05 -0.05 -0.05 0.04 0.23 0.17 0.21 0.15 0.18 0.22 0.28 0.20 0.33 0.18 0.53 0.33 0.23 0.15 -0.25 0.05 0.22

Industrial Metals DBB 0.41 0.32 0.43 0.47 -0.11 -0.19 0.06 -0.09 -0.09 -0.05 0.33 0.11 0.33 0.10 0.30 0.19 0.33 0.26 0.43 0.24 0.56 0.43 0.23 0.15 -0.22 -0.06 0.20

Precious Metals DBP -0.11 -0.17 -0.08 0.04 0.26 0.30 0.25 0.23 0.22 0.19 0.02 0.11 -0.04 -0.06 -0.15 0.50 0.43 0.05 0.25 -0.07 0.19 0.00 0.15 0.15 -0.46 0.50 0.38

Bull USD UUP 0.03 0.11 -0.04 -0.04 -0.31 -0.30 -0.32 -0.23 -0.29 -0.22 0.00 -0.13 0.07 0.04 0.09 -0.88 -0.76 -0.10 -0.37 -0.05 -0.21 -0.11 -0.25 -0.22 -0.46 -0.56 -0.97

JPYUSD FXY -0.37 -0.41 -0.35 -0.17 0.51 0.53 0.41 0.41 0.45 0.39 -0.16 0.06 -0.20 -0.06 -0.35 0.69 0.46 0.01 0.14 0.00 -0.07 -0.14 0.05 -0.06 0.50 -0.56 0.44

EURUSD FXE -0.06 -0.12 0.01 -0.01 0.24 0.24 0.25 0.18 0.22 0.15 -0.05 0.09 -0.10 -0.08 -0.11 0.80 0.67 0.03 0.31 -0.02 0.16 0.06 0.22 0.20 0.38 -0.97 0.44 Source: Deutsche Bank, FactSet. Data as of the end of last month. Green cells denote highest correlations, while red cells denote lowest correlations.

Figure 8: 26W Rolling Correlation for Global

Equities vs. Other Asset Classes (5Y)

Figure 9: 26W Rolling Correlation for US Equities

vs. Other Equities (5Y)

Figure 10: 26W Rolling Correlation for US Fixed

Income vs. Other Fixed Income segments (5Y)

-1

-0.8

-0.6

-0.4

-0.2

0

0.2

0.4

0.6

0.8

1

Apr-11 Apr-12 Apr-13 Apr-14 Apr-15 Apr-16

Global Equities - 26W Rolling Correlation

US Agg Bond IG Commodities Real EstateBull USD Gold

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1


US Equities - 26W Rolling Correlation

DM Intl EM Japan Pacific ex JP Europe

-0.8

-0.6

-0.4

-0.2

0

0.2

0.4

0.6

0.8

1

1.2


US Fixed Income - 26W Rolling Correlation

US Treasury IG Corp HY Corp Sr Loans

Source: Deutsche Bank, FactSet. Correlations based on weekly total returns of US-listed ETFs: Global Equities (ACWI), US Agg Bond IG (AGG), Commodities (DBC), Real Estate (VNQ), and Gold (GLD).

Source: Deutsche Bank, FactSet. Correlations based on weekly total returns of US-listed ETFs: US Equity (VTI), DM Intl (EFA), EM (EEM), Japan (EWJ), Pacific ex JP (EPP), and Europe (VGK).

Source: Deutsche Bank, FactSet. Correlations based on weekly total returns of US-listed ETFs: US Fixed Income (AGG), US Treasury (GOVT), IG Corp (LQD), HY Corp (HYG), and Sr Loans (BKLN)

18 July 2016

US ETF Compass


12-Month Relative Performance Monitor1

Figure 11: Cross Asset Class Figure 12: Global Equities Figure 13: US Equity Size and Style

0.80

0.90

1.00

1.10

1.20

1.30

1.40

Ju

n-1

5

Ju

l-1

5

Au

g-1

5

Sep-1

5

Oct-

15

Nov-1

5

Dec-1

5

Jan

-16

Feb-1

6

Mar-

16

Ap

r-1

6

May-1

6

Ju

n-1

6

Global Equities/Fixed Income (Broad)

Global Equities/Commodities

0.90

0.95

1.00

1.05

1.10

1.15

1.20

1.25

1.30

Ju

n-1

5

Ju

l-1

5

Aug

-15

Sep

-15

Oct-

15

No

v-1

5

Dec-1

5

Jan-1

6

Feb-1

6

Mar-

16

Ap

r-1

6

May-1

6

Ju

n-1

6

US Total Market/Intl DM

US Total Market/EM

0.90

0.95

1.00

1.05

1.10

1.15

1.20

Jun

-15

Jul-

15

Aug

-15

Sep-1

5

Oct-

15

Nov-1

5

Dec-1

5

Jan

-16

Feb-1

6

Mar-

16

Apr-

16

May-1

6

Jun

-16

S&P 500/Russell 2000 (SM Cap)

Russell 1000 Growth/Russell 1000 Value

Source: Deutsche Bank, FactSet.



Figure 14: US Equity Sectors Figure 15: Intl DM Equities Figure 16: EM Equities

0.60

0.80

1.00

1.20

1.40

1.60

Jun-1

5

Ju

l-1

5

Aug

-15

Sep

-15

Oct-

15

Nov-1

5

Dec-1

5

Jan-1

6

Feb-1

6

Mar-

16

Apr-

16

May-1

6

Jun-1

6

Healthcare/EnergyTechnology/IndustrialsFinancials/Real EstateFinancials/Utilities

0.90

0.95

1.00

1.05

1.10

1.15

Ju

n-1

5

Ju

l-1

5

Au

g-1

5

Sep-1

5

Oct-

15

Nov-1

5

Dec-1

5

Jan

-16

Feb-1

6

Mar-

16

Ap

r-1

6

May-1

6

Ju

n-1

6

Eurozone/Europe

Japan/Pacific ex JP

0.60

0.70

0.80

0.90

1.00

1.10

1.20

1.30

Ju

n-1

5

Ju

l-1

5

Au

g-1

5

Sep

-15

Oct-

15

No

v-1

5

Dec-1

5

Jan-1

6

Feb-1

6

Mar-

16

Ap

r-1

6

May-1

6

Ju

n-1

6

EM Asia/Latin America

China H/China A




Figure 17: Fixed Income Credit

Figure 18: Fixed Income duration

and EM debt

Figure 19: Precious Metals

0.80

0.85

0.90

0.95

1.00

1.05

Jun-1

5

Jul-

15

Aug

-15

Sep-1

5

Oct-

15

No

v-1

5

Dec-1

5

Jan-1

6

Feb

-16

Mar-

16

Apr-

16

May-1

6

Jun-1

6

HY Corporates/US Treasury

HY Corporates/IG Corporates

0.80

0.90

1.00

1.10

1.20

1.30

Jun

-15

Jul-

15

Aug

-15

Sep-1

5

Oct-

15

Nov-1

5

Dec-1

5

Jan

-16

Feb-1

6

Mar-

16

Apr-

16

May-1

6

Jun

-16

UST Short/UST Long

EM Gov Debt USD/EM Gov Debt Local

0.80

0.90

1.00

1.10

1.20

1.30

1.40

1.50

1.60

1.70

Jun

-15

Jul-

15

Au

g-1

5

Sep-1

5

Oct-

15

No

v-1

5

Dec-1

5

Jan

-16

Feb-1

6

Mar-

16

Apr-

16

May-1

6

Jun

-16

Gold/Silver

Gold/Platinum

Gold/Palladium




1 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.

18 July 2016

US ETF Compass


House View Portfolio: Monthly Brief

Our House View Portfolio (HVP) was up by 2.80% in June, outperforming

Global Equities (ACWI) and its benchmark which were up by 0.28% and 1.86%

during the same period, respectively.

Figure 20: House View Portfolio

Direction Type

USMV 0.15% 15% Long Core Equity US LC Min Vol

XLU 0.14% 10% Long Satellite Equity US Utilities

EFAV 0.20% 20% Long Core Equity DM Intl

LQD 0.15% 15% Long Core Credit Inv. Grade

IEF 0.15% 20% Long Core Rates Intermediate UST

IAU 0.25% 15% Long Core Comdty Gold

UUP 0.80% 5% Long Core FX Long USD

ExposureETF TER WeightPosition Asset

Class

Source: Deutsche Bank. Actual weights as of the end of last month. Last rebalance as of 30-Jun-16.

Figure 21: Portfolio performance vs. Global Equities and

Benchmark since inception (10/01/2012)

Figure 22: Monthly performance of portfolio and

benchmark positions

90

100

110

120

130

140

150

No

rmalize

d L

evel (

10

0)

House View Port. ACWI Bnchmk

-8% -6% -4% -2% 0% 2% 4% 6% 8% 10%

Fixed Income (BND)

Comdty (DBC)

Equity (ACWI)

FX Long USD (UUP)

Gold (IAU)

Intermediate UST (IEF)

Inv. Grade (LQD)

Eq. DM Intl (EFAV)

Eq. US Utilities (XLU)

Eq. US Banks (KBWB)

Eq. US LC Min Vol (USMV)

Performance

Ho

use

Vie

w P

ort

.B

nch

mk

Source: Deutsche Bank, FactSet. Benchmark is 50% Global Equities (ACWI), 30% Fixed Income (BND), and 20% Commodities (DBC) rebalanced at the end of each calendar quarter.

Source: Deutsche Bank, FactSet. Data as of last month .

Figure 23: Asset Class allocation Figure 24: Global Equity Allocation Figure 25: Regional Equity Allocation

0%

10%

20%

30%

40%

50%

60%

Equity Fixed Income Alternatives

Previous Current

0%

5%

10%

15%

20%

25%

30%

35%

US DM Intl EM

Previous Current

0%

5%

10%

15%

20%

25%

30%

35%

North America

Europe Japan Asia ex JP

Previous Current




18 July 2016

US ETF Compass


Business Intelligence

New Listings

There were twenty-nine new ETFs, two new ETVs and one new ETN listed

during the previous month; seventeen were listed in the NYSE Arca, thirteen in

the NASDAQ; while the remaining two funds were listed in the BATS. The new

products offer exposure to Global markets, Global markets with high dividend

income, and FX hedged exposure to Intl Markets with multi-factors approach;

exposure to US Large Cap, US Small Cap with factor tilts, China A-Shares, US

companies focused on momentum hedging with Treasury bonds, Hardware

and Internet industries; -2x leveraged exposure to HY debt; exposure to HY

liquid bonds, HY bonds ex-Oil & Gas sector, actively managed exposure to US

stocks, US high dividend equities, EM equity stocks, Global Fixed Income debt;

thematic exposures to Long Term-Care, Organics, Obesity, Health & Fitness,

ESG versions for EM and EAFE, respectively; ESG Global, Intl, and US with

high dividends, respectively; inverse exposure to the S&P 500 Index, two ETVs

offering direct and inverse exposure to the Oil spot price, and one ETN offering

tactical allocation to the S&P 500 Index (See Figure 26 for details).

Equity Franklin Templeton Investments made its debut in the ETF market

launching four new Smart-Beta ETFs during June; all of them offer

exposure to equity stocks with favorable factors as quality, value,

momentum and lower level of risk. The first fund (FLQG) offers exposure to

Global equities tracking the LibertyQ Global Equity Index and comes with

an annual expense ratio of 0.35%. The second product (FLQD) offers

exposure to DM and EM equity stocks with high dividend income and

tracking the LibertyQ Global Dividend Index. FLQD comes with an annual

expense ratio of 0.45%. The third one (FLQH) is designed to provide FX

hedged exposure to International markets including companies from

Europe, Australasia and Far East. FLQH tracks the LibertyQ International

Equity Hedged Index and comes with an annual expense ratio of 0.40%.

Finally, the last ETF (FLQE) listed offers exposure to EM equities and tracks

the LibertyQ Emerging Markets Index. FLQE comes with a total expense

ratio of 0.55%.

Janus Capital listed four new thematic ETFs during June. The first of them

(OLD) offers exposure to the Solactive Long-Term Care Index, which invest

in Global companies that profit from providing long-term care to the aging

population, including: nursing services, specialty hospitals, senior housing,

biotech companies for age-related illnesses, among others. The second

fund (ORG) offers exposure to the Solactive Organics Index, which invests

in companies around the world that provide organic products, including:

food, beverages, skin care, hair care, cosmetics, supplements, and

packaging. The third product (SLIM) offers thematic exposure to

companies globally that could benefit as they fight the obesity, including:

biotechnology, pharmaceutical, healthcare and medical device companies

whose business is focused on obesity and obesity related disease, as

diabetes, high blood pressure, cholesterol, among others; and companies

focused on weight loss programs. In the meantime, the last fund (FITS)

tracks the Solactive Health and Fitness Index and offers exposure to Global

18 July 2016

US ETF Compass


companies that take advantage of the growing trend toward health and

fitness consumption, including fitness technology and equipments, sport

apparel, nutrition, and sport facilities. All of them come with an annual

expense ratio of 0.50%.

Figure 26: Products listed during last month

Ticker NameAsset Class &

StructureListing Date TER

AUM

$MM

DWFI SPDR Dorsey Wright Fixed Income Allocation ETF Fixed Income ETF 2-Jun-16 0.60% 15

FLQG Franklin LibertyQ Global Equity ETF Equity ETF 3-Jun-16 0.35% 26

FLQH Franklin LibertyQ International Equity Hedged ETF Equity ETF 3-Jun-16 0.40% 25

FLQE Franklin LibertyQ Emerging Markets ETF Equity ETF 3-Jun-16 0.55% 27

FLQD Franklin LibertyQ Global Dividend ETF Equity ETF 3-Jun-16 0.45% 26

RFDA RiverFront Dynamic US Dividend Advantage ETF Equity ETF 7-Jun-16 0.52% 5

RFFC RiverFront Dynamic US Flex-Cap ETF Equity ETF 7-Jun-16 0.52% 5

SPDN Direxion Daily S&P 500 Bear 1x Shares Equity ETF 8-Jun-16 0.45% 29

BEMO Aptus Behavioral Momentum ETF Equity ETF 9-Jun-16 0.79% 14

OLD The Long-Term Care ETF Equity ETF 9-Jun-16 0.50% 3

ORG The Organics ETF Equity ETF 9-Jun-16 0.50% 2

SLIM The Obesity ETF Equity ETF 9-Jun-16 0.50% 2

FITS The Health and Fitness ETF Equity ETF 9-Jun-16 0.50% 2

ESGS Columbia Sustainable US Equity Income ETF Equity ETF 13-Jun-16 0.35% 5

ESGN Columbia Sustainable International Equity Income ETF Equity ETF 13-Jun-16 0.45% 5

ESGW Columbia Sustainable Global Equity Income ETF Equity ETF 13-Jun-16 0.40% 5

RFUN RiverFront Dynamic Unconstrained Income ETF Fixed Income ETF 14-Jun-16 0.51% 5

RFCI RiverFront Dynamic Core Income ETF Fixed Income ETF 14-Jun-16 0.51% 3

CNYA iShares MSCI China A ETF Equity ETF 15-Jun-16 0.65% 9

RFEM First Trust RiverFront Dynamic Emerging Markets ETF Equity ETF 15-Jun-16 0.95% 5

HYXE iShares iBoxx $ High Yield ex Oil & Gas Corporate Bond ETF Fixed Income ETF 16-Jun-16 0.50% 10

FALN iShares Fallen Angels USD Bond ETF Fixed Income ETF 16-Jun-16 0.35% 10

HYDD Direxion Daily High Yield Bear 2x Shares Fixed Income ETF 16-Jun-16 0.80% 6

TALL RBC S&P 500 Trend Allocator ETN Equity ETN 28-Jun-16 0.85% 4

OILU AccuShares S&P GSCI Crude Oil Excess Return Up Shares Commodity ETV 28-Jun-16 0.29% 3

OILD AccuShares S&P GSCI Crude Oil Excess Return Down Shares Commodity ETV 28-Jun-16 0.29% 2

DESC Deutsche X-trackers Russell 2000 Comprehensive Factor ETF Equity ETF 28-Jun-16 0.30% 3

XTH SPDR S&P Technology Hardware Etf Equity ETF 28-Jun-16 0.35% 5

XWEB SPDR S&P Internet ETF Equity ETF 28-Jun-16 0.35% 5

ESGD iShares MSCI EAFE ESG Select ETF Equity ETF 30-Jun-16 0.40% 5

ESGE iShares MSCI EM ESG Select ETF Equity ETF 30-Jun-16 0.45% 5

OEW Guggenheim S&P 100 Equal Weight ETF Equity ETF 30-Jun-16 0.40% 3 Source: Deutsche Bank, Bloomberg Finance LP

Columbia Management listed three new ETFs the past month. The funds

offer exposure to Global (ESGW), International (ESGN), and US (ESGS)

companies with competitive and sustainable levels of income and total

return; based on environmental, social and governance practices through a

rules-based multi-factor selection process. ESGW tracks the Beta

Advantage Sustainable Global Equity Income 200 Index and comes with an

annual expense ratio of 0.40%; while, ESGN track the Beta Sustainable

International Equity Income 100 Index and comes with an annual expense

ratio of 0.45%. Finally, ESGS track the Beta Sustainable U.S. Equity Income

100 Index and comes with an annual expense ratio of 0.35%.

BlackRock launched five new ETFs during June, three of them Equity

funds. The first one (CNYA) is designed to provide exposure to the Chinese

A-Share stock market, tracking the MSCI China A International Index and

comes with an annual expense ratio of 0.65%. In the meantime, the

remaining funds, offer exposure to Emerging Markets (ESGE) and DM ex-

US and Canada (ESGD) equity stocks, respectively; focused on positive

environmental, social, and governance characteristics. ESGE tracks the

18 July 2016

US ETF Compass


MSCI EM ESG Select Index and comes with an annual expense ratio of

0.45%; while, ESGD tracks the MSCI EAFE Select Index and comes with an

annual expense ratio of 0.40%.

ALPS listed four new funds the last month, two of them Equity ETFs. The

first fund (RFFC) seeks to provide capital appreciation offering actively

managed exposure to a portfolio of US equity securities based attributes

such as value, quality, and momentum; meanwhile, the second fund

(RFDA) offers the same actively managed exposure focused on high

dividend companies. Both ETFs come with an annual expense ratio of

0.52%.

State Street listed two new thematic ETFs during June; the tech-sector

funds offer exposure to US companies in the Technology Hardware (XTH)

and the Internet (XWEB) industries, respectively. XTH tracks the S&P

Technology Hardware Select Industry Index, which includes companies

involved in technology hardware, storage, electronic equipment, among

others; while, XWEB tracks the Internet Select Industry Index, which

includes internet retail equities and internet software and services

companies. Both come with annual expense ratio of 0.35%.

DirexionShares listed one new capitalization-weighted ETF (SPDN) which

offers inverse exposure to the S&P 500 Index. The fund comes with annual


First Trust listed one new actively managed ETF (RFEM) which offers

exposure to a portfolio of EM equity securities. The fund comes with an


RBC Global Asset Management listed one new ETN (TALL), which tracks

the S&P 500 Trend Allocator PR Index. The note allocates between the

S&P 500 and cash, based on price trends; and comes with an annual


Deutsche AM listed one new multi-factor ETF (DESC) which offers

exposure to US Small Cap equity stocks in the Russell 2000 Index and

based on five factors: quality, value, momentum, low volatility, and size.

DESC tracks the Russell 2000 Comprehensive Factor Index and comes

with an annual expense ratio of 0.30%.

Guggenheim Investments listed one new equally-weighted ETF (OEW),

offering exposure to the 100 major blue-chip companies in the S&P 500

Index. The fund tracks the S&P 100 Equal Weight Index and comes with an


APTUS Capital debuts one new alternative ETF (BEMO) which is designed

to provide 100% long only exposure to 25 large US-listed equity stocks

selected by their momentum characteristics in a risk-on environment, or

vary until 100% exposure to 7-10 year US Treasury bonds, during market

downtrends. BEMO tracks the Aptus Behavioral Momentum Index and

comes with an annual expense ratio of 0.79%.

Fixed Income ALPS listed two new Fixed Income ETFs during June. The funds offer

actively managed exposure to a portfolio of Global fixed income debt

securities, in almost any sector, maturity or credit quality. While, both

funds can invest a maximum of 20% in MBS, CMBS and ABS securities;

the first one (RFCI) has 15% limit to high yield bonds and 10% limit to EM

18 July 2016

US ETF Compass


debt, as well as non-USD denominated bonds; meanwhile, the second

fund (RFUN) can invest 100% in high yield bonds, 50% limit to EM debt, as

well as non-USD denominated bonds. RFCI and RFUN come with an


BlackRock listed two new Fixed Income ETFs. The first fund (HYXE) offers

exposure to a broad range of USD-denominated High Yield Corporate

bonds, excluding the oil and gas sector. HYXE tracks the Markit iBoxx USD

Liquid High Yield ex-Oil & Gas Index and comes with annual expense ratio

of 0.50%; meanwhile, the second product (FALN) offers exposure to USD-

denominated High Yield bonds, previously rated Investment Grade. FALN

tracks the Barclays US High Yield Fallen Angel 3% Capped Index and

comes with an annual expense ratio 0.35%.

DirexionShares also listed one new Fixed Income ETF (HYDD) offering

inverse 2x leveraged exposure to the most liquid US High Yield Corporate

bonds. HYDD track the Barclays U.S. High Yield Very Liquid Index and

comes with an annual fee of 0.80%.

Commodity In the Commodity space, AccuShares Management listed two new ETVs

offering direct (OILU) and inverse (OILD) exposure to the movement of

spot oil prices, tracking the S&P GSCI Crude Oil Index. Both products

come with an annual fee of 0.29%.

Delistings

Figure 27: Delisted products during last month

Ticker NameAsset Class &

Structure

Delisting

dateTER

AUM at

Delisting $MM

CSMA Credit Suisse X-Links Merger Arbitrage ETN Alternative ETN 3-Jun-16 0.55% 5

OSMS Barclays OFI SteelPath MLP ETN Equity ETN 22-Jun-16 0.85% 1

PUTX ALPS Enhanced Put Write Strategy ETF Alternative ETF 27-Jun-16 0.75% 3 Source: Deutsche Bank, Bloomberg Finance LP.

18 July 2016

US ETF Compass


Trends in products launched in the last 12 months

Figure 28: Main trends among those products launched in the last 12 months

Net Cash

Flows

12M $MM

AUM

Jun '16 $MM

New Funds

last 12MAsset Class Focus

Net Cash

Flows

12M $MM

AUM

Jun '16

$MM

New

Funds

last 12MTotal (All) 8,403 8,780 269 Top 5 by Geographic Focus (Equities)

By Asset Class US - US 3,232 3,348 95

Equity 6,583 6,918 222 DM - Global ex US (reg) 898 876 27

Fixed Income 1,256 1,290 30 EM - Global (reg) 865 912 17

Commodities 5 5 2 DM - North America (reg) 580 834 1

Currency - - - Global - Global (reg) 277 266 17

Multi Asset 502 511 5 Top 5 by Category (Fixed Income)Alternative 58 56 10 Broad 673 691 10

By Management Strategy Municipal 424 436 3

Beta 1,693 1,905 58 Corporates 104 106 11

Beta+ 88 76 17 EM debt 45 46 3

Smart Beta 5,906 6,072 169 Convertible 5 5 1

Active 716 727 25 Source: Deutsche Bank, Bloomberg Finance LP

Figure 29: Top 20 products by net cash flow raised in the last 12

months

Figure 30: Top 20 Issuers by inflows to

products launched in the last 12 months

Ticker Name TERNet CF

12M

$MMGEM Goldman Sachs ActiveBeta Emerging Markets Equity ETF 0.45% 717

GSLC Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF 0.09% 653

NANR SPDR S&P North American Natural Resources ETF 0.35% 580

ONEV SPDR Russell 1000 Low Volatility Focus ETF 0.20% 365

VTEB Vanguard Tax-Exempt Bond Index ETF 0.12% 352

ONEO SPDR Russell 1000 Momentum Focus ETF 0.20% 340

ONEY SPDR Russell 1000 Yield Focus ETF 0.20% 338

YLD Principal Edge Active Income ETF 0.85% 263

SHE SPDR SSGA Gender Diversity Index ETF 0.20% 256

DDWM WisdomTree Dynamic Currency Hedged International Equity Fund 0.35% 254

OUSA O'Shares FTSE US Quality Dividend ETF 0.48% 198

GSIE Goldman Sachs ActiveBeta International Equity ETF 0.35% 186

DWTR PowerShares DWA Tactical Sector Rotation Portfolio 0.15% 172

NFLT Virtus Newfleet Multi-Sector Unconstrained Bond ETF 0.80% 170

IAGG iShares Core International Aggregate Bond ETF 0.15% 169

FVC First Trust Dorsey Wright Dynamic Focus 5 ETF 0.79% 149

IDLB PowerShares FTSE International Low Beta Equal Weight Portfolio 0.45% 138

HFXI IQ 50 Percent Hedged FTSE International ETF 0.35% 129

USLB PowerShares Russell 1000 Low Beta Equal Weight Portfolio 0.35% 126

AGGP IQ Enhanced Core Plus Bond US ETF 0.20% 122

Top 20 Issuers

Net Cash

Flows

12M $MM

AUM

Jun '16

$MM

New

Funds

last 12MState Street 2,163 2,484 18

Goldman Sachs 1,620 1,683 5

BlackRock 519 499 44

PowerShares 515 519 8

WisdomTree 489 490 22

Vanguard 476 489 3

IndexIQ Advisors 380 367 6

First Trust 342 331 9

Principal Financial Group 263 265 1

O'Shares Investments 236 251 5

Etfis Capital 179 185 2

JPMorgan 169 172 5

John Hancock Inv. 152 156 11

Compass EMP 107 108 6

Franklin Templeton 102 103 4

DirexionShares 86 74 16

Guggenheim Inv. 73 75 8

ETC 68 65 9

Deutsche AWM 56 52 15

FlexShares 44 46 5 Source: Deutsche Bank, Bloomberg Finance LP

Source: Deutsche Bank, Bloomberg Finance LP

18 July 2016

US ETF Compass


Popular Product Segments: Smart Beta & Currency Hedged

Figure 31: Summary statistics for Smart Beta Equity ETFs

Smart Beta

(Equities)

Jun '16

$MM

YTD

$MM

Jun '16

$MM

MoM

Chg %

Mkt

Shr

Jun '16

$MM

MoM

Chg %

Mkt

Shr

Jun '16

All

Mkt

Shr

YTD

NewDividend 792 (1,604) 28,032 53% 22% 128,569 0% 27% 120 20% 12

Equal (222) (3,679) 44,716 7% 35% 30,053 -3% 6% 73 12% 6

ESG 64 389 223 22% 0% 2,309 2% 0% 23 4% 8

Fundamental 259 454 3,692 18% 3% 18,996 1% 4% 62 10% 4

Low Risk 2,251 14,281 10,877 23% 8% 43,194 8% 9% 48 8% 3

Multi-factor (366) (2,402) 5,736 20% 4% 29,786 -1% 6% 148 25% 24

Single-factor 280 (161) 1,630 30% 1% 9,415 4% 2% 43 7% 2

Style 2,275 79 33,224 17% 26% 214,431 1% 45% 63 11% -

Other (4) 156 110 82% 0% 662 -2% 0% 13 2% 10

Total 5,330 7,514 128,240 20% 100% 477,414 1% 100% 593 100% 69

Net Cash Flows Turnover AUM # of Funds


Figure 32: Summary statistics for Currency-Hedged Equity ETFs

Currency Hedged

(Equities)

Jun '16

$MM

YTD

$MM

Jun '16

$MM

MoM

Chg %

Mkt

Shr

Jun '16

$MM

MoM

Chg %

Mkt

Shr

Jun '16

All

Mkt

Shr

YTD

New

Multiple (876) (2,226) 5,763 55% 26% 20,471 -9% 50% 49 51% 10

AUD (1) 4 0 50% 0% 11 -12% 0% 2 2% -

BRL 0 0 1 -42% 0% 4 21% 0% 1 1% -

CAD - 5 0 67% 0% 9 -1% 0% 1 1% -

CHF - (2) 0 -72% 0% 2 -2% 0% 1 1% -

CNY - (0) 0 -86% 0% 3 0% 0% 2 2% -

EUR (1,696) (5,920) 6,534 75% 30% 11,830 -18% 29% 16 16% 2

GBP - (9) 8 94% 0% 36 5% 0% 3 3% -

JPY (855) (5,397) 9,483 66% 43% 8,594 -20% 21% 17 18% 2

KRW (41) (80) 17 -16% 0% 95 -31% 0% 3 3% -

MXN (1) (1) 1 154% 0% 5 -18% 0% 2 2% -

Total (3,470) (13,627) 21,808 65% 100% 41,061 -14% 100% 97 100% 14



Figure 33: Top 10 Issuers in Equity Smart Beta Figure 34: Top 10 Issuers in Equity Currency hedged

Top 10 Issuers

(Equity Smart Beta)

AUM

Jun '16

$MM

Net Cash

Flows

12M $MM

# of Funds

Jun '16

BlackRock 194,827 24,493 77

Vanguard 105,681 12,223 22

WisdomTree 36,141 (13,182) 63

State Street 33,414 932 59

PowerShares 32,120 1,509 83

First Trust 27,273 (4,911) 70

Guggenheim Inv. 16,762 (2,287) 30

Charles Schwab 13,342 4,383 9

FlexShares 3,973 922 14

ProShares 2,355 1,400 6

Top 10 Issuers

(Equity Currency Hedged)

AUM

Jun '16

$MM

Net Cash

Flows

12M $MM

# of Funds

Jun '16

WisdomTree 18,632 (11,400) 23

Deutsche AWM 15,244 1,331 25

BlackRock 6,559 653 25

PowerShares 213 192 3

IndexIQ Advisors 190 205 3

First Trust 79 80 4

JPMorgan 51 51 2

FlexShares 30 29 2

Franklin Templeton 25 25 1

State Street 19 17 3 Source: Deutsche Bank, Bloomberg Finance LP


18 July 2016

US ETF Compass


Average Performance by Product Type and Size (Equity)

1 Month Comparisons

Figure 35: US Equity ETFs - 1 Month Total Returns Figure 36: US Equity ETFs - # of Funds in 1M sample

BetaSmart

BetaActive All

Large Cap 0.2% 0.3% -0.5% 0.2%

Mid Cap 0.2% 0.2% 0.2%

Small Cap 0.0% 0.3% -0.5% 0.2%

Broad -0.1% 1.2% -0.5% 0.9%

All 0.1% 0.6% -0.5% 0.4%

US Equity, Broad sector,

non levered, 1M Total

Return by

Product Type

Siz

e

BetaSmart

BetaActive All

Large Cap 19 89 9 117

Mid Cap 7 30 - 37

Small Cap 11 40 2 53

Broad 10 64 10 84

All 47 223 21 291


non levered, # of funds by

Product Type

Siz

e

Source: Deutsche Bank, FactSet. Total Return corresponds to last month.


Figure 37: DM Equity ETFs - 1 Month Total Returns Figure 38: DM Equity ETFs - # of Funds in 1M sample

BetaSmart

BetaActive All

Large Cap -3.0% -2.0% -3.4% -2.5%

Mid Cap -3.1% -4.1% -3.8%

Small Cap -5.7% -4.5% -2.8% -5.0%

Broad -2.4% -1.9% -2.0% -2.0%

All -3.1% -2.1% -2.4% -2.4%

DM Equity, Broad sector,

regional, non levered, 1M

Total Return by

Product Type

Siz

e

BetaSmart

BetaActive All

Large Cap 6 8 1 15

Mid Cap 1 2 - 3

Small Cap 8 7 1 16

Broad 27 73 4 104

All 42 90 6 138


regional, non levered, # of

funds by

Product Type

Siz

e



Figure 39: EM Equity ETFs - 1 Month Total Returns Figure 40: EM Equity ETFs - # of Funds in 1M sample

BetaSmart

BetaActive All

Large Cap 4.7% 5.6% 5.1%

Mid Cap

Small Cap 3.6% 5.9% 4.7%

Broad 3.9% 4.8% 4.4%

All 4.0% 4.9% 4.5%

EM Equity, Broad sector,

regional, non levered, 1M

Total Return by

Product Type

Siz

e

BetaSmart

BetaActive All

Large Cap 4 3 - 7

Mid Cap - - - -

Small Cap 2 2 - 4

Broad 29 36 - 65

All 35 41 - 76



funds by

Product Type

Siz

e



18 July 2016

US ETF Compass


1 Year Comparisons

Figure 41: US Equity ETFs - 1 Year Total Returns Figure 42: US Equity ETFs - # of Funds in 1Y sample

BetaSmart

BetaActive All

Large Cap 3.7% 2.0% -0.4% 2.0%

Mid Cap 0.5% 0.7% 0.7%

Small Cap -5.1% -3.8% -8.0% -4.3%

Broad 0.2% 4.0% -5.4% 2.4%

All 0.1% 1.2% -3.3% 0.7%

Product Type

Siz

e


non levered, 1Y Total

Return by

BetaSmart

BetaActive All

Large Cap 15 72 9 96

Mid Cap 7 28 - 35

Small Cap 11 37 2 50

Broad 10 53 8 71

All 43 190 19 252


non levered, # of funds by

Product Type

Siz

e



Figure 43: DM Equity ETFs - 1 Year Total Returns Figure 44: DM Equity ETFs - # of Funds in 1Y sample

BetaSmart

BetaActive All

Large Cap -10.9% -8.3% -8.6% -9.6%

Mid Cap -5.9% -7.4% -6.9%

Small Cap -6.5% -5.1% 0.0% -5.2%

Broad -7.8% -5.8% -6.5%

All -8.1% -6.0% -4.3% -6.7%


regional, non levered, 1Y

Total Return by

Product Type

Siz

e

BetaSmart

BetaActive All

Large Cap 6 5 1 12

Mid Cap 1 2 - 3

Small Cap 5 6 1 12

Broad 23 43 - 66

All 35 56 2 93



funds by

Product Type

Siz

e



Figure 45: EM Equity ETFs - 1 Year Total Returns Figure 46: EM Equity ETFs - # of Funds in 1Y sample

BetaSmart

BetaActive All

Large Cap -10.5% -7.0% -9.3%

Mid Cap

Small Cap -11.3% -8.4% -9.9%

Broad -11.2% -11.8% -11.5%

All -11.1% -11.2% -11.2%


regional, non levered, 1Y

Total Return by

Product Type

Siz

e

BetaSmart

BetaActive All

Large Cap 4 2 - 6

Mid Cap - - - -

Small Cap 2 2 - 4

Broad 28 23 - 51

All 34 27 - 61



funds by

Product Type

Siz

e



18 July 2016

US ETF Compass


Total Expense Ratio X-ray

Figure 47: Average TER analysis by asset class and product type

TER By Beta Beta+ Smart Beta Active All Beta Beta+ Smart Beta Active All

Equity 0.46% 0.92% 0.47% 0.85% 0.54% 0.21% 0.94% 0.28% 0.90% 0.24%

Fixed Income 0.27% 0.88% 0.29% 0.56% 0.37% 0.21% 0.94% 0.30% 0.51% 0.23%

Commodity 0.79% 0.89% 0.80% 0.76% 0.81% 0.41% 0.95% 0.83% 0.68% 0.46%

Currency 0.45% 0.95% 0.75% 0.49% 0.59% 0.56% 0.95% 0.75% 0.48% 0.63%

Multi Asset 0.53% 0.63% 0.90% 0.72% 0.45% 0.62% 0.86% 0.56%

Alternative 2.23% 0.95% 0.78% 1.04% 1.16% 2.65% 0.95% 0.72% 0.96% 1.10%

All 0.45% 0.91% 0.47% 0.74% 0.54% 0.22% 0.94% 0.29% 0.59% 0.25%

Simple Average AUM-Weighted Average

Source: Deutsche Bank, Bloomberg Finance LP, FactSet. Data as of the end of last month

Figure 48: Selected TER averages for the top 15 Issuers by AUM

BetaSmart

BetaBeta Active Beta

Smart

BetaBeta Active

BlackRock 873,479 0.46% 0.31% 0.24% 0.32% 0.37% 0.30% 0.23% 0.22% 0.25% 0.26%

Vanguard 539,580 0.12% 0.16% 0.12% 0.13% 0.10% 0.10% 0.10% 0.10%

State Street 433,676 0.34% 0.30% 0.28% 0.51% 0.33% 0.14% 0.33% 0.30% 0.58% 0.19%

PowerShares 96,066 0.42% 0.51% 0.42% 0.51% 0.23% 0.44% 0.52% 0.40%

Charles Schwab 47,946 0.09% 0.27% 0.08% 0.16% 0.07% 0.16% 0.06% 0.00% 0.10%

WisdomTree 37,917 0.46% 0.49% 0.33% 0.54% 0.49% 0.43% 0.51% 0.55% 0.51%

First Trust 37,366 0.61% 0.69% 0.79% 0.72% 0.59% 0.62% 0.00% 0.65%

Guggenheim Inv. 28,456 0.63% 0.49% 0.39% 0.47% 0.54% 0.42% 0.28% 0.40%

ProShares 26,346 0.29% 0.47% 0.51% 0.88% 0.37% 0.36% 0.48% 0.00% 0.87%

Deutsche AWM 15,798 0.54% 0.43% 0.30% 0.49% 0.40% 0.38% 0.30% 0.40%

PIMCO 11,995 0.27% 0.51% 0.39% 0.00% 0.00% 0.37% 0.41%

ALPS 11,322 0.63% 0.62% 0.41% 0.60% 0.00% 0.23% 0.75%

DirexionShares 9,988 0.60% 0.84% 0.00% 0.64% 0.00% 0.93%

FlexShares 9,389 0.48% 0.46% 0.20% 0.25% 0.39% 0.40% 0.37%

US Commodity Funds 5,014 0.55% 0.76% 0.00% 0.55% 0.00% 0.00% 0.61%

Equity Fixed IncomeAll

Simple Average AUM-Weighted Average

AllEquity Fixed IncomeAUM Jun

'16 $MMTop 15 Issuers


18 July 2016

US ETF Compass


ETF Statistics

Global ETF Assets and Provider Ranking

Figure 49: Historical Growth of Global ETP Assets*

'06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16*

Asia Pacific ($) 49 62 53 67 84 91 136 169 202 283 297

Europe ($) 91 132 145 244 309 297 368 416 459 507 532

US ($) 427 612 535 783 997 1,046 1,333 1,678 1,979 2,113 2,238

US, Europe & Asia Pacific ($) 567 804 733 1,094 1,390 1,435 1,838 2,262 2,640 2,903 3,067

Europe (€) 69 90 104 170 231 229 279 302 379 466 479

Number of ETPs** 737 1,213 1,666 2,041 2,580 3,124 3,492 3,711 4,019 4,428 4,576

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Nu

mb

er o

f E

TP

s

AU

M $

billio

n

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 50: Top 10 Global ETP Provider Ranking and Summary Statistics

Rank IssuerCurrent

AUM

Mkt.

Share2015 AUM

2015 Mkt.

ShareNu.

Current

Month CF

Current

Month TOYTD CF

1 BlackRock 1,128,255 36.8% 1,071,580 36.9% 667 13,237 567,626 39,4212 Vanguard 563,102 18.4% 504,808 17.4% 111 11,501 102,247 41,3373 State Street 466,049 15.2% 443,216 15.3% 282 -2,961 819,998 3,3214 PowerShares 98,014 3.2% 99,777 3.4% 158 7 76,360 -2,0085 Deutsche AWM 78,789 2.6% 83,073 2.9% 274 -490 14,767 -2,2706 Nomura Asset Management 67,999 2.2% 63,783 2.2% 50 2,088 47,130 6,9817 Lyxor 50,868 1.7% 51,862 1.8% 219 653 16,386 2988 Charles Schwab 47,946 1.6% 39,712 1.4% 21 1,806 7,021 6,7979 WisdomTree 38,348 1.3% 52,385 1.8% 124 -2,394 18,048 -10,22610 First Trust 37,509 1.2% 42,877 1.5% 112 -258 7,930 -4,591

Total Top 10 2,576,878 84.0% 2,453,074 84.5% 2,018 23,190 1,677,513 79,061Others 490,271 16.0% 450,153 15.5% 2,558 2,046 419,727 31,516Global Total 3,067,149 100.0% 2,903,227 100.0% 4,576 25,236 2,097,240 110,577

Source: Deutsche Bank, Bloomberg Finance LP, FactSet. Data as of the end of last month.

18 July 2016

US ETF Compass


US Historical ETF trends

Figure 51: Annual ETP historical growth in AUM and # of

funds

Figure 52: Monthly ETF Volume $ growth vs. VIX and

ETF Volume

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

2,400

Nu

mber o

f E

TPs

AU

M $

billio

n

Others

Fixed Income

Equity

# Funds

0%

10%

20%

30%

40%

50%

60%

70%

-

500

1,000

1,500

2,000

2,500

3,000

3,500

Jan-0

5

Aug

-05

Mar-

06

Oct-

06

May-0

7

Dec-0

7

Jul-

08

Feb

-09

Sep

-09

Apr-

10

Nov-1

0

Jun

-11

Jan-1

2

Aug

-12

Mar-

13

Oct-

13

May-1

4

Dec-1

4

Jul-

15

Feb

-16

ET

F t

rad

ing

as %

of

all U

S C

ash

Eq

uit

y

tradin

g a

nd V

IX L

evel (

end o

f m

onth

)

Mo

nth

ly E

TF T

urn

over

$billion

ETF Turnover ETF % Cash Eqty VIX

Source: Deutsche Bank, Bloomberg Finance LP. ETPs include ETFs and ETVs; ETVs represent about 2% of ETP assets and track mostly non-Equity and non-Fixed Income exposures. *YTD data as of the end of last month.

Source: Deutsche Bank, Bloomberg Finance LP. ETF Turnover excludes ETVs and ETNs. Data as of the end of last month.

Figure 53: Net Cash Flows and AUM historical

comparison between Mutual Funds and ETFs*

Figure 54: Net Cash Flows and AUM historical

comparison between Active and Passive mgmt style*

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

-300,000

-200,000

-100,000

0

100,000

200,000

300,000

400,000

500,000

ET

F A

UM

as %

of

Mutu

al F

und A

UM

Ne

t C

ash

Flo

ws

$m

illio

n

MF CF ETF CF ETF/MF % AUM

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

-400,000

-300,000

-200,000

-100,000

0

100,000

200,000

300,000

400,000

500,000

Passi

ve A

UM

as %

of A

cti

ve A

UM

Net C

ash

Flo

ws

$m

illio

n

Active MF+ETF Passive MF+ETF

Passive / Active %

Source: Deutsche Bank, ICI, Bloomberg Finance LP. *Data as of the end of April 2016. Mutual Funds only include Long Term Mutual Funds.

Source: Deutsche Bank, ICI, Bloomberg Finance LP. *Data as of the end of April 2016. Mutual Funds only include Long Term Mutual Funds.

18 July 2016

US ETF Compass


ETF Issuer and Index Provider league tables

Figure 55: ETP Issuer league table (excludes ETN assets)

Top 50 Issuers TotalMkt

ShrEquity

Fixed

IncomeCmdty Other

Jun '16

$MM

YTD

$MMJun '16

$MM

Mkt

ShrJun '16

YTD

New

BlackRock 873,479 39.0% 633,822 221,276 16,191 2,191 11,118 26,719 519,412 28.9% 342 19

Vanguard 539,580 24.1% 439,770 99,810 - - 10,793 39,691 98,126 5.5% 70 2

State Street 433,676 19.4% 352,564 40,418 40,330 363 (3,616) 448 814,551 45.3% 164 7

PowerShares 96,066 4.3% 70,430 18,606 5,085 1,945 (47) (2,044) 76,031 4.2% 140 1

Charles Schwab 47,946 2.1% 41,860 6,086 - - 1,806 6,797 7,021 0.4% 21 0

WisdomTree 37,917 1.7% 36,302 635 228 753 (2,408) (10,181) 17,966 1.0% 99 11

First Trust 37,366 1.7% 33,025 2,838 359 1,143 (262) (4,606) 7,891 0.4% 103 6

Guggenheim Inv. 28,456 1.3% 18,829 7,975 - 1,652 379 (410) 7,129 0.4% 77 4

VanEck Vectors 28,007 1.3% 20,593 7,169 154 91 1,534 2,224 74,007 4.1% 58 1

ProShares 26,346 1.2% 18,563 3,313 1,702 2,769 (717) 3,677 87,474 4.9% 150 2

Deutsche AWM 15,798 0.7% 15,727 71 - - (461) (2,222) 5,772 0.3% 37 2

PIMCO 11,995 0.5% - 11,995 - - 439 751 2,857 0.2% 14 0

ALPS 11,322 0.5% 10,957 332 - 33 178 462 3,233 0.2% 22 6

DirexionShares 9,988 0.4% 9,538 450 - - (363) 199 63,533 3.5% 78 5

FlexShares 9,389 0.4% 6,808 2,581 - - 145 1,259 764 0.0% 22 0

US Commodity Funds 5,014 0.2% 4 - 5,011 - (2) 27 7,788 0.4% 12 0

Fidelity Investments 3,929 0.2% 3,624 306 - - 68 72 732 0.0% 15 0

Global X Funds 3,475 0.2% 3,223 217 - 35 84 106 986 0.1% 50 4

ETF Securities 2,308 0.1% 11 - 2,296 - 34 163 362 0.0% 9 0

ETC 1,985 0.1% 1,374 445 - 166 43 118 160 0.0% 22 5

IndexIQ Advisors 1,869 0.1% 383 164 - 1,322 137 286 403 0.0% 19 2

Goldman Sachs 1,683 0.1% 1,683 - - - 154 759 275 0.0% 5 2

Millington Securities 1,279 0.1% 652 - - 627 (33) (173) 89 0.0% 10 0

AdvisorShares Trust 1,201 0.1% 451 640 47 63 (31) 104 273 0.0% 21 0

OppenheimerFunds 1,003 0.0% 1,003 - - - 53 (26) 123 0.0% 8 0

EGShares 899 0.0% 899 - - - 0 (62) 92 0.0% 9 0

Pacer Advisors 637 0.0% 637 - - - 5 128 89 0.0% 6 1

JPMorgan 625 0.0% 625 - - - 35 392 78 0.0% 8 3

Compass EMP 512 0.0% 512 - - - 34 133 121 0.0% 11 1

Highland Capital 410 0.0% - 410 - - 57 111 110 0.0% 1 0

Etfis Capital 401 0.0% 200 174 - 27 20 59 87 0.0% 7 0

Franklin Templeton 289 0.0% 103 186 - - 105 100 25 0.0% 5 4

Cambria Funds 276 0.0% 221 5 - 49 (2) (30) 26 0.0% 7 1

Principal Financial Group 265 0.0% - - - 265 230 230 17 0.0% 1 0

O'Shares Investments 251 0.0% 251 - - - 19 189 88 0.0% 5 0

KraneShares 172 0.0% 157 15 - - 25 (31) 58 0.0% 5 0

John Hancock Inv. 156 0.0% 156 - - - 8 46 17 0.0% 11 5

Teucrium Trading 124 0.0% - - 124 - 10 26 101 0.0% 5 0

Empowered Funds 112 0.0% 112 - - - 7 32 13 0.0% 4 0

ArrowShares 111 0.0% 4 - - 107 - (11) 10 0.0% 3 0

Lattice Strategies 85 0.0% 85 - - - 2 11 7 0.0% 4 0

Recon Capital 60 0.0% 60 - - - (1) 16 14 0.0% 3 1

Reality Shares 44 0.0% 38 - - 5 (0) 5 4 0.0% 4 3

ARK Inv. Mgmt 43 0.0% 43 - - - 1 2 3 0.0% 4 0

U.S. Global Investors 43 0.0% 43 - - - (4) (0) 20 0.0% 1 0

QuantShares 39 0.0% - - - 39 (3) 13 27 0.0% 5 0

Innovator Mgmt 34 0.0% 34 - - - (4) (23) 7 0.0% 1 0

Columbia Mgmt 28 0.0% 15 13 - - 15 15 1 0.0% 5 3

Calamos Investments 26 0.0% 26 - - - - - 0 0.0% 1 0

AlphaMark Advisors 23 0.0% 23 - - - - (7) 0 0.0% 1 0

Other 1,023 0.0% 997 19 5 1 42 (105) 264 0.0% 44 15

Total 2,237,769 100% 1,726,440 426,151 71,532 13,647 19,626 65,435 1,798,235 100% 1,729 116

Net Cash FlowsAssets Under Management Jun '16 $MM # of FundsTurnover


18 July 2016

US ETF Compass


Figure 56: Index Provider league table (excludes ETN assets)

Turnover

Top 20 Index Providers TotalMkt

ShrEquity

Fixed

IncomeCmdty Other

Jun '16

$MM

YTD

$MMJun '16

$MM

Mkt

ShrJun '16

YTD

New

S&P Dow Jones 753,869 33.7% 715,275 32,773 2,062 3,759 (2,834) 550 929,900 51.7% 394 13

MSCI 322,686 14.4% 322,686 - - - 5,193 8,411 218,605 12.2% 244 24

FTSE Russell 312,111 13.9% 311,208 862 - 41 4,358 3,145 193,763 10.8% 143 7

Barclays 285,543 12.8% - 285,543 - - 3,819 31,801 91,559 5.1% 114 2

CRSP 162,254 7.3% 162,254 - - - 2,122 8,064 16,721 0.9% 13 -

Nasdaq OMX 75,656 3.4% 74,543 267 - 846 (960) (5,783) 93,625 5.2% 50 3

Commodity - Physical 62,575 2.8% - - 62,575 - 3,753 14,873 52,522 2.9% 20 -

Markit iBoxx 49,687 2.2% - 49,687 - - 1,283 4,364 43,936 2.4% 16 1

WisdomTree 36,355 1.6% 36,302 24 - 28 (2,398) (10,081) 17,693 1.0% 76 10

NYSE Euronext 26,908 1.2% 26,434 441 - 33 115 (2,603) 69,910 3.9% 39 -

Active 25,781 1.2% 3,286 19,519 1,093 1,883 799 3,179 4,382 0.2% 139 14

Morningstar 17,067 0.8% 16,710 105 - 253 680 2,311 2,281 0.1% 27 1

BofA Merrill Lynch 12,075 0.5% 139 11,899 - 37 584 2,129 2,959 0.2% 24 -

Market Vectors 10,462 0.5% 10,274 97 - 91 217 81 32,543 1.8% 35 -

Deutsche Bank 9,171 0.4% - 3,527 4,692 953 372 985 3,657 0.2% 15 -

J.P. Morgan 9,128 0.4% - 9,104 - 24 865 2,734 4,171 0.2% 4 -

Alerian 8,603 0.4% 8,603 - - - 71 407 2,726 0.2% 2 -

Dorsey Wright 7,334 0.3% 7,089 15 - 230 4 (2,215) 1,277 0.1% 20 3

Accretive AM 7,177 0.3% 3 7,174 - - 119 976 966 0.1% 19 1 Other 43,327 1.9% 31,634 5,114 1,109 5,470 1,459 1,690 15,040 44.4% 335 37

Total 2,237,769 100% 1,726,440 426,151 71,532 13,647 19,623 65,016 1,798,235 100% 1,729 116

Assets Under Management Jun '16 $MM Net Cash Flows # of Funds


18 July 2016

US ETF Compass


Monthly Snapshot

Figure 57: ETP Summary Statistics by Asset Class

Asset ClassJun '16

$MM

YTD

$MMJun '16

$MM

MoM

Chg %

Mkt

ShrJun '16

$MM

MoM

Chg %

Mkt

ShrJun '16

All

Mkt

Shr

YTD

New

Equity 6,710 (1,402) 1,547,082 29% 86% 1,726,440 0% 77% 1,275 74% 88

Fixed Income 8,446 49,677 155,124 29% 9% 426,151 3% 19% 297 17% 17

Commodities 3,958 16,347 58,636 40% 3% 71,532 14% 3% 54 3% 2

Currency 227 (459) 4,497 65% 0% 3,332 7% 0% 25 1% -

Multi Asset 346 (88) 704 20% 0% 6,068 7% 0% 37 2% 2

Alternative (64) 940 32,192 46% 2% 4,247 -2% 0% 41 2% 7

Total 19,623 65,016 1,798,235 30% 100% 2,237,769 1.2% 100% 1,729 100% 116

AUMTurnover Net Cash Flows # of Funds


Figure 58: ETP Summary Statistics by Management Style (Active-Passive)

Passive-->ActiveJun '16

$MM

YTD

$MMJun '16

$MM

MoM

Chg %

Mkt

ShrJun '16

$MM

MoM

Chg %

Mkt

ShrJun '16

All

Mkt

Shr

YTD

New

Beta 14,033 48,705 1,513,436 31% 84% 1,682,679 1% 75% 691 40% 16

Beta+ (1,169) 2,843 148,492 26% 8% 32,885 -3% 1% 199 12% 6

Smart Beta 5,956 10,577 132,043 20% 7% 496,271 1% 22% 695 40% 80

Active 802 2,890 4,264 3% 0% 25,934 4% 1% 144 8% 14

Total 19,623 65,016 1,798,235 30% 100% 2,237,769 1.2% 100% 1,729 100% 116

Turnover AUMNet Cash Flows # of Funds


Figure 59: ETP Summary Statistics by Product Type

Product TypeJun '16

$MM

YTD

$MMJun '16

$MM

MoM

Chg %

Mkt

ShrJun '16

$MM

MoM

Chg %

Mkt

ShrJun '16

All

Mkt

Shr

YTD

New

Asset Allocation 12,180 31,909 169,049 24% 9% 753,052 2% 34% 1,424 82% 109

Cash Management 12,433 40,191 282,341 38% 16% 893,351 2% 40% 64 4% -

Pseudo Futures (3,823) (9,930) 1,198,343 30% 67% 558,479 0% 25% 41 2% -

Leveraged & Inverse (1,167) 2,846 148,502 26% 8% 32,887 -3% 1% 200 12% 7

Total 19,623 65,016 1,798,235 30% 100% 2,237,769 1.2% 100% 1,729 100% 116

Turnover AUMNet Cash Flows # of Funds


18 July 2016

US ETF Compass


Equity Breakdowns

Figure 60: ETP Summary Statistics by Geographic Focus – Global and Developed Market Equities

Geographic Focus

(Equities)

Jun '16

$MM

YTD

$MMJun '16

$MM

MoM

Chg %

Mkt

ShrJun '16

$MM

MoM

Chg %

Mkt

ShrJun '16

All

Mkt

Shr

YTD

New

Global Markets Equities

Global (reg) 1,037 1,672 90,683 4% 6% 44,027 11% 3% 120 9% 5

Global ex US (reg) 596 767 6,025 56% 0% 30,628 0% 2% 32 3% 2

Asia Pacific (reg) - (1) 1 99% 0% 20 -2% 0% 1 0% -

Asia Pacific ex JP (reg) 6 (365) 1,011 19% 0% 2,707 2% 0% 7 1% -

Total GME 1,639 2,073 97,719 7% 6% 77,383 6% 4% 160 13% 7

Developed Market Equities

Global (reg) 119 153 1,593 77% 0% 10,921 1% 1% 33 3% 10

Global ex US (reg) 3,915 12,631 70,356 53% 5% 160,456 -2% 9% 95 7% 9

Global ex JP (reg) - (19) 2 -75% 0% 269 -2% 0% 1 0% -

Europe & Middle East

Europe (reg) (454) (1,863) 12,860 120% 1% 21,350 -8% 1% 32 3% 3

Denmark (22) (6) 86 48% 0% 77 -27% 0% 1 0% -

Norway - 56 25 -39% 0% 139 -3% 0% 2 0% -

Sweden (19) (64) 211 43% 0% 275 -14% 0% 1 0% -

Switzerland (27) (78) 802 52% 0% 1,242 -6% 0% 3 0% -

UK 9 (316) 3,056 112% 0% 2,158 -6% 0% 7 1% -

Eurozone (Reg) (1,800) (10,363) 18,819 76% 1% 25,067 -14% 1% 16 1% 2

Austria (3) 10 32 -34% 0% 59 -13% 0% 1 0% -

Belgium 59 97 241 -19% 0% 320 18% 0% 1 0% -

Finland (2) 12 13 -63% 0% 36 -7% 0% 1 0% -

France (10) (50) 682 48% 0% 314 -11% 0% 1 0% -

Germany (66) (2,276) 5,536 61% 0% 4,967 -8% 0% 8 1% -

Ireland (13) (25) 51 66% 0% 127 -21% 0% 1 0% -

Israel (18) (12) 38 -6% 0% 131 -14% 0% 3 0% -

Italy (22) (245) 609 30% 0% 657 -14% 0% 3 0% -

Netherlands - 67 129 -24% 0% 221 -8% 0% 1 0% -

Portugal - (1) 13 277% 0% 23 -7% 0% 1 0% -

Spain (68) (477) 955 49% 0% 765 -18% 0% 4 0% -

North America

North America (reg) 42 76 173 -14% 0% 2,152 7% 0% 4 0% -

Canada 6 776 1,393 -22% 0% 2,865 0% 0% 6 0% -

US 1,663 5,259 1,162,229 30% 75% 1,260,384 0% 73% 640 50% 43

Asia Pacific

Pacific (reg) 2 (110) 666 82% 0% 3,558 -1% 0% 6 0% 1

Japan (1,306) (9,536) 19,954 42% 1% 24,089 -11% 1% 33 3% 3

Pacific ex JP (reg) (23) 31 564 52% 0% 2,022 -2% 0% 4 0% -

Australia 48 320 1,664 47% 0% 1,675 1% 0% 7 1% -

Hong Kong (6) (898) 1,757 23% 0% 1,564 -1% 0% 2 0% -

New Zealand 4 38 50 -14% 0% 122 6% 0% 1 0% -

Singapore (19) 0 300 10% 0% 557 0% 0% 1 0% - Total DME 1,992 (6,814) 1,304,861 33% 84% 1,528,561 -1% 89% 920 72% 71

Total Equities 6,710 (1,402) 1,547,082 29% 100% 1,726,440 0% 100% 1,275 100% 88



18 July 2016

US ETF Compass


Figure 61: ETP Summary Statistics by Geographic Focus – Emerging Market Equities

Geographic Focus

(Equities)

Jun '16

$MM

YTD

$MMJun '16

$MM

MoM

Chg %

Mkt

ShrJun '16

$MM

MoM

Chg %

Mkt

ShrJun '16

All

Mkt

Shr

YTD

New

Emerging Market Equities

Global (reg) 3,361 5,537 83,485 20% 5% 87,035 8% 5% 69 5% 8

BRIC (reg) (8) (39) 15 -33% 0% 306 0% 0% 3 0% -

Asia

Asia (reg) (7) (121) 68 -13% 0% 615 0% 0% 4 0% -

China (93) (1,865) 22,455 12% 1% 6,962 -1% 0% 26 2% -

China A 89 (20) 838 -3% 0% 726 13% 0% 12 1% 1

India 54 (210) 4,017 38% 0% 6,618 2% 0% 10 1% -

Indonesia 83 246 595 33% 0% 670 25% 0% 3 0% -

Malaysia (2) 97 388 9% 0% 316 2% 0% 1 0% -

Philippines 88 60 438 52% 0% 346 40% 0% 1 0% -

South Korea (146) (227) 3,182 4% 0% 3,300 -1% 0% 7 1% -

Taiwan 17 (524) 2,611 36% 0% 2,376 5% 0% 3 0% -

Thailand 10 88 357 6% 0% 343 4% 0% 1 0% -

Europe

Europe (reg) (13) (4) 10 -74% 0% 35 -27% 0% 1 0% -

Poland 5 19 127 24% 0% 178 -1% 0% 2 0% -

Russia (114) (301) 5,400 29% 0% 2,322 -2% 0% 6 0% -

Turkey (26) 26 354 -3% 0% 345 -7% 0% 1 0% -

Greece 0 11 137 3% 0% 227 -20% 0% 1 0% -

Middle East & Africa

ME & Africa (reg) - (5) 1 -22% 0% 28 6% 0% 1 0% -

Middle East (reg) - (5) 4 -54% 0% 26 -2% 0% 2 0% -

Africa (reg) (2) 4 14 -4% 0% 71 -4% 0% 1 0% -

Egypt - 4 11 26% 0% 28 -5% 0% 1 0% -

South Africa (8) 21 850 13% 0% 342 1% 0% 1 0% -

Qatar - 3 1 -51% 0% 44 -1% 0% 1 0% -

UAE - 3 3 -57% 0% 30 1% 0% 1 0% -

Latin America

Latin America (reg) (39) 74 1,134 63% 0% 816 6% 0% 8 1% 1

Brazil (4) 666 14,178 21% 1% 3,801 18% 0% 10 1% -

Chile (14) 88 256 -24% 0% 315 -1% 0% 1 0% -

Colombia - 7 32 28% 0% 99 7% 0% 2 0% -

Mexico (127) (202) 3,084 44% 0% 1,061 -12% 0% 6 0% -

Peru (20) 35 178 50% 0% 205 -3% 0% 1 0% -

Frontier Markets

Frontier (reg) - (148) 115 -46% 0% 453 -6% 0% 3 0% -

Argentina (10) 42 44 -4% 0% 78 -6% 0% 1 0% -

Nigeria 5 10 24 60% 0% 24 -6% 0% 1 0% -

Pakistan 4 4 6 259% 0% 10 63% 0% 1 0% -

Saudi Arabia - - 0 -69% 0% 5 -2% 0% 1 0% -

Vietnam (3) (32) 88 -6% 0% 341 1% 0% 1 0% - Total EME 3,079 3,340 144,502 19% 9% 120,496 6% 7% 195 15% 10

Total Equities 6,710 (1,402) 1,547,082 29% 100% 1,726,440 0% 100% 1,275 100% 88



18 July 2016

US ETF Compass


Figure 62: ETP Summary Statistics by Size and Market – Equities

Market Cap Segment

(Equities)

Jun '16

$MM

YTD

$MMJun '16

$MM

MoM

Chg %

Mkt

ShrJun '16

$MM

MoM

Chg %

Mkt

ShrJun '16

All

Mkt

Shr

YTD

New

US Equities

Large Cap (5,072) (9,443) 873,923 34% 56% 633,416 -1% 37% 182 14% 12

Mid Cap 524 479 22,663 27% 1% 112,711 1% 7% 44 3% 1

Small Cap 17 (190) 114,373 24% 7% 102,952 0% 6% 77 6% 2

Broad 6,195 14,413 151,270 14% 10% 411,305 3% 24% 337 26% 28

Total US Equities 1,663 5,259 1,162,229 30% 75% 1,260,384 0% 73% 640 50% 43

DM Intl Equities

Large Cap 159 (622) 3,727 59% 0% 6,573 -3% 0% 23 2% 3

Mid Cap - 16 50 103% 0% 347 -6% 0% 3 0% -

Small Cap 10 356 2,133 36% 0% 10,459 -7% 1% 24 2% 1

Broad 160 (11,824) 136,721 57% 9% 250,798 -5% 15% 230 18% 24

Total DM Intl Equities 329 (12,073) 142,632 57% 9% 268,177 -5% 16% 280 22% 28

EM Equities

Large Cap (73) (1,508) 21,150 13% 1% 5,257 1% 0% 16 1% 1

Mid Cap - - 1 -22% 0% 4 16% 0% 1 0% -

Small Cap 1 (46) 269 -11% 0% 1,966 6% 0% 14 1% -

Broad 3,151 4,893 123,083 21% 8% 113,269 7% 7% 164 13% 9 Total EM Equities 3,079 3,340 144,502 19% 9% 120,496 6% 7% 195 15% 10

Total Equities 6,710 (1,402) 1,547,082 29% 100% 1,726,440 0% 100% 1,275 100% 88



Figure 63: ETP Summary Statistics by Style and Market – Equities

Style

(Equities)

Jun '16

$MM

YTD

$MMJun '16

$MM

MoM

Chg %

Mkt

ShrJun '16

$MM

MoM

Chg %

Mkt

ShrJun '16

All

Mkt

Shr

YTD

New

US Equities

Growth (287) (6,226) 14,199 18% 1% 106,860 -1% 6% 39 3% 2

Value 2,235 6,120 17,696 11% 1% 106,391 3% 6% 41 3% -

Dividend 3,496 10,216 12,616 38% 1% 99,074 6% 6% 49 4% 4

Blend (3,781) (4,852) 1,117,718 31% 72% 948,059 0% 55% 511 40% 37


DM Intl Equities

Growth 52 (227) 582 66% 0% 2,184 -1% 0% 1 0% -

Value 220 210 1,116 223% 0% 2,747 0% 0% 1 0% -

Dividend (2,385) (10,217) 15,589 70% 1% 27,479 -15% 2% 47 4% 7

Blend 2,441 (1,839) 125,344 55% 8% 235,767 -4% 14% 231 18% 21

Total DM Intl Equities 329 (12,073) 142,632 57% 9% 268,177 -5% 16% 280 22% 28

EM Equities

Dividend (6) (116) 386 30% 0% 2,760 5% 0% 13 1% 2

Blend 3,086 3,456 144,116 19% 9% 117,736 6% 7% 182 14% 8 Total EM Equities 3,079 3,340 144,502 19% 9% 120,496 6% 7% 195 15% 10

Total Equities 6,710 (1,402) 1,547,082 29% 100% 1,726,440 0% 100% 1,275 100% 88



18 July 2016

US ETF Compass


Figure 64: ETP Summary Statistics by Sectors – US Equities

Sector

(US Equities)

Jun '16

$MM

YTD

$MMJun '16

$MM

MoM

Chg %

Mkt

ShrJun '16

$MM

MoM

Chg %

Mkt

ShrJun '16

All

Mkt

Shr

YTD

New

Consumer Discretionary (1,067) (4,287) 20,780 5% 2% 18,168 -7% 1% 25 4% 2

Consumer Staples (36) 1,155 13,699 4% 1% 18,527 4% 1% 15 2% 2

Energy 176 2,643 47,614 8% 4% 36,058 3% 3% 35 5% 3

Financials (1,330) (5,605) 44,131 45% 4% 30,953 -8% 2% 39 6% 2

Healthcare 272 (5,186) 45,760 24% 4% 38,049 -1% 3% 37 6% 1

Industrials (211) 202 19,734 31% 2% 12,018 -2% 1% 17 3% 2

Materials (240) 932 10,303 -12% 1% 5,520 -4% 0% 14 2% 2

Real Estate 1,188 4,438 24,318 7% 2% 51,201 8% 4% 20 3% -

Technology 18 (4,351) 19,038 14% 2% 32,766 -2% 3% 36 6% 4

Telecom 61 650 909 15% 0% 2,547 9% 0% 5 1% -

Utilities 350 4,712 15,677 -11% 1% 15,576 9% 1% 11 2% 2

Theme (93) (1,003) 1,933 2% 0% 7,409 -2% 1% 45 7% 8

Overall 2,576 10,960 898,333 36% 77% 991,589 0% 79% 341 53% 15




Commodity Breakdowns

Figure 65: ETP Summary Statistics by Sectors and Sub Sectors– Commodity

Sector

(Commodities)

Jun '16

$MM

YTD

$MMJun '16

$MM

MoM

Chg %

Mkt

ShrJun '16

$MM

MoM

Chg %

Mkt

ShrJun '16

Mkt

Shr

YTD

New

Diversified Broad 214 912 1,203 -1% 2% 5,477 7% 8% 10 19% -

Agriculture 12 175 472 67% 1% 999 3% 1% 7 13% -

Energy (91) 139 11,780 8% 20% 6,088 -1% 9% 17 31% 2

Crude Oil (25) 72 10,165 4% 17% 5,197 -3% 7% 9 17% 2

Natural Gas (117) (1) 1,485 37% 3% 645 4% 1% 4 7% -

Industrial Metals (25) (11) 27 -52% 0% 118 -13% 0% 2 4% -

Precious Metals 3,848 15,131 45,154 53% 77% 58,850 17% 82% 18 33% -

Gold 3,833 14,729 40,574 55% 69% 50,840 18% 71% 9 17% -

Silver (32) 287 4,254 35% 7% 6,901 14% 10% 5 9% -

Platinum 9 43 133 29% 0% 500 5% 1% 1 2% -

Palladium (0) (13) 36 27% 0% 181 9% 0% 1 2% -

Total Commodities 3,958 16,347 58,636 40% 100% 71,532 14% 100% 54 100% 2



18 July 2016

US ETF Compass


Fixed Income Breakdowns

Figure 66: ETP Summary Statistics by Category – Fixed Income

Categories

(Fixed Income)

Jun '16

$MM

YTD

$MMJun '16

$MM

MoM

Chg %

Mkt

ShrJun '16

$MM

MoM

Chg %

Mkt

ShrJun '16

All

Mkt

Shr

YTD

New

Broad 2,905 16,892 18,825 13% 12% 128,218 4% 30% 50 17% 7

Convertible (57) (322) 595 5% 0% 2,220 -2% 1% 3 1% -

Corporates 1,268 11,857 67,025 31% 43% 128,926 2% 30% 93 31% 7

EM debt 1,096 3,265 5,585 38% 4% 14,881 12% 3% 23 8% 2

Inflation 67 3,597 4,031 -1% 3% 27,458 2% 6% 17 6% -

International 187 246 840 -14% 1% 3,483 9% 1% 13 4% -

Municipal 705 3,424 2,976 11% 2% 23,157 5% 5% 36 12% -

Preferred 699 3,442 4,128 32% 3% 25,114 4% 6% 10 3% 1

Securitized 353 1,792 1,726 22% 1% 12,437 4% 3% 9 3% -

Senior Loans 159 642 1,522 -12% 1% 6,215 2% 1% 4 1% -

US Treasury 1,063 4,841 47,873 41% 31% 54,042 4% 13% 39 13% -

Total Fixed Income 8,446 49,677 155,124 29% 100% 426,151 3% 100% 297 100% 17



Figure 67: ETP Summary Statistics by Credit Quality – Fixed Income

Credit Quality

(Fixed Income)

Jun '16

$MM

YTD

$MMJun '16

$MM

MoM

Chg %

Mkt

ShrJun '16

$MM

MoM

Chg %

Mkt

ShrJun '16

All

Mkt

Shr

YTD

New

Investment Grade 6,326 38,381 95,480 24% 62% 331,762 4% 78% 197 66% 4

High Yield 77 3,524 48,988 38% 32% 48,148 0% 11% 50 17% 6

Mixed 2,042 7,772 10,656 34% 7% 46,241 6% 11% 50 17% 7




Figure 68: ETP Summary Statistics by Duration – Fixed Income

Duration

(Fixed Income)

Jun '16

$MM

YTD

$MMJun '16

$MM

MoM

Chg %

Mkt

ShrJun '16

$MM

MoM

Chg %

Mkt

ShrJun '16

All

Mkt

Shr

YTD

New

Short 887 3,335 20,696 23% 13% 99,788 1% 23% 72 24% 3

Intermediate 425 10,187 57,219 35% 37% 85,724 2% 20% 41 14% 1

Long 1,068 4,313 34,369 47% 22% 23,530 8% 6% 29 10% -

Broad 5,866 30,197 41,606 13% 27% 207,624 5% 49% 114 38% 13

Set Maturity 198 1,645 1,235 1% 1% 9,485 3% 2% 41 14% -




18 July 2016

US ETF Compass


Top 15 ETFs (includes ETNs)

Figure 69: Top 15 by 1M Total Return Gain (non-levered) Figure 70: Top 15 by 1M Total Return Loss (non-levered)

Ticker Name TERTotal

ReturnGAZ iPath Dow Jones-UBS Natural Gas Subindex Total 0.75% 43.7%

SIL Global X Silver Miners ETF 0.65% 30.6%

SLVP iShares MSCI Global Silver Miners ETF 0.39% 29.2%

GLDX Global X Gold Explorers ETF 0.65% 28.2%

GDXJ VanEck Vectors Junior Gold Miners ETF 0.54% 26.0%

UNG United States Natural Gas Fund LP 1.11% 25.4%

SILJ PureFunds ISE Junior Silver ETF 0.69% 25.1%

SGDM Sprott Gold Miners ETF 0.57% 24.3%

FBZ First Trust Brazil AlphaDEX Fund 0.83% 23.6%

EWZS iShares MSCI Brazil Small-Cap ETF 0.62% 23.5%

SGDJ Sprott Junior Gold Miners ETF 0.57% 22.9%

PSAU PowerShares Global Gold and Precious Metals 0.75% 22.8%

GDX VanEck Vectors Gold Miners ETF 0.52% 22.7%

RING iShares MSCI Global Gold Miners ETF 0.39% 22.4%

BRAQ Global X Brazil Consumer ETF 0.77% 21.9%

Ticker Name TERTotal

ReturnGRN iPath Global Carbon ETN 0.75% -29.2%

NGE Global X MSCI Nigeria ETF 0.68% -22.2%

DOD ELEMENTS Dogs of the Dow Linked to the DJ High 0.75% -16.4%

DXJF WisdomTree Japan Hedged Financials Fund 0.43% -16.1%

BBC BioShares Biotechnology Clinical Trials Fund 0.85% -14.0%

GREK Global X MSCI Greece 20 ETF 0.65% -14.0%

FKU First Trust United Kingdom AlphaDEX Fund 0.80% -13.4%

EUFN iShares MSCI Europe Financials ETF 0.48% -13.1%

DXJC WisdomTree Japan Hedged Capital Goods Fund 0.43% -13.0%

EWUS iShares MSCI United Kingdom Small-Cap ETF 0.59% -12.3%

KCE SPDR S&P Capital Markets ETF 0.35% -11.8%

EIRL iShares MSCI Ireland Capped ETF 0.48% -11.0%

SBIO ALPS Medical Breakthroughs ETF 0.50% -10.8%

EZR WisdomTree Europe Local Recovery Fund 0.48% -10.7%

DXJ WisdomTree Japan Hedged Equity Fund 0.48% -10.7% Source: Deutsche Bank, FactSet. Total Return corresponds to last month.


Figure 71: Top 15 by 1M Inflows Figure 72: Top 15 by 1M Outflows

Ticker Name TERInflows

$MMGLD SPDR Gold Shares 0.40% 3,381

VEA Vanguard FTSE Developed Markets ETF 0.10% 1,752

AGG iShares Core U.S. Aggregate Bond ETF 0.08% 1,449

VWO Vanguard FTSE Emerging Markets ETF 0.15% 1,306

IEMG iShares Core MSCI Emerging Markets ETF 0.16% 1,159

VOO Vanguard S&P 500 ETF 0.05% 1,155

VNQ Vanguard REIT ETF 0.12% 1,088

USMV iShares Edge MSCI Min Vol USA ETF 0.15% 942

GDX VanEck Vectors Gold Miners ETF 0.52% 849

EMB iShares J.P. Morgan USD Emerging Markets Bond ETF 0.40% 653

EFA iShares MSCI EAFE ETF 0.33% 619

LQD iShares iBoxx $ Investment Grade Corporate Bond ETF 0.15% 615

VTI Vanguard Total Stock Market ETF 0.05% 613

VBR Vanguard Small-Cap Value ETF 0.10% 592

BIV Vanguard Intermediate-Term Bond ETF 0.10% 590

Ticker Name TEROutflows

$MMSPY SPDR S&P 500 ETF 0.09% (4,484)

HEDJ WisdomTree Europe Hedged Equity Fund 0.58% (1,501)

XLF Financial Select Sector SPDR Fund 0.14% (1,401)

QQQ PowerShares QQQ 0.20% (1,375)

IWM iShares Russell 2000 ETF 0.20% (1,085)

JNK SPDR Barclays High Yield Bond ETF 0.40% (1,065)

DXJ WisdomTree Japan Hedged Equity Fund 0.48% (819)

BSV Vanguard Short-Term Bond ETF 0.10% (564)

XLY Consumer Discretionary Select Sector SPDR Fund 0.14% (561)

NUGT Direxion Daily Gold Miners Index Bull 3X Shares 0.95% (507)

EWJ iShares MSCI Japan ETF 0.48% (421)

DBEF Deutsche X-trackers MSCI EAFE CH Equity ETF 0.35% (387)

SH ProShares Short S&P500 0.90% (311)

IEF iShares 7-10 Year Treasury Bond ETF 0.15% (305)

VXX iPath S&P 500 VIX Short-Term Futures ETN 0.89% (304) Source: Deutsche Bank, Bloomberg Finance LP. Inflows correspond to last month.

Source: Deutsche Bank, Bloomberg Finance LP. Outflows correspond to last month.

Figure 73: Top 15 by AUM Figure 74: Top 15 by $ Volume traded last month

Ticker Name TERAUM

$MMSPY SPDR S&P 500 ETF 0.09% 178,790

IVV iShares Core S&P 500 ETF 0.07% 73,110

VTI Vanguard Total Stock Market ETF 0.05% 61,232

EFA iShares MSCI EAFE ETF 0.33% 56,979

VOO Vanguard S&P 500 ETF 0.05% 46,457

GLD SPDR Gold Shares 0.40% 40,330

AGG iShares Core U.S. Aggregate Bond ETF 0.08% 38,815

VWO Vanguard FTSE Emerging Markets ETF 0.15% 37,878

QQQ PowerShares QQQ 0.20% 34,587

VNQ Vanguard REIT ETF 0.12% 34,398

VEA Vanguard FTSE Developed Markets ETF 0.10% 33,041

BND Vanguard Total Bond Market ETF 0.08% 31,436

LQD iShares iBoxx $ Investment Grade Corporate Bond ETF 0.15% 29,687

IWF iShares Russell 1000 Growth ETF 0.20% 29,284

IWD iShares Russell 1000 Value ETF 0.20% 28,552

Ticker Name TERVolume

$MMSPY SPDR S&P 500 ETF 0.09% 544,820

IWM iShares Russell 2000 ETF 0.20% 85,349

QQQ PowerShares QQQ 0.20% 62,139

EEM iShares MSCI Emerging Markets ETF 0.69% 56,743

EFA iShares MSCI EAFE ETF 0.33% 45,960

GDX VanEck Vectors Gold Miners ETF 0.52% 45,321

GLD SPDR Gold Shares 0.40% 37,815

VXX iPath S&P 500 VIX Short-Term Futures ETN 0.89% 31,873

HYG iShares iBoxx $ High Yield Corporate Bond ETF 0.50% 31,255

TLT iShares 20+ Year Treasury Bond ETF 0.15% 27,949

XLF Financial Select Sector SPDR Fund 0.14% 27,209

XLE Energy Select Sector SPDR Fund 0.14% 22,382

XIV VelocityShares Daily Inverse VIX Short-Term ETN 1.35% 22,023

IVV iShares Core S&P 500 ETF 0.07% 20,541

FXI iShares China Large-Cap ETF 0.73% 20,077 Source: Deutsche Bank, Bloomberg Finance LP. AUM as of the end of last month.

Source: Deutsche Bank, Bloomberg Finance LP. Volume $ corresponds to total traded last month.

18 July 2016

US ETF Compass


Appendix A: ETN Snapshot

Figure 75: ETN Summary by Asset Class

Asset ClassMay

2016

End of

2015%Chg

May

2016

Apr

2016YTD

YTD

Chg %

AUM

May

2016

Apr

2016%Chg

May

2016

End

of

2015

%Chg AUMTurno

ver

# of

ETNs

Equity 13,895 12,607 10.2% 64 57 295 2.3% 2,850 2,172 31.2% 58 55 5.5% 58.2% 3.3% 28.6%Fixed income 209 288 -27.4% (3) 4 (11) -3.9% 84 115 -27.0% 19 19 0.0% 0.9% 0.1% 9.4%Commodity 6,086 5,262 15.7% 226 6 316 6.0% 23,008 21,527 6.9% 91 90 1.1% 25.5% 27.0% 44.8%Currency 59 73 -18.5% 2 (0) (4) -6.1% 42 13 225.2% 11 11 0.0% 0.2% 0.0% 5.4%Multi Asset 481 533 -9.7% (34) (45) (69) -13.0% 89 62 42.1% 7 7 0.0% 2.0% 0.1% 3.4%Alternative 3,138 2,617 19.9% (219) 236 1,255 47.9% 59,060 39,003 51.4% 17 19 -10.5% 13.1% 69.4% 8.4%Total 23,867 21,379 11.6% 36 257 1,780 8.3% 85,133 62,892 35.4% 203 201 1.0% 100% 100% 100%

AUM ($ MM) Cash Flow ($ MM) Turnover ($ MM) # of ETNs Market Share %


Figure 76: ETN Summary by Issuer

IssuerMay

2016

End of

2015%Chg

May

2016

Apr

2016YTD

YTD

Chg %

AUM

May

2016

Apr

2016%Chg

May

2016

End

of

2015

%Chg AUMTurn-

over

# of

ETNs

Barclays Bank 7,257 6,507 11.5% 225 539 933 14.3% 22,252 25,577 -13.0% 81 81 0.0% 31.1% 35.4% 39.7%UBS 5,519 4,932 11.9% 60 52 337 6.8% 558 596 -6.4% 48 45 6.7% 23.7% 0.9% 23.5%Credit Suisse 5,237 4,682 11.9% (48) 94 666 14.2% 38,248 38,361 -0.3% 27 26 3.8% 22.4% 60.8% 13.2%JPMorgan 3,600 3,446 4.5% - - - 0.0% 1,549 1,341 15.5% 1 1 0.0% 15.4% 2.5% 0.5%Deutsche Bank 815 941 -13.4% (10) (15) (175) -18.6% 201 272 -26.1% 29 29 0.0% 3.5% 0.3% 14.2%Swedish Export CC 410 391 4.9% 32 (4) (5) -1.3% 60 60 0.5% 7 7 0.0% 1.8% 0.1% 3.4%Citigroup 217 206 5.0% (2) - (2) -1.1% 2 1 64.4% 2 3 -33.3% 0.9% 0.0% 1.0%Goldman Sachs 117 105 11.5% - - - 0.0% 0 1 -69.9% 1 1 0.0% 0.5% 0.0% 0.5%Morgan Stanley 56 51 9.4% - - - 0.0% 1 1 94.4% 1 1 0.0% 0.2% 0.0% 0.5%Van Eck Funds 47 61 -23.8% - (6) (6) -9.0% 5 11 -58.7% 4 4 0.0% 0.2% 0.0% 2.0%HSBC USA Inc 31 29 5.4% - - - 0.0% 0 0 -32.7% 1 1 0.0% 0.1% 0.0% 0.5%RBC GAM 15 20 -22.5% - 0 (4) -19.4% 1 1 24.3% 1 1 0.0% 0.1% 0.0% 0.5%Guggenheim 8 8 0.2% - - - 0.0% 0 0 92.9% 1 1 0.0% 0.0% 0.0% 0.5%Total 23,327 21,379 9.1% 257 660 1,745 8.2% 62,877 66,222 -5.0% 204 201 1.5% 100% 100% 100%

AUM ($ MM) Cash Flow ($ MM) Turnover ($ MM) # of ETNs Market Share %


18 July 2016

US ETF Compass


Appendix B: ETF List

Figure 77: Global and US Equities Reference list

5-Day $ 5-Day bps

Global Equities ACWI iShares MSCI ACWI ETF CM 28-Mar-08 0.33% 5,716 123 33 156 0.01 1.8

US Total Market VTI Vanguard Total Stock Market ETF CM 31-May-01 0.05% 62,698 330 5,020 5,350 0.01 1.0

S&P 500 (Large Cap) SPY SPDR S&P 500 ETF PF 29-Jan-93 0.09% 195,266 26,464 9,605 36,069 0.01 0.5

DJI DIA SPDR Dow Jones Industrial Average ETF PF 14-Jan-98 0.17% 12,289 761 983 1,744 0.01 0.7

NASDAQ-100 QQQ PowerShares QQQ PF 10-Mar-99 0.20% 37,010 2,995 3,535 6,529 0.01 0.9

Russell 1000 Growth IWF iShares Russell 1000 Growth ETF PF 22-May-00 0.20% 30,141 225 1,507 1,732 0.01 1.0

Russell 1000 Value IWD iShares Russell 1000 Value ETF PF 22-May-00 0.20% 29,428 253 5,315 5,568 0.01 1.2

S&P 400 (Mid Cap) MDY SPDR S&P MidCap 400 ETF PF 4-May-95 0.25% 16,396 606 1,186 1,792 0.03 1.2

Russell 2000 (SM Cap) IWM iShares Russell 2000 ETF PF 22-May-00 0.20% 28,255 3,982 402 4,385 0.01 0.9

Div. Growth VIG Vanguard Dividend Appreciation ETF CM 27-Apr-06 0.10% 22,215 75 980 1,055 0.01 1.8

Div. Yield DVY iShares Select Dividend ETF CM 7-Nov-03 0.39% 16,189 107 583 690 0.02 1.7

Div. Yield VYM Vanguard High Dividend Yield ETF CM 16-Nov-06 0.09% 15,042 95 4,279 4,374 0.01 1.7

Div. Yield & Growth SDY SPDR S&P Dividend ETF CM 15-Nov-05 0.35% 14,470 84 393 477 0.02 2.5

Cons. Discretionary XLY Consumer Discretionary Select Sector SPDR Fund PF 22-Dec-98 0.14% 10,380 522 2,224 2,745 0.01 1.2

Hotels, Rest & Leisure PEJ PowerShares Dynamic Leisure and Entertainment PortfolioAA 23-Jun-05 0.63% 115 2 3 5 0.03 9.9

Home Builders XHB SPDR S&P Homebuilders ETF PF 2-Feb-06 0.35% 1,240 105 280 385 0.01 2.9

Household Durables ITB iShares U.S. Home Construction ETF CM 5-May-06 0.43% 1,556 114 36 150 0.01 3.5

Media PBS PowerShares Dynamic Media Portfolio AA 23-Jun-05 0.63% 88 0 26 26 0.05 21.1

Retail XRT SPDR S&P Retail ETF PF 22-Jun-06 0.35% 512 192 177 370 0.01 2.4

Cons. Staples XLP Consumer Staples Select Sector SPDR Fund PF 22-Dec-98 0.14% 10,159 714 1,382 2,096 0.01 1.8

Food Products PBJ PowerShares Dynamic Food & Beverage Portfolio AA 23-Jun-05 0.63% 193 8 13 21 0.03 9.1

Energy XLE Energy Select Sector SPDR Fund PF 22-Dec-98 0.14% 14,344 974 1,246 2,220 0.01 1.5

Energy Eq. & Serv. OIH Market Vectors Oil Services ETF PF 7-Feb-01 0.35% 935 132 119 251 0.01 3.5

Energy Eq. & Serv. XES SPDR S&P Oil & Gas Equipment & Services ETF AA 22-Jun-06 0.35% 238 11 102 114 0.02 8.7

Energy Eq. & Serv. IEZ iShares U.S. Oil Equipment & Services ETF AA 5-May-06 0.43% 237 2 91 94 0.04 10.3

Energy E&P XOP SPDR S&P Oil & Gas Exploration & Production ETF PF 22-Jun-06 0.35% 1,827 498 700 1,198 0.01 2.9

Energy E&P IEO iShares U.S. Oil & Gas Exploration & Production ETF AA 5-May-06 0.43% 354 15 648 663 0.04 7.3

MLPs AMLP Alerian MLP ETF CM 25-Aug-10 0.85% 8,767 117 136 253 0.01 7.8

Financials XLF Financial Select Sector SPDR Fund PF 22-Dec-98 0.14% 15,077 1,335 1,509 2,844 0.01 4.3

Large Banks KBWB PowerShares KBW Bank Portfolio AA 1-Nov-11 0.35% 338 17 620 638 0.03 9.1

Regional Banks KRE SPDR S&P Regional Banking ETF PF 22-Jun-06 0.35% 1,622 247 388 635 0.01 2.6

Capital Markets KCE SPDR S&P Capital Markets ETF AA 15-Nov-05 0.35% 92 1 95 96 0.07 18.2

Insurance KIE SPDR S&P Insurance ETF AA 15-Nov-05 0.35% 605 8 176 183 0.04 6.0

Healthcare XLV Health Care Select Sector SPDR Fund PF 22-Dec-98 0.14% 13,271 745 1,916 2,661 0.01 1.4

Biotech & Pharma IBB iShares Nasdaq Biotechnology ETF PF 5-Feb-01 0.48% 6,717 484 266 750 0.17 6.3

Large Biotech BBH Market Vectors Biotech ETF AA 23-Nov-99 0.35% 521 8 195 203 0.08 7.4

HC Eq. & Supplies IHI iShares U.S. Medical Devices ETF AA 5-May-06 0.43% 1,319 10 252 262 0.08 5.5

HC Providers & Serv IHF iShares U.S. Healthcare Providers ETF AA 5-May-06 0.43% 711 10 108 117 0.08 6.2

Large Pharma PPH Market Vectors Pharmaceutical ETF AA 1-Feb-00 0.35% 270 2 415 417 0.07 11.7

Industrials XLI Industrial Select Sector SPDR Fund PF 22-Dec-98 0.14% 7,210 913 1,594 2,507 0.01 1.7

Aerospace & Def ITA iShares U.S. Aerospace & Defense ETF AA 5-May-06 0.43% 805 8 110 118 0.08 6.4

Transportation IYT iShares Transportation Average ETF AA 10-Oct-03 0.43% 561 57 90 147 0.06 4.3

Materials XLB Materials Select Sector SPDR Fund PF 22-Dec-98 0.14% 2,761 274 549 823 0.01 2.1

Metals & Mining XME SPDR S&P Metals and Mining ETF PF 22-Jun-06 0.35% 826 149 31 180 0.01 3.8

Real Estate VNQ Vanguard REIT ETF CM 29-Sep-04 0.12% 35,207 364 487 851 0.01 1.2

Technology VGT Vanguard Information Technology ETF AA 30-Jan-04 0.10% 8,702 46 1,700 1,747 0.04 3.4

Comm. Equipment IGN iShares North American Tech-Multimedia Networking ETFAA 10-Jul-01 0.47% 62 9 70 79 0.04 9.8

Int. Software & Serv. FDN First Trust Dow Jones Internet Index Fund AA 23-Jun-06 0.60% 3,188 33 145 178 0.02 2.3

Semiconductors SMH Market Vectors Semiconductor ETF PF 5-May-00 0.35% 258 193 371 564 0.01 1.7

Software IGV iShares North American Tech-Software ETF AA 10-Jul-01 0.47% 782 24 258 282 0.04 3.9

Telecom VOX Vanguard Telecommunication Services ETF AA 29-Sep-04 0.10% 1,761 22 27 49 0.04 4.4

Utilities XLU Utilities Select Sector SPDR Fund PF 22-Dec-98 0.14% 8,488 783 698 1,481 0.01 1.9

AUM $M20D ADV

$M

Implied

Liq. $M

Total

Liq. $M

Avg. Bid/Ask SpreadsListing Date TER

Product

TypeAsset Class Ticker ETF Name

Source: Deutsche Bank, Bloomberg Finance LP, FactSet. Data as of 15-Jul-16. Bid/Ask Spreads are provided only as reference, actual spreads are trade-specific. Product Type: Asset Allocation (AA), Cash Management (CM), Pseudo Futures (PF).

18 July 2016

US ETF Compass


Figure 78: International Equities Reference list

5-Day $ 5-Day bps

Intl DM EFA iShares MSCI EAFE ETF CM 14-Aug-01 0.33% 58,622 2,097 1,693 3,790 0.01 1.8

Canada EWC iShares MSCI Canada ETF CM 12-Mar-96 0.48% 2,836 62 650 712 0.01 4.0

Israel EIS iShares MSCI Israel Capped ETF AA 28-Mar-08 0.62% 93 1 9 10 0.23 47.6

Europe VGK Vanguard FTSE Europe ETF CM 3-Mar-05 0.12% 12,807 453 304 757 0.01 2.2

Denmark EDEN iShares MSCI Denmark Capped ETF AA 26-Jan-12 0.53% 75 3 14 16 0.08 14.7

Norway NORW Global X FTSE Norway 30 ETF AA 10-Nov-10 0.50% 115 1 8 8 0.04 40.3

Sweden EWD iShares MSCI Sweden ETF AA 12-Mar-96 0.48% 282 10 214 224 0.02 7.4

Switzerland EWL iShares MSCI Switzerland Capped ETF AA 12-Mar-96 0.48% 1,112 37 286 323 0.01 3.4

UK EWU iShares MSCI United Kingdom ETF CM 12-Mar-96 0.48% 2,018 148 1,781 1,929 0.01 6.5

Eurozone EZU iShares MSCI Eurozone ETF CM 25-Jul-00 0.48% 8,979 443 1,683 2,127 0.01 3.1

Austria EWO iShares MSCI Austria Capped ETF AA 12-Mar-96 0.48% 59 1 2 3 0.03 17.9

Belgium EWK iShares MSCI Belgium Capped ETF AA 12-Mar-96 0.48% 310 12 19 30 0.02 9.3

Finland EFNL iShares MSCI Finland Capped ETF AA 26-Jan-12 0.53% 36 1 15 16 0.07 22.2

France EWQ iShares MSCI France ETF AA 12-Mar-96 0.48% 324 32 994 1,026 0.01 4.4

Germany EWG iShares MSCI Germany ETF CM 12-Mar-96 0.48% 3,693 308 570 878 0.01 4.1

Ireland EIRL iShares MSCI Ireland Capped ETF AA 7-May-10 0.48% 125 3 5 8 0.11 31.1

Italy EWI iShares MSCI Italy Capped ETF CM 12-Mar-96 0.48% 548 40 271 311 0.01 9.2

Netherlands EWN iShares MSCI Netherlands ETF AA 12-Mar-96 0.48% 208 8 89 98 0.02 6.8

Portugal PGAL Global X FTSE Portugal 20 ETF AA 13-Nov-13 0.61% 24 0 1 1 0.07 67.9

Spain EWP iShares MSCI Spain Capped ETF CM 12-Mar-96 0.48% 718 51 89 140 0.01 4.0

Japan EWJ iShares MSCI Japan ETF CM 12-Mar-96 0.48% 13,716 534 1,211 1,744 0.01 8.5

Pacific ex JP EPP iShares MSCI Pacific ex Japan ETF AA 25-Oct-01 0.49% 2,111 25 367 393 0.01 2.9

Australia EWA iShares MSCI Australia ETF CM 12-Mar-96 0.48% 1,695 68 457 525 0.01 5.0

Hong Kong EWH iShares MSCI Hong Kong ETF CM 12-Mar-96 0.48% 1,570 77 109 186 0.01 5.0

New Zealand ENZL iShares MSCI New Zealand Capped ETF AA 2-Sep-10 0.48% 127 2 5 7 0.19 43.3

Singapore EWS iShares MSCI Singapore ETF CM 12-Mar-96 0.48% 570 14 74 87 0.01 9.1

EM EEM iShares MSCI Emerging Markets ETF PF 7-Apr-03 0.69% 25,878 2,658 378 3,035 0.01 2.9

Latin America ILF iShares Latin America 40 ETF AA 26-Oct-01 0.49% 784 58 62 120 0.01 4.0

Brazil EWZ iShares MSCI Brazil Capped ETF PF 10-Jul-00 0.62% 3,738 605 128 733 0.01 3.2

Chile ECH iShares MSCI Chile Capped ETF AA 16-Nov-07 0.62% 326 13 6 19 0.04 11.3

Colombia GXG Global X FTSE Colombia 20 ETF AA 9-Feb-09 0.68% 84 1 0 1 0.04 40.8

Mexico EWW iShares MSCI Mexico Capped ETF PF 12-Mar-96 0.48% 1,061 142 13 154 0.01 2.1

Peru EPU iShares MSCI Peru Capped ETF AA 22-Jun-09 0.62% 221 9 1 10 0.08 24.1

EM Asia EEMA iShares MSCI Emerging Markets Asia ETF AA 9-Feb-12 0.49% 126 0 421 421 0.14 25.7

China H FXI iShares China Large-Cap ETF PF 8-Oct-04 0.73% 3,608 860 225 1,085 0.01 2.9

China A ASHR Deutsche X-trackers Harvest CSI 300 China A-Shares ETFAA 6-Nov-13 0.80% 411 26 568 594 0.01 4.2

India INDA iShares MSCI India ETF AA 2-Feb-12 0.68% 3,896 52 131 183 0.01 3.6

Indonesia EIDO iShares MSCI Indonesia ETF AA 7-May-10 0.62% 658 29 14 42 0.01 4.4

Malaysia EWM iShares MSCI Malaysia ETF CM 12-Mar-96 0.48% 324 18 24 42 0.01 12.1

Philippines EPHE iShares MSCI Philippines ETF AA 29-Sep-10 0.62% 371 15 6 22 0.04 10.5

South Korea EWY iShares MSCI South Korea Capped ETF CM 9-May-00 0.62% 3,314 144 152 297 0.01 1.9

Taiwan EWT iShares MSCI Taiwan ETF PF 20-Jun-00 0.62% 2,460 108 126 234 0.01 7.0

Thailand THD iShares MSCI Thailand Capped ETF AA 28-Mar-08 0.62% 388 17 18 35 0.10 14.1

EM Europe GUR SPDR S&P Emerging Europe ETF AA 23-Mar-07 0.49% 37 0 5 5 0.18 72.5

Greece GREK Global X FTSE Greece 20 ETF AA 8-Dec-11 0.65% 243 4 0 5 0.02 29.8

Poland EPOL iShares MSCI Poland Capped ETF AA 26-May-10 0.62% 167 6 6 13 0.01 8.8

Russia RSX Market Vectors Russia ETF PF 26-Apr-07 0.63% 1,780 206 0 206 0.01 5.6

Turkey TUR iShares MSCI Turkey ETF AA 28-Mar-08 0.62% 364 15 12 26 0.06 13.4

Middle East MES Market Vectors Gulf States Index ETF AA 25-Jul-08 0.98% 7 0 5 5 0.56 253.8

Qatar QAT iShares MSCI Qatar Capped ETF AA 1-May-14 0.63% 46 0 2 2 0.32 172.2

UAE UAE iShares MSCI UAE Capped ETF AA 1-May-14 0.63% 31 0 5 6 0.24 139.4

Africa AFK Market Vectors Africa Index ETF AA 14-Jul-08 0.78% 73 0 4 4 0.51 248.0

Egypt EGPT Market Vectors Egypt Index ETF AA 18-Feb-10 0.98% 28 1 1 2 0.50 132.8

South Africa EZA iShares MSCI South Africa ETF AA 7-Feb-03 0.62% 373 35 151 186 0.04 7.9

Frontier Market FM iShares MSCI Frontier 100 ETF AA 13-Sep-12 0.79% 408 3 28 31 0.11 42.7

Argentina ARGT Global X MSCI Argentina ETF AA 3-Mar-11 0.75% 72 2 3 5 0.12 53.1

Nigeria NGE Global X MSCI Nigeria ETF AA 3-Apr-13 0.68% 23 1 0 1 0.10 180.0

Pakistan PAK Global X MSCI Pakistan ETF AA 23-Apr-15 0.88% 11 0 2 2 0.13 84.2

Vietnam VNM Market Vectors Vietnam ETF AA 14-Aug-09 0.76% 358 3 1 5 0.02 16.2

BRIC BKF iShares MSCI BRIC ETF AA 16-Nov-07 0.69% 174 0 417 417 0.05 16.0

AUM $M20D ADV

$M

Implied

Liq. $M

Total

Liq. $M


Product



18 July 2016

US ETF Compass


Figure 79: Non-Equity Reference list

5-Day $ 5-Day bps

Fixed Income (Broad) AGG iShares Core U.S. Aggregate Bond ETF CM 26-Sep-03 0.08% 39,637 342 n.a. n.a. 0.01 0.9

US Treasury GOVT iShares Core U.S. Treasury Bond ETF AA 16-Feb-12 0.15% 2,241 13 n.a. n.a. 0.02 7.4

Very Short SHV iShares Short Treasury Bond ETF CM 12-Jan-07 0.15% 3,830 99 n.a. n.a. 0.01 0.9

Short SHY iShares 1-3 Year Treasury Bond ETF CM 26-Jul-02 0.15% 10,112 172 n.a. n.a. 0.01 1.2

Intermediate IEI iShares 3-7 Year Treasury Bond ETF CM 12-Jan-07 0.15% 6,098 65 n.a. n.a. 0.02 1.8

Long TLT iShares 20+ Year Treasury Bond ETF PF 26-Jul-02 0.15% 8,576 1,564 n.a. n.a. 0.01 0.7

US Inflation TIP iShares TIPS Bond ETF CM 12-Apr-03 0.20% 18,207 134 n.a. n.a. 0.01 1.1

Municipal MUB iShares National AMT-Free Muni Bond ETF AA 9-Sep-07 0.25% 7,276 46 n.a. n.a. 0.02 1.7

Securitized MBB iShares MBS ETF AA 15-Mar-07 0.29% 8,670 59 n.a. n.a. 0.02 1.9

IG Corporates LQD iShares iBoxx $ Investment Grade Corporate Bond ETF CM 26-Jul-02 0.15% 32,183 573 n.a. n.a. 0.01 0.8

HY Corporates HYG iShares iBoxx $ High Yield Corporate Bond ETF PF 10-Apr-07 0.50% 17,438 1,398 n.a. n.a. 0.01 1.2

Floater FLOT iShares Floating Rate Bond ETF AA 17-Jun-11 0.20% 3,024 27 n.a. n.a. 0.01 2.5

Senior Loans BKLN PowerShares Senior Loan Portfolio CM 3-Mar-11 0.65% 4,755 68 n.a. n.a. 0.01 4.4

Preferred PFF iShares U.S. Preferred Stock ETF CM 30-Mar-07 0.47% 16,495 134 n.a. n.a. 0.01 2.5

Convertible CWB SPDR Barclays Convertible Securities ETF AA 16-Apr-09 0.40% 2,271 26 n.a. n.a. 0.02 5.1

Intl DM Debt BWX SPDR Barclays International Treasury Bond ETF AA 5-Oct-07 0.50% 1,714 22 n.a. n.a. 0.11 18.5

Intl Inflation WIP SPDR DB International Government Inflation-Protected Bond ETFAA 19-Mar-08 0.50% 622 2 n.a. n.a. 0.21 38.9

EM Gov Debt USD EMB iShares J.P. Morgan USD Emerging Markets Bond ETF CM 12-Dec-07 0.40% 8,064 188 n.a. n.a. 0.02 1.9

EM Gov Debt Local EMLC Market Vectors Emerging Markets Local Currency Bond ETFAA 23-Jul-10 0.47% 1,844 22 n.a. n.a. 0.01 6.1

EM Corp USD EMCB WisdomTree Emerging Markets Corporate Bond Fund AA 8-Mar-12 0.60% 57 0 n.a. n.a. 0.71 100.3

EM HY Corp USD HYEM Market Vectors Emerging Markets High Yield Bond ETF AA 9-May-12 0.40% 294 2 n.a. n.a. 0.06 24.7

Commodities DBC PowerShares DB Commodity Index Tracking Fund CM 3-Feb-06 0.85% 2,622 33 n.a. n.a. 0.01 6.7

Energy Cmdty DBE PowerShares DB Energy Fund AA 5-Jan-07 0.75% 142 8 n.a. n.a. 0.03 23.2

Crude Oil WTI USO United States Oil Fund LP PF 3-Apr-06 0.45% 3,224 293 n.a. n.a. 0.01 9.2

Natural Gas UNG United States Natural Gas Fund LP PF 18-Apr-07 1.11% 539 65 n.a. n.a. 0.01 12.4

Agriculture DBA PowerShares DB Agriculture Fund CM 5-Jan-07 0.85% 849 17 n.a. n.a. 0.01 4.7

Industrial Metals DBB PowerShares DB Base Metals Fund AA 5-Jan-07 0.75% 176 3 n.a. n.a. 0.02 13.3

Precious Metals DBP PowerShares DB Precious Metals Fund AA 5-Jan-07 0.75% 317 10 n.a. n.a. 0.04 9.5

Gold Physical GLD SPDR Gold Shares PF 18-Nov-04 0.40% 40,968 2,090 n.a. n.a. 0.01 0.8

Silver Physical SLV iShares Silver Trust PF 27-Apr-06 0.50% 7,057 293 n.a. n.a. 0.01 5.2

Platinum Physical PPLT ETFS Physical Platinum Shares AA 8-Jan-10 0.60% 553 7 n.a. n.a. 0.16 15.1

Palladium Physical PALL ETFS Physical Palladium Shares AA 8-Jan-10 0.60% 192 2 n.a. n.a. 0.13 21.0

Bull USD UUP PowerShares DB US Dollar Index Bullish Fund CM 20-Feb-07 0.80% 835 47 n.a. n.a. 0.01 4.0

JPYUSD FXY CurrencyShares Japanese Yen Trust PF 13-Feb-07 0.40% 147 27 n.a. n.a. 0.03 3.0

EURUSD FXE CurrencyShares Euro Currency Trust PF 12-Dec-05 0.40% 217 63 n.a. n.a. 0.01 1.3

AUM $M20D ADV

$M

Implied

Liq. $M

Total

Liq. $M


Product



18 July 2016

US ETF Compass


Appendix C: Definitions

ETP Universe Definitions

Exchange-Traded Products (ETPs)

We define an exchange-traded product (ETP) as a secure (funded or

collateralized) open-ended exchange-traded equity with no embedded

optionality and market-wide appeal to investors. This includes exchange traded

funds (ETF), and exchange-traded vehicles (ETV). The vast majority of

instruments are ETFs (~98% in AUM).

Exchange-Traded Funds (ETFs)

ETFs are open-ended funds which are listed on an exchange and offer intra-

day 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 1940. Only physical index

replication techniques are permissible by this legislation while synthetic

replication is not allowed.

Exchange-traded 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 1933 and not the

Investment Company Act of 1940, 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 33 Securities Act, and

report under 34 Corporate Act.

Management Style or Product Strategy Definitions

Beta

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

“plain-vanilla” ETFs. Some examples of indices falling within this category are:

S&P 500, S&P 400, S&P 600, MSCI EAFE, MSCI EM, Russell 2000, and Russell

1000, to name a few.

Beta+

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 500 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.

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Enhanced Beta (aka Smart Beta)

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: (1)

the selection criteria, and (2) 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 metric-specific 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 non-traditional selection methodology, a non-traditional

weighting methodology, or a combination of both.

Product Type Definitions

Asset Allocation 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 short-term 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.

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Figure 80: Selection criteria depending on intended ETF usage

Criteria Measured by Source Pseudo Futures Cash Mgmt Asset Allocation

Secondary Liquidity (quantity) Avg. Daily Value traded in $ FactSet More Relevant More Relevant Less Relevant

Secondary Liquidity (cost) Avg. Bid/Ask Spreads Bloomberg Finance LP More Relevant More Relevant Less Relevant

Primary Liquidity Implied liquidity of basket Bloomberg Finance LP Less Relevant Less Relevant More Relevant

Short Liquidity (quantity) Short Interest/ Shrs. Out. % Bloomberg Finance LP More Relevant Less Relevant Less Relevant

Short Liquidity (cost) Avg. Borrow Rate Deutsche Bank More Relevant Less Relevant Less Relevant

Size AUM $ Bloomberg Finance LP More Relevant More Relevant Less Relevant

Ownership:

Brokers+Hedge Funds Ownership % FactSet More Relevant Relevant Less Relevant

Mutual Funds+Pension Funds Ownership % FactSet Relevant More Relevant Relevant

Invest. Adviser+Private Bank/WM+Retail Ownership % FactSet Less Relevant Less Relevant More Relevant

Flow Activity Abs(Daily Flows Median) $ Bloomberg Finance LP More Relevant Less Relevant Less Relevant

Cost Total Expense Ratio ETF Issuer Less Relevant Relevant More Relevant

Exposure/Benchmark Investor's objective Investor Relevant Relevant More Relevant

Tracking efficiency to Index NAV-Index Performance dif. Bloomberg Finance LP Less Relevant Relevant More Relevant

Tracking efficiency to NAV Price-NAV premium/discounts Bloomberg Finance LP Less Relevant Relevant More Relevant

Product Provider Assets, products, years Combination of above Less Relevant Less Relevant Relevant Source: Deutsche Bank

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The authors of this report wish to acknowledge the contribution made by

Alfonso Delgado Valdivia, employee of Evalueserve, a third-party provider of

offshore research support services to Deutsche Bank.

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US ETF Compass


Appendix 1

Important Disclosures

Additional 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 look-up page on our website at http://gm.db.com/ger/disclosure/DisclosureDirectory.eqsr

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

Equity rating key Equity rating dispersion and banking relationships

Buy: Based on a current 12- month view of total share-holder return (TSR = percentage change in share price from current price to projected target price plus pro-jected dividend yield ) , we recommend that investors buy the stock.

Sell: Based on a current 12-month view of total share-holder return, we recommend that investors sell the stock

Hold: We take a neutral view on the stock 12-months out and, based on this time horizon, do not recommend either a Buy or Sell.

Newly issued research recommendations and target prices supersede previously published research.

46 %51 %

3 %

53 % 42 %

21 %0

100

200

300

400

500

600

Buy Hold Sell

North American Universe

Companies Covered Cos. w/ Banking Relationship

http://gm.db.com/ger/disclosure/DisclosureDirectory.eqsr

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Regulatory Disclosures

1.Additional Information

Information on ETFs is provided strictly for illustrative purposes and should not be deemed an offer to sell or a

solicitation of an offer to buy shares of any fund that is described in this document. Consider carefully any fund's

investment objectives, risk factors, and charges and expenses before investing. This and other information can be found

in the fund's prospectus. Prospectuses about db X-trackers funds and Powershares DB funds can be obtained by calling

1-877-369-4617 or by visiting www.DBXUS.com. Read prospectuses carefully before investing. Past performance is not

necessarily indicative of future results. Investing involves risk, including possible loss of principal. To better understand

the similarities and differences between investments, including investment objectives, risks, fees and expenses, it is

important to read the products' prospectuses. Shares of ETFs may be sold throughout the day on an exchange through

any brokerage account. However, shares may only be redeemed directly from an ETF by authorized participants, in very

large creation/redemption units. Transactions in shares of ETFs will result in brokerage commissions and will generate

tax consequences. ETFs are obliged to distribute portfolio gains to shareholders. Deutsche Bank may be an issuer,

advisor, manager, distributor or administrator of, or provide other services to, an ETF included in this report, for which it

receives compensation. db X-trackers and Powershares DB funds are distributed by ALPS Distributors, Inc. The opinions

expressed are those of the authors and do not necessarily reflect the views of DB, ALPS or their affiliates.

Aside from within this report, important conflict disclosures can also be found at https://gm.db.com/equities under the

"Disclosures Lookup" and "Legal" tabs. Investors are strongly encouraged to review this information before investing.

2. Short-Term Trade Ideas

Deutsche Bank equity research analysts sometimes have shorter-term trade ideas (known as SOLAR ideas) that are

consistent or inconsistent with Deutsche Bank's existing longer term ratings. These trade ideas can be found at the

SOLAR link at http://gm.db.com.

http://www.dbxus.com/

http://gm.db.com/

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Additional Information

The information and opinions in this report were prepared by Deutsche Bank AG or one of its affiliates (collectively

"Deutsche Bank"). Though the information herein is believed to be reliable and has been obtained from public sources

believed to be reliable, Deutsche Bank makes no representation as to its accuracy or completeness.

If you use the services of Deutsche Bank in connection with a purchase or sale of a security that is discussed in this

report, or is included or discussed in another communication (oral or written) from a Deutsche Bank analyst, Deutsche

Bank may act as principal for its own account or as agent for another person.

Deutsche Bank may consider this report in deciding to trade as principal. It may also engage in transactions, for its own

account or with customers, in a manner inconsistent with the views taken in this research report. Others within

Deutsche Bank, including strategists, sales staff and other analysts, may take views that are inconsistent with those

taken in this research report. Deutsche Bank issues a variety of research products, including fundamental analysis,

equity-linked analysis, quantitative analysis and trade ideas. Recommendations contained in one type of communication

may differ from recommendations contained in others, whether as a result of differing time horizons, methodologies or

otherwise. Deutsche Bank and/or its affiliates may also be holding debt or equity securities of the issuers it writes on.

Analysts are paid in part based on the profitability of Deutsche Bank AG and its affiliates, which includes investment

banking revenues.

Opinions, estimates and projections constitute the current judgment of the author as of the date of this report. They do

not necessarily reflect the opinions of Deutsche Bank and are subject to change without notice. Deutsche Bank research

analysts sometimes have shorter-term trade ideas that are consistent or inconsistent with Deutsche Bank's existing

longer term ratings. These trade ideas for equities can be found at the SOLAR link at http://gm.db.com. A SOLAR idea

represents a high conviction belief by an analyst that a stock will outperform or underperform the market and/or sector

delineated over a time frame of no less than two weeks. In addition to SOLAR ideas, the analysts named in this report

may have from time to time discussed with our clients, including Deutsche Bank salespersons and traders, or may

discuss in this report or elsewhere, trading strategies or ideas that reference catalysts or events that may have a near-

term or medium-term impact on the market price of the securities discussed in this report, which impact may be

directionally counter to the analysts' current 12-month view of total return as described herein. Deutsche Bank has no

obligation to update, modify or amend this report or to otherwise notify a recipient thereof if any opinion, forecast or

estimate contained herein changes or subsequently becomes inaccurate. Coverage and the frequency of changes in

market conditions and in both general and company specific economic prospects makes it difficult to update research at

defined intervals. Updates are at the sole discretion of the coverage analyst concerned or of the Research Department

Management and as such the majority of reports are published at irregular intervals. This report is provided for

informational purposes only. It is not an offer or a solicitation of an offer to buy or sell any financial instruments or to

participate in any particular trading strategy. Target prices are inherently imprecise and a product of the analyst’s

judgment. The financial instruments discussed in this report may not be suitable for all investors and investors must

make their own informed investment decisions. Prices and availability of financial instruments are subject to change

without notice and investment transactions can lead to losses as a result of price fluctuations and other factors. If a

financial instrument is denominated in a currency other than an investor's currency, a change in exchange rates may

adversely affect the investment. Past performance is not necessarily indicative of future results. Unless otherwise

indicated, prices are current as of the end of the previous trading session, and are sourced from local exchanges via

Reuters, Bloomberg and other vendors. Data is sourced from Deutsche Bank, subject companies, and in some cases,

other parties.

The Deutsche Bank Research Department is independent of other business areas divisions of the Bank. Details regarding

our organizational arrangements and information barriers we have to prevent and avoid conflicts of interest with respect

to our research is available on our website under Disclaimer found on the Legal tab.

Macroeconomic fluctuations often account for most of the risks associated with exposures to instruments that promise

to pay fixed or variable interest rates. For an investor who is long fixed rate instruments (thus receiving these cash

flows), increases in interest rates naturally lift the discount factors applied to the expected cash flows and thus cause a

http://gm.db.com/

18 July 2016

US ETF Compass


loss. The longer the maturity of a certain cash flow and the higher the move in the discount factor, the higher will be the

loss. Upside surprises in inflation, fiscal funding needs, and FX depreciation rates are among the most common adverse

macroeconomic shocks to receivers. But counterparty exposure, issuer creditworthiness, client segmentation, regulation

(including changes in assets holding limits for different types of investors), changes in tax policies, currency

convertibility (which may constrain currency conversion, repatriation of profits and/or the liquidation of positions), and

settlement issues related to local clearing houses are also important risk factors to be considered. The sensitivity of fixed

income instruments to macroeconomic shocks may be mitigated by indexing the contracted cash flows to inflation, to

FX depreciation, or to specified interest rates – these are common in emerging markets. It is important to note that the

index fixings may -- by construction -- lag or mis-measure the actual move in the underlying variables they are intended

to track. The choice of the proper fixing (or metric) is particularly important in swaps markets, where floating coupon

rates (i.e., coupons indexed to a typically short-dated interest rate reference index) are exchanged for fixed coupons. It is

also important to acknowledge that funding in a currency that differs from the currency in which coupons are

denominated carries FX risk. Naturally, options on swaps (swaptions) also bear the risks typical to options in addition to

the risks related to rates movements.

Derivative transactions involve numerous risks including, among others, market, counterparty default and illiquidity risk.

The appropriateness or otherwise of these products for use by investors is dependent on the investors' own

circumstances including their tax position, their regulatory environment and the nature of their other assets and

liabilities, and as such, investors should take expert legal and financial advice before entering into any transaction similar

to or inspired by the contents of this publication. The risk of loss in futures trading and options, foreign or domestic, can

be substantial. As a result of the high degree of leverage obtainable in futures and options trading, losses may be

incurred that are greater than the amount of funds initially deposited. Trading in options involves risk and is not suitable

for all investors. Prior to buying or selling an option investors must review the "Characteristics and Risks of Standardized

Options”, at http://www.optionsclearing.com/about/publications/character-risks.jsp. If you are unable to access the

website please contact your Deutsche Bank representative for a copy of this important document.

Participants in foreign exchange transactions may incur risks arising from several factors, including the following: ( i)

exchange rates can be volatile and are subject to large fluctuations; ( ii) the value of currencies may be affected by

numerous market factors, including world and national economic, political and regulatory events, events in equity and

debt markets and changes in interest rates; and (iii) currencies may be subject to devaluation or government imposed

exchange controls which could affect the value of the currency. Investors in securities such as ADRs, whose values are

affected by the currency of an underlying security, effectively assume currency risk.

Unless governing law provides otherwise, all transactions should be executed through the Deutsche Bank entity in the

investor's home jurisdiction.

United States: Approved and/or distributed by Deutsche Bank Securities Incorporated, a member of FINRA, NFA and

SIPC. Analysts employed by non-US affiliates may not be associated persons of Deutsche Bank Securities Incorporated

and therefore not subject to FINRA regulations concerning communications with subject companies, public appearances

and securities held by analysts.

Germany: Approved and/or distributed by Deutsche Bank AG, a joint stock corporation with limited liability incorporated

in the Federal Republic of Germany with its principal office in Frankfurt am Main. Deutsche Bank AG is authorized under

German Banking Law and is subject to supervision by the European Central Bank and by BaFin, Germany’s Federal

Financial Supervisory Authority.

United Kingdom: Approved and/or distributed by Deutsche Bank AG acting through its London Branch at Winchester

House, 1 Great Winchester Street, London EC2N 2DB. Deutsche Bank AG in the United Kingdom is authorised by the

Prudential Regulation Authority and is subject to limited regulation by the Prudential Regulation Authority and Financial

Conduct Authority. Details about the extent of our authorisation and regulation are available on request.

Hong Kong: Distributed by Deutsche Bank AG, Hong Kong Branch.

India: Prepared by Deutsche Equities India Pvt Ltd, which is registered by the Securities and Exchange Board of India

(SEBI) as a stock broker. Research Analyst SEBI Registration Number is INH000001741. DEIPL may have received

administrative warnings from the SEBI for breaches of Indian regulations.

http://www.optionsclearing.com/about/publications/character-risks.jsp

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US ETF Compass


Japan: Approved and/or distributed by Deutsche Securities Inc.(DSI). Registration number - Registered as a financial

instruments dealer by the Head of the Kanto Local Finance Bureau (Kinsho) No. 117. Member of associations: JSDA,

Type II Financial Instruments Firms Association and The Financial Futures Association of Japan. Commissions and risks

involved in stock transactions - for stock transactions, we charge stock commissions and consumption tax by

multiplying the transaction amount by the commission rate agreed with each customer. Stock transactions can lead to

losses as a result of share price fluctuations and other factors. Transactions in foreign stocks can lead to additional

losses stemming from foreign exchange fluctuations. We may also charge commissions and fees for certain categories

of investment advice, products and services. Recommended investment strategies, products and services carry the risk

of losses to principal and other losses as a result of changes in market and/or economic trends, and/or fluctuations in

market value. Before deciding on the purchase of financial products and/or services, customers should carefully read the

relevant disclosures, prospectuses and other documentation. "Moody's", "Standard & Poor's", and "Fitch" mentioned in

this report are not registered credit rating agencies in Japan unless Japan or "Nippon" is specifically designated in the

name of the entity. Reports on Japanese listed companies not written by analysts of DSI are written by Deutsche Bank

Group's analysts with the coverage companies specified by DSI. Some of the foreign securities stated on this report are

not disclosed according to the Financial Instruments and Exchange Law of Japan.

Korea: Distributed by Deutsche Securities Korea Co.

South Africa: Deutsche Bank AG Johannesburg is incorporated in the Federal Republic of Germany (Branch Register

Number in South Africa: 1998/003298/10).

Singapore: by Deutsche Bank AG, Singapore Branch or Deutsche Securities Asia Limited, Singapore Branch (One Raffles

Quay #18-00 South Tower Singapore 048583, +65 6423 8001), which may be contacted in respect of any matters

arising from, or in connection with, this report. Where this report is issued or promulgated in Singapore to a person who

is not an accredited investor, expert investor or institutional investor (as defined in the applicable Singapore laws and

regulations), they accept legal responsibility to such person for its contents.

Taiwan: Information on securities/investments that trade in Taiwan is for your reference only. Readers should

independently evaluate investment risks and are solely responsible for their investment decisions. Deutsche Bank

research may not be distributed to the Taiwan public media or quoted or used by the Taiwan public media without

written consent. Information on securities/instruments that do not trade in Taiwan is for informational purposes only and

is not to be construed as a recommendation to trade in such securities/instruments. Deutsche Securities Asia Limited,

Taipei Branch may not execute transactions for clients in these securities/instruments.

Qatar: Deutsche Bank AG in the Qatar Financial Centre (registered no. 00032) is regulated by the Qatar Financial Centre

Regulatory Authority. Deutsche Bank AG - QFC Branch may only undertake the financial services activities that fall

within the scope of its existing QFCRA license. Principal place of business in the QFC: Qatar Financial Centre, Tower,

West Bay, Level 5, PO Box 14928, Doha, Qatar. This information has been distributed by Deutsche Bank AG. Related

financial products or services are only available to Business Customers, as defined by the Qatar Financial Centre

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Russia: This information, interpretation and opinions submitted herein are not in the context of, and do not constitute,

any appraisal or evaluation activity requiring a license in the Russian Federation.

Kingdom of Saudi Arabia: Deutsche Securities Saudi Arabia LLC Company, (registered no. 07073-37) is regulated by the

Capital Market Authority. Deutsche Securities Saudi Arabia may only undertake the financial services activities that fall

within the scope of its existing CMA license. Principal place of business in Saudi Arabia: King Fahad Road, Al Olaya

District, P.O. Box 301809, Faisaliah Tower - 17th Floor, 11372 Riyadh, Saudi Arabia.

United Arab Emirates: Deutsche Bank AG in the Dubai International Financial Centre (registered no. 00045) is regulated

by the Dubai Financial Services Authority. Deutsche Bank AG - DIFC Branch may only undertake the financial services

activities that fall within the scope of its existing DFSA license. Principal place of business in the DIFC: Dubai

International Financial Centre, The Gate Village, Building 5, PO Box 504902, Dubai, U.A.E. This information has been

distributed by Deutsche Bank AG. Related financial products or services are only available to Professional Clients, as

18 July 2016

US ETF Compass


defined by the Dubai Financial Services Authority.

Australia: Retail clients should obtain a copy of a Product Disclosure Statement (PDS) relating to any financial product

referred to in this report and consider the PDS before making any decision about whether to acquire the product. Please

refer to Australian specific research disclosures and related information at

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Australia and New Zealand: This research, and any access to it, is intended only for "wholesale clients" within the

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Additional information relative to securities, other financial products or issuers discussed in this report is available upon

request. This report may not be reproduced, distributed or published without Deutsche Bank's prior written consent.

Copyright © 2016 Deutsche Bank AG

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David Folkerts-Landau Group Chief Economist and Global Head of Research

Raj Hindocha Global Chief Operating Officer

Research

Michael Spencer Head of APAC Research

Global Head of Economics

Steve Pollard Head of Americas Research

Global Head of Equity Research

Anthony Klarman Global Head of Debt Research

Paul Reynolds Head of EMEA

Equity Research

Dave Clark Head of APAC

Equity Research

Pam Finelli Global Head of

Equity Derivatives Research

Andreas Neubauer Head of Research - Germany

Stuart Kirk Head of Thematic Research

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