UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-22487
DBX ETF Trust
(Exact name of registrant as specified in charter)
875 Third Avenue
New York, New York 10022
(Address of principal executive offices) (Zip code)
Diane Kenneally
100 Summer Street
Boston, MA 02110
(Name and address of agent for service)
Registrant’s telephone number, including area code: (212) 454-4500
Date of fiscal year end: May 31
Date of reporting period: May 31, 2021
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
| Item 1. | Reports to Stockholders. |
| (a) | The Report to Shareholders is attached herewith. |
| (b) | Not applicable |
May 31, 2021
Annual Report
DBX ETF Trust
Xtrackers Eurozone Equity ETF (EURZ)
Xtrackers International Real Estate ETF (HAUZ)
Xtrackers Japan JPX-Nikkei 400 Equity ETF (JPN)
DBX ETF Trust
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To our Shareholders: (Unaudited)
Dear Shareholder,
We are pleased to provide this annual report for three of our sector ETFs for the period ended May 31, 2021.
While the global economy faced divergent recoveries amid high uncertainty, it had positioned itself on firmer ground with the world’s biggest economies — the U.S. and China — driving the rally during the reporting period. Rapid vaccine rollouts in a few large economies has increased global trade in merchandise and manufactured goods to pre-pandemic levels. The sudden revival of the global economy spiked inflation concerns as prices around the world rose sharply, but core inflation is expected to remain transitory in most inflation-targeting countries. The Federal Open Market Committee decided to leave its monetary policy of near-zero interest rates and monthly bond purchases unchanged, to continue to support the U.S. in reopening the economy. China saw GDP1 growth plunge in Q1 2021, facing its weakest quarterly growth rate since the contraction in Q1 2020. Emerging-market equities lagged developed-market equities as increases in virus mutations and fatalities moderated their pace of growth.
The reopening of Eurozone countries in the summer of 2020 triggered a spike in COVID-19 cases, pushing the region into recession again. Labor markets in the region remained robust, as indicated by a steady decline in unemployment rates. Germany, Europe’s largest economy, saw consumer spending decline substantially while its unemployment rate improved slightly as it managed to stave of mass layoffs by relying heavily on subsidised short-time work schemes known as “Kurzarbeit”. The driving force of France’s economic activity, household consumption, contracted and remained in negative territory. Spain witnessed higher economic activity after a slump at the start of the year, as indicated by a J-curve recovery in the services purchasing managers index (PMI2). In its first monetary policy meeting in 2021, the European Central Bank stated that it would keep key interest rates in the Eurozone and other pandemic policy responses unchanged.
Japan witnessed renewed weakness in its economy due to virus-related containment efforts and slow vaccine rollouts. Private consumption fell, mainly due to the Japanese government declaring targeted state-of-emergency measures in multiple cities to combat the spread of the virus ahead of the much-anticipated Tokyo 2020 Olympics. The tourism sector is expected to take a hard hit, as the organizers have announced a ban on spectators from overseas. While exports grew as a result of a rebound in global demand for cars and electronics, the pace of increase slowed sharply due to supply-chain disruptions, dragging down capital spending as well. China witnessed a steady decline in its manufacturing PMI in the first half of the reporting period, but bounced back with exports inching higher as more countries reopened their economies. The resurgence of new daily COVID-19 cases at the beginning of 2021 led to most major Latin American economies re-imposing lockdown measures. Service-sector growth, especially in countries such as Brazil and Mexico, was impacted as a result.
Historically low borrowing costs and global monetary easing have made the yield spread between global real estate markets and other asset classes extremely compelling to investors. In the U.S., prices of lumber skyrocketed, together with copper, which saw a similar uptick in price due to constraints caused by a lack of investment by large miners and the transition to a carbon-free world. In contrast to residential real estate, global office real estate markets remained subdued owing to the increase in working from home, rising concern for the wellbeing of employees and the eroded appeal of long commutes in big cities.
An uneven global recovery is expected as differing circumstances and policy responses of the respective countries will determine their advancement. The recovery of smaller economies and developing countries will depend heavily on that of major economies and economic blocs. Catalysts for success in the post-pandemic era will be each country’s policies and capacities, recovery driven by vaccine rollouts, integration into major economic blocs, ability to provide and monitor fiscal and monetary stimulus, and restoration of solvency in the private sector.
1
Our team appreciates your trust and looks forward to serving your investment needs through innovative index-driven strategies.
Sincerely,
/s/ Freddi Klassen
Freddi Klassen
President and Chief Executive Officer
1. The gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country’s borders in a specific time period.
2. Purchasing Managers’ Indexes (PMI) are economic indicators derived from monthly surveys of private sector companies.
Assumptions, estimates and opinions contained in this document constitute our judgment as of the date of the document and are subject to change without notice. Any projections are based on a number of assumptions as to market conditions and there can be no guarantee that any projected results will be achieved. Past performance is not a guarantee of future results.
2
DBX ETF Trust
Xtrackers Eurozone Equity ETF (EURZ)
Xtrackers Eurozone Equity ETF (EURZ) seeks investment results that correspond generally to the performance, before fees and expenses, of the NASDAQ Eurozone Large Mid Cap Index (the EURZ Index). The EURZ Index is designed to track the performance of equity securities of large- and mid-capitalization companies based in the countries in the Economic and Monetary Union (the “EMU” or “Eurozone”) of the European Union (“EU”). For the 12-month period ended May 31, 2021, EURZ shares returned 48.83%, compared to the EURZ Index return of 48.28%.
All sectors contributed positively to performance during the period with the greatest contribution coming from Consumer Discretionary, Financials and Industrials. From a geographical perspective, France, Germany and Netherlands were the major positive contributors.
Xtrackers International Real Estate ETF (HAUZ)
Xtrackers International Real Estate ETF (HAUZ), seeks investment results that correspond generally to the performance, before fees and expenses, of the iSTOXX Developed and Emerging Markets ex USA PK VN Real Estate Index (the HAUZ Index). The HAUZ index is a free-float capitalization weighted index that provides exposure to publicly traded real estate securities in countries outside the United States, Pakistan and Vietnam. For the 12-month period ended May 31, 2021, HAUZ shares returned 32.24%, compared to the HAUZ Index return of 31.98%.
All sectors contributed positively to performance during the period with the greatest contributions from Real Estate Operating Companies, Diversified REITs and Retail REITs. From a geographical perspective, Japan, Australia and Hong Kong were the major positive contributors, while Chile and Turkey detracted from performance.
Xtrackers Japan JPX-Nikkei 400 Equity ETF Xtrackers (JPN)
Japan JPX-Nikkei 400 Equity ETF (JPN) seeks investment results that correspond generally to the performance, before fees and expenses, of the JPX-Nikkei 400 Net Total Return Index (the JPN Index). The JPN Index is designed to track the performance of equity securities of issuers who are primarily listed on the JASDAQ Stock Exchange (JASDAQ) or the following sections of the Tokyo Stock Exchange (TSE): the first section (for large companies), the second section (for middle-sized companies), and the “Mothers” (for high growth and emerging stocks). For the 12-month period ended May 31, 2021, JPN shares returned 24.96%, compared to the JPN Index return of 24.72%.
The majority of sectors contributed positively to performance during the period with the greatest contributions coming from Industrials, Information Technology and Consumer Discretionary. The Utilities and Health Care sectors were the only negative contributors to performance.
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Performance data quoted represents past performance and does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain the most recent month-end performance data visit www.Xtrackers.com. Returns assume that dividends and capital gains distributions have been reinvested. See pages 4-9 of this report for additional performance information, including performance data based on market value. The views expressed in this report reflect those of the portfolio management team only through the end of the period of the report as stated on the cover. The management team’s views are subject to change at any time based on market and other conditions and should not be construed as a recommendation. Current and future portfolio holdings are subject to risk.
3
DBX ETF Trust
Xtrackers Eurozone Equity ETF (EURZ)
The Xtrackers Eurozone Equity ETF (the “Fund”), using a “passive” or indexing investment approach, seeks investment results that correspond generally to the performance, before fees and expenses, of NASDAQ Eurozone Large Mid Cap Index (the “Underlying Index”). The Underlying Index is designed to track the performance of equity securities of large- and mid-capitalization companies based in the countries in the Economic and Monetary Union (the “EMU” or “Eurozone”) of the European Union (“EU”). The MSCI ACWI ex USA Index is designed to provide exposure to equity securities in developed and emerging stock markets (excluding the United States). It is not possible to invest directly into an index.
| Performance as of May 31, 2021 |
| Average Annual Total Return | ||||||||
| Net Asset Value | Market Value | NASDAQ Eurozone Large Mid Cap Index |
MSCI ACWI ex USA Index | |||||
| One Year |
48.83% | 48.64% | 48.28% | 42.62% | ||||
| Five Year |
9.82% | 9.80% | 9.78% | 10.86% | ||||
| Since Inception1 |
4.79% | 4.78% | 4.78% | 8.18% | ||||
| Cumulative Total Returns | ||||||||
| Net Asset Value | Market Value | NASDAQ Eurozone Large Mid Cap Index |
MSCI ACWI ex USA Index | |||||
| One Year |
48.83% | 48.64% | 48.28% | 42.62% | ||||
| Five Year |
59.70% | 59.61% | 59.48% | 67.42% | ||||
| Since Inception1 |
31.06% | 31.02% | 31.02% | 57.66% | ||||
1 Total returns are calculated based on the commencement of operations, August 19, 2015 (“Inception”).
Prior to October 27, 2017, the Fund was known as Xtrackers MSCI Southern Europe Hedged Equity ETF (DBSE) and had a different investment strategy. Past performance may have been different if the Fund’s current investment strategy had been in effect.
Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at www.Xtrackers.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the sale of fund shares or redemption of fund creation units. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are sold in the market or redeemed. Performance for certain funds may reflect a waiver of a portion of the unitary advisory fee. Without such waiver, performance would have been lower. The gross expense ratio of the Fund, as stated in the fee table of the prospectus dated October 1, 2020, as revised February 8, 2021, was 0.09%, and may differ from the expense ratio disclosed in the Financial Highlights table in this report.
The Fund’s net asset value or “NAV” is calculated by dividing the value of the Fund’s total assets less total liabilities by the number of shares outstanding. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not have traded in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary trading, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.
4
DBX ETF Trust
Performance Summary (Unaudited)
Xtrackers Eurozone Equity ETF (EURZ) (Continued)
* As a percent of total investments excluding exchange-traded funds, securities lending collateral and cash equivalents.
Portfolio holdings and characteristics are subject to change. For more complete details about the Fund’s investment portfolio see page 11.
5
DBX ETF Trust
Performance Summary (Unaudited)
Xtrackers International Real Estate ETF (HAUZ)
The Xtrackers International Real Estate ETF (the “Fund”), using a “passive” or indexing investment approach, seeks investment results that correspond generally to the performance, before fees and expenses, of the iSTOXX Developed and Emerging Markets ex USA PK VN Real Estate Index (the “Underlying Index”). The Underlying Index is a free-float capitalization weighted index that provides exposure to publicly traded real estate securities in countries outside the United States, excluding Pakistan and Vietnam. The MSCI ACWI ex USA Index is designed to provide exposure to equity securities in developed and emerging stock markets (excluding the United States). It is not possible to invest directly into an index.
| Performance as of May 31, 2021 |
| Average Annual Total Return | ||||||||
| Net Asset Value | Market Value | iSTOXX Developed and Emerging Markets ex USA PK VN Real Estate Index |
MSCI ACWI ex USA Index | |||||
| One Year |
32.24% | 32.00% | 31.98% | 42.62% | ||||
| Five Year |
8.53% | 8.62% | 9.06% | 10.86% | ||||
| Since Inception1 |
5.77% | 5.75% | 6.25% | 6.31% | ||||
| Cumulative Total Returns | ||||||||
| Net Asset Value | Market Value | iSTOXX Developed and Emerging Markets ex USA PK VN Real Estate Index2 |
MSCI ACWI ex USA Index | |||||
| One Year |
32.24% | 32.00% | 31.98% | 42.62% | ||||
| Five Year |
50.54% | 51.19% | 54.28% | 67.42% | ||||
| Since Inception1 |
53.75% | 53.55% | 59.19% | 59.90% | ||||
1 Total returns are calculated based on the commencement of operations, October 1, 2013 (“Inception”).
Prior to February 22, 2019, the Fund was known as Xtrackers MSCI Asia Pacific ex Japan Hedged Equity ETF (DBAP) and had a different investment strategy. Past performance may have been different if the Fund’s current investment strategy had been in effect.
Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at www.Xtrackers.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the sale of fund shares or redemption of fund creation units. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are sold in the market or redeemed. Performance for certain funds may reflect a waiver of a portion of the unitary advisory fee. Without such waiver, performance would have been lower. The gross expense ratio of the Fund, as stated in the fee table of the prospectus dated October 1, 2020, was 0.12%, and may differ from the expense ratio disclosed in the Financial Highlights table in this report.
The Fund’s net asset value or “NAV” is calculated by dividing the value of the Fund’s total assets less total liabilities by the number of shares outstanding. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not have traded in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary trading, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.
6
DBX ETF Trust
Performance Summary (Unaudited)
Xtrackers International Real Estate ETF (HAUZ) (Continued)
* As a percent of total investments excluding exchange-traded funds, securities lending collateral and cash equivalents.
Portfolio holdings and characteristics are subject to change. For more complete details about the Fund’s investment portfolio see page 16.
7
DBX ETF Trust
Performance Summary (Unaudited)
Xtrackers Japan JPX-Nikkei 400 Equity ETF (JPN)
The Xtrackers Japan JPX-Nikkei 400 Equity ETF (the “Fund”), using a “passive” or indexing investment approach, seeks investment results that correspond generally to the performance, before fees and expenses, of the JPX-Nikkei 400 Index (the “Underlying Index”). The Underlying Index is designed to track the performance of equity securities of issuers who are primarily listed on the JASDAQ Stock Exchange (“JASDAQ”) or the following sections of the Tokyo Stock Exchange (“TSE”): the first section (for large companies), the second section (for middle-sized companies) and the “Mothers” (for high-growth and emerging stocks). The MSCI ACWI ex USA Index is designed to provide exposure to equity securities in developed and emerging stock markets (excluding the United States). It is not possible to invest directly into an index.
| Performance as of May 31, 2021 |
| Average Annual Total Return | ||||||||
| Net Asset Value | Market Value | JPX-Nikkei 400 Index |
MSCI ACWI ex USA Index | |||||
| One Year |
24.96% | 24.64% | 24.72% | 42.62% | ||||
| Five Year |
9.38% | 9.48% | 9.46% | 10.86% | ||||
| Since Inception1 |
6.58% | 6.51% | 6.70% | 6.74% | ||||
| Cumulative Total Returns | ||||||||
| Net Asset Value | Market Value | JPX-Nikkei 400 Index |
MSCI ACWI ex USA Index | |||||
| One Year |
24.96% | 24.64% | 24.72% | 42.62% | ||||
| Five Year |
56.60% | 57.31% | 57.11% | 67.42% | ||||
| Since Inception1 |
45.97% | 45.49% | 47.02% | 47.35% | ||||
1 Total returns are calculated based on the commencement of operations, June 24, 2015 (“Inception”).
Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at www.Xtrackers.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the sale of fund shares or redemption of fund creation units. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are sold in the market or redeemed. Performance for certain funds may reflect a waiver of a portion of the unitary advisory fee. Without such waiver, performance would have been lower. The gross expense ratio of the Fund, as stated in the fee table of the prospectus dated October 1, 2020, as revised February 8, 2021, was 0.09%, and may differ from the expense ratio disclosed in the Financial Highlights table in this report.
The Fund’s net asset value or “NAV” is calculated by dividing the value of the Fund’s total assets less total liabilities by the number of shares outstanding. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not have traded in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary trading, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.
8
DBX ETF Trust
Performance Summary (Unaudited)
Xtrackers Japan JPX-Nikkei 400 Equity ETF (JPN) (Continued)
* As a percent of total investments excluding securities lending collateral and cash equivalents.
Portfolio holdings and characteristics are subject to change. For more complete details about the Fund’s investment portfolio see page 25.
9
DBX ETF Trust
As a shareholder of one or more of the Funds, you incur two types of costs: (1) transaction costs, including brokerage commissions paid on purchases and sales of fund shares, and (2) ongoing costs, including unitary advisory fees and other Fund expenses. In the most recent six-month period Xtrackers Eurozone Equity ETF, Xtrackers International Real Estate ETF and Xtrackers Japan JPX-Nikkei 400 Equity ETF limited these expenses; had they not done so, expenses would have been higher. The expense examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds.
The examples in the tables are based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period (December 1, 2020 to May 31, 2021).
Actual expenses
The first line in the following tables provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expenses Paid During the Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The second line in the following tables provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses (which is not the Funds’ actual return). The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only, and do not reflect any transactional costs. Therefore the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Beginning Account Value December 1, 2020 |
Ending Account Value May 31, 2021 |
Annualized Expense Ratio |
Expenses Paid During the Period Per $1,000(1) |
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| Xtrackers Eurozone Equity ETF |
| |||||||||||||||
| Actual |
$ | 1,000.00 | $ | 1,193.20 | 0.09 | % | $ | 0.49 | ||||||||
| Hypothetical (5% return before expenses) |
$ | 1,000.00 | $ | 1,024.48 | 0.09 | % | $ | 0.45 | ||||||||
| Xtrackers International Real Estate ETF |
| |||||||||||||||
| Actual |
$ | 1,000.00 | $ | 1,130.70 | 0.10 | % | $ | 0.53 | ||||||||
| Hypothetical (5% return before expenses) |
$ | 1,000.00 | $ | 1,024.43 | 0.10 | % | $ | 0.50 | ||||||||
| Xtrackers Japan JPX-Nikkei 400 Equity ETF |
| |||||||||||||||
| Actual |
$ | 1,000.00 | $ | 1,057.60 | 0.09 | % | $ | 0.46 | ||||||||
| Hypothetical (5% return before expenses) |
$ | 1,000.00 | $ | 1,024.48 | 0.09 | % | $ | 0.45 | ||||||||
(1) Expenses are equal to each Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 182 (the number of days in the most recent six-month period), then divided by 365.
10
DBX ETF Trust
May 31, 2021
| See Notes to Financial Statements. | 11 |
DBX ETF Trust
Schedule of Investments
Xtrackers Eurozone Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 12 |
DBX ETF Trust
Schedule of Investments
Xtrackers Eurozone Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 13 |
DBX ETF Trust
Schedule of Investments
Xtrackers Eurozone Equity ETF (Continued)
May 31, 2021
A summary of the Fund’s transactions with affiliated investments during the year ended May 31, 2021 is as follows:
| Value ($) at 5/31/2020 |
Purchases Cost ($) |
Sales Proceeds ($) |
Net Realized Gain/(Loss) ($) |
Net Change in Unrealized Appreciation (Depreciation) ($) |
Income ($) | Capital Gain Distributions ($) |
Number of Shares at 5/31/2021 |
Value ($) at 5/31/2021 |
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| COMMON STOCKS — 0.5% |
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| Germany — 0.5% |
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| Deutsche Bank AG*(b) |
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| 16,067 | 1,559 | (10,369 | ) | 899 | 6,154 | — | — | 960 | 14,310 | |||||||||||||||||||||||||||
| SECURITIES LENDING COLLATERAL — 4.9% |
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| DWS Government & Agency Securities Portfolio “DWS Government Cash Institutional Shares”, 0.01% (c)(d) |
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| 55,855 | 79,403 | (e) | — | — | — | 867 | — | 135,258 | 135,258 | |||||||||||||||||||||||||||
| CASH EQUIVALENTS — 0.0% |
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| DWS Government Money Market Series “Institutional Shares”, 0.03% (c) |
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| 187 | 78,709 | (78,502 | ) | — | — | 1 | — | 394 | 394 | |||||||||||||||||||||||||||
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| 72,109 | 159,671 | (88,871 | ) | 899 | 6,154 | 868 | — | 136,612 | 149,962 | |||||||||||||||||||||||||||
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| * | Non-income producing security. |
| (a) | All or a portion of these securities were on loan. In addition, “Other assets and liabilities, net” may include pending sales that are also on loan. The value of securities loaned at May 31, 2021 amounted to $198,898, which is 7.1% of net assets. |
| (b) | Affiliated issuer. This security is owned in proportion with its representation in the index. |
| (c) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
| (d) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. In addition, the Fund held non-cash U.S. Treasury securities collateral having a value of $99,050. |
| (e) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the year ended May 31, 2021. |
| ADR: | American Depositary Receipt |
| REIT: | Real Estate Investment Trust |
| RSP: | Risparmio (Convertible Savings Shares) |
| 144A: | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
Securities are listed in country of domicile.
| See Notes to Financial Statements. | 14 |
DBX ETF Trust
Schedule of Investments
Xtrackers Eurozone Equity ETF (Continued)
May 31, 2021
Fair Value Measurements
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
The following is a summary of the inputs used as of May 31, 2021 in valuing the Fund’s investments. For information on the Fund’s policy regarding the valuation of investments, please refer to the Security Valuation section of Note 2 in the accompanying Notes to Financial Statements.
| Assets |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Common Stocks (f) |
$ | 2,715,524 | $ | — | $ | — | $ | 2,715,524 | ||||||||
| Preferred Stocks (f) |
61,354 | — | — | 61,354 | ||||||||||||
| Rights |
— | 0 | — | 0 | ||||||||||||
| Exchange-Traded Funds |
15,216 | — | — | 15,216 | ||||||||||||
| Short-Term Investments (f) |
135,652 | — | — | 135,652 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| TOTAL |
$ | 2,927,746 | $ | 0 | $ | — | $ | 2,927,746 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (f) | See Schedule of Investments for additional detailed categorizations. |
| See Notes to Financial Statements. | 15 |
DBX ETF Trust
Schedule of Investments
Xtrackers International Real Estate ETF
May 31, 2021
| See Notes to Financial Statements. | 16 |
DBX ETF Trust
Schedule of Investments
Xtrackers International Real Estate ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 17 |
DBX ETF Trust
Schedule of Investments
Xtrackers International Real Estate ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 18 |
DBX ETF Trust
Schedule of Investments
Xtrackers International Real Estate ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 19 |
DBX ETF Trust
Schedule of Investments
Xtrackers International Real Estate ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 20 |
DBX ETF Trust
Schedule of Investments
Xtrackers International Real Estate ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 21 |
DBX ETF Trust
Schedule of Investments
Xtrackers International Real Estate ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 22 |
DBX ETF Trust
Schedule of Investments
Xtrackers International Real Estate ETF (Continued)
May 31, 2021
A summary of the Fund’s transactions with affiliated investments during the year ended May 31, 2021 is as follows:
| Value ($) at 5/31/2020 |
Purchases Cost ($) |
Sales Proceeds ($) |
Net Realized Gain/(Loss) ($) |
Net Change in Unrealized Appreciation (Depreciation) ($) |
Income ($) | Capital Gain Distributions ($) |
Number of Shares at 5/31/2021 |
Value ($) at 5/31/2021 |
||||||||||||||||||||||||||||
| SECURITIES LENDING COLLATERAL — 4.6% |
|
|||||||||||||||||||||||||||||||||||
| DWS Government & Agency Securities Portfolio “DWS Government Cash Institutional Shares”, 0.01% (d)(e) |
| |||||||||||||||||||||||||||||||||||
| 8,505,313 | 12,474,329 | (f) | — | — | — | 2,138 | — | 20,979,642 | 20,979,642 | |||||||||||||||||||||||||||
| CASH EQUIVALENTS — 0.0% |
| |||||||||||||||||||||||||||||||||||
| DWS Government Money Market Series “Institutional Shares”, 0.03% (d) |
| |||||||||||||||||||||||||||||||||||
| 643,631 | 36,345,848 | (36,928,293 | ) | — | — | 324 | — | 61,186 | 61,186 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| 9,148,944 | 48,820,177 | (36,928,293 | ) | — | — | 2,462 | — | 21,040,828 | 21,040,828 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| * | Non-income producing security. |
| (a) | All or a portion of these securities were on loan. In addition, “Other assets and liabilities, net” may include pending sales that are also on loan. The value of securities loaned at May 31, 2021 amounted to $28,323,064, which is 6.2% of net assets. |
| (b) | Stapled Security—A security contractually bound to one or more other securities to form a single saleable unit which cannot be sold separately. |
| (c) | Investment was valued using significant unobservable inputs. |
| (d) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
| (e) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. In addition, the Fund held non-cash U.S. Treasury securities collateral having a value of $9,404,196. |
| (f) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the year ended May 31, 2021. |
| NVDR: | Non Voting Depositary Receipt |
| PJSC: | Public Joint Stock Company |
| REIT: | Real Estate Investment Trust |
| SAE: | Societe Anonyme Egyptienne |
| 144A: | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
Securities are listed in country of domicile.
| See Notes to Financial Statements. | 23 |
DBX ETF Trust
Schedule of Investments
Xtrackers International Real Estate ETF (Continued)
May 31, 2021
At May 31, 2021, open futures contracts purchased were as follows:
| Contract Description |
Currency | Number of Contracts |
Notional Amount |
Contract Value |
Expiration Date |
Unrealized Appreciation |
||||||||||||
| E-Mini S&P 500 Futures |
USD | 5 | $ | 1,015,940 | $ | 1,050,600 | 6/18/2021 | $ | 34,660 | |||||||||
| EURO STOXX 50 Futures |
EUR | 14 | 665,399 | 690,675 | 6/18/2021 | 25,276 | ||||||||||||
| MINI TOPIX Index Futures |
JPY | 18 | 311,539 | 317,318 | 6/10/2021 | 5,779 | ||||||||||||
|
|
|
|||||||||||||||||
| Total unrealized appreciation |
$ | 65,715 | ||||||||||||||||
|
|
|
|||||||||||||||||
For information on the Fund’s policy and additional disclosures regarding open futures contracts, please refer to the Derivatives section of Note 2 in the accompanying Notes to Financial Statements.
Currency Abbreviations
| EUR | Euro |
| JPY | Japanese Yen |
| USD | U.S. Dollar |
Fair Value Measurements
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
The following is a summary of the inputs used as of May 31, 2021 in valuing the Fund’s investments. For information on the Fund’s policy regarding the valuation of investments, please refer to the Security Valuation section of Note 2 in the accompanying Notes to Financial Statements.
| Assets |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Common Stocks (g) |
$ | 454,145,953 | $ | — | $ | 27,467 | $ | 454,173,420 | ||||||||
| Preferred Stocks |
280,403 | — | — | 280,403 | ||||||||||||
| Rights (g) |
— | 7,424 | — | 7,424 | ||||||||||||
| Warrants (g) |
3,297 | — | — | 3,297 | ||||||||||||
| Exchange-Traded Funds |
980,170 | — | — | 980,170 | ||||||||||||
| Short-Term Investments (g) |
21,040,828 | — | — | 21,040,828 | ||||||||||||
| Derivatives (h) |
||||||||||||||||
| Futures Contracts |
65,715 | — | — | 65,715 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| TOTAL |
$ | 476,516,366 | $ | 7,424 | $ | 27,467 | $ | 476,551,257 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
(g) See Schedule of Investments for additional detailed categorizations.
(h) Derivatives include unrealized appreciation (depreciation) on open futures contracts.
During the year ended May 31, 2021, the amount of transfers from Level 1 to Level 3 was $14,730. The investment was transferred from Level 1 to Level 3 due to the lack of observable market data due to a decrease in market activity.
| See Notes to Financial Statements. | 24 |
DBX ETF Trust
Schedule of Investments
Xtrackers Japan JPX-Nikkei 400 Equity ETF
May 31, 2021
| See Notes to Financial Statements. | 25 |
DBX ETF Trust
Schedule of Investments
Xtrackers Japan JPX-Nikkei 400 Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 26 |
DBX ETF Trust
Schedule of Investments
Xtrackers Japan JPX-Nikkei 400 Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 27 |
DBX ETF Trust
Schedule of Investments
Xtrackers Japan JPX-Nikkei 400 Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 28 |
DBX ETF Trust
Schedule of Investments
Xtrackers Japan JPX-Nikkei 400 Equity ETF (Continued)
May 31, 2021
A summary of the Fund’s transactions with affiliated investments during the year ended May 31, 2021 is as follows:
| Value ($) at 5/31/2020 |
Purchases Cost ($) |
Sales Proceeds ($) |
Net Realized Gain/(Loss) ($) |
Net Change in Unrealized Appreciation (Depreciation) ($) |
Income ($) | Capital Gain Distributions ($) |
Number of Shares at 5/31/2021 |
Value ($) at 5/31/2021 |
||||||||||||||||||||||||||||
| SECURITIES LENDING COLLATERAL — 0.2% |
|
|||||||||||||||||||||||||||||||||||
| DWS Government & Agency Securities Portfolio “DWS Government Cash Institutional Shares”, 0.01% (b)(c) |
| |||||||||||||||||||||||||||||||||||
| 76,899 | 611 | (d) | — | — | — | 43 | — | 77,510 | 77,510 | |||||||||||||||||||||||||||
| CASH EQUIVALENTS — 0.0% |
|
|||||||||||||||||||||||||||||||||||
| DWS Government Money Market Series “Institutional Shares”, 0.03% (b) |
| |||||||||||||||||||||||||||||||||||
| 56,879 | 632,141 | (673,562 | ) | — | — | 24 | — | 15,458 | 15,458 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| 133,778 | 632,752 | (673,562 | ) | — | — | 67 | — | 92,968 | 92,968 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| * | Non-income producing security. |
| (a) | All or a portion of these securities were on loan. In addition, “Other assets and liabilities, net” may include pending sales that are also on loan. The value of securities loaned at May 31, 2021 amounted to $509,131, which is 1.1% of net assets. |
| (b) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
| (c) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. In addition, the Fund held non-cash U.S. Treasury securities collateral having a value of $463,783. |
| (d) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the year ended May 31, 2021. |
At May 31, 2021, open futures contracts purchased were as follows:
| Contract Description |
Currency | Number of Contracts |
Notional Amount |
Contract Value |
Expiration Date |
Unrealized Depreciation |
||||||||||
| JPX-Nikkei 400 Index Futures |
JPY | 12 | $194,973 | $ | 191,526 | 6/10/2021 | $ | (3,447 | ) | |||||||
For information on the Fund’s policy and additional disclosures regarding open futures contracts, please refer to the Derivatives section of Note 2 in the accompanying Notes to Financial Statements.
Currency Abbreviations
| JPY | Japanese Yen |
Fair Value Measurements
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
The following is a summary of the inputs used as of May 31, 2021 in valuing the Fund’s investments. For information on the Fund’s policy regarding the valuation of investments, please refer to the Security Valuation section of Note 2 in the accompanying Notes to Financial Statements.
| Assets |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Common Stocks (e) |
$ | 45,981,917 | $ | — | $ | — | $ | 45,981,917 | ||||||||
| Short-Term Investments (e) |
92,968 | — | — | 92,968 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| TOTAL |
$ | 46,074,885 | $ | — | $ | — | $ | 46,074,885 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Liabilities |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Derivatives (f) |
||||||||||||||||
| Futures Contracts |
$ | (3,447 | ) | $ | — | $ | — | $ | (3,447 | ) | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
| TOTAL |
$ | (3,447 | ) | $ | — | $ | — | $ | (3,447 | ) | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (e) | See Schedule of Investments for additional detailed categorizations. |
| (f) | Derivatives include unrealized appreciation (depreciation) on open futures contracts. |
| See Notes to Financial Statements. | 29 |
DBX ETF Trust
May 31, 2021
| Xtrackers Eurozone Equity ETF |
Xtrackers International Real Estate ETF |
Xtrackers Japan JPX-Nikkei 400 Equity ETF |
||||||||||
| Assets |
||||||||||||
| Investment in non-affiliated securities at value |
$ | 2,777,784 | $ | 455,444,714 | $ | 45,981,917 | ||||||
| Investment in affiliated securities at value |
14,310 | — | — | |||||||||
| Investment in DWS Government Money Market Series |
394 | 61,186 | 15,458 | |||||||||
| Investment in DWS Government & Agency Securities Portfolio* |
135,258 | 20,979,642 | 77,510 | |||||||||
| Foreign currency at value |
5,472 | 419,795 | — | |||||||||
| Deposit with broker for futures contracts |
— | 118,724 | 8,051 | |||||||||
| Due to broker |
— | — | 10,000 | |||||||||
| Receivables: | ||||||||||||
| Investment securities sold |
— | — | 1,733,356 | |||||||||
| Capital shares |
— | — | 18,294,089 | |||||||||
| Variation margin on futures contracts |
— | 4,725 | — | |||||||||
| Dividends |
2,740 | 1,581,906 | 127,808 | |||||||||
| Interest |
— | 5 | — | |||||||||
| Securities lending income |
289 | 12,763 | 46 | |||||||||
| Foreign tax reclaim |
1,403 | 179,378 | — | |||||||||
|
|
|
|
|
|
|
|||||||
| Total assets |
$ | 2,937,650 | $ | 478,802,838 | $ | 66,248,235 | ||||||
|
|
|
|
|
|
|
|||||||
| Liabilities |
||||||||||||
| Due to custodian |
$ | — | $ | 9 | $ | — | ||||||
| Due to foreign custodian |
— | — | 18,131 | |||||||||
| Payable upon return of securities loaned |
135,258 | 20,979,642 | 77,510 | |||||||||
| Payables: | ||||||||||||
| Investment securities purchased |
5,054 | — | 19,949,200 | |||||||||
| Investment advisory fees |
209 | 37,392 | 1,389 | |||||||||
| Variation margin on futures contracts |
— | — | 829 | |||||||||
| Deferred foreign tax payable |
— | 102,450 | — | |||||||||
|
|
|
|
|
|
|
|||||||
| Total liabilities |
140,521 | 21,119,493 | 20,047,059 | |||||||||
|
|
|
|
|
|
|
|||||||
| Net Assets, at value |
$ | 2,797,129 | $ | 457,683,345 | $ | 46,201,176 | ||||||
|
|
|
|
|
|
|
|||||||
| Net Assets Consist of |
||||||||||||
| Paid-in capital |
$ | 2,749,000 | $ | 418,051,991 | $ | 46,301,055 | ||||||
| Distributable earnings (loss) |
48,129 | 39,631,354 | (99,879 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Net Assets, at value |
$ | 2,797,129 | $ | 457,683,345 | $ | 46,201,176 | ||||||
|
|
|
|
|
|
|
|||||||
| Number of Common Shares outstanding |
100,001 | 15,700,001 | 1,400,001 | |||||||||
|
|
|
|
|
|
|
|||||||
| Net Asset Value |
$ | 27.97 | $ | 29.15 | $ | 33.00 | ||||||
|
|
|
|
|
|
|
|||||||
| Investment in non-affiliated securities at cost |
$ | 2,333,702 | $ | 406,219,605 | $ | 44,344,846 | ||||||
|
|
|
|
|
|
|
|||||||
| Investment in affiliated securities at cost |
$ | 9,968 | $ | — | $ | — | ||||||
|
|
|
|
|
|
|
|||||||
| Value of securities loaned |
$ | 198,898 | $ | 28,323,064 | $ | 509,131 | ||||||
|
|
|
|
|
|
|
|||||||
| Investment in DWS Government Money Market Series at cost |
$ | 394 | $ | 61,186 | $ | 15,458 | ||||||
|
|
|
|
|
|
|
|||||||
| Investment in DWS Government & Agency Securities Portfolio at cost* |
$ | 135,258 | $ | 20,979,642 | $ | 77,510 | ||||||
|
|
|
|
|
|
|
|||||||
| Non-cash collateral for securities on loan |
$ | 99,050 | $ | 9,404,196 | $ | 463,783 | ||||||
|
|
|
|
|
|
|
|||||||
| Foreign currency at cost |
$ | 5,458 | $ | 413,238 | $ | (18,318 | ) | |||||
|
|
|
|
|
|
|
|||||||
| * | Represents collateral on securities loaned. |
| See Notes to Financial Statements. | 30 |
DBX ETF Trust
For the Year Ended May 31, 2021
| Xtrackers Eurozone Equity ETF |
Xtrackers International Real Estate ETF |
Xtrackers Japan JPX-Nikkei 400 Equity ETF |
||||||||||
| Investment Income |
||||||||||||
| Unaffiliated dividend income* |
$ | 54,950 | $ | 10,678,258 | $ | 311,128 | ||||||
| Income distributions from affiliated funds |
1 | 324 | 24 | |||||||||
| Affiliated securities lending income |
867 | 2,138 | 43 | |||||||||
| Unaffiliated non-cash dividend income |
10,959 | 815,328 | — | |||||||||
| Unaffiliated securities lending income, net of borrower rebates |
— | 163,593 | 2,177 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total investment income |
66,777 | 11,659,641 | 313,372 | |||||||||
|
|
|
|
|
|
|
|||||||
| Expenses |
||||||||||||
| Investment advisory fees |
2,196 | 383,146 | 16,151 | |||||||||
| Other expenses |
57 | 57 | 57 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total expenses |
2,253 | 383,203 | 16,208 | |||||||||
|
|
|
|
|
|
|
|||||||
| Less fees waived (see note 3): |
||||||||||||
| Waiver |
(1 | ) | (64,246 | ) | (22 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Net expenses |
2,252 | 318,957 | 16,186 | |||||||||
|
|
|
|
|
|
|
|||||||
| Net investment income (loss) |
64,525 | 11,340,684 | 297,186 | |||||||||
|
|
|
|
|
|
|
|||||||
| Realized and Unrealized Gain (Loss) |
||||||||||||
| Net realized gain (loss) from: |
||||||||||||
| Investments |
(30,832 | ) | (7,765,142 | ) | 208,513 | |||||||
| Investments in affiliates |
(935 | ) | — | — | ||||||||
| In-kind redemptions |
(77,665 | ) | — | 169,732 | ||||||||
| In-kind redemptions in affiliates |
1,834 | — | — | |||||||||
| Futures contracts |
— | 501,547 | 56,035 | |||||||||
| Foreign currency transactions |
196 | 78,690 | 8,899 | |||||||||
|
|
|
|
|
|
|
|||||||
| Net realized gain (loss) |
(107,402 | ) | (7,184,905 | ) | 443,179 | |||||||
|
|
|
|
|
|
|
|||||||
| Net change in unrealized appreciation (depreciation) on: |
||||||||||||
| Investments** |
1,027,618 | 85,249,415 | 2,911,554 | |||||||||
| Investments in affiliates |
6,154 | — | — | |||||||||
| Futures contracts |
— | (47,150 | ) | (39,113 | ) | |||||||
| Foreign currency translations |
115 | 10,506 | (1,432 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Net change in unrealized appreciation (depreciation) |
1,033,887 | 85,212,771 | 2,871,009 | |||||||||
|
|
|
|
|
|
|
|||||||
| Net realized and unrealized gain (loss) on investments, futures and foreign currency transactions |
926,485 | 78,027,866 | 3,314,188 | |||||||||
|
|
|
|
|
|
|
|||||||
| Net Increase (Decrease) in Net Assets Resulting from Operations |
$ | 991,010 | $ | 89,368,550 | $ | 3,611,374 | ||||||
|
|
|
|
|
|
|
|||||||
| * Unaffiliated foreign tax withheld |
$ | 11,981 | $ | 1,078,879 | $ | 34,556 | ||||||
| ** Net of change in deferred foreign taxes |
$ | — | $ | 102,450 | $ | — | ||||||
| See Notes to Financial Statements. | 31 |
DBX ETF Trust
| Xtrackers Eurozone Equity ETF |
Xtrackers International Real Estate ETF |
|||||||||||||||
| Year Ended May 31, | Year Ended May 31, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Increase (Decrease) in Net Assets from Operations |
||||||||||||||||
| Net investment income (loss) |
$ | 64,525 | $ | 68,735 | $ | 11,340,684 | $ | 4,765,148 | ||||||||
| Net realized gain (loss) |
(107,402 | ) | 50,428 | (7,184,905 | ) | (2,742,990 | ) | |||||||||
| Net change in net unrealized appreciation (depreciation) |
1,033,887 | (412,293 | ) | 85,212,771 | (35,011,942 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net increase (decrease) in net assets resulting from operations |
991,010 | (293,130 | ) | 89,368,550 | (32,989,784 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Distributions to Shareholders |
(68,438 | ) | (78,087 | ) | (10,236,025 | ) | (5,184,811 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Fund Shares Transactions |
||||||||||||||||
| Proceeds from shares sold |
— | 3,201,199 | 147,772,936 | 210,264,081 | ||||||||||||
| Value of shares redeemed |
(2,013,187 | ) | (1,051,853 | ) | — | (1,160,117 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net increase (decrease) in net assets resulting from fund share transactions |
(2,013,187 | ) | 2,149,346 | 147,772,936 | 209,103,964 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total net increase (decrease) in Net Assets |
(1,090,615 | ) | 1,778,129 | 226,905,461 | 170,929,369 | |||||||||||
| Net Assets |
||||||||||||||||
| Beginning of year |
3,887,744 | 2,109,615 | 230,777,884 | 59,848,515 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| End of year |
$ | 2,797,129 | $ | 3,887,744 | $ | 457,683,345 | $ | 230,777,884 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Changes in Shares Outstanding |
||||||||||||||||
| Shares outstanding, beginning of year |
200,001 | 100,001 | 10,100,001 | 2,150,001 | ||||||||||||
| Shares sold |
— | 150,000 | 5,600,000 | 8,000,000 | ||||||||||||
| Shares redeemed |
(100,000 | ) | (50,000 | ) | — | (50,000 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Shares outstanding, end of year |
100,001 | 200,001 | 15,700,001 | 10,100,001 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| See Notes to Financial Statements. | 32 |
DBX ETF Trust
Statements of Changes in Net Assets (Continued)
| Xtrackers Japan JPX-Nikkei 400 Equity ETF |
||||||||
| Year Ended May 31, | ||||||||
| 2021 | 2020 | |||||||
| Increase (Decrease) in Net Assets from Operations |
||||||||
| Net investment income (loss) |
$ | 297,186 | $ | 585,771 | ||||
| Net realized gain (loss) |
443,179 | (887,108 | ) | |||||
| Net change in net unrealized appreciation (depreciation) |
2,871,009 | 2,036,582 | ||||||
|
|
|
|
|
|||||
| Net increase (decrease) in net assets resulting from operations |
3,611,374 | 1,735,245 | ||||||
|
|
|
|
|
|||||
| Distributions to Shareholders |
(402,982 | ) | (744,817 | ) | ||||
|
|
|
|
|
|||||
| Fund Shares Transactions |
||||||||
| Proceeds from shares sold |
29,855,461 | — | ||||||
| Value of shares redeemed |
(8,615,493 | ) | (8,954,339 | ) | ||||
|
|
|
|
|
|||||
| Net increase (decrease) in net assets resulting from fund share transactions |
21,239,968 | (8,954,339 | ) | |||||
|
|
|
|
|
|||||
| Total net increase (decrease) in Net Assets |
24,448,360 | (7,963,911 | ) | |||||
| Net Assets |
||||||||
| Beginning of year |
21,752,816 | 29,716,727 | ||||||
|
|
|
|
|
|||||
| End of year |
$ | 46,201,176 | $ | 21,752,816 | ||||
|
|
|
|
|
|||||
| Changes in Shares Outstanding |
||||||||
| Shares outstanding, beginning of year |
800,001 | 1,150,001 | ||||||
| Shares sold |
900,000 | — | ||||||
| Shares redeemed |
(300,000 | ) | (350,000 | ) | ||||
|
|
|
|
|
|||||
| Shares outstanding, end of year |
1,400,001 | 800,001 | ||||||
|
|
|
|
|
|||||
| See Notes to Financial Statements. | 33 |
DBX ETF Trust
| Xtrackers Eurozone Equity ETF Selected Per Share Data |
Years Ended May 31, | |||||||||||||||||||
| 2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
| Net Asset Value, beginning of year |
$ | 19.44 | $ | 21.10 | $ | 23.60 | $ | 23.94 | $ | 20.25 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income (loss) from investment operations: |
||||||||||||||||||||
| Net investment income (loss) (a) |
0.62 | 0.32 | 0.65 | 0.73 | 0.74 | |||||||||||||||
| Net realized and unrealized gain (loss) |
8.59 | (1.37 | ) | (2.52 | ) | (0.68 | ) | 3.74 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total from investment operations |
9.21 | (1.05 | ) | (1.87 | ) | 0.05 | 4.48 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Less distributions from: |
| |||||||||||||||||||
| Net investment income |
(0.68 | ) | (0.61 | ) | (0.63 | ) | (0.39 | ) | (0.79 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total distributions |
(0.68 | ) | (0.61 | ) | (0.63 | ) | (0.39 | ) | (0.79 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net Asset Value, end of year |
$ | 27.97 | $ | 19.44 | $ | 21.10 | $ | 23.60 | $ | 23.94 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Return (%) |
48.46 | (b) | (5.29 | ) | (8.09 | )(b) | 0.22 | (b) | 23.01 | |||||||||||
| Ratios to Average Net Assets and Supplemental Data |
||||||||||||||||||||
| Net Assets, end of year ($ millions) |
3 | 4 | 2 | 2 | 2 | |||||||||||||||
| Ratio of expenses before fee waiver (%) |
0.09 | 0.09 | 0.10 | 0.27 | 0.45 | |||||||||||||||
| Ratio of expenses after fee waiver (%) |
0.09 | 0.09 | 0.09 | 0.26 | 0.45 | |||||||||||||||
| Ratio of net investment income (loss) (%) |
2.65 | 1.52 | 3.00 | 3.01 | 3.62 | |||||||||||||||
| Portfolio turnover rate (%) (c) |
14 | 9 | 14 | 93 | 20 | |||||||||||||||
| Xtrackers International Real Estate ETF Selected Per Share Data |
Years Ended May 31, | |||||||||||||||||||
| 2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
| Net Asset Value, beginning of year |
$ | 22.85 | $ | 27.84 | $ | 29.17 | $ | 26.22 | $ | 22.27 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||
| Net investment income (loss) (a) |
0.92 | 0.84 | 1.14 | 0.68 | 0.56 | |||||||||||||||
| Net realized and unrealized gain (loss) |
6.28 | (4.74 | ) | (1.98 | ) | 3.01 | 3.89 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total from investment operations |
7.20 | (3.90 | ) | (0.84 | ) | 3.69 | 4.45 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Less distributions from: |
| |||||||||||||||||||
| Net investment income |
(0.90 | ) | (1.09 | ) | (0.49 | ) | (0.74 | ) | (0.50 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total distributions |
(0.90 | ) | (1.09 | ) | (0.49 | ) | (0.74 | ) | (0.50 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net Asset Value, end of year |
$ | 29.15 | $ | 22.85 | $ | 27.84 | $ | 29.17 | $ | 26.22 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Return (%) |
32.15 | (b) | (14.80 | )(b) | (2.78 | )(b) | 14.20 | 20.34 | ||||||||||||
| Ratios to Average Net Assets and Supplemental Data |
||||||||||||||||||||
| Net Assets, end of year ($ millions) |
458 | 231 | 60 | 4 | 4 | |||||||||||||||
| Ratio of expenses before fee waiver (%) |
0.12 | 0.12 | 0.30 | 0.60 | 0.60 | |||||||||||||||
| Ratio of expenses after fee waiver (%) |
0.10 | 0.10 | 0.28 | 0.60 | 0.60 | |||||||||||||||
| Ratio of net investment income (loss) (%) |
3.55 | 3.21 | 4.25 | 2.40 | 2.34 | |||||||||||||||
| Portfolio turnover rate (%) (c) |
9 | 12 | 43 | 24 | 14 | |||||||||||||||
| (a) | Based on average shares outstanding during the period. |
| (b) | Total Return would have been lower if certain expenses had not been reimbursed by the Advisor. |
| (c) | Portfolio turnover rate does not include securities received or delivered from processing creations or redemptions. |
| See Notes to Financial Statements. | 34 |
DBX ETF Trust
Financial Highlights (Continued)
| Xtrackers Japan JPX-Nikkei 400 Equity ETF Selected Per Share Data |
Years Ended May 31, | |||||||||||||||||||
| 2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
| Net Asset Value, beginning of year |
$ | 27.19 | $ | 25.84 | $ | 29.39 | $ | 26.24 | $ | 23.19 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income (loss) from investment operations: |
||||||||||||||||||||
| Net investment income (loss) (a) |
0.50 | 0.58 | 0.28 | 0.40 | 0.35 | |||||||||||||||
| Net realized and unrealized gain (loss) |
5.95 | 1.47 | (3.62 | ) | 3.30 | 3.04 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total from investment operations |
6.45 | 2.05 | (3.34 | ) | 3.70 | 3.39 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Less distributions from: |
| |||||||||||||||||||
| Net investment income |
(0.64 | ) | (0.70 | ) | (0.21 | ) | (0.55 | ) | (0.34 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total distributions |
(0.64 | ) | (0.70 | ) | (0.21 | ) | (0.55 | ) | (0.34 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net Asset Value, end of year |
$ | 33.00 | $ | 27.19 | $ | 25.84 | $ | 29.39 | $ | 26.24 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Return (%) |
23.98 | (b) | 7.87 | (b) | (11.35 | )(b)(c) | 14.21 | (b) | 14.75 | |||||||||||
| Ratios to Average Net Assets and Supplemental Data |
||||||||||||||||||||
| Net Assets, end of year ($ millions) |
46 | 22 | 30 | 128 | 10 | |||||||||||||||
| Ratio of expenses before fee waiver (%) |
0.09 | 0.09 | 0.10 | 0.21 | 0.40 | |||||||||||||||
| Ratio of expenses after fee waiver (%) |
0.09 | 0.09 | 0.09 | 0.18 | 0.40 | |||||||||||||||
| Ratio of net investment income (loss) (%) |
1.66 | 2.14 | 1.00 | 1.39 | 1.46 | |||||||||||||||
| Portfolio turnover rate (%) (d) |
25 | 12 | 149 | 78 | 22 | |||||||||||||||
| (a) | Based on average shares outstanding during the period. |
| (b) | Total Return would have been lower if certain expenses had not been reimbursed by the Advisor. |
| (c) | The Fund’s total return includes a reimbursement by the Advisor for a realized loss on a trade executed incorrectly, which otherwise would have reduced total return by 0.22%. |
| (d) | Portfolio turnover rate does not include securities received or delivered from processing creations or redemptions. |
| See Notes to Financial Statements. | 35 |
DBX ETF Trust
1. Organization
DBX ETF Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end registered management investment company organized as a Delaware statutory trust.
As of May 31, 2021, the Trust consists of thirty-five investment series of exchange-traded funds (“ETFs”) (each a “Fund” and collectively, the “Funds”) in operation and trading. These financial statements report on the Funds listed below:
| Xtrackers Eurozone Equity ETF | ||
| Xtrackers International Real Estate ETF | ||
| Xtrackers Japan JPX-Nikkei 400 Equity ETF |
DBX Advisors LLC (“DBX” or the “Advisor”), an indirect, wholly-owned subsidiary of DWS Group GmbH & Co. KGaA (“DWS Group”), serves as investment advisor to the Funds and has overall responsibility for the general management and administration of the Funds, subject to the supervision of the Funds’ Board of Trustees (“Board”).
Xtrackers Eurozone Equity ETF offers shares that are listed and traded on the Cboe BZX Exchange (“Cboe”). Xtrackers International Real Estate ETF and Xtrackers Japan JPX-Nikkei 400 Equity ETF offer shares that are listed and traded on the NYSE Arca, Inc. (“NYSE Arca”). Unlike conventional mutual funds, each Fund issues and redeems shares on a continuous basis, at net asset value (“NAV”), only in large specified lots consisting of 50,000 shares, each called a “Creation Unit”, to authorized participants who have entered into agreements with the Funds’ distributor. Shares are not individually redeemable securities of the Funds, and owners of the shares may acquire those shares from the Funds, or tender such shares for redemption to the Funds, in Creation Units only.
The investment objective of each Fund is to track the performance, before fees and expenses, of a particular index (the “Underlying Index”). The underlying indices for the Funds are:
| Fund |
Underlying Index | |
| Xtrackers Eurozone Equity ETF | NASDAQ Eurozone Large Mid Cap Index | |
| Xtrackers International Real Estate ETF | iSTOXX Developed and Emerging Markets ex USA PK VN Real Estate Index | |
| Xtrackers Japan JPX-Nikkei 400 Equity ETF | JPX-Nikkei 400 Net Total Return Index |
The NASDAQ Eurozone Large Mid Cap Index is designed to track the performance of equity securities of large-and mid-capitalization companies based in the countries in the Economic and Monetary Union of the European Union. The NASDAQ Eurozone Large Mid Cap Index is rebalanced semi-annually in March and September.
The iSTOXX Developed and Emerging Markets ex USA PK VN Real Estate Index is a free-float capitalization weighted index designed to measure the performance of international real estate securities of issuers incorporated outside the United States, excluding Pakistan and Vietnam. The iSTOXX Developed and Emerging Markets ex USA PK VN Real Estate Index is rebalanced quarterly.
The JPX-Nikkei Index 400 Net Total Return Index is designed to reflect the performance of the Japanese stock market, specifically companies which are primarily listed on the JASDAQ Stock Exchange (“JASDAQ”) or the following sections of the Tokyo Stock Exchange (“TSE”): the first section (for large companies), the second section (for middle-sized companies) and the “Mothers” (for high-growth and emerging stocks). The JPX-Nikkei Index 400 Total Return Index is rebalanced annually.
Each Fund is entitled to use its respective Underlying Index pursuant to a licensing agreement between the Index Provider and DBX. There is no charge to the Funds in connection with these licensing agreements.
Each Fund is a diversified series of the Trust. In addition, each Fund, with the exception of Xtrackers International Real Estate ETF, may change its diversification status over time and then change it back again, without shareholder approval, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the index each Fund tracks.
Pursuant to the Trust’s organizational documents, the Trust’s officers and trustees are indemnified against certain liabilities that may arise out of the performance of their duties to the Funds. Additionally, in the normal course of
36
DBX ETF Trust
Notes to Financial Statements (Continued)
business the Trust enters into contracts that contain a variety of representations that provide indemnification for certain liabilities. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Trust expects the risk of loss to be remote.
2. Significant Accounting Policies
The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), which require management to make certain estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. Each Fund qualifies as an investment company under Topic 946 of the Accounting Standards Codification of U.S. GAAP. The following is a summary of significant accounting policies followed by the Funds.
Security Valuation The NAV of each Fund’s shares is calculated each business day as of the close of regular trading on the New York Stock Exchange, generally 4:00 p.m. Eastern Time. NAV per share is calculated by dividing a Fund’s net assets by the number of Fund shares outstanding.
Various inputs are used in determining the value of the Funds’ investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, and credit risk). Level 3 includes significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
Equity securities and ETFs are valued at the most recent sale price or official closing price reported on the exchange (U.S. or foreign) or over-the-counter market on which they trade. Securities or ETFs for which no sales are reported are valued at the calculated mean between the most recent bid and asked quotations on the relevant market or, if a mean cannot be determined, at the most recent bid quotation. Equity securities and ETFs are generally categorized as Level 1.
Investments in open-end investment companies are valued at their NAV each business day and are categorized as Level 1.
Futures contracts are generally valued at the settlement prices established each day on the exchange on which they are traded and are categorized as Level 1.
Securities and other assets for which market quotations are not readily available or for which the above valuation procedures are deemed not to reflect fair value are valued in a manner that is intended to reflect their fair value as determined in accordance with procedures approved by the Board and are generally categorized as Level 3. In accordance with the Funds’ valuation procedures, factors considered in determining value may include, but are not limited to, the type of the security; the size of the holding; the initial cost of the security; the existence of any contractual restrictions on the security’s disposition; the price and extent of public trading in similar securities of the issuer or of comparable companies; quotations or evaluated prices from broker-dealers and/or pricing services; information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities); an analysis of the company’s or issuer’s financial statements; an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold; and with respect to debt securities, the maturity, coupon, creditworthiness, currency denomination and the movement of the market in which the security is normally traded. The value determined under these procedures may differ from published values for the same securities.
Fair value pricing could result in a difference between the prices used to calculate a Fund’s NAV and the prices used by the Fund’s Underlying Index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s Underlying Index.
Disclosure about the classification of the fair value measurements is included in a table following the Fund’s Schedule of Investments.
Cash Cash consists of cash held at banks and is on deposit with major financial institutions.
Investment Transactions and Investment Income Investment transactions are recorded as of the date that the securities are purchased or sold (trade date). Realized gains and losses from the sale or disposition of securities
37
DBX ETF Trust
Notes to Financial Statements (Continued)
are calculated on the identified cost-method. Dividend income is net of any foreign taxes withheld at source. Certain dividends from foreign securities may be recorded subsequent to the ex-dividend date as soon as the Fund is informed of such dividends. Interest income is recorded on the accrual basis. Distributions received from foreign domiciled corporations, generally determined to be passive foreign investment companies for tax reporting purposes, are included in dividend income.
Tax Information and Dividends and Distributions to Shareholders It is each Fund’s policy to comply with all requirements of the Internal Revenue Code of 1986, as amended (“the Code”). Each Fund intends to qualify for and to elect treatment as a separate Regulated Investment Company (“RIC”) under Subchapter M of the Code. It is the policy of each Fund to pay out dividends from its net investment income, if any, semi-annually. Taxable net realized gains from investment transactions, reduced by capital loss carryforwards, if any, are declared and distributed to shareholders at least annually. The capital loss carryforward amount, if any, is available to offset future net capital gains. The Funds may occasionally be required to make supplemental distributions at some other time during the year. The Funds reserve the right to declare special distributions if, in their reasonable discretion, such action is necessary or advisable to preserve the status of each Fund as a RIC or to avoid imposition of income or excise taxes on undistributed income. Dividends and distributions to shareholders, if any, are recorded on the ex-dividend date. The amount of dividends and distributions from net investment income and net realized capital gains are determined in accordance with Federal income tax regulations which may differ from U.S. GAAP. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified at the end of the year within the components of net assets based on their federal tax treatment; temporary differences do not require reclassification. Dividends and distributions, which exceed earnings and profits for the full year for tax purposes, are reported as a tax return of capital.
In accordance with U.S. GAAP requirements regarding accounting for uncertainties in income taxes, management has analyzed the Funds’ tax positions taken or expected to be taken on foreign, federal and state income tax returns for all open tax years and has concluded that no provision for income tax is required in the Funds’ financial statements.
The Funds recognize interest and penalties, if any, related to uncertain tax positions as income tax expense on the Statements of Operations. For the year ended May 31, 2021, the Funds did not incur any interest or penalties.
As of May 31, 2021, the components of accumulated earnings (losses) on a tax basis were as follows:
| Undistributed Ordinary Income |
Capital and Other Gains (Losses) |
Unrealized Appreciation (Depreciation) |
Total Accumulated Earnings (Losses) |
|
||||||||||||||||
| Xtrackers Eurozone Equity ETF |
$ | 38,205 | $ | (420,118 | ) | $ | 430,042 | $ | 48,129 | |||||||||||
| Xtrackers International Real Estate ETF |
13,543,573 | (2,698,186 | ) | 28,785,967 | 39,631,354 | |||||||||||||||
| Xtrackers Japan JPX-Nikkei 400 Equity ETF |
193,039 | (1,574,221 | ) | 1,281,303 | (99,879 | ) | ||||||||||||||
The tax character of dividends and distributions declared for the years ended May 31, 2021 and May 31, 2020 were as follows:
| Year Ended May 31, 2021 |
||||
| Ordinary Income* | ||||
| Xtrackers Eurozone Equity ETF |
$ | 68,438 | ||
| Xtrackers International Real Estate ETF |
10,236,025 | |||
| Xtrackers Japan JPX-Nikkei 400 Equity ETF |
402,982 | |||
| Year Ended May 31, 2020 |
||||
| Ordinary Income* | ||||
| Xtrackers Eurozone Equity ETF |
$ | 78,087 | ||
| Xtrackers International Real Estate ETF |
5,184,811 | |||
| Xtrackers Japan JPX-Nikkei 400 Equity ETF |
744,817 | |||
| * | For tax purposes short-term capital gain distributions are considered ordinary income distributions. |
38
DBX ETF Trust
Notes to Financial Statements (Continued)
At May 31, 2021, for Federal income tax purposes, the Funds have capital loss carryforwards available as shown in the table below, to the extent provided by regulations, to offset future capital gains for an unlimited period. To the extent that these capital loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to shareholders.
| Short-Term | Long-Term | Total Amount | ||||||||||
| Xtrackers Eurozone Equity ETF |
$ | 102,804 | $ | 317,314 | $ | 420,118 | ||||||
| Xtrackers International Real Estate ETF |
1,633,855 | 1,064,331 | 2,698,186 | |||||||||
| Xtrackers Japan JPX-Nikkei 400 Equity ETF |
1,422,425 | 151,796 | 1,574,221 | |||||||||
For the fiscal year ended May 31, 2021, the effect of permanent “book/tax” reclassifications to the components of net assets are included below. These differences are primarily due to recognition of certain foreign currency gains (losses) as ordinary income (loss), partnership investments, redemptions-in-kind, and passive foreign investment companies (“PFICs”).
| Distributable Earnings (loss) |
Paid-In Capital |
|||||||
| Xtrackers Eurozone Equity ETF |
$ | 85,669 | $ | (85,669 | ) | |||
| Xtrackers International Real Estate ETF |
17 | (17 | ) | |||||
| Xtrackers Japan JPX-Nikkei 400 Equity ETF |
(79,044 | ) | 79,044 | |||||
As of May 31, 2021, the aggregate cost of investments for federal income tax purposes, the net unrealized appreciation or depreciation and the aggregated gross unrealized appreciation (depreciation) on investments were as follows:
| Aggregate Tax Cost |
Net Unrealized Appreciation (Depreciation) |
Aggregate Gross Unrealized Appreciation |
Aggregate Gross Unrealized (Depreciation) |
|||||||||||||
| Xtrackers Eurozone Equity ETF |
$ | 2,497,880 | $ | 429,866 | $ | 572,915 | $ | (143,049 | ) | |||||||
| Xtrackers International Real Estate ETF |
447,626,158 | 28,865,164 | 42,904,036 | (14,038,872 | ) | |||||||||||
| Xtrackers Japan JPX-Nikkei 400 Equity ETF |
44,791,478 | 1,279,960 | 2,808,308 | (1,528,348 | ) | |||||||||||
Foreign Taxes The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, capital gains on investments, certain foreign currency transactions or other corporate events. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and are reflected in their Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on capital gains from sales of investments and foreign currency transactions are included in their respective net realized gain (loss) categories, and deferred foreign taxes on unrealized gains are included in net change in unrealized appreciation (depreciation). Receivables and payables related to foreign taxes as of May 31, 2021, if any, are disclosed in the Funds’ Statements of Assets and Liabilities.
Foreign Currency Translations The books and records of the Funds are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the prevailing exchange rates at period end. Purchases and sales of investment securities, income and expenses are translated into U.S. dollars at the prevailing exchange rates on the respective dates of the transactions.
Net realized and unrealized gains and losses on foreign currency transactions represent net gains and losses between trade and settlement dates on securities transactions, the acquisition and disposition of foreign currencies, and the difference between the amount of net investment income accrued and the U.S. dollar amount actually received. The portion of both realized and unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed, but is included with net realized and unrealized gain/appreciation and loss/depreciation on investments.
Securities Lending The Funds may lend securities to certain financial institutions under the terms of their securities lending agreement. During the term of the loans, the Funds continue to receive interest and dividends generated by the securities and to participate in any changes in their market value. The Funds require the borrowers of the securities to maintain collateral with the Funds consisting of cash and/or securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities having a value at least equal to the value of
39
DBX ETF Trust
Notes to Financial Statements (Continued)
the securities loaned. When the collateral falls below specified amounts, the lending agent will use its best effort to obtain additional collateral on the next business day to meet required amounts under the securities lending agreement. During the year ended May 31, 2021, the Funds invested the cash collateral into a joint trading account in DWS Government & Agency Securities Portfolio, an affiliated money market fund managed by DWS Investment Management Americas, Inc. DWS Investment Management Americas, Inc. receives a management/administration fee (0.01% annualized effective rate as of May 31, 2021) on the cash collateral invested in DWS Government & Agency Securities Portfolio. The Funds receive compensation for lending their securities either in the form of fees or by earning interest on invested cash collateral, net of borrower rebates and fees paid to a lending agent. Either the Fund or the borrower may terminate the loan at any time and the borrower, after notice, is required to return borrowed securities within a standard time period. There may be risks of delay and costs in recovery of securities or even loss of rights in the collateral should the borrower of the securities fail financially. If the Funds are not able to recover securities lent, the Funds may sell the collateral and purchase a replacement investment in the market, incurring the risk that the value of the replacement security is greater than the value of the collateral. The Funds are also subject to all investment risks associated with the reinvestment of any cash collateral received, including, but not limited to, interest rate, credit and liquidity risk associated with such investments.
As of May 31, 2021, the Funds listed below had securities on loan. The value of the related collateral exceeded the value of the securities loaned at period end.
| Remaining Contractual Maturity of the Agreements, as of May 31, 2021 |
||||||||||||||||||||
| Securities Lending Transactions | Overnight and Continuous |
<30 Days | Between 30 & 90 days |
>90 days | Total | |||||||||||||||
| Xtrackers Eurozone Equity ETF |
|
|||||||||||||||||||
| Common Stocks |
$ | 125,425 | $ | — | $ | 60 | $ | 98,990 | $ | 224,475 | ||||||||||
| Exchange-Traded Funds |
9,833 | — | — | — | 9,833 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Borrowings |
$ | 135,258 | $ | — | $ | 60 | $ | 98,990 | $ | 234,308 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Gross amount of recognized liabilities and non-cash collateral for securities lending transactions |
|
$ | 234,308 | |||||||||||||||||
| Xtrackers International Real Estate ETF |
||||||||||||||||||||
| Common Stocks |
$ | 20,979,642 | $ | 278,835 | $ | 98,714 | $ | 9,026,647 | $ | 30,383,838 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Gross amount of recognized liabilities and non-cash collateral for securities lending transactions |
|
$ | 30,383,838 | |||||||||||||||||
| Xtrackers Japan JPX-Nikkei 400 Equity ETF |
||||||||||||||||||||
| Common Stocks |
$ | 77,510 | $ | 9,893 | $ | 44,879 | $ | 409,011 | $ | 541,293 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Gross amount of recognized liabilities and non-cash collateral for securities lending transactions |
|
$ | 541,293 | |||||||||||||||||
Derivatives
Futures Contracts Each Fund may enter into futures contracts. These futures contracts will be used to simulate investment in the respective Underlying Index, to facilitate trading or to reduce transaction costs. Each Fund will enter into futures contracts that are traded on a U.S. or non-U.S. exchange. No Fund will use futures for speculative purposes. Futures contracts provide for the future sale by one party and purchase by another party of a specified amount of a specific instrument or index at a specified future time and at a specified price. For the year ended May 31, 2021, Xtrackers International Real Estate ETF and Xtrackers Japan JPX-Nikkei 400 Equity ETF utilized futures in order to simulate investment in the Funds’ Underlying Index. To the extent required by law, liquid assets committed to futures contracts will be maintained.
At the time each Fund enters into a futures contract, each Fund deposits and maintains as collateral an initial margin with the broker, as required by the exchange on which the transaction is affected. Pursuant to the contract, each Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by each Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for exchange-traded futures contracts is generally less than privately negotiated futures contracts, since the clearinghouse, which is the issuer or counterparty to each exchange-traded future, provides a guarantee of performance. The guarantee is supported by a daily payment system (i.e., margin requirements).
40
DBX ETF Trust
Notes to Financial Statements (Continued)
Use of long futures contracts subjects each Fund to risk of loss in excess of the amounts shown on the Statement of Assets and Liabilities, up to the notional value of the futures contracts. Use of short futures contracts subjects each Fund to unlimited risk of loss. Under some circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day’s settlement price, which could effectively prevent liquidation of unfavorable positions.
A summary of the open futures contracts as of May 31, 2021 is included in a table following the Funds’ Schedule of Investments.
The following tables summarize the value of the Funds’ derivative instruments held as of May 31, 2021 and the related location in the accompanying Statement of Assets and Liabilities, presented by primary underlying risk exposure:
| Asset Derivatives |
Liability Derivatives |
|||||||||||||
| Xtrackers International Real Estate ETF | ||||||||||||||
| Equity contracts | Unrealized appreciation on futures contracts* | $ | 65,715 | Unrealized depreciation on futures contracts* | $ | — | ||||||||
| Xtrackers Japan JPX-Nikkei 400 Equity ETF | ||||||||||||||
| Equity contracts | Unrealized appreciation on futures contracts* | $ | — | Unrealized depreciation on futures contracts* | $ | 3,447 | ||||||||
| * | Includes cumulative appreciation or cumulative depreciation on futures contracts as disclosed in the Schedule of Investments. Unsettled variation margin is disclosed separately within the Statement of Assets and Liabilities. |
Additionally, the amount of realized and unrealized gains and losses on derivative instruments recognized in the Funds’ earnings during the year ended May 31, 2021 and the related location in the accompanying Statement of Operations is summarized in the following tables by primary underlying risk exposure:
| Net Realized Gain (Loss) from: |
||||
| Futures Contracts — Equity Contracts |
||||
| Xtrackers International Real Estate ETF |
$ | 501,547 | ||
| Xtrackers Japan JPX-Nikkei 400 Equity ETF |
56,035 | |||
| Net Change in Unrealized Appreciation (Depreciation) on: |
||||
| Futures Contracts — Equity Contracts |
||||
| Xtrackers International Real Estate ETF |
$ | (47,150 | ) | |
| Xtrackers Japan JPX-Nikkei 400 Equity ETF |
(39,113 | ) | ||
For the year ended May 31, 2021 the average monthly volume of derivatives was as follows:
| Futures Contracts (Contract Value) |
||||
| Xtrackers International Real Estate ETF |
$ | 1,559,106 | ||
| Xtrackers Japan JPX-Nikkei 400 Equity ETF |
148,128 | |||
Affiliated Cash Management Vehicles The Funds may invest uninvested cash balances in DWS Government Money Market Series and DWS ESG Liquidity Fund, affiliated money market funds which are managed by DWS Investment Management Americas, Inc. (“DIMA”), also an indirect, wholly owned subsidiary of DWS Group GmbH & Co. KGaA. Each affiliated money market fund is managed in accordance with Rule 2a-7 under the 1940 Act, which governs the quality, maturity, diversity and liquidity of instruments in which a money market fund may invest. DWS Government Money Market Series seeks to maintain a stable NAV, and DWS ESG Liquidity Fund maintains a floating NAV. The Funds indirectly bear their proportionate share of the expenses of each affiliated money market fund in which they invest. The Advisor will waive an amount of the unitary advisory fee payable to the Advisor by the Funds equal to such acquired fund’s fees and expenses on the Funds’ assets invested in the affiliated money market funds.
41
DBX ETF Trust
Notes to Financial Statements (Continued)
3. Investment Advisory and Other Agreements
The Advisor has overall responsibility for the general management and administration of the Funds, subject to the supervision of the Funds’ Board of Trustees. Under an investment advisory agreement between the Trust, on behalf of the Funds, and the Advisor (the “Investment Advisory Agreement”), the Advisor is responsible for arranging sub-advisory, transfer agency, custody, fund administration, and all other non-distribution related services for the Funds to operate.
For its investment advisory services to the Funds below, the Advisor was entitled to receive a unitary advisory fee based on each Fund’s average daily net assets, computed and accrued daily and payable monthly, at an annual rate equal to:
| Unitary Advisory Fee |
||||
| Xtrackers Eurozone Equity ETF |
0.09 | % | ||
| Xtrackers International Real Estate ETF |
0.12 | % | ||
| Xtrackers Japan JPX-Nikkei 400 Equity ETF |
0.09 | % | ||
The Advisor for Xtrackers International Real Estate ETF has contractually agreed, until September 30, 2021, to waive a portion of its unitary advisory fee to the extent necessary to prevent the operating expenses of the Fund from exceeding 0.10% of the Fund’s average daily net assets. This agreement may only be terminated by the Fund’s Board (and may not be terminated by the Advisor) prior to that time. For the year ended May 31, 2021, the Advisor waived $63,858 of the expenses of the Fund.
The Advisor for the Funds below has contractually agreed to waive a portion of its unitary advisory fee in an amount equal to the acquired funds’ fees and expenses attributable to the Funds’ investments in affiliated cash management vehicles. For the year ended May 31, 2021, the Advisor waived expenses of the Funds as follows:
| Expenses Waived | ||||
| Xtrackers Eurozone Equity ETF |
$ | 1 | ||
| Xtrackers International Real Estate ETF |
388 | |||
| Xtrackers Japan JPX-Nikkei 400 Equity ETF |
22 | |||
Out of the unitary advisory fee, the Advisor pays substantially all expenses of each Fund, including the cost of transfer agency, custody, fund administration, legal, audit and other services and expenses of the Independent Trustees. Each Fund is responsible for the payment of, interest expense, acquired fund fees and expenses, taxes, brokerage expenses, distribution fees or expenses, if any, litigation expenses and extraordinary expenses.
The Bank of New York Mellon, a wholly-owned subsidiary of The Bank of New York Mellon Corporation, serves as Administrator, Custodian, Accounting Agent, Lending Agent and Transfer Agent for each Fund.
ALPS Distributors, Inc. (the “Distributor”) serves as the distributor of Creation Units for each Fund on an agency basis. The Distributor does not maintain a secondary market in shares of the Funds.
The Board of Trustees is currently comprised of three Independent Trustees. The Advisor paid retainer fees and attendance fees to each Independent Trustee; retainer fees to the Chairman of the Board of Trustees and Chairman of the Audit Committee; and attendance fees to each member of the Audit Committee (which is comprised of all of the Funds’ Independent Trustees).
4. Investment Portfolio Transactions
For the year ended May 31, 2021, the cost of investments purchased and proceeds from sale of investments (excluding in-kind transactions and short-term investments) were as follows:
| Purchases | Sales | |||||||
| Xtrackers Eurozone Equity ETF |
$ | 341,074 | $ | 346,963 | ||||
| Xtrackers International Real Estate ETF |
59,665,876 | 28,998,103 | ||||||
| Xtrackers Japan JPX-Nikkei 400 Equity ETF |
5,222,026 | 4,985,985 | ||||||
42
DBX ETF Trust
Notes to Financial Statements (Continued)
For the year ended May 31, 2021, the cost of in-kind purchases and proceeds from in-kind sales were as follows:
| Purchases | Sales | |||||||
| Xtrackers Eurozone Equity ETF |
$ | — | $ | 2,013,081 | ||||
| Xtrackers International Real Estate ETF |
118,316,427 | — | ||||||
| Xtrackers Japan JPX-Nikkei 400 Equity ETF |
29,665,339 | 8,577,828 | ||||||
5. Fund Share Transactions
As of May 31, 2021, there were unlimited Fund shares, no par value, authorized by the Trust. Fund shares are issued and redeemed by each Fund only in Creation Units or multiples thereof. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the Statements of Changes in Net Assets. The consideration for the purchase of Creation Units of a Fund generally consists of the in-kind contribution of a designated portfolio of securities constituting a portfolio sampling representation of the securities included in the respective Fund’s Underlying Index and an amount of cash, which under certain circumstances may include cash in lieu of portfolio securities. Investors purchasing and redeeming Creation Units pay a purchase transaction fee and a redemption transaction fee to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units.
6. Line of Credit
The Trust has entered into a senior unsecured credit facility with a syndication of banks which allows the Xtrackers International Real Estate ETF and certain other funds managed by the Advisor to borrow up to $105 million. The Fund may borrow money under this credit facility to the extent necessary for temporary or emergency purposes, including the funding of shareholder redemption requests, trade settlements, and as necessary to distribute to shareholders any income necessary to maintain the Fund’s status as a regulated investment company. Borrowings are charged an interest rate of 1.25% per annum plus the greater of the Federal Funds Effective Rate or the one-month LIBOR Rate. The Fund may borrow up to the lesser of 33 percent of its net assets as permitted by the Act or 25 percent of adjusted total net assets. The Fund had no outstanding loans at May 31, 2021.
7. Other — COVID-19 Pandemic
A novel coronavirus known as COVID-19, declared a pandemic by the World Health Organization, has caused significant uncertainty, market volatility, decreased economic and other activity, increased government activity, including economic stimulus measures, and supply chain interruptions. The full effects, duration and costs of the COVID-19 pandemic are impossible to predict, and the circumstances surrounding the COVID-19 pandemic will continue to evolve, including the risk of future increased rates of infection due to low vaccination rates and/or the lack of effectiveness of current vaccines against new variants. The pandemic has affected and may continue to affect certain countries, industries, economic sectors, companies and investment products more than others, may exacerbate existing economic, political, or social tensions and may increase the probability of an economic recession or depression. The Funds’ and their investments may be adversely affected by the effects of the COVID-19 pandemic, and the pandemic may result in the Funds and their service providers experiencing operational difficulties in coordinating a remote workforce and implementing their business continuity plans, among others. Management will continue to monitor the impact COVID-19 has on the Funds and reflect the consequences as appropriate in the Funds’ accounting and financial reporting.
43
DBX ETF Trust
To the Shareholders of Xtrackers Eurozone Equity ETF, Xtrackers International Real Estate ETF and Xtrackers Japan JPX-Nikkei 400 Equity ETF and the Board of Trustees of DBX ETF Trust
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities of Xtrackers Eurozone Equity ETF, Xtrackers International Real Estate ETF and Xtrackers Japan JPX-Nikkei 400 Equity ETF (collectively referred to as the “Funds”), (three of the funds constituting DBX ETF Trust (the “Trust”)), including the schedules of investments, as of May 31, 2021, and the related statements of operations for the year ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds (three of the funds constituting DBX ETF Trust) at May 31, 2021, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and their financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Trust’s management. Our responsibility is to express an opinion on each of the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal control over financial reporting. As part of our audits we are required to obtain an understanding of the internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of May 31, 2021, by correspondence with the custodians and brokers or by other appropriate auditing procedures where replies from brokers were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more investment companies in the DWS family of funds since at least 1979, but we are unable to determine the specific year.
New York, New York
July 26, 2021
44
DBX ETF Trust
In accordance with Rule 22e-4 (the “Liquidity Rule”) under the Investment Company Act of 1940 (the “1940 Act”), your Fund has adopted a liquidity risk management program (the “Program”), and the Board has designated DBX Advisors LLC (“Advisors”) as Program administrator. The Program is designed to assess and manage your Fund’s liquidity risk (the risk that the Fund would be unable to meet requests to redeem shares of the Fund without significant dilution of remaining investors’ interests in the Fund). Advisors has designated a committee (the “Committee”) composed of personnel from multiple departments within an affiliate of Advisors that is responsible for the implementation and ongoing administration of the Program, which includes assessing the Fund’s liquidity risk under both normal and reasonably foreseeable stressed conditions. Under the Program, every investment held by a Fund is classified on a daily basis into one of four liquidity categories based on estimations of the investment’s ability to be sold during designated timeframes in current market conditions without significantly changing the investment’s market value.
In February 2021, as required by the Program and the Liquidity Rule, Advisors provided the Board with an annual written report (the “Report”) addressing the operation of the Program and assessing the adequacy and effectiveness of its implementation during the period from December 1, 2019 through November 30, 2020 (the “Reporting Period”). During the Reporting Period, your Fund was primarily invested in highly liquid investments (investments that the Fund anticipates can be converted to cash within three business days or less in current market conditions without significantly changing their market value). As a result, your Fund is not required to adopt, and has not adopted, a “Highly Liquid Investment Minimum” as defined in the Liquidity Rule. During the Reporting Period, the Fund did not approach the 15% limit imposed by the Liquidity Rule on holdings in illiquid investments (investments that cannot be sold or disposed of in seven days or less in current market conditions without the sale of the investment significantly changing the market value of the investment). Your Fund did not experience any issues meeting investor redemptions at any time during the Reporting Period. In the Report, Advisors stated that it believes the Program has operated adequately and effectively to manage the Fund’s liquidity risk during the Reporting Period. Advisors also reported that there were no material changes made to the Program during the Reporting Period.
45
DBX ETF Trust
Xtrackers Eurozone Equity ETF, Xtrackers International Real Estate ETF, and Xtrackers Japan JPX-Nikkei 400 Equity ETF
Board Approval of Investment Advisory Agreement with DBX Advisors LLC
After discussions at the meeting of the Board of Trustees (“Board” or “Trustees”) held on February 17-18, 2021 (the “Meeting”), the Trustees, all of whom are the Independent Trustees (those not affiliated with DBX ETF Trust (the “Trust”) or its service providers), unanimously approved the continuance of the Investment Advisory Agreement with respect to Xtrackers Eurozone Equity ETF, Xtrackers International Real Estate ETF, and Xtrackers Japan JPX-Nikkei 400 Equity ETF (each a “Fund,” and collectively, the “Funds”). The Independent Trustees were advised throughout the review and Meeting by K&L Gates LLP (“Independent Trustee Counsel”).
Before reaching their decision to approve the Investment Advisory Agreement for another annual period, the Independent Trustees evaluated the materials furnished to them in advance of the Meeting from DBX Advisors LLC (“DBX” or the “Advisor”) for purposes of reviewing the agreement’s terms, including statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”) regarding (a) fee and expense information for each Fund (including the fee and expense components and any amounts waived or reimbursed) as compared to a peer group of other exchange-traded funds (“ETFs”) selected pursuant to Broadridge’s proprietary methodology (each, a “Peer Group”) and (b) each Fund’s tracking error as compared to its underlying index over the previous five years (or since inception, if shorter). The Independent Trustees also took into consideration the discussions they had with management during the Meeting and among themselves during their Executive Sessions held on February 17 and February 18, 2021. The Independent Trustees also noted that they had received and should take into consideration a substantial amount of information furnished throughout the year at regular Board meetings, which information included, among other things, an analysis of each Fund’s investment performance, tracking error and related financial information, presentations given by DBX, as well as its periodic reports on brokerage commissions, portfolio execution and other services provided to the Funds.
In reaching its decision to continue in effect the Investment Advisory Agreement for another annual period, the Board considered all factors it believed relevant, including (1) the nature, extent and quality of the services provided to the Funds and their shareholders; (2) the financial resources of DBX and its resulting ability to perform its obligations under the Investment Advisory Agreement; (3) the competitiveness of the advisory fee; (4) the total cost of the services provided by and the profits realized by the Advisor from its relationship with the Funds; (5) the extent to which economies of scale have been realized, and if the Funds’ shareholders have benefitted from those economies; and (6) fall out benefits, if any, enjoyed by the Advisor.
The Board reached a determination, with the assistance of Independent Trustee Counsel and Dechert LLP (“Trust Counsel”) and through the exercise of its business judgment, that approval of the Investment Advisory Agreement and the compensation to be received thereunder is in the best interests of each Fund and its shareholders as well as consistent with the Board’s duties under state and federal law. The Board reached this conclusion based on multiple factors.
The Board considered the following in determining whether to approve the Investment Advisory Agreement:
Nature, Extent and Quality of Services. The Board reviewed in detail the nature, extent and quality of services provided and the risks incurred by the Advisor under the Investment Advisory Agreement. In doing so, the Board considered the information it had received from and the discussions it had with the Advisor continuously during the prior year, in addition to the information the Advisor had provided in response to the Board’s requests prior to the Meeting. The Board considered that these services include, among other things, furnishing a continuous investment program for the Funds, including arranging for, or implementing, the purchase and sale of portfolio securities, the provision of general corporate services such as portfolio management compliance services and the preparation and filing of certain reports on behalf of the Trust. The Board also considered, among other things, the professional experience, qualifications and performance of the senior management and key professional personnel of the Advisor, including portfolio management.
The Board considered that the Advisor provides, at its own expense, office facilities and equipment for use by the Funds and supervisory persons responsible for supervising and monitoring the Trust’s service providers.
46
DBX ETF Trust
Board Considerations in Approval of Investment Advisory Contracts (Unaudited) (Continued)
The Board also considered that the Advisor pays or arranges for the compensation of officers of the Trust who are also officers or employees of the Advisor or one of its DWS Group affiliates, except as may otherwise be determined by the Board. In addition, the Board considered that the Advisor arranges for the provision of transfer agency, custody, fund administration and accounting, and other non-distribution services necessary for the Funds’ operations. The Board also considered that in addition to managing the Funds’ portfolios directly, the Advisor provides oversight of day-to-day operations, including monitoring tracking error, providing services in connection with the creation and redemption of creation units and assistance in meeting legal, compliance and regulatory requirements applicable to the Funds.
The Board considered the information regarding each Fund’s tracking error compared to its underlying index that had been provided by the Advisor and by Broadridge. The Board took note of the detailed information provided by the Advisor throughout the year with respect to each Fund’s tracking error and the sources thereof. The Trustees noted that tracking error for each Fund during the year was in an expected range.
Based on its review, the Board concluded that the nature, extent, and quality of services provided by the Advisor under the Investment Advisory Agreement are reasonable and appropriate in relation to the fees paid to the Advisor, taking special consideration of the fact that the advisory fee is a unitary fee and, as a result, a portion of the unitary advisory fee will be used to compensate the Funds’ service providers. The Board considered the staffing of the Advisor, including the training, qualifications and experience of investment personnel in managing the Funds. The Board also considered the expertise of the Advisor in supervising third party service providers to the Funds, such as the administrator and the custodian, noting the Advisor’s extensive work with these service providers (including onsite due diligence sessions) to conduct such supervision. The Board further considered the compliance program of the Advisor, which supports the Funds’ compliance program.
Advisor’s Financial Resources. In connection with the assessment of the ability of the Advisor to perform its duties under the Investment Advisory Agreement, the Board considered the Advisor’s financial condition and whether it has the resources necessary to carry out its functions. The Board concluded that the Advisor has the financial resources necessary to perform its obligations under the Investment Advisory Agreement.
Reasonableness of Advisory Fee. The Board compared each Fund’s advisory fee and total expenses to those of the other ETFs in its Peer Group. The Board noted that due to the special characteristics of certain Funds, there were limitations faced by Broadridge in providing comparable funds in the Peer Groups and the information in the Broadridge reports accordingly may or may not provide meaningful direct comparisons to the Funds. The Board also noted that the advisory fees and total expenses (after waivers/reimbursements) for the Funds were below or equal to the average and/or median of the ETFs in each Fund’s respective Peer Group compiled by Broadridge.
The Board accordingly noted that each Fund’s fee is competitive with the fees of applicable peer ETFs.
The Board considered that the fee for each of the Funds is a unitary fee pursuant to which the Advisor pays all of the Funds’ costs (subject to certain specified exceptions). The Board considered that each Fund’s fee had been priced to scale when it was established. The Board also considered that each Fund’s portfolio is managed on a day-to-day basis by the Advisor and that the Advisor also provides oversight of day-to-day operations, including monitoring tracking error, providing services in connection with creation and redemption units and assistance in meeting legal and regulatory requirements applicable to the Funds. Based on its review, the Board concluded that the advisory fee for each Fund is reasonable in light of the services provided.
Costs of Services and Profitability. The Board considered the expenses of the Advisor in developing and rendering services provided to the Funds and the information provided by the Advisor to the Board regarding the Funds’ profitability. The Board considered that the Advisor had provided extensive information about the Advisor’s profitability and the Advisor’s methodology in determining profitability. While the Advisor had provided information about the Advisor’s expenses relating to marketing the Funds, the Board considered the Advisor’s profitability without accounting for such expenses. The Board determined that, although only some of the Funds were profitable as of this time, the Advisor’s profitability with respect to each profitable Fund was not excessive. The Board considered whether the Advisor would benefit in other ways from its relationships with the Funds and concluded that there were no material fall-out benefits likely to accrue to the Advisor related to the operation of the Funds.
47
DBX ETF Trust
Board Considerations in Approval of Investment Advisory Contracts (Unaudited) (Continued)
Economies of Scale. The Board considered that certain Funds had attracted a substantial amount of assets, but determined that those Funds were not experiencing economies of scale beyond what was reflected in each Fund’s unitary fee, which the Board noted was very competitive. The Board considered that the other Funds were not experiencing economies of scale at this time and determined to revisit this matter after the Funds had attracted more assets.
Given all the information available to it and considering all material factors, the Board concluded that the Investment Advisory Agreement was fair and reasonable and it was unanimously approved.
48
DBX ETF Trust
Identification and Background
The Board has responsibility for the overall management and operations of the funds, including general supervision of the duties performed by the Advisor and other service providers. Each Board Member serves until his or her successor is duly elected or appointed and qualified. Each officer serves until he or she resigns, is removed, dies, retires or becomes disqualified.
The Trust currently has three Board Members. The three Independent Board Members have no affiliation or business connection with the Advisor or any of its affiliated persons and do not own any stock or other securities issued by the Advisor.
The Independent Board Members of the Trust, their term of office and length of time served, their principal business occupations during the past five years, the number of portfolios in the fund complex (defined below) overseen by each Independent Board Member, and other directorships, if any, held by the Board Members are shown below. The fund complex includes all registered open- and closed-end funds (including all of their portfolios) advised by the Advisor and any registered funds that have an investment advisor that is an affiliated person of the Advisor. As of the date of this shareholder report, the fund complex consists of the funds in the Trust, as well as the registered funds advised by affiliates of the Advisor.
Shareholder Communications to the Board. Shareholders may send communications to the Trust’s Board by addressing the communications directly to the Board (or individual Board Members) and/or otherwise clearly indicating in the salutation that the communication is for the Board (or individual Board Members). The shareholder may send the communication to either the Trust’s office or directly to such Board members c/o 875 Third Avenue, New York, NY 10022. Other shareholder communications received by the Trust not directly addressed and sent to the Board will be reviewed and generally responded to by management. Such communications will be forwarded to the Board at management’s discretion based on the matters contained therein.
| Independent Board Members |
||||||
| Name, Year of Birth, Position with the Trust and Length of Time Served(1) |
Business Experience and Directorships During the Past 5 Years |
Number of Portfolios in Fund Complex Overseen |
Other Directorships Held by Board Member | |||
| Stephen R. Byers (1953) Chairman since 2016, and Board Member since 2011 (formerly, Lead Independent Board Member, 2015-2016) |
Independent Director (2011- present); Independent Consultant (2014-present); Director of Investment Management, the Dreyfus Corporation (2000-2006) and Vice Chairman and Chief Investment Officer, the Dreyfus Corporation (2002-2006). | 35 | The Arbitrage Funds, Sierra Income Corporation, Mutual Fund Directors Forum | |||
| George O. Elston (1964) Board Member since 2011, Chairman of the Audit Committee since 2015 |
Chief Financial Officer, Enzyvant (2018-present); Chief Executive Officer, 2X Oncology, Inc. (2017-2018); Senior Vice President and Chief Financial Officer, Juniper Pharmaceuticals, Inc. (2014-2016); Senior Vice President and Chief Financial Officer, KBI BioPharma Inc. (2013-2014); Managing Partner, Chatham Street Partners (2010-2013). | 35 | — | |||
| J. David Officer (1948) Board Member since 2011, Chairman of the Nominating Committee since 2015 |
Independent Director (2010-present); Vice Chairman, the Dreyfus Corporation (2006-2009); President, The Dreyfus Family of Funds, Inc. (2006-2009). | 35 | (Chairman of) Ilex Management Ltd; Old Westbury Funds |
49
DBX ETF Trust
Board Members and Officers (Unaudited) (Continued)
| Officers(2) |
||
| Name, Year of Birth, Position with the Trust and Length of Time Served(3) |
Business Experience and Directorships During the Past 5 Years | |
| Freddi Klassen(4) (1975) President and Chief Executive Officer, 2016-present |
Programmes (Head since 2021), of DWS Investment Management Americas, Inc. and Manager and Chief Operating Officer of the Advisor (2016 -present). Formerly: Chief Operating Officer in the Americas for the Traditional Asset Classes Department (2014 -2020); Manager and Chief Operating Officer of DWS Investment Management Americas, Inc. (2018-present) and the Advisor (2016-present); Global Chief Operating Officer for Equities Technology in the Investment Bank Division at Deutsche Bank AG (2013-2014); Chief Operating Officer for Exchange Traded Funds and Systematic Funds in Europe (2008-2013). | |
| Diane Kenneally(4) (1966) Treasurer, Chief Financial Officer and Controller, 2019-present |
Fund Administration Treasurer’s Office (Co-Head since 2018), of DWS Investment Management Americas, Inc.; Chief Financial Officer and Treasurer for DWS US registered investment companies advised by DWS Investment Management Americas, Inc. (2018-present); Treasurer and Chief Financial Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018-present); formerly: Assistant Treasurer for the DWS funds (2007-2018). | |
| Frank Gecsedi(4) (1967) Chief Compliance Officer, 2010-present |
AFC Compliance US (Senior Team Lead), of DWS Investment Management Americas, Inc.; Compliance Department (2016-present), Vice President in the Deutsche Asset Management Compliance Department at Deutsche Bank AG (2013-2016) and Chief Compliance Officer of the Advisor (2010-present); Chief Compliance Officer of DWS Distributors, Inc. (2019-present); Vice President in Deutsche Bank’s Global Markets Legal, Risk and Capital Division (2010-2012). | |
| Bryan Richards(4) (1978) Vice President, 2016-present |
Portfolio Engineering, Systematic Investments Solutions (Head), of DWS Investment Management Americas, Inc.(2018-present); Portfolio Manager in the Passive Asset Management Department at DWS (2011-present); Primary Portfolio Manager for the PowerShares DB Commodity ETFs (2011-2015). | |
| John Millette(5) (1962) Secretary, 2020-present |
Legal (Associate General Counsel), DWS US Retail Legal (2003-present), of DWS Investment Management Americas, Inc.; Vice President and Secretary of DWS US registered investment companies advised by DWS Investment Management Americas, Inc. (1999-present); Chief Legal Officer, DWS Investment Management Americas, Inc. (2015-present); Director and Vice President of DWS Trust Company (2016-present); Vice President, DBX Advisors LLC (2021-present); Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2011-present); formerly: Secretary of Deutsche Investment Management Americas Inc. (2015-2017); and Assistant Secretary of DBX ETF Trust (2019-2020). |
50
DBX ETF Trust
Board Members and Officers (Unaudited) (Continued)
| Name, Year of Birth, Position with the Trust and Length of Time Served(3) |
Business Experience and Directorships During the Past 5 Years | |
| Caroline Pearson(5) (1962) Assistant Secretary, 2020-present |
Legal (Senior Team Lead), DWS US Retail Legal, of DWS Investment Management Americas, Inc.; Chief Legal Officer of DWS US registered investment companies advised by DWS Investment Management Americas, Inc. (2010-present); Chief Legal Officer, DBX Advisors LLC and DBX Strategic Advisors LLC (2020-present); Chief Legal Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2012-present); formerly: Secretary, Deutsche AM Distributors, Inc. (2002-2017); and Secretary, Deutsche AM Service Company (2010-2017). | |
| Paul Antosca(5) (1957) Assistant Treasurer, 2019-present |
Fund Administration Tax (Head), of DWS Investment Management Americas, Inc.; Assistant Treasurer for DWS US registered investment companies advised by DWS Investment Management Americas, Inc. (2007-present). | |
| Jeffrey Berry(5) (1959) Assistant Treasurer, 2019-present |
Fund Administration (Senior Specialist), of DWS Investment Management Americas, Inc. | |
| Sheila Cadogan(5) (1966) Assistant Treasurer, 2019-present |
Fund Administration Treasurer’s Office (Co-Head since 2018), of DWS Investment Management Americas, Inc.; Assistant Treasurer for DWS US registered investment companies advised by DWS Investment Management Americas, Inc. (2017-present); Director and Vice President, DWS Trust Company (2018-present); Assistant Treasurer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018-present). | |
| Christina A. Morse(6) (1964) Assistant Secretary, 2017-present |
Vice President at BNY Mellon Asset Servicing (2014-present); Vice President and Counsel at Lord Abbett & Co. LLC (2013-2014). | |
| Michelle Goveia-Pine(4) (1970) Interim Anti-Money Laundering Compliance Officer, since July 9, 2020 |
Anti-Financial Crime & Compliance US (Regional Head), of DWS Investment Management Americas, Inc.; Interim AML Officer, DWS Trust Company (since July 28, 2020); and Interim AML Officer of DWS US registered investment companies advised by DWS Investment Management Americas, Inc. (since July 10, 2020); Interim AML Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (since July 24, 2020). |
| (1) | The length of time served is represented by the year in which the Board Member joined the Board. |
| (2) | As a result of their respective positions held with the Advisor and its affiliates, these individuals are considered “interested persons” of the Advisor within the meaning of the 1940 Act. Interested persons receive no compensation from the Funds. |
| (3) | The length of time served is represented by the year in which the officer was first elected to the Trust in such capacity. |
| (4) | Address: 875 Third Avenue, New York, New York 10022. |
| (5) | Address: 100 Summer Street, Boston, MA 02110. |
| (6) | Address: BNY Mellon Asset Servicing, 240 Greenwich Street, New York, NY 10286. |
The Funds’ Statement of Additional Information (“SAI”) includes additional information about the Funds’ Board Members. The SAI is available by calling 855-329-3837, or on the Company’s website at www.Xtrackers.com.
51
DBX ETF Trust
Proxy Voting Policies and Procedures
The Funds’ policies and procedures for voting proxies for portfolio securities and information about how each Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 are available on our Web site — www.Xtrackers.com (click on “Resources” and “Proxy Voting” at the top of the page) — or on the SEC’s Web site — www.sec.gov. To obtain a written copy of the Funds’ policies and procedures without charge, upon request, call us toll free at (855) 329-3837.
Portfolio Holdings Information
The Funds are required to file their complete schedule of portfolio holdings with the SEC for their first and third fiscal quarters on Form N-PORT. Copies of the filings are available without charge, upon request on the SEC’s website at www.sec.gov and are available by calling the Trust at 855-329-3837.
Information about each Fund’s portfolio holdings is available daily at www.Xtrackers.com.
Discount & Premium Information
Information regarding how often shares of each Fund traded on NYSE Arca or Cboe, as applicable, at a price above (i.e., at a premium) or below (i.e., at a discount) the NAV of the Fund can be found at www.Xtrackers.com.
Tax Information
Form 1099-DIV and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisors.
Each Fund designates the following amounts or, if subsequently determined to be different, the maximum allowable for its year ended May 31, 2021.
| Qualified Dividend Income* |
||||
| Xtrackers Eurozone Equity ETF |
85 | % | ||
| Xtrackers International Real Estate ETF |
44 | % | ||
| Xtrackers Japan JPX-Nikkei 400 Equity ETF |
87 | % | ||
* The above percentage is based on ordinary income dividends paid to shareholders during each Fund’s fiscal year.
Each Fund intends to elect to pass through to shareholders the credit for taxes paid to foreign countries. The gross foreign source income and foreign taxes paid are as follows:
| Gross Foreign Income |
Foreign Taxes Paid |
|||||||
| Xtrackers Eurozone Equity ETF |
$ | 76,146 | $ | 9,023 | ||||
| Xtrackers International Real Estate ETF |
12,569,197 | 800,800 | ||||||
| Xtrackers Japan JPX-Nikkei 400 Equity ETF |
345,691 | 27,611 | ||||||
52
DBX ETF Trust
DBX Advisors LLC (“Advisors”) collects non-public information about you from the following sources: (i) information received from you on applications or other forms; and (ii) information about your transactions with the Advisors, Advisors’ affiliates and third-party service providers and vendors. Advisors does not disclose any non-public personal information about you to anyone, other than as set forth below, as permitted by applicable law and regulation. Advisors may disclose non-public personal information about you to the funds in which you invest, to Advisors’ affiliates, and to non-affiliated companies that work with Advisors to service your account(s), or to provide services or process transactions that you have requested. Advisors may disclose non-public personal information in situations that may include, but are not limited to, in response to legal and/or regulatory inquiries and the proposed or actual sale, assignment merger or other transfer of all or a portion of Advisors’ business to another business entity. Advisors may also disclose non-public personal information about you to parties representing you, such as your investment representative, your accountant, your tax advisor, or to other third parties at your direction/consent. Advisors will not sell, rent, license or trade your personal and financial information to or with third parties for their own direct marketing use unless you give us general or specific consent to do so. If you decide to close your account(s) or become an inactive customer, Advisors will adhere to the privacy policies and practices as described in this notice. Advisors restricts access to your personal and account information to those employees who need to know that information to provide products and services to you. Advisors maintains reasonable and customary physical, electronic and procedural safeguards to guard your non-public personal information.
California residents may go to https://fundsus.dws.com/us/en-us/legal-resources/privacy-policy.html to obtain additional information relating to their rights under California state law.
Advisors reserves the right, at their discretion, to change, modify, add, or remove portions of this Privacy Policy Notice, and any of the policies described herein, at any time. Advisors will indicate any such changes to the Privacy Policy Notice at the privacy link which can be found at www.Xtrackers.com. At all times, you are bound by the then-current version of the Privacy Policy and all applicable laws. Advisors highly recommends that you review this Privacy Policy Notice from time to time to ensure that you are familiar with the most recent version. The examples contained in this Privacy Policy Notice are illustrations; they are not intended to be exclusive.
53
DBX ETF Trust
This report is intended for the shareholders of DBX ETF Trust.
This report must be preceded or accompanied by a prospectus.
Investing involves risk, including possible loss of principal. Stocks may decline in value. Foreign investing involves greater and different risks than investing in U.S. companies, including currency fluctuations, less liquidity, less developed or less efficient trading markets, lack of comprehensive company information, political instability and differing auditing and legal standards. There are special risks associated with an investment in real estate, including REITS. These risks include credit risk, interest rate fluctuations and the impact of varied economic conditions. Investing in foreign securities, particularly those of emerging markets, present certain risks such as currency fluctuations, political and economical changes, and market risks. Any fund that concentrates in a particular segment of the market will generally be more volatile than a fund that invests more broadly. Emerging markets tend to be more volatile and less liquid than the markets of more mature economies and generally have less diverse and less mature economic structures and less stable political systems than those of developed countries. Funds investing in a single industry, country or in a limited geographic region generally are more volatile than more diversified funds. The European financial markets have recently experienced volatility and adverse trends in recent years due to concerns about economic downturns or rising government debt levels in several European countries, including Greece, Ireland, Italy, Portugal and Spain. A default or debt restructuring by any European country would adversely impact holders of that country’s debt, and sellers of credit default swaps linked to that country’s creditworthiness (which may be located in countries other than those listed in the previous sentence). These events have adversely affected the exchange rate of the euro, the common currency of certain EU countries, and may continue to significantly affect every country in Europe, including countries that do not use the euro. Italy, Portugal and Spain currently have high levels of debt and public spending, which may stifle economic growth, contribute to prolonged periods of recession or lower sovereign debt ratings and adversely impact investments in the Funds. Investing in derivatives entails special risks relating to liquidity, leverage and credit that may reduce returns and/or increase volatility. Performance of a Fund may diverge from that of an Underlying Index due to operating expenses, transaction costs, cash flows, use of sampling strategies or operational inefficiencies. A fund that focuses its investments in Japan can be impacted by the events and developments in Japan, which can adversely affect performance. An investment in any Fund should be considered only as a supplement to a complete investment program for those investors willing to accept the risks associated with that fund. Please read the prospectus for more information.
War, terrorism, economic uncertainty, trade disputes, public health crises (including the recent pandemic spread of the novel coronavirus) and related geopolitical events could lead to increased market volatility, disruption to U.S. and world economies and markets and may have significant adverse effects on the Funds and their investments.
Shares of the Funds are bought and sold at market price (not NAV) throughout the day on the NYSE Arca, Inc. or Cboe BZX Exchange, Inc., as applicable. Transactions in Fund shares may result in brokerage commissions and may generate tax consequences. There can be no assurance that an active trading market for shares of a Fund will develop or be maintained.
DBX ETF Trust Funds are distributed by ALPS Distributors, Inc. (“ALPS”). The Funds are managed by DBX Advisors LLC which is not affiliated with ALPS.
The brand DWS represents DWS Group GmbH & Co. KGaA and any of its subsidiaries such as DWS Distributors, Inc. which offers investment products or DWS Investment Management Americas, Inc. and RREEF America L.L.C. which offer advisory services.
Nasdaq® and NASDAQ Eurozone Large Mid Cap Index are registered trademarks of Nasdaq, Inc. (which with its affiliates is referred to as the “Corporations”) and are licensed for use by DBX Advisors LLC. The Product(s) have not been passed on by the Corporations as to their legality or suitability. The Product(s) are not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT(S).
The iSTOXX Developed and Emerging Markets ex USA PK VN Real Estate Index is the intellectual property (including registered trademarks) of STOXX Limited, Zug, Switzerland (“STOXX”), Deutsche Börse Group or their licensors, which is used under license. Xtrackers International Real Estate ETF is neither sponsored nor promoted, distributed or in any other manner supported by STOXX, Deutsche Börse Group or their licensors, research partners or data providers and STOXX, Deutsche Börse Group and their licensors, research partners or data providers do not give any warranty, and exclude any liability (whether in negligence or otherwise) with respect thereto generally or specifically in relation to any errors, omissions or interruptions in the Index or its data.
The “JPX-Nikkei Index 400” is a copyrightable work calculated through such methodology as independently developed by Nikkei Inc. (hereinafter called “Nikkei”), and Tokyo Stock Exchange, Inc. (hereinafter called “TSE”) and Nikkei and TSE jointly own copyrights and any other intellectual property rights subsisting in the “JPX-Nikkei Index 400” itself and the methodology to calculate the “JPX-Nikkei Index 400.” The ownership of trademarks and any other intellectual property rights with respect to marks representing the “JPX-Nikkei Index 400 belong” to Nikkei, TSE and Japan Exchange Group, Inc. Nikkei and TSE have no obligation to publish the “JPX-Nikkei Index 400” continuously, and Nikkei and TSE shall not be liable for any errors, delays or suspension of the publication of the “JPXNikkei Index 400.” Nikkei and TSE shall have the right to make any changes in the “JPX-Nikkei Index 400” regarding the calculation methods, etc., and to discontinue the publication thereof.
The Funds or securities referred to herein are not sponsored, endorsed, issued, sold or promoted by MSCI, and MSCI bears no liability with respect to any such Funds or securities or any index on which such Funds or securities are based. The prospectus contains a more detailed description of the limited relationship MSCI has with DBX Advisors LLC and any related Funds.
Copyright © 2021 DWS Group. All rights reserved. XtrackersTM is a trademark of DWS Invesment GmbH. All other trademarks, servicemarks or registered trademarks are the property of their respective owners.
Not FDIC Insured | No Bank Guarantee | May Lose Value
DBX ETF Trust
| Investment advisor DBX Advisors LLC 875 Third Avenue New York, NY 10022 |
Administrator, custodian, The Bank of New York Mellon 240 Greenwich Street New York, NY 10286 |
Distributor ALPS Distributors, Inc. 1290 Broadway Suite 1000 Denver, CO 80203 | ||
| Independent registered public accounting firm Ernst & Young LLP 5 Times Square New York, NY 10036 |
Legal counsel Vedder Price P.C. 1633 Broadway New York, NY 10019 |
|||
R-38754-7 (7/21) DBX004907 (7/22)
May 31, 2021
Annual Report
DBX ETF Trust
Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR)
Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF (ASHS)
Xtrackers MSCI All China Equity ETF (CN)
Xtrackers MSCI China A Inclusion Equity ETF (ASHX)
DBX ETF Trust
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| Board Considerations in Approval of Investment Advisory and Sub-Advisory Contracts |
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To our Shareholders: (Unaudited)
Dear Shareholder,
We are pleased to provide this annual report for our flagship ETFs tracking China’s equity market for the period ended May 31, 2021.
Last year was a year of surprises, we saw the pace at which the pandemic spread, the severity of the lockdowns, the size of the stimulus measures, and the magnitude of the rebounds in equity markets. Perhaps, the biggest surprise is that global equities have gained significantly since the beginning of last year. The U.S. economy exhibited strong growth in Q1 2021, reflecting the reopening of establishments and continued government response to ease the pandemic-induced adversities. However, the Eurozone economy contracted in Q1 2021, as member nations implemented lockdowns amid the third wave of coronavirus infections. Germany, France, Spain, and the Netherlands fell back into contraction territory, while Italy’s economy posted modest growth. Although the vaccine progress is contributing to the acceleration in the rebound, there are still lingering concerns about new COVID-19 variants. On the bright side, the evidence so far is that the countries with successful vaccination programs are experiencing sustained downtrends in infections and hospitalizations.
Despite a weak start to 2020, China made a strong comeback in 2021, with the economy advancing 18.3% year-on-year in Q1 2021, boosted by strengthening domestic and global demand, strict virus containment measures, and continued fiscal and monetary support. The People’s Bank of China left its benchmark interest rates steady for the 13th straight month at its May fixing. China expects economic growth to be strong in 2021. However, the services sector and smaller firms still face challenges, while consumer inflation has remained moderate so far.
China’s urban unemployment rate eased to 5.1% in April 2021 compared with 6% in the same period last year. Exports continued to surge in May, fueled by strong global demand, as more economies around the world opened up, while imports soared, boosted by rising commodity prices. The Manufacturing PMI1 was at a five-month high in May 2021, while the non-manufacturing PMI expanded further. Chinese technology stocks declined amid heightened government scrutiny. The regulators fined tech companies that violated antitrust laws after they failed to get approval for past acquisitions or joint-venture deals. Coming on the back of a record fine on Alibaba, the recent moves against tech giants are twofold — those running financial services are being reined in, while firms that deal with consumers are also being told to clean up their act. Dual-listed tech giants — Alibaba, Baidu, JD.com, and Netease — came under renewed pressure after the SEC stated that it would implement a law passed by the Trump administration to delist Chinese companies that do not follow American audit requirements.
Meanwhile, Beijing adopted a new economic development strategy called “dual circulation”. The strategy calls for China to lean on its vast domestic market for economic growth and advances in technology while drawing in foreign investment, with an eye toward reducing dependence on exports. The strategy is seen as the regime’s response to navigating an increasingly hostile world and reducing its reliance on the West.
Looking ahead, analysts see China’s market becoming more earnings-driven, with corporate earnings expected to rise sharply, according to estimates. Vaccination remains a key to recovery and China has administered more than 809 million doses as of June 10. This, along with the large U.S. fiscal stimulus, has shifted investors from worrying that growth will be too slow to now fearing that growth will be too fast, putting upward pressure on interest rates. Overall, China remains well-positioned to join the U.S. as twin engines for a global recovery in 2021.
1
Our team appreciates your trust and looks forward to serving your investment needs through innovative index-driven strategies.
Sincerely,
/s/ Freddi Klassen
Freddi Klassen
President and Chief Executive Officer
1 Purchasing Managers’ Indexes (PMI) are economic indicators derived from monthly surveys of private sector companies.
Assumptions, estimates and opinions contained in this document constitute our judgment as of the date of the document and are subject to change without notice. Any projections are based on a number of assumptions as to market conditions and there can be no guarantee that any projected results will be achieved. Past performance is not a guarantee of future results.
2
DBX ETF Trust
Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR)
The Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR) seeks investment results that correspond generally to the performance, before fees and expenses, of the CSI 300 Index (the ASHR Index). The ASHR Index is designed to reflect price fluctuations and performance of the China A-share market and is composed of the 300 largest and most liquid stocks in the China A-share market. ASHR is sub-advised by Harvest Global Investments. The continued strategic partnership between DWS and Harvest Global Investments provides investors with unique access to the expansive Chinese economy and stock market. For the 12-month period ended May 31, 2021, ASHR shares returned 55.46%, compared with the ASHR Index’s 57.11%.
All sectors contributed positively to performance during the period with the greatest contribution coming from Financials, Consumer Staples and Consumer Discretionary.
Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF (ASHS)
The Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF (ASHS) seeks investment results that correspond generally to the performance, before fees and expenses, of the CSI 500 Index (the ASHS Index). The ASHS Index tracks 500 small-cap companies listed on the Shanghai and Shenzhen Stock Exchanges. ASHS is sub-advised by Harvest Global Investments. The continued strategic partnership between DWS and Harvest Global Investments provides investors with unique access to the expansive Chinese economy and stock market. For the 12-month period ended May 31, 2021, ASHS fund returned 38.66%, compared with the ASHS Index’s 39.83%.
The majority of sectors contributed positively to performance during the period with the greatest contribution coming from Materials, Industrials and Consumer Discretionary. The Communication Services sector was the only negative contributor to performance.
Xtrackers MSCI All China Equity ETF (CN)
The Xtrackers MSCI All China Equity ETF (CN) seeks investment results that correspond generally to the performance, before fees and expenses, of the MSCI China All Shares Index (the CN Index). The CN Index captures large and midcap representations across China A-shares, B-shares, H-shares, Red-chips, and P-chips. The index aims to reflect the opportunity set of China share classes listed in Hong Kong, Shanghai, and Shenzhen. It is based on the concept of the integrated MSCI China equity universe, with China A-shares included. The Fund, using a passive or indexing approach, attempts to approximate the performance of the index. CN expects to obtain exposure to the China A-share components of the index indirectly by investing in the Xtrackers MSCI China A Inclusion Equity ETF, an affiliated Fund advised by DBX Advisors LLC. CN may also invest in Xtrackers Harvest CSI 300 China A-Shares ETF and Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF or other affiliated funds advised by DBX Advisors LLC and sub-advised by Harvest Global Investments Limited. For the 12-month period ended May 31, 2021, CN returned 42.89%, compared with the CN Index’s 43.49%.
All sectors contributed positively to performance during the period with the greatest contribution coming from Financials, Consumer Discretionary, and Communication Services.
Xtrackers MSCI China A Inclusion Equity ETF (ASHX)
The Xtrackers MSCI China A Inclusion Equity ETF (ASHX) seeks investment results that correspond generally to the performance, before fees and expenses, of the MSCI China A Inclusion Index (the ASHX Index). The ASHX Index is designed to track the progressive partial inclusion of A shares in the MSCI Emerging Markets Index over time. The index is designed for global investors accessing the A share market using the Stock Connect framework and is calculated using China A Stock Connect listings based on the offshore RMB exchange rate (CNH). For the 12-month period ended May 31, 2021, ASHX returned 57.91%, compared with the ASHX Index’s 59.02%.
All sectors contributed positively to performance during the period with the greatest contribution coming from Consumer Staples, Financials and Industrials.
*************************
3
DBX ETF Trust
Management’s Discussion of Fund Performance (Unaudited) (Continued)
Performance data quoted represents past performance and does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain the most recent month-end performance data visit www.Xtrackers.com. Returns assume that dividends and capital gains distributions have been reinvested. See pages 6-13 of this report for additional performance information, including performance data based on market value. The views expressed in this report reflect those of the portfolio management team only through the end of the period of the report as stated on the cover. The management team’s views are subject to change at any time based on market and other conditions and should not be construed as a recommendation. Current and future portfolio holdings are subject to risk.
4
This Page is Intentionally Left Blank
5
DBX ETF Trust
Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR)
The Xtrackers Harvest CSI 300 China A-Shares ETF (the “Fund”), using a “passive” or indexing investment approach, seeks investment results that correspond generally to the performance, before fees and expenses, of the CSI 300 Index (the “Underlying Index”). The Underlying Index is designed to reflect the price fluctuation and performance of the China A-Share market and is composed of the 300 largest and most liquid stocks in the China A-Share market. The MSCI ACWI ex USA Index is designed to provide exposure to equity securities in developed and emerging stock markets (excluding the United States). It is not possible to invest directly into an index.
| Performance as of May 31, 2021 |
| Average Annual Total Return | ||||||||
| Net Asset Value | Market Value | CSI 300 Index | MSCI ACWI ex USA Index | |||||
| One Year |
55.46% | 56.31% | 57.11% | 42.62% | ||||
| Five Year |
13.08% | 12.79% | 13.81% | 10.86% | ||||
| Since Inception1 |
11.58% | 11.61% | 12.56% | 6.03% | ||||
| Cumulative Total Returns | ||||||||
| Net Asset Value | Market Value | CSI 300 Index | MSCI ACWI ex USA Index | |||||
| One Year |
55.46% | 56.31% | 57.11% | 42.62% | ||||
| Five Year |
84.88% | 82.54% | 90.97% | 67.42% | ||||
| Since Inception1 |
129.21% | 129.75% | 144.92% | 55.84% | ||||
1 Total returns are calculated based on the commencement of operations, November 6, 2013 (“Inception”).
Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at www.Xtrackers.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the sale of fund shares or redemption of fund creation units. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are sold in the market or redeemed. Performance for certain funds may reflect a waiver of a portion of the unitary advisory fee. Without such waiver, performance would have been lower. The gross expense ratio of the Fund, as stated in the fee table of the prospectus dated October 1, 2020 was 0.65%, and may differ from the expense ratio disclosed in the Financial Highlights table in this report.
The Fund’s net asset value or “NAV” is calculated by dividing the value of the Fund’s total assets less total liabilities by the number of shares outstanding. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not have traded in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary trading, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
Please keep in mind that high double-digit returns were primarily achieved during favorable market conditions. Investors should not expect that such favorable returns can be consistently achieved. A fund’s performance, especially for very short time periods, should not be the sole factor in making your investment decision.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.
6
DBX ETF Trust
Performance Summary (Unaudited)
Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR) (Continued)
* As a percent of total investments.
Portfolio holdings and characteristics are subject to change. For more complete details about the Fund’s investment portfolio see page 15.
7
DBX ETF Trust
Performance Summary (Unaudited)
Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF (ASHS)
The Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF (the “Fund”), using a “passive” or indexing investment approach, seeks investment results that correspond generally to the performance, before fees and expenses, of the CSI 500 Index (the “Underlying Index”). The Underlying Index is designed to reflect the price fluctuation and performance of small-cap companies in the China A-Share market and is composed of the 500 smallest and most liquid stocks in the China A-Share market. The MSCI ACWI ex USA Index is designed to provide exposure to equity securities in developed and emerging stock markets (excluding the United States). It is not possible to invest directly into an index.
| Performance as of May 31, 2021 |
| Average Annual Total Return | ||||||||
| Net Asset Value | Market Value | CSI 500 Index | MSCI ACWI ex USA Index | |||||
| One Year |
38.66% | 39.64% | 39.83% | 42.62% | ||||
| Five Year |
3.12% | 2.83% | 3.97% | 10.86% | ||||
| Since Inception1 |
7.62% | 7.63% | 9.28% | 5.83% | ||||
| Cumulative Total Returns | ||||||||
| Net Asset Value | Market Value | CSI 500 Index | MSCI ACWI ex USA Index | |||||
| One Year |
38.66% | 39.64% | 39.83% | 42.62% | ||||
| Five Year |
16.60% | 14.97% | 21.47% | 67.42% | ||||
| Since Inception1 |
67.61% | 67.78% | 86.74% | 48.97% | ||||
1 Total returns are calculated based on the commencement of operations, May 21, 2014 (“Inception”).
Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at www.Xtrackers.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the sale of fund shares or redemption of fund creation units. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are sold in the market or redeemed. Performance for certain funds may reflect a waiver of a portion of the unitary advisory fee. Without such waiver, performance would have been lower. The gross expense ratio of the Fund, as stated in the fee table of the prospectus dated October 1, 2020, was 0.65%, and may differ from the expense ratio disclosed in the Financial Highlights table in this report.
The Fund’s net asset value or “NAV” is calculated by dividing the value of the Fund’s total assets less total liabilities by the number of shares outstanding. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not have traded in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary trading, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.
8
DBX ETF Trust
Performance Summary (Unaudited)
Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF (ASHS) (Continued)
* As a percentage of total investments.
Portfolio holdings and characteristics are subject to change. For more complete details about the Fund’s investment portfolio see page 20.
9
DBX ETF Trust
Performance Summary (Unaudited)
Xtrackers MSCI All China Equity ETF (CN)
The Xtrackers MSCI All China Equity ETF (the “Fund”), using a “passive” or indexing investment approach, seeks investment results that correspond generally to the performance, before fees and expenses, of the MSCI China All Shares Index (the “Underlying Index”). The Underlying Index is designed to capture large- and mid-capitalization representation across all China securities listed in Hong Kong, Shanghai and Shenzhen. The Underlying Index includes A-Shares, H-Shares, B-Shares, Red chips and P chips share classes, as well as securities of Chinese companies listed outside of China (e.g. American depository receipts). The Fund expects to obtain exposure to the A-Share components of the Underlying Index indirectly by investing in the Xtrackers MSCI China A Inclusion Equity ETF, an affiliated fund advised by DBX Advisors, Inc. (the “Advisor”). The Fund may also invest in Xtrackers Harvest CSI 300 China A-Shares ETF and Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF or other affiliated funds advised by the Advisor and sub-advised by Harvest Global Investments Limited. It is not possible to invest directly into an index.
| Performance as of May 31, 2021 |
| Average Annual Total Return | ||||||
| Net Asset Value | Market Value | MSCI China All Shares Index | ||||
| One Year |
42.89% | 42.87% | 43.49% | |||
| Five Year |
14.49% | 14.63% | 14.52% | |||
| Since Inception1 |
14.26% | 14.27% | 13.41% | |||
| Cumulative Total Returns | ||||||
| Net Asset Value | Market Value | MSCI China All Shares Index | ||||
| One Year |
42.89% | 42.87% | 43.49% | |||
| Five Year |
96.71% | 97.96% | 96.97% | |||
| Since Inception1 |
157.20% | 157.66% | 144.17% | |||
1 Total returns are calculated based on the commencement of operations, April 30, 2014 (“Inception”).
Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at www.Xtrackers.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the sale of fund shares or redemption of fund creation units. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are sold in the market or redeemed. Performance for certain funds may reflect a waiver of a portion of the unitary advisory fee. Without such waiver, performance would have been lower. The gross expense ratio of the Fund, as stated in the fee table of the prospectus dated October 1, 2020, was 0.74%, and may differ from the expense ratio disclosed in the Financial Highlights table in this report. This expense ratio includes net expenses of the affiliated funds in which CN invests.
The Fund’s net asset value or “NAV” is calculated by dividing the value of the Fund’s total assets less total liabilities by the number of shares outstanding. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not have traded in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary trading, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.
10
DBX ETF Trust
Performance Summary (Unaudited)
Xtrackers MSCI All China Equity ETF (CN) (Continued)
* As a percentage of total investments excluding securities lending collateral and cash equivalents. Sector percentages include the sector allocations of the Fund’s investment in Xtrackers MSCI China A Inclusion Equity ETF and Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF
Portfolio holdings and characteristics are subject to change. For more complete details about the Fund’s investment portfolio see page 28.
11
DBX ETF Trust
Performance Summary (Unaudited)
Xtrackers MSCI China A Inclusion Equity ETF (ASHX)
The Xtrackers MSCI China A Inclusion Equity ETF (the “Fund”), using a “passive” or indexing investment approach, seeks investment results that correspond generally to the performance, before fees and expenses, of the MSCI China A Inclusion Index (the “Underlying Index”). The Underlying Index is designed to track the equity market performance of China A-Shares that are accessible through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock Connect program. China A-Shares are equity securities issued by companies incorporated in mainland China and are denominated in renminbi. The MSCI ACWI ex USA Index is designed to provide exposure to equity securities in developed and emerging stock markets (excluding the United States). It is not possible to invest directly into an index.
| Performance as of May 31, 2021 |
| Average Annual Total Return | ||||||||
| Net Asset Value | Market Value | MSCI China A Inclusion Index2 |
MSCI ACWI ex USA Index | |||||
| One Year |
57.91% | 59.58% | 59.02% | 42.62% | ||||
| Five Year |
12.63% | 12.82% | 12.31% | 10.86% | ||||
| Since Inception1 |
9.10% | 9.24% | 8.40% | 8.95% | ||||
| Cumulative Total Returns | ||||||||
| Net Asset Value | Market Value | MSCI China A Inclusion Index2 |
MSCI ACWI ex USA Index | |||||
| One Year |
57.91% | 59.58% | 59.02% | 42.62% | ||||
| Five Year |
81.23% | 82.81% | 78.68% | 67.42% | ||||
| Since Inception1 |
63.08% | 64.30% | 57.33% | 61.90% | ||||
1 Total returns are calculated based on the commencement of operations, October 20, 2015 (“Inception”).
2 On June 4, 2018, the Fund changed its Underlying Index from CSI 300 USD Hedged Index to the Underlying Index. Returns reflect performance for the CSI 300 USD Hedged Index through June 4, 2018. Past performance may have been different if the Fund’s current investment strategy had been in effect.
Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at www.Xtrackers.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the sale of fund shares or redemption of fund creation units. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are sold in the market or redeemed. Performance for certain funds may reflect a waiver of a portion of the unitary advisory fee. Without such waiver, performance would have been lower. The gross expense ratio of the Fund, as stated in the fee table of the prospectus dated October 1, 2020, was 0.60%, and may differ from the expense ratio disclosed in the Financial Highlights table in this report. This expense ratio includes net expenses of the affiliated funds in which ASHX invests.
The Fund’s net asset value or “NAV” is calculated by dividing the value of the Fund’s total assets less total liabilities by the number of shares outstanding. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not have traded in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary trading, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
Please keep in mind that high double-digit returns were primarily achieved during favorable market conditions. Investors should not expect that such favorable returns can be consistently achieved. A fund’s performance, especially for very short time periods, should not be the sole factor in making your investment decision.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.
12
DBX ETF Trust
Performance Summary (Unaudited)
Xtrackers MSCI China A Inclusion Equity ETF (ASHX) (Continued)
* As a percent of total investments excluding exchange-traded funds and cash equivalents.
Portfolio holdings and characteristics are subject to change. For more complete details about the Fund’s investment portfolio see page 33.
13
DBX ETF Trust
As a shareholder of one or more of the Funds, you incur two types of costs: (1) transaction costs, including brokerage commissions paid on purchases and sales of fund shares, and (2) ongoing costs, including unitary advisory fees and other fund expenses. In the most recent six-month period Xtrackers MSCI China A Inclusion Equity ETF and Xtrackers MSCI All China Equity ETF limited these expenses; had they not done so, expenses would have been higher. In addition to the ongoing expenses which each Fund bears directly, the Xtrackers MSCI All China Equity ETF shareholders indirectly bear the expenses of Xtrackers MSCI China A Inclusion Equity ETF and Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF (the “Underlying Funds”) in which the Xtrackers MSCI All China Equity ETF invests. The Underlying Funds’ expenses are not included in Xtrackers MSCI All China Equity ETF’s annualized expense ratios used to calculate the expense estimate in the tables. The expense examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds.
The examples in the tables are based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period (December 1, 2020 to May 31, 2021).
Actual expenses
The first line in the following tables provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expenses Paid During the Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The second line in the following tables provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses (which is not the Funds’ actual return). The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only, and do not reflect any transactional costs. Therefore the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Beginning Account Value December 1, 2020 |
Ending Account Value May 31, 2021 |
Annualized Expense Ratio |
Expenses Paid During the Period Per $1,000(1) |
|||||||||||||
| Xtrackers Harvest CSI 300 China A-Shares ETF |
| |||||||||||||||
| Actual |
$ | 1,000.00 | $ | 1,106.40 | 0.65 | % | $ | 3.41 | ||||||||
| Hypothetical (5% return before expenses) |
$ | 1,000.00 | $ | 1,021.69 | 0.65 | % | $ | 3.28 | ||||||||
| Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF |
| |||||||||||||||
| Actual |
$ | 1,000.00 | $ | 1,090.90 | 0.65 | % | $ | 3.39 | ||||||||
| Hypothetical (5% return before expenses) |
$ | 1,000.00 | $ | 1,021.69 | 0.65 | % | $ | 3.28 | ||||||||
| Xtrackers MSCI All China Equity ETF (2) |
| |||||||||||||||
| Actual |
$ | 1,000.00 | $ | 1,066.20 | 0.25 | % | $ | 1.29 | ||||||||
| Hypothetical (5% return before expenses) |
$ | 1,000.00 | $ | 1,023.68 | 0.25 | % | $ | 1.26 | ||||||||
| Xtrackers MSCI China A Inclusion Equity ETF |
| |||||||||||||||
| Actual |
$ | 1,000.00 | $ | 1,134.90 | 0.60 | % | $ | 3.19 | ||||||||
| Hypothetical (5% return before expenses) |
$ | 1,000.00 | $ | 1,021.94 | 0.60 | % | $ | 3.02 | ||||||||
(1) Expenses are equal to each Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 182 (the number of days in the most recent six-month period), then divided by 365.
(2) The Fund invests in other ETFs and indirectly bears its proportionate share of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses.
14
DBX ETF Trust
Xtrackers Harvest CSI 300 China A-Shares ETF
May 31, 2021
| See Notes to Financial Statements. | 15 |
DBX ETF Trust
Schedule of Investments
Xtrackers Harvest CSI 300 China A-Shares ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 16 |
DBX ETF Trust
Schedule of Investments
Xtrackers Harvest CSI 300 China A-Shares ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 17 |
DBX ETF Trust
Schedule of Investments
Xtrackers Harvest CSI 300 China A-Shares ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 18 |
DBX ETF Trust
Schedule of Investments
Xtrackers Harvest CSI 300 China A-Shares ETF (Continued)
May 31, 2021
| * | Non-income producing security. |
| JSC: | Joint Stock Company |
Fair Value Measurements
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
The following is a summary of the inputs used as of May 31, 2021 in valuing the Fund’s investments. For information on the Fund’s policy regarding the valuation of investments, please refer to the Security Valuation section of Note 2 in the accompanying Notes to Financial Statements.
| Assets |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Common Stocks (a) |
$ | 2,708,960,784 | $ | — | $ | — | $ | 2,708,960,784 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| TOTAL |
$ | 2,708,960,784 | $ | — | $ | — | $ | 2,708,960,784 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (a) | See Schedule of Investments for additional detailed categorizations. |
| See Notes to Financial Statements. | 19 |
DBX ETF Trust
Schedule of Investments
Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF
May 31, 2021
| See Notes to Financial Statements. | 20 |
DBX ETF Trust
Schedule of Investments
Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 21 |
DBX ETF Trust
Schedule of Investments
Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 22 |
DBX ETF Trust
Schedule of Investments
Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 23 |
DBX ETF Trust
Schedule of Investments
Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 24 |
DBX ETF Trust
Schedule of Investments
Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 25 |
DBX ETF Trust
Schedule of Investments
Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 26 |
DBX ETF Trust
Schedule of Investments
Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF (Continued)
May 31, 2021
| * | Non-income producing security. |
| JSC: | Joint Stock Company |
Fair Value Measurements
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
The following is a summary of the inputs used as of May 31, 2021 in valuing the Fund’s investments. For information on the Fund’s policy regarding the valuation of investments, please refer to the Security Valuation section of Note 2 in the accompanying Notes to Financial Statements.
| Assets |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Common Stocks (a) |
$ | 40,162,096 | $ | — | $ | — | $ | 40,162,096 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| TOTAL |
$ | 40,162,096 | $ | — | $ | — | $ | 40,162,096 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (a) | See Schedule of Investments for additional detailed categorizations. |
During the year ended May 31, 2021, the amount of transfers from Level 3 to Level 1 was $ 68,258. The investment was transferred from Level 3 to Level 1 due to the availability of a pricing source supported by observable inputs.
| See Notes to Financial Statements. | 27 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI All China Equity ETF
May 31, 2021
| See Notes to Financial Statements. | 28 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI All China Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 29 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI All China Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 30 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI All China Equity ETF (Continued)
May 31, 2021
A summary of the Fund’s transactions with affiliated investments during the year ended May 31, 2021 is as follows:
| Value ($) at 5/31/2020 |
Purchases Cost ($) |
Sales Proceeds ($) |
Net Realized Gain/(Loss) ($) |
Net Change in Unrealized Appreciation (Depreciation) ($) |
Income ($) | Capital Gain Distributions ($) |
Number of Shares at 5/31/2021 |
Value ($) at 5/31/2021 |
||||||||||||||||||||||||||||
| EXCHANGE-TRADED FUNDS — 43.6% |
|
|||||||||||||||||||||||||||||||||||
| Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF (a)(c) |
| |||||||||||||||||||||||||||||||||||
| 1,059,284 | 489,658 | (252,217 | ) | (17,217 | ) | 437,196 | 6,076 | — | 44,983 | 1,716,704 | ||||||||||||||||||||||||||
| Xtrackers MSCI China A Inclusion Equity ETF (c) |
| |||||||||||||||||||||||||||||||||||
| 6,733,326 | 3,672,015 | (908,333 | ) | 164,591 | 3,862,461 | 88,221 | — | 429,608 | 13,524,060 | |||||||||||||||||||||||||||
| SECURITIES LENDING COLLATERAL — 3.7% |
| |||||||||||||||||||||||||||||||||||
| DWS Government & Agency Securities Portfolio “DWS Government Cash Institutional Shares”, 0.01% (d)(e) |
| |||||||||||||||||||||||||||||||||||
| 1,797,929 | — | (491,225 | )(f) | — | — | 325 | — | 1,306,704 | 1,306,704 | |||||||||||||||||||||||||||
| CASH EQUIVALENTS — 0.0% |
| |||||||||||||||||||||||||||||||||||
| DWS Government Money Market Series “Institutional Shares”, 0.03% (d) |
| |||||||||||||||||||||||||||||||||||
| 11,737 | 3,840,665 | (3,848,180 | ) | — | — | 11 | — | 4,222 | 4,222 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| 9,602,276 | 8,002,338 | (5,499,955 | ) | 147,374 | 4,299,657 | 94,633 | — | 1,785,517 | 16,551,690 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| * | Non-income producing security. |
| (a) | All or a portion of these securities were on loan. In addition, “Other assets and liabilities, net” may include pending sales that are also on loan. The value of securities loaned at May 31, 2021 amounted to $1,992,702, which is 5.7% of net assets. |
| (b) | Investment was valued using significant unobservable inputs. |
| (c) | Affiliated fund advised by DBX Advisors LLC. |
| (d) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
| (e) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. In addition, the Fund held non-cash U.S. Treasury securities collateral having a value of $744,384. |
| (f) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the year ended May 31, 2021. |
| ADR: | American Depositary Receipt |
| 144A: | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
| See Notes to Financial Statements. | 31 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI All China Equity ETF (Continued)
May 31, 2021
At May 31, 2021, open futures contracts purchased were as follows:
| Contract Description |
Currency | Number of Contracts |
Notional Amount |
Contract Value |
Expiration Date |
Unrealized Appreciation |
||||||||||||
| FTSE China A50 Index Futures |
USD | 1 | $ | 18,164 | $18,234 | 6/29/2021 | $ | 70 | ||||||||||
For information on the Fund’s policy and additional disclosures regarding open futures contracts, please refer to the Derivatives section of Note 2 in the accompanying Notes to Financial Statements.
Currency Abbreviations
| USD | U.S. Dollar |
Fair Value Measurements
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
The following is a summary of the inputs used as of May 31, 2021 in valuing the Fund’s investments. For information on the Fund’s policy regarding the valuation of investments, please refer to the Security Valuation section of Note 2 in the accompanying Notes to Financial Statements.
| Assets |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Common Stocks (g) |
$ | 19,620,656 | $ | — | $ | 31,075 | $ | 19,651,731 | ||||||||
| Exchange-Traded Funds |
15,240,764 | — | — | 15,240,764 | ||||||||||||
| Short-Term Investments (g) |
1,310,926 | — | — | 1,310,926 | ||||||||||||
| Derivatives (h) |
||||||||||||||||
| Futures Contracts |
70 | — | — | 70 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| TOTAL |
$ | 36,172,416 | $ | — | $ | 31,075 | $ | 36,203,491 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (g) | See Schedule of Investments for additional detailed categorizations. |
| (h) | Derivatives include unrealized appreciation (depreciation) on open futures contracts. |
During the year ended May 31, 2021, the amount of transfers from Level 1 to Level 3 was $23,887. The investments were transferred from Level 1 to Level 3 due to the lack of observable market data due to a decrease in market activity.
| See Notes to Financial Statements. | 32 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI China A Inclusion Equity ETF
May 31, 2021
| See Notes to Financial Statements. | 33 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI China A Inclusion Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 34 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI China A Inclusion Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 35 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI China A Inclusion Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 36 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI China A Inclusion Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 37 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI China A Inclusion Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 38 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI China A Inclusion Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 39 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI China A Inclusion Equity ETF (Continued)
May 31, 2021
A summary of the Fund’s transactions with affiliated investments during the year ended May 31, 2021 is as follows:
| Value ($) at 5/31/2020 |
Purchases Cost ($) |
Sales Proceeds ($) |
Net Realized Gain/(Loss) ($) |
Net Change in Unrealized Appreciation (Depreciation) ($) |
Income ($) | Capital Gain Distributions ($) |
Number of Shares at 5/31/2021 |
Value ($) at 5/31/2021 |
||||||||||||||||||||||||||||
| EXCHANGE-TRADED FUNDS — 0.0% |
|
|||||||||||||||||||||||||||||||||||
| Xtrackers Harvest CSI 300 China A-Shares ETF (a) |
||||||||||||||||||||||||||||||||||||
| 2,723 | 72,798 | (84,866 | ) | 12,067 | 1,490 | 260 | — | 100 | 4,212 | |||||||||||||||||||||||||||
| SECURITIES LENDING COLLATERAL — 0.0% |
| |||||||||||||||||||||||||||||||||||
| DWS Government & Agency Securities Portfolio “DWS Government Cash Institutional Shares”, 0.01% (b) |
| |||||||||||||||||||||||||||||||||||
| 2,613 | — | (2,613 | )(c) | — | — | 6 | — | — | — | |||||||||||||||||||||||||||
| CASH EQUIVALENTS — 0.4% |
| |||||||||||||||||||||||||||||||||||
| DWS Government Money Market Series “Institutional Shares”, 0.03% (b) |
| |||||||||||||||||||||||||||||||||||
| 339,973 | 6,759,911 | (7,034,493 | ) | — | — | 51 | — | 65,391 | 65,391 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| 345,309 | 6,832,709 | (7,121,972 | ) | 12,067 | 1,490 | 317 | — | 65,491 | 69,603 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| * | Non-income producing security. |
| (a) | Affiliated fund advised by DBX Advisors LLC. |
| (b) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
| (c) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the year ended May 31, 2021. |
| JSC: | Joint Stock Company |
At May 31, 2021, open futures contracts purchased were as follows:
| Contract Description |
Currency | Number of Contracts |
Notional Amount |
Contract Value |
Expiration Date |
Unrealized Depreciation |
||||||||||||
| MSCI China Free Index Futures |
USD | 1 | $ | 61,678 | $59,660 | 6/18/2021 | $ | (2,018 | ) | |||||||||
For information on the Fund’s policy and additional disclosures regarding open futures contracts, please refer to the Derivatives section of Note 2 in the accompanying Notes to Financial Statements.
Currency Abbreviations
| USD | U.S. Dollar |
Fair Value Measurements
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
The following is a summary of the inputs used as of May 31, 2021 in valuing the Fund’s investments. For information on the Fund’s policy regarding the valuation of investments, please refer to the Security Valuation section of Note 2 in the accompanying Notes to Financial Statements.
| Assets |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Common Stocks (d) |
$ | 15,620,054 | $ | — | $ | — | $ | 15,620,054 | ||||||||
| Exchange-Traded Funds |
4,212 | — | — | 4,212 | ||||||||||||
| Short-Term Investments (d) |
65,391 | — | — | 65,391 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| TOTAL |
$ | 15,689,657 | $ | — | $ | — | $ | 15,689,657 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Liabilities |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Derivatives (e) |
||||||||||||||||
| Futures Contracts |
$ | (2,018 | ) | $ | — | $ | — | $ | (2,018 | ) | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
| TOTAL |
$ | (2,018 | ) | $ | — | $ | — | $ | (2,018 | ) | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (d) | See Schedule of Investments for additional detailed categorizations. |
| (e) | Derivatives include unrealized appreciation (depreciation) on open futures contracts. |
| See Notes to Financial Statements. | 40 |
This Page is Intentionally Left Blank
41
DBX ETF Trust
May 31, 2021
| Xtrackers Harvest CSI 300 China A-Shares ETF |
Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF |
Xtrackers MSCI All China Equity ETF |
Xtrackers MSCI China A Inclusion Equity ETF |
|||||||||||||
| Assets |
||||||||||||||||
| Investment in non-affiliated securities at value |
$ | 2,708,960,784 | $ | 40,162,096 | $ | 19,651,731 | $ | 15,620,054 | ||||||||
| Investment in affiliated securities at value |
— | — | 15,240,764 | 4,212 | ||||||||||||
| Investment in DWS Government Money Market Series |
— | — | 4,222 | 65,391 | ||||||||||||
| Investment in DWS Government & Agency Securities Portfolio* |
— | — | 1,306,704 | — | ||||||||||||
| Cash |
40,002,908 | 11,283 | 630 | — | ||||||||||||
| Foreign currency at value |
13,767,219 | † | 124,179 | † | 90,355 | 2,970 | ||||||||||
| Deposit with broker for futures contracts |
— | — | 1,100 | 5,357 | ||||||||||||
| Receivables: | ||||||||||||||||
| Investment securities sold |
— | — | 235,298 | — | ||||||||||||
| Capital shares |
41,925,980 | — | — | — | ||||||||||||
| Variation margin on futures contracts |
— | — | — | 398 | ||||||||||||
| Dividends |
— | — | 54,675 | — | ||||||||||||
| Interest |
— | — | — | 2 | ||||||||||||
| Securities lending income |
— | — | 2,034 | 16 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total assets |
$ | 2,804,656,891 | $ | 40,297,558 | $ | 36,587,513 | $ | 15,698,400 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Liabilities |
||||||||||||||||
| Payable upon return of securities loaned |
$ | — | $ | — | $ | 1,306,704 | $ | — | ||||||||
| Payables: | ||||||||||||||||
| Investment securities purchased |
63,222 | — | 291,822 | — | ||||||||||||
| Capital shares |
219,938 | — | — | — | ||||||||||||
| Investment advisory fees |
1,328,340 | 21,368 | 6,847 | 7,614 | ||||||||||||
| Variation margin on futures contracts |
— | — | 133 | — | ||||||||||||
| Due to authorized participant |
88,056,345 | — | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total liabilities |
89,667,845 | 21,368 | 1,605,506 | 7,614 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net Assets, at value |
$ | 2,714,989,046 | $ | 40,276,190 | $ | 34,982,007 | $ | 15,690,786 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net Assets Consist of |
||||||||||||||||
| Paid-in capital |
$ | 2,022,879,237 | $ | 49,990,106 | $ | 39,431,464 | $ | 13,196,929 | ||||||||
| Distributable earnings (loss) |
692,109,809 | (9,713,916 | ) | (4,449,457 | ) | 2,493,857 | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net Assets, at value |
$ | 2,714,989,046 | $ | 40,276,190 | $ | 34,982,007 | $ | 15,690,786 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Number of Common Shares outstanding |
64,900,001 | 1,050,001 | 750,001 | 500,001 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net Asset Value |
$ | 41.83 | $ | 38.36 | $ | 46.64 | $ | 31.38 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Investment in non-affiliated securities at cost |
$ | 1,721,176,757 | $ | 29,551,802 | $ | 15,843,472 | $ | 9,634,151 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Investment in affiliated securities at cost |
$ | — | $ | — | $ | 11,602,851 | $ | 2,200 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Value of securities loaned |
$ | — | $ | — | $ | 1,992,702 | $ | — | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Investment in DWS Government Money Market Series at cost |
$ | — | $ | — | $ | 4,222 | $ | 65,391 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Investment in DWS Government & Agency Securities Portfolio at cost* |
$ | — | $ | — | $ | 1,306,704 | $ | — | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Non-cash collateral for securities on loan |
$ | — | $ | — | $ | 744,384 | $ | — | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Foreign currency at cost |
$ | 13,766,420 | $ | 122,809 | $ | 90,353 | $ | 2,971 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| * | Represents collateral on securities loaned. |
| † | Included in foreign currency at value is $44,684 and $18,669 respectively which represents foreign investor minimum settlement reserve funds required by China Securities Depository and Clearing Corporation Limited. |
| See Notes to Financial Statements. | 42 |
DBX ETF Trust
For the Year Ended May 31,2021
| Xtrackers Harvest CSI 300 China A-Shares ETF |
Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF |
Xtrackers MSCI All China Equity ETF |
Xtrackers MSCI China A Inclusion Equity ETF |
|||||||||||||
| Investment Income |
||||||||||||||||
| Unaffiliated interest income |
$ | 7,646 | $ | 241 | $ | — | $ | — | ||||||||
| Unaffiliated dividend income* |
31,802,229 | 359,233 | 250,569 | 170,912 | ||||||||||||
| Income distributions from affiliated funds |
— | — | 94,308 | 311 | ||||||||||||
| Affiliated securities lending income |
— | — | 325 | 6 | ||||||||||||
| Unaffiliated securities lending income, net of borrower rebates |
— | — | 29,521 | 827 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total investment income |
31,809,875 | 359,474 | 374,723 | 172,056 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Expenses |
||||||||||||||||
| Investment advisory fees |
14,373,588 | 229,802 | 138,562 | 77,188 | ||||||||||||
| Other expenses |
57 | 57 | 57 | 57 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total expenses |
14,373,645 | 229,859 | 138,619 | 77,245 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Less fees waived (see note 3): |
||||||||||||||||
| Waiver |
— | — | (69,228 | ) | (224 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net expenses |
14,373,645 | 229,859 | 69,391 | 77,021 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net investment income (loss) |
17,436,230 | 129,615 | 305,332 | 95,035 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Realized and Unrealized Gain (Loss) |
||||||||||||||||
| Net realized gain (loss) from: |
||||||||||||||||
| Investments |
(15,761,676 | ) | 2,385,622 | (657,159 | ) | 809,774 | ||||||||||
| Investments in affiliates |
— | — | (19,824 | ) | 12,067 | |||||||||||
| In-kind redemptions |
— | — | 334,367 | — | ||||||||||||
| In-kind redemptions in affiliates |
— | — | 167,198 | — | ||||||||||||
| Futures contracts |
— | — | 30,601 | 3,825 | ||||||||||||
| Foreign currency transactions |
2,323,218 | 22,507 | (665 | ) | (9,938 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net realized gain (loss) |
(13,438,458 | ) | 2,408,129 | (145,482 | ) | 815,728 | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net change in unrealized appreciation (depreciation) on: |
||||||||||||||||
| Investments |
738,566,833 | 8,627,718 | 4,063,079 | 4,386,840 | ||||||||||||
| Investments in affiliates |
— | — | 4,299,657 | 1,490 | ||||||||||||
| Futures contracts |
— | — | (5,250 | ) | (2,018 | ) | ||||||||||
| Foreign currency translations |
(7,482 | ) | 2,241 | 340 | 1,230 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net change in unrealized appreciation (depreciation) |
738,559,351 | 8,629,959 | 8,357,826 | 4,387,542 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net realized and unrealized gain (loss) on investments, futures and foreign currency transactions |
725,120,893 | 11,038,088 | 8,212,344 | 5,203,270 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net Increase (Decrease) in Net Assets Resulting from Operations |
$ | 742,557,123 | $ | 11,167,703 | $ | 8,517,676 | $ | 5,298,305 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| * Unaffiliated foreign tax withheld |
$ | 3,525,923 | $ | 40,773 | $ | 18,355 | $ | 19,333 | ||||||||
| See Notes to Financial Statements. | 43 |
DBX ETF Trust
| Xtrackers Harvest CSI 300 China A-Shares ETF |
Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF |
|||||||||||||||
| Year Ended May 31, | Year Ended May 31, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Increase (Decrease) in Net Assets from Operations |
||||||||||||||||
| Net investment income (loss) |
$ | 17,436,230 | $ | 17,755,118 | $ | 129,615 | $ | 288,193 | ||||||||
| Net realized gain (loss) |
(13,438,458 | ) | (118,536,199 | ) | 2,408,129 | (9,363,413 | ) | |||||||||
| Net change in net unrealized appreciation (depreciation) |
738,559,351 | 105,330,618 | 8,629,959 | 11,865,278 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net increase (decrease) in net assets resulting from operations |
742,557,123 | 4,549,537 | 11,167,703 | 2,790,058 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Distributions to Shareholders |
(21,126,939 | ) | (16,323,622 | ) | (153,080 | ) | (267,342 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Fund Shares Transactions |
||||||||||||||||
| Proceeds from shares sold |
2,035,428,349 | 1,688,068,201 | 1,786,849 | 5,744,566 | ||||||||||||
| Value of shares redeemed |
(1,312,632,305 | ) | (1,854,188,349 | ) | (2,872,080 | ) | (51,817,790 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net increase (decrease) in net assets resulting from fund share transactions |
722,796,044 | (166,120,148 | ) | (1,085,231 | ) | (46,073,224 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total net increase (decrease) in Net Assets |
1,444,226,228 | (177,894,233 | ) | 9,929,392 | (43,550,508 | ) | ||||||||||
| Net Assets |
||||||||||||||||
| Beginning of year |
1,270,762,818 | 1,448,657,051 | 30,346,798 | 73,897,306 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| End of year |
$ | 2,714,989,046 | $ | 1,270,762,818 | $ | 40,276,190 | $ | 30,346,798 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Changes in Shares Outstanding |
||||||||||||||||
| Shares outstanding, beginning of year |
46,750,001 | 55,150,001 | 1,100,001 | 2,850,001 | ||||||||||||
| Shares sold |
54,150,000 | 58,350,000 | 50,000 | 200,000 | ||||||||||||
| Shares redeemed |
(36,000,000 | ) | (66,750,000 | ) | (100,000 | ) | (1,950,000 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Shares outstanding, end of year |
64,900,001 | 46,750,001 | 1,050,001 | 1,100,001 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| See Notes to Financial Statements. | 44 |
DBX ETF Trust
Statements of Changes in Net Assets (Continued)
| Xtrackers MSCI All China Equity ETF |
Xtrackers MSCI China A Inclusion Equity ETF |
|||||||||||||||
| Year Ended May 31, | Year Ended May 31, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Increase (Decrease) in Net Assets from Operations |
||||||||||||||||
| Net investment income (loss) |
$ | 305,332 | $ | 1,014,809 | $ | 95,035 | $ | 376,578 | ||||||||
| Net realized gain (loss) |
(145,482 | ) | (17,508,451 | ) | 815,728 | (1,852,711 | ) | |||||||||
| Net change in net unrealized appreciation (depreciation) |
8,357,826 | 23,027,209 | 4,387,542 | 3,632,894 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net increase (decrease) in net assets resulting from operations |
8,517,676 | 6,533,567 | 5,298,305 | 2,156,761 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Distributions to Shareholders |
(227,422 | ) | (1,586,476 | ) | (106,403 | ) | (280,238 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Fund Shares Transactions |
||||||||||||||||
| Proceeds from shares sold |
9,229,394 | 8,845,595 | 1,666,468 | — | ||||||||||||
| Value of shares redeemed |
(2,131,579 | ) | (221,424,743 | ) | (5,154,277 | ) | (70,409,971 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net increase (decrease) in net assets resulting from fund share transactions |
7,097,815 | (212,579,148 | ) | (3,487,809 | ) | (70,409,971 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total net increase (decrease) in Net Assets |
15,388,069 | (207,632,057 | ) | 1,704,093 | (68,533,448 | ) | ||||||||||
| Net Assets |
||||||||||||||||
| Beginning of year |
19,593,938 | 227,225,995 | 13,986,693 | 82,520,141 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| End of year |
$ | 34,982,007 | $ | 19,593,938 | $ | 15,690,786 | $ | 13,986,693 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Changes in Shares Outstanding |
||||||||||||||||
| Shares outstanding, beginning of year |
600,001 | 7,300,001 | 700,001 | 4,400,001 | ||||||||||||
| Shares sold |
200,000 | 250,000 | 50,000 | — | ||||||||||||
| Shares redeemed |
(50,000 | ) | (6,950,000 | ) | (250,000 | ) | (3,700,000 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Shares outstanding, end of year |
750,001 | 600,001 | 500,001 | 700,001 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| See Notes to Financial Statements. | 45 |
DBX ETF Trust
| Xtrackers Harvest CSI 300 China A-Shares ETF Selected Per Share Data |
Years Ended May 31, | |||||||||||||||||||
| 2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
| Net Asset Value, beginning of year |
$ | 27.18 | $ | 26.27 | $ | 29.56 | $ | 25.84 | $ | 23.74 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||
| Net investment income (loss)(a) |
0.30 | 0.29 | 0.22 | 0.25 | 0.30 | |||||||||||||||
| Net realized and unrealized gain (loss) |
14.67 | 0.91 | (b) | (3.22 | ) | 3.73 | 1.97 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total from investment operations |
14.97 | 1.20 | (3.00 | ) | 3.98 | 2.27 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Less distributions from: |
|
|||||||||||||||||||
| Net investment income |
(0.32 | ) | (0.29 | ) | — | (0.26 | ) | (0.17 | ) | |||||||||||
| Net realized gains |
— | — | (0.29 | ) | — | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total distributions |
(0.32 | ) | (0.29 | ) | (0.29 | ) | (0.26 | ) | (0.17 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net Asset Value, end of year |
$ | 41.83 | $ | 27.18 | $ | 26.27 | $ | 29.56 | $ | 25.84 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Return (%) |
55.20 | 4.50 | (10.02 | ) | 15.38 | 9.62 | ||||||||||||||
| Ratios to Average Net Assets and Supplemental Data |
||||||||||||||||||||
| Net Assets, end of year ($ millions) |
2,715 | 1,271 | 1,449 | 686 | 367 | |||||||||||||||
| Ratio of expenses (%) |
0.65 | 0.65 | 0.65 | 0.66 | 0.67 | |||||||||||||||
| Ratio of net investment income (loss) (%) |
0.79 | 1.05 | 0.87 | 0.82 | 1.24 | |||||||||||||||
| Portfolio turnover rate (%)(c) |
78 | 115 | 81 | 65 | 68 | |||||||||||||||
| Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF Selected Per Share Data |
Years Ended May 31, | |||||||||||||||||||
| 2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
| Net Asset Value, beginning of year |
$ | 27.59 | $ | 25.93 | $ | 32.53 | $ | 31.36 | $ | 33.00 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||
| Net investment income (loss)(a) |
0.13 | 0.17 | 0.20 | 0.04 | (0.03 | ) | ||||||||||||||
| Net realized and unrealized gain (loss) |
10.79 | 1.65 | (6.80 | ) | 1.13 | (1.61 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total from investment operations |
10.92 | 1.82 | (6.60 | ) | 1.17 | (1.64 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Less distributions from: |
|
|||||||||||||||||||
| Net investment income |
(0.15 | ) | (0.16 | ) | — | — | — | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total distributions |
(0.15 | ) | (0.16 | ) | — | — | — | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net Asset Value, end of year |
$ | 38.36 | $ | 27.59 | $ | 25.93 | $ | 32.53 | $ | 31.36 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Return (%) |
39.64 | 7.02 | (20.29 | ) | 3.73 | (4.97 | ) | |||||||||||||
| Ratios to Average Net Assets and Supplemental Data |
||||||||||||||||||||
| Net Assets, end of year ($ millions) |
40 | 30 | 74 | 24 | 20 | |||||||||||||||
| Ratio of expenses (%) |
0.65 | 0.65 | 0.65 | 0.65 | 0.67 | |||||||||||||||
| Ratio of net investment income (loss) (%) |
0.37 | 0.63 | 0.74 | 0.10 | (0.09 | ) | ||||||||||||||
| Portfolio turnover rate (%)(c) |
34 | 48 | 16 | 29 | 51 | |||||||||||||||
| (a) | Based on average shares outstanding during the period. |
| (b) | Because of the timing of subscriptions and redemptions in relation to fluctuating markets at value, the amount shown may not agree with the change in aggregate gains and losses. |
| (c) | Portfolio turnover rate does not include securities received or delivered from processing creations or redemptions. |
| See Notes to Financial Statements. | 46 |
DBX ETF Trust
Financial Highlights (Continued)
| Xtrackers MSCI All China Equity ETF Selected Per Share Data |
Years Ended May 31, | |||||||||||||||||||
| 2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
| Net Asset Value, beginning of year |
$ | 32.66 | $ | 31.13 | $ | 37.78 | $ | 30.54 | $ | 28.36 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||
| Net investment income (loss)(a) |
0.48 | 0.76 | 0.36 | 0.79 | 0.91 | |||||||||||||||
| Net realized and unrealized gain (loss) |
13.85 | 2.21 | (6.42 | ) | 6.75 | 4.26 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total from investment operations |
14.33 | 2.97 | (6.06 | ) | 7.54 | 5.17 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Less distributions from: |
|
|||||||||||||||||||
| Net investment income |
(0.35 | ) | (1.44 | ) | (0.59 | ) | (0.30 | ) | (2.99 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total distributions |
(0.35 | ) | (1.44 | ) | (0.59 | ) | (0.30 | ) | (2.99 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net Asset Value, end of year |
$ | 46.64 | $ | 32.66 | $ | 31.13 | $ | 37.78 | $ | 30.54 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Return (%)(b) |
43.94 | 9.35 | (15.89 | ) | 24.71 | 20.03 | ||||||||||||||
| Ratios to Average Net Assets and Supplemental Data |
||||||||||||||||||||
| Net Assets, end of year ($ millions) |
35 | 20 | 227 | 36 | 5 | |||||||||||||||
| Ratio of expenses before fee waiver (%)(c) |
0.50 | 0.50 | 0.50 | 0.60 | 0.60 | |||||||||||||||
| Ratio of expenses after fee waiver (%)(c) |
0.25 | 0.26 | 0.28 | 0.36 | 0.35 | |||||||||||||||
| Ratio of net investment income (loss) (%) |
1.10 | 2.27 | 1.07 | 2.10 | 3.10 | |||||||||||||||
| Portfolio turnover rate (%)(d) |
8 | 14 | 102 | 3 | 7 | |||||||||||||||
| Xtrackers MSCI China A Inclusion Equity ETF Selected Per Share Data |
Years Ended May 31, | |||||||||||||||||||
| 2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
| Net Asset Value, beginning of year |
$ | 19.98 | $ | 18.75 | $ | 20.80 | $ | 19.53 | $ | 21.86 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||
| Net investment income (loss)(a) |
0.20 | 0.41 | 0.15 | 0.52 | 0.29 | |||||||||||||||
| Net realized and unrealized gain (loss) |
11.44 | 1.19 | (2.03 | ) | 1.30 | 1.05 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total from investment operations |
11.64 | 1.60 | (1.88 | ) | 1.82 | 1.34 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Less distributions from: |
| |||||||||||||||||||
| Net investment income |
(0.24 | ) | (0.37 | ) | (0.17 | ) | (0.55 | ) | (2.82 | ) | ||||||||||
| Net realized gains |
— | — | — | — | (0.85 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total distributions |
(0.24 | ) | (0.37 | ) | (0.17 | ) | (0.55 | ) | (3.67 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net Asset Value, end of year |
$ | 31.38 | $ | 19.98 | $ | 18.75 | $ | 20.80 | $ | 19.53 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Return (%)(b) |
58.37 | 8.49 | (8.91 | ) | 9.12 | 6.42 | (e) | |||||||||||||
| Ratios to Average Net Assets and Supplemental Data |
||||||||||||||||||||
| Net Assets, end of year ($ millions) |
16 | 14 | 83 | 2 | 3 | |||||||||||||||
| Ratio of expenses before fee waiver (%)(c) |
0.60 | 0.60 | 0.60 | 0.70 | 0.72 | |||||||||||||||
| Ratio of expenses after fee waiver (%)(c) |
0.60 | 0.60 | 0.60 | 0.05 | 0.05 | |||||||||||||||
| Ratio of net investment income (loss) (%) |
0.74 | 2.03 | 0.75 | 2.38 | 1.41 | |||||||||||||||
| Portfolio turnover rate (%)(d) |
33 | 27 | 180 | 3 | 6 | |||||||||||||||
| (a) | Based on average shares outstanding during the period. |
| (b) | Total Return would have been lower if certain expenses had not been reimbursed by the Advisor. |
| (c) | The Fund invests in other ETFs and indirectly bears its proportionate shares of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
| (d) | Portfolio turnover rate does not include securities received or delivered from processing creations or redemptions. |
| (e) | The Fund’s total return includes a reimbursement by the Advisor for a realized loss on a trade executed incorrectly, which otherwise would have reduced total return by 0.41%. |
| See Notes to Financial Statements. | 47 |
DBX ETF Trust
1. Organization
DBX ETF Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end registered management investment company organized as a Delaware statutory trust.
As of May 31, 2021, the Trust consists of thirty-five investment series of exchange-traded funds (“ETFs”) (each a “Fund” and collectively, the “Funds”) in operation and trading. These financial statements report on the Funds listed below:
| Xtrackers Harvest CSI 300 China A-Shares ETF |
| Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF |
| Xtrackers MSCI All China Equity ETF |
| Xtrackers MSCI China A Inclusion Equity ETF |
DBX Advisors LLC (“DBX” or the “Advisor”), an indirect, wholly-owned subsidiary of DWS Group GmbH & Co. KGaA (“DWS Group”), serves as investment advisor to the Funds and has overall responsibility for the general management and administration of the Funds, subject to the supervision of the Funds’ Board of Trustees (“Board”).
Each Fund offers shares that are listed and traded on the NYSE Arca, Inc. (“NYSE Arca”). Unlike conventional mutual funds, each Fund issues and redeems shares on a continuous basis, at net asset value (“NAV”), only in large specified lots consisting of 50,000 shares, each called a “Creation Unit”, to authorized participants who have entered into agreements with the Funds’ distributor. Shares are not individually redeemable securities of the Funds, and owners of the shares may acquire those shares from the Funds, or tender such shares for redemption to the Funds, in Creation Units only.
The investment objective of each Fund is to track the performance, before fees and expenses, of a particular index (the “Underlying Index”). The underlying indices for the Funds are:
| Fund |
Underlying Index | |
| Xtrackers Harvest CSI 300 China A-Shares ETF | CSI 300 Index | |
| Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF | CSI 500 Index | |
| Xtrackers MSCI All China Equity ETF | MSCI China All Shares Index | |
| Xtrackers MSCI China A Inclusion Equity ETF | MSCI China A Inclusion Index |
CSI 300 Index is calculated and maintained by China Securities Index Co., Ltd. It is a modified free-float market capitalization weighted index composed of the 300 largest and most liquid stocks in the China A-Share market. Constituent stocks for the Underlying Index generally must have been listed on either the Shanghai Stock Exchange or the Shenzhen Stock Exchange for specified time periods, have demonstrated positive performance, and not be subject to abnormal volatility or other evidence of possible market manipulation, among other factors. The composition of the Underlying Index is reviewed every six-months.
CSI 500 Index is calculated and maintained by China Securities Index Co., Ltd. It is a modified free-float market capitalization weighted index composed of the 500 smallest and most liquid stocks in the China A-Share market. Constituent stocks for the Underlying Index generally must have been listed on either the Shanghai Stock Exchange or the Shenzhen Stock Exchange for specified time periods, have demonstrated positive performance, and not be subject to abnormal volatility or other evidence of possible market manipulation, among other factors. The composition of the Underlying Index is reviewed every six-months.
MSCI China All Shares Index and MSCI China A Inclusion Equity Index are each calculated and maintained by MSCI, Inc. (“MSCI”). The MSCI China All Share Index is a rules-based, free-float adjusted market capitalization index comprised of equity securities that are listed in Hong Kong, Shanghai and Shenzhen. The Underlying Index is intended to give investors a means of tracking the overall performance of equity securities that are a representative sample of the entire Chinese investment universe. The Underlying Index is comprised of A-Shares, B-Shares, H-Shares, Red chips and P chips share classes as well as securities of Chinese companies listed outside of China (e.g. American depository receipts). The Underlying Index is rebalanced on a quarterly basis.
The MSCI China A Inclusion Index is designed to track the equity market performance of China A-Shares that are accessible through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock Connect program (together “Stock Connect”). “A-Shares” are equity securities issued by companies incorporated in
48
DBX ETF Trust
Notes to Financial Statements (Continued)
mainland China and are denominated in renminbi. Certain eligible A-Shares are traded on the Shanghai or Shenzhen Stock Exchanges. The Underlying Index is designed to track the inclusion of A-Shares in the MSCI Emerging Markets Index over time and is constructed by MSCI by applying eligibility criteria for the MSCI Global Investable Market Indexes, and then excluding mid- and small-capitalization A-Shares (as determined by MSCI), A-Shares suspended for trading for more than 50 days in the past 12 months and A-Shares that are not accessible through Stock Connect. The Underlying Index is weighted by each issuer’s free float-adjusted market capitalization (i.e., includes only shares that are readily available for trading in the market) available to foreign investors and includes only large-capitalization companies, as determined by MSCI. The Underlying Index is rebalanced on a quarterly basis.
Each Fund is entitled to use its respective Underlying Index pursuant to a licensing agreement between the Index Provider and DBX. There is no charge to the Funds in connection with these licensing agreements. Each Fund is a diversified series of the Trust. In addition, each Fund, with the exception of Xtrackers MSCI All China Equity ETF, may change its diversification status over time and then change it back again, without shareholder approval, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the index each Fund tracks.
Pursuant to the Trust’s organizational documents, the Trust’s officers and trustees are indemnified against certain liabilities that may arise out of the performance of their duties to the Funds. Additionally, in the normal course of business the Trust enters into contracts that contain a variety of representations that provide indemnification for certain liabilities. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Trust expects the risk of loss to be remote.
2. Significant Accounting Policies
The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), which require management to make certain estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. Each Fund qualifies as an investment company under Topic 946 of the Accounting Standards Codification of U.S. GAAP. The following is a summary of significant accounting policies followed by the Funds.
Security Valuation The NAV of each Fund’s shares is calculated each business day as of the close of regular trading on the New York Stock Exchange, generally 4:00 p.m. Eastern Time. NAV per share is calculated by dividing a Fund’s net assets by the number of Fund shares outstanding.
Various inputs are used in determining the value of the Funds’ investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, and credit risk). Level 3 includes significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
Equity securities and ETFs are valued at the most recent sale price or official closing price reported on the exchange (U.S. or foreign) or over-the-counter market on which they trade. Securities or ETFs for which no sales are reported are valued at the calculated mean between the most recent bid and asked quotations on the relevant market or, if a mean cannot be determined, at the most recent bid quotation. Equity securities and ETFs are generally categorized as Level 1.
Investments in open-end investment companies are valued at their NAV each business day and are categorized as a Level 1.
Futures contracts are generally valued at the settlement prices established each day on the exchange on which they are traded and are categorized as Level 1.
Securities and other assets for which market quotations are not readily available or for which the above valuation procedures are deemed not to reflect fair value are valued in a manner that is intended to reflect their fair value as determined in accordance with procedures approved by the Board and are generally categorized as Level 3. In
49
DBX ETF Trust
Notes to Financial Statements (Continued)
accordance with the Funds’ valuation procedures, factors considered in determining value may include, but are not limited to, the type of the security; the size of the holding; the initial cost of the security; the existence of any contractual restrictions on the security’s disposition; the price and extent of public trading in similar securities of the issuer or of comparable companies; quotations or evaluated prices from broker-dealers and/or pricing services; information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities); an analysis of the company’s or issuer’s financial statements; an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold; length of time of a halt in trading of the security; movement in the security’s proxy index; and with respect to debt securities, the maturity, coupon, creditworthiness, currency denomination and the movement of the market in which the security is normally traded. The value determined under these procedures may differ from published values for the same securities.
Fair value pricing could result in a difference between the prices used to calculate a Fund’s NAV and the prices used by the Fund’s Underlying Index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s Underlying Index.
Disclosure about the classification of the fair value measurements is included in a table following the Fund’s Schedule of Investments.
Cash Cash consists of cash held at banks and is on deposit with major financial institutions.
Investment Transactions and Investment Income Investment transactions are recorded as of the date that the securities are purchased or sold (trade date). Realized gains and losses from the sale or disposition of securities are calculated on the identified cost-method. Dividend income is net of any foreign taxes withheld at source. Certain dividends from foreign securities may be recorded subsequent to the ex-dividend date as soon as the Fund is informed of such dividends. Distributions of income and capital gains from investments in affiliated funds are recorded on the ex-dividend date. Interest income is recorded on the accrual basis. Distributions received from foreign domiciled corporations, generally determined to be passive foreign investment companies for tax reporting purposes, are included in dividend income.
Tax Information and Dividends and Distributions to Shareholders It is each Fund’s policy to comply with all requirements of the Internal Revenue Code of 1986, as amended (“the Code”). Each Fund intends to qualify for and to elect treatment as a separate Regulated Investment Company (“RIC”) under Subchapter M of the Code. It is the policy of each Fund to pay out dividends from its net investment income, if any, to investors annually. Taxable net realized gains from investment transactions, reduced by capital loss carryforwards, if any, are declared and distributed to shareholders at least annually. The capital loss carryforward amount, if any, is available to offset future net capital gains. The Funds may occasionally be required to make supplemental distributions at some other time during the year. The Funds reserve the right to declare special distributions if, in their reasonable discretion, such action is necessary or advisable to preserve the status of each Fund as a RIC or to avoid imposition of income or excise taxes on undistributed income.
Dividends and distributions to shareholders, if any, are recorded on the ex-dividend date. The amount of dividends and distributions from net investment income and net realized capital gains are determined in accordance with Federal income tax regulations which may differ from U.S. GAAP. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified at the end of the year within the components of net assets based on their federal tax treatment; temporary differences do not require reclassification. Dividends and distributions, which exceed earnings and profits for the full year for tax purposes, are reported as a tax return of capital.
In accordance with U.S. GAAP requirements regarding accounting for uncertainties in income taxes, management has analyzed the Funds’ tax positions taken or expected to be taken on foreign, federal and state income tax returns for all open tax years and has concluded that no provision for income tax is required in the Funds’ financial statements.
The Funds recognize interest and penalties, if any, related to uncertain tax positions as income tax expense on the Statements of Operations. For the year ended May 31, 2021, the Funds did not incur any interest or penalties.
50
DBX ETF Trust
Notes to Financial Statements (Continued)
As of May 31, 2021, the components of accumulated earnings (losses) on a tax basis were as follows:
| Undistributed Ordinary Income* |
Capital and Other Gains (Losses) |
Unrealized Appreciation (Depreciation) |
Total Accumulated Earnings (Losses) |
|||||||||||||
| Xtrackers Harvest CSI 300 China A-Shares ETF |
$ | 5,068,578 | $ | (179,246,759 | ) | $ | 866,287,990 | $ | 692,109,809 | |||||||
| Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF |
321,606 | (19,459,039 | ) | 9,423,517 | (9,713,916 | ) | ||||||||||
| Xtrackers MSCI All China Equity ETF |
143,290 | (11,846,298 | ) | 7,253,551 | (4,449,457 | ) | ||||||||||
| Xtrackers MSCI China A Inclusion Equity ETF |
— | (3,360,323 | ) | 5,854,180 | 2,493,857 | |||||||||||
The tax character of dividends and distributions declared for the years ended May 31, 2021 and May 31, 2020 were as follows:
| Year Ended May 31, 2021 |
||||
| Ordinary Income* | ||||
| Xtrackers Harvest CSI 300 China A-Shares ETF |
$ | 21,126,939 | ||
| Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF |
153,080 | |||
| Xtrackers MSCI All China Equity ETF |
227,422 | |||
| Xtrackers MSCI China A Inclusion Equity ETF |
106,403 | |||
| Year Ended May 31, 2020 |
||||
| Ordinary Income* | ||||
| Xtrackers Harvest CSI 300 China A-Shares ETF |
$ | 16,323,622 | ||
| Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF |
267,342 | |||
| Xtrackers MSCI All China Equity ETF |
1,586,476 | |||
| Xtrackers MSCI China A Inclusion Equity ETF |
280,238 | |||
| * | For tax purposes short-term capital gain distributions are considered ordinary income distributions. |
At May 31, 2021, for Federal income tax purposes, the Funds have capital loss carryforwards available as shown in the table below, to the extent provided by regulations, to offset future capital gains for an unlimited period. To the extent that these Loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to shareholders.
| Short-Term | Long-Term | Total Amount | ||||||||||
| Xtrackers Harvest CSI 300 China A-Shares ETF |
$ | 90,874,516 | $ | 88,372,243 | $ | 179,246,759 | ||||||
| Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF |
14,207,936 | 5,251,103 | 19,459,039 | |||||||||
| Xtrackers MSCI All China Equity ETF |
7,314,851 | 4,531,447 | 11,846,298 | |||||||||
| Xtrackers MSCI China A Inclusion Equity ETF |
3,350,913 | — | 3,350,913 | |||||||||
Capital losses incurred after October 31 (“post-October capital losses”) and late year ordinary losses incurred after December 31 within the taxable year are deemed to arise on the first business day of each Fund’s next taxable year. During the fiscal year ended May 31, 2021, the Fund listed below incurred and will elect to defer late year ordinary losses as follows. The Funds had no post-October capital losses.
| Late Year Ordinary Losses |
||||
| Xtrackers MSCI China A Inclusion Equity ETF |
$ | 9,410 | ||
For the fiscal year ended May 31, 2021, the effect of permanent “book/tax” reclassifications to the components of net assets are included below. These differences are primarily due to the recognition of certain foreign currency gain (losses) as ordinary income (loss), passive foreign investment companies (“PFICs”), and redemptions-in-kind.
| Distributable earnings (loss) |
Paid-In Capital |
|||||||
| Xtrackers MSCI All China Equity ETF |
$ | (425,995 | ) | $ | 425,995 | |||
51
DBX ETF Trust
Notes to Financial Statements (Continued)
As of May 31, 2021, the aggregate cost of investments for federal income tax purposes, the net unrealized appreciation or depreciation and the aggregated gross unrealized appreciation (depreciation) on investments were as follows:
| Aggregate Tax Cost |
Net Unrealized Appreciation (Depreciation) |
Aggregate Gross Unrealized Appreciation |
Aggregate Gross Unrealized (Depreciation) |
|||||||||||||
| Xtrackers Harvest CSI 300 China A-Shares ETF |
$ | 1,842,673,593 | $ | 866,287,191 | $ | 933,007,498 | $ | (66,720,307 | ) | |||||||
| Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF |
30,740,431 | 9,421,665 | 11,670,470 | (2,248,805 | ) | |||||||||||
| Xtrackers MSCI All China Equity ETF |
28,950,002 | 7,253,489 | 8,003,840 | (750,351 | ) | |||||||||||
| Xtrackers MSCI China A Inclusion Equity ETF |
9,835,476 | 5,854,181 | 6,172,745 | (318,564 | ) | |||||||||||
Foreign Taxes The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, capital gains on investments, certain foreign currency transactions or other corporate events. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and are reflected in their Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on capital gains from sales of investments and foreign currency transactions are included in their respective net realized gain (loss) categories, and deferred foreign taxes on unrealized gains are included in net change in unrealized appreciation (depreciation). Receivables and payables related to foreign taxes as of May 31, 2021, if any, are disclosed in the Funds’ Statements of Assets and Liabilities.
The Funds’ direct investments in China A-Shares will be subject to a number of Chinese tax rules and the application of many of those rules is evolving. Chinese taxes that may apply to the Funds’ direct investments in A-Shares include withholding income tax (“WHT”) on dividends, WHT on bank interest, WHT on capital gains realized from the disposal of equity investments prior to November 17, 2014 and stamp tax. China imposes WHT at a rate of 10% on dividends on shares and interest income derived by non People’s Republic of China (“PRC”) enterprises including Qualified Foreign Institutional Investors (“QFII”) and renminbi Qualified Foreign Institutional Investors (“RQFII”) from PRC resident issuers, subject to any lower rate provided by an applicable tax treaty.
With the approval from the PRC State Council, the PRC State Administration of Taxation, the PRC Ministry of Finance and the China Securities Regulatory Commission jointly issued Caishui [2014] 79 (Circular 79) on November 14, 2014. According to Circular 79, RQFIIs are temporarily exempt from WHT with respect to gains derived from the trading of equity investments (including shares in PRC enterprises) effective from November 17, 2014. With respect to gains derived from equity investments prior to November 17, 2014, RQFIIs are subject to WHT at a rate of 10% on such gains on a gross basis, subject to any lower rate provided by an applicable tax treaty. The above WHT treatment applies to RQFIIs which do not have a permanent establishment (“PE”) in the PRC. The Funds do not have PEs in the PRC, therefore, the Funds are only subject to WHT at 10% with respect to gross realized gains derived from the disposal of land-rich A-Share companies and exempt from WHT with respect to gross realized gains derived from non land-rich A-Share companies prior to November 17, 2014. Land-rich enterprises refer to companies whose value of immovable property in the PRC is greater than 50% of the value of their total assets at any time during the three-year period before the alienation of the PRC companies’ shares. The WHT relating to the realized gains from shares in land-rich companies prior to November 17, 2014 has been paid by the Xtrackers Harvest CSI 300 China A-Shares ETF and Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF while realized gains from shares in non land-rich companies prior to November 17, 2014 were granted treaty relief pursuant to the PRC-US Double Taxation Arrangement.
The PRC rules for taxation of RQFIIs (and QFIIs) are evolving and the tax regulations to be issued by the PRC State Administration of Taxation and/or PRC Ministry of Finance, as well as the practices adopted by the local PRC authorities, may apply retroactively which may adversely affect the Fund and its shareholders.
Foreign Currency Translations The books and records of the Funds are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the
52
DBX ETF Trust
Notes to Financial Statements (Continued)
prevailing exchange rates at period end. Purchases and sales of investment securities, income and expenses are translated into U.S. dollars at the prevailing exchange rates on the respective dates of the transactions.
Net realized and unrealized gains and losses on foreign currency transactions represent net gains and losses between trade and settlement dates on securities transactions, the acquisition and disposition of foreign currencies, and the difference between the amount of net investment income accrued and the U.S. dollar amount actually received. The portion of both realized and unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed, but is included with net realized and unrealized gain/appreciation and loss/depreciation on investments.
Securities Lending The Xtrackers MSCI All China Equity ETF and Xtrackers MSCI China A Inclusion Equity ETF may lend securities to certain financial institutions under the terms of their securities lending agreement. During the term of the loans, the Funds continue to receive interest and dividends generated by the securities and to participate in any changes in their market value. The Funds require the borrowers of the securities to maintain collateral with the Funds consisting of cash and/or securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities having a value at least equal to the value of the securities loaned. When the collateral falls below specified amounts, the lending agent will use its best effort to obtain additional collateral on the next business day to meet required amounts under the securities lending agreement. During the year ended May 31, 2021, the Funds invested the cash collateral into a joint trading account in DWS Government & Agency Securities Portfolio, an affiliated money market fund managed by DWS Investment Management Americas, Inc. DWS Investment Management Americas, Inc. receives a management/administration fee (0.01% annualized effective rate as of May 31, 2021) on the cash collateral invested in DWS Government & Agency Securities Portfolio. The Funds receive compensation for lending their securities either in the form of fees or by earning interest on invested cash collateral, net of borrower rebates and fees paid to a lending agent. Either the Fund or the borrower may terminate the loan at any time and the borrower, after notice, is required to return borrowed securities within a standard time period. There may be risks of delay and costs in recovery of securities or even loss of rights in the collateral should the borrower of the securities fail financially. If the Funds are not able to recover securities lent, the Funds may sell the collateral and purchase a replacement investment in the market, incurring the risk that the value of the replacement security is greater than the value of the collateral. The Funds are also subject to all investment risks associated with the reinvestment of any cash collateral received, including, but not limited to, interest rate, credit and liquidity risk associated with such investments.
As of May 31, 2021, the Funds listed below had securities on loan. The value of the related collateral exceeded the value of the securities loaned at period end.
| Remaining Contractual Maturity of the Agreements, as of May 31, 2021 |
||||||||||||||||||||
| Securities Lending Transactions | Overnight and Continuous |
<30 Days | Between 30 & 90 days |
>90 days | Total | |||||||||||||||
| Xtrackers MSCI All China Equity ETF |
| |||||||||||||||||||
| Common Stocks |
$ | 269,304 | $ | 7,682 | $ | 15,636 | $ | 721,066 | $ | 1,013,688 | ||||||||||
| Exchange-Traded Funds |
1,037,400 | — | — | — | 1,037,400 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Borrowings |
$ | 1,306,704 | $ | 7,682 | $ | 15,636 | $ | 721,066 | $ | 2,051,088 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Gross amount of recognized liabilities and non-cash collateral for securities lending transactions |
|
$ | 2,051,088 | |||||||||||||||||
As of May 31, 2021, Xtrackers MSCI China A Inclusion Equity ETF had no securities on loan.
Derivatives
Futures Contracts Each Fund may enter into futures contracts. These futures contracts will be used to simulate investment in the respective Underlying Index, to facilitate trading or to reduce transaction costs. Each Fund will enter into futures contracts that are traded on a U.S. or non-U.S. exchange. No Fund will use futures for speculative purposes. Futures contracts provide for the future sale by one party and purchase by another party of a specified amount of a specific instrument or index at a specified future time and at a specified price. For the year ended May 31, 2021, Xtrackers MSCI All China Equity ETF and Xtrackers MSCI China A Inclusion Equity ETF utilized futures in order to simulate investment in the Funds’ Underlying Index. To the extent required by law, liquid assets committed to futures contracts will be maintained.
53
DBX ETF Trust
Notes to Financial Statements (Continued)
At the time each Fund enters into a futures contract, each Fund deposits and maintains as collateral an initial margin with the broker, as required by the exchange on which the transaction is affected. Pursuant to the contract, each Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by each Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for exchange-traded futures contracts is generally less than privately negotiated futures contracts, since the clearinghouse, which is the issuer or counterparty to each exchange-traded future, provides a guarantee of performance. The guarantee is supported by a daily payment system (i.e., margin requirements).
Use of long futures contracts subjects each Fund to risk of loss in excess of the amounts shown on the Statement of Assets and Liabilities, up to the notional value of the futures contracts. Use of short futures contracts subjects each Fund to unlimited risk of loss. Under some circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day’s settlement price, which could effectively prevent liquidation of unfavorable positions.
A summary of the open futures contracts as of May 31, 2021 is included in a table following the Funds’ Schedule of Investments.
The following tables summarize the value of the Funds’ derivative instruments held as of May 31, 2021 and the related location in the accompanying Statement of Assets and Liabilities, presented by primary underlying risk exposure:
| Asset Derivatives |
Liability Derivatives |
|||||||||||||
| Xtrackers MSCI All China Equity ETF | ||||||||||||||
| Equity contracts | Unrealized appreciation on futures contracts* | $ | 70 | Unrealized depreciation on futures contracts* | $ | — | ||||||||
| Xtrackers MSCI China A Inclusion Equity ETF | ||||||||||||||
| Equity contracts | Unrealized appreciation on futures contracts* | $ | — | Unrealized depreciation on futures contracts* | $ | 2,018 | ||||||||
| * | Includes cumulative appreciation or cumulative depreciation on futures contracts as disclosed in the Schedule of Investments. Unsettled variation margin is disclosed separately within the Statement of Assets and Liabilities. |
Additionally, the amount of realized and unrealized gains and losses on derivative instruments recognized in the Funds’ earnings during the year ended May 31, 2021 and the related location in the accompanying Statement of Operations is summarized in the following tables by primary underlying risk exposure:
| Net Realized Gain (Loss) from: |
||||
| Futures Contracts— Equity Contracts |
||||
| Xtrackers MSCI All China Equity ETF |
$ | 30,601 | ||
| Xtrackers MSCI China A Inclusion Equity ETF |
3,825 | |||
| Net Change in Unrealized Appreciation (Depreciation) on: |
||||
| Futures Contracts— Equity Contracts |
||||
| Xtrackers MSCI All China Equity ETF |
$ | (5,250 | ) | |
| Xtrackers MSCI China A Inclusion Equity ETF |
(2,018 | ) | ||
For the year ended May 31, 2021 the average monthly volume of derivatives was as follows:
| Futures Contracts (Contract Value) |
||||
| Xtrackers MSCI All China Equity ETF |
$ | 48,118 | ||
| Xtrackers MSCI China A Inclusion Equity ETF |
28,122 | |||
54
DBX ETF Trust
Notes to Financial Statements (Continued)
Affiliated Cash Management Vehicles The Funds may invest uninvested cash balances in DWS Government Money Market Series and DWS ESG Liquidity Fund, affiliated money market funds which are managed by DWS Investment Management Americas, Inc. (“DIMA”), also an indirect, wholly owned subsidiary of DWS Group GmbH & Co. KGaA. Each affiliated money market fund is managed in accordance with Rule 2a-7 under the 1940 Act, which governs the quality, maturity, diversity and liquidity of instruments in which a money market fund may invest. DWS Government Money Market Series seeks to maintain a stable NAV, and DWS ESG Liquidity Fund maintains a floating NAV. The Funds indirectly bear their proportionate share of the expenses of each affiliated money market fund in which they invest. The Advisor will waive an amount of the unitary advisory fee payable to the Advisor by the Funds equal to such acquired fund’s fees and expenses on the Funds’ assets invested in the affiliated money market funds.
3. Investment Advisory and Other Agreements
The Advisor has overall responsibility for the general management and administration of the Funds, subject to the supervision of the Funds’ Board of Trustees. Under an investment advisory agreement between the Trust, on behalf of the Funds, and the Advisor (the “Investment Advisory Agreement”), the Advisor is responsible for arranging sub-advisory, transfer agency, custody, fund administration, and all other non-distribution related services for the Funds to operate.
Harvest Global Investments Limited serves as investment sub-Advisor (the “Sub-Advisor”) to the Xtrackers Harvest CSI 300 China A-Shares ETF and the Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF. The Sub-Advisor is responsible for day-to-day management of each Fund, subject to supervision of the Advisor.
For its investment advisory services to the Funds below, the Advisor is entitled to receive a unitary advisory fee based on each Fund’s average daily net assets, computed and accrued daily and payable monthly, at an annual rate equal to:
| Unitary Advisory Fee |
||||
| Xtrackers Harvest CSI 300 China A-Shares ETF |
0.65 | % | ||
| Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF |
0.65 | % | ||
| Xtrackers MSCI All China Equity ETF |
0.50 | % | ||
| Xtrackers MSCI China A Inclusion Equity ETF |
0.60 | % | ||
The Advisor for Xtrackers MSCI All China Equity ETF has contractually agreed, until November 14, 2021, to waive a portion of its unitary advisory fee in an amount equal to the acquired fund’s fees and expenses attributable to the Fund’s investments in affiliated funds. In addition, the Advisor has contractually agreed, until September 30, 2021, to waive a portion of its unitary advisory fee to the extent necessary to prevent the operating expenses of the Fund from exceeding 0.50% of the Fund’s average daily net assets. For the year ended May 31, 2021, the Advisor waived $69,209 of the expenses of the Fund which were attributable to the Fund’s investments in affiliated funds.
The Advisor for Xtrackers MSCI China A Inclusion Equity ETF has contractually agreed to waive a portion of its unitary advisory fee in an amount equal to the acquired fund’s fees and expenses attributable to the Fund’s investments in affiliated funds. For the year ended May 31, 2021, the Advisor waived $188 of the expenses of the Fund.
The Advisor for the Funds below has contractually agreed to waive a portion of its unitary advisory fee in an amount equal to the acquired funds’ fees and expenses attributable to the Funds’ investments in affiliated cash management vehicles. For the year ended May 31, 2021, the Advisor waived expenses of the Funds as follows:
| Expenses Waived |
||||
| Xtrackers MSCI All China Equity ETF |
$ | 19 | ||
| Xtrackers MSCI China A Inclusion Equity ETF |
36 | |||
55
DBX ETF Trust
Notes to Financial Statements (Continued)
Out of the unitary advisory fee, the Advisor pays substantially all expenses of each Fund, including the cost of transfer agency, custody, fund administration, legal, audit and other services, and expenses of the Independent Trustees. Each Fund is responsible for the payment of interest expense, acquired fund fees and expenses, taxes, brokerage expenses, distribution fees or expenses, if any, litigation expenses and extraordinary expenses.
The Bank of New York Mellon, a wholly-owned subsidiary of The Bank of New York Mellon Corporation, serves as Administrator, Custodian, Accounting Agent, Lending Agent and Transfer Agent for each Fund.
ALPS Distributors, Inc. (the “Distributor”) serves as the distributor of Creation Units for each Fund on an agency basis. The Distributor does not maintain a secondary market in shares of the Funds.
The Board of Trustees is currently comprised of three Independent Trustees. The Advisor paid retainer fees and attendance fees to each Independent Trustee; retainer fees to the Chairman of the Board of Trustees and Chairman of the Audit Committee; and attendance fees to each member of the Audit Committee (which is comprised of all of the Funds’ Independent Trustees).
4. Investment Portfolio Transactions
For the year ended May 31, 2021, the cost of investments purchased and proceeds from sale of investments (excluding in-kind transactions and short-term investments) were as follows:
| Purchases | Sales | |||||||
| Xtrackers Harvest CSI 300 China A-Shares ETF |
$ | 2,410,876,371 | $ | 1,691,774,860 | ||||
| Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF |
11,970,404 | 13,075,407 | ||||||
| Xtrackers MSCI All China Equity ETF |
5,778,347 | 2,267,947 | ||||||
| Xtrackers MSCI China A Inclusion Equity ETF |
4,368,371 | 7,921,408 | ||||||
For the year ended May 31, 2021, the cost of in-kind purchases and proceeds from in-kind sale were as follows:
| Purchases | Sales | |||||||
| Xtrackers MSCI All China Equity ETF |
$ | 5,788,240 | $ | 2,128,467 | ||||
5. Fund Share Transactions
As of May 31, 2021, there were unlimited Fund shares, no par value, authorized by the Trust. Fund shares are issued and redeemed by each Fund only in Creation Units or multiples thereof. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the Statements of Changes in Net Assets. The consideration for the purchase of Creation Units of Xtrackers MSCI All China Equity ETF generally consists of the in-kind contribution of a designated portfolio of securities constituting a portfolio sampling representation of the securities included in the respective Fund’s Underlying Index and an amount of cash, which under certain circumstances may include cash in lieu of portfolio securities. The purchase of Creation Units for Xtrackers Harvest CSI 300 China A-Shares ETF, Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF and Xtrackers MSCI China A Inclusion Equity ETF are generally issued in exchange for a specific amount of cash totaling the NAV of the Creation Units. Investors purchasing and redeeming Creation Units pay a purchase transaction fee and a redemption transaction fee to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units.
6. Investing in China
Investing in securities of Chinese issuers involves certain risks and considerations not typically associated with investing in securities of U.S. issuers, including, among others; more frequent (and potentially widespread) trading suspensions and government interventions with respect to Chinese issuers, resulting in lack of liquidity and in price volatility; currency revaluations and other currency exchange rate fluctuations or blockage; the nature and extent of intervention by the Chinese government in the Chinese securities markets (including both direct and indirect market stabilization efforts, which may affect valuations of Chinese issuers), whether such intervention will continue and the impact of such intervention or its discontinuation; the risk of nationalization or expropriation of assets; the risk that the Chinese government may decide not to continue to support economic reform programs; limitations on the use of brokers (or action by the Chinese government that discourages brokers from
56
DBX ETF Trust
Notes to Financial Statements (Continued)
serving international clients); higher rates of inflation; greater political, economic and social uncertainty; higher market volatility caused by any potential regional territorial conflicts or natural disasters; the risk of increased trade tariffs, embargoes and other trade limitations; restrictions on foreign ownership; custody risks associated with investing through Stock Connect, an RQFII or other programs to access the Chinese securities markets, both interim and permanent market regulations which may affect the ability of certain stockholders to sell Chinese securities when it would otherwise be advisable; and different and less stringent financial reporting standards. In addition, in June 2021, President Biden issued an executive order (“CMIC Order”) prohibiting US persons, including the Funds, from purchasing or selling publicly traded securities (including publicly traded securities that are derivative of, or designed to provide exposure to, such securities) of any Chinese company identified as a “Chinese Military-Industrial Complex Company” (“CMIC”). This prohibition, effective August 2, 2021, expands on similar sanctions imposed by the prior administration on certain designated Chinese military companies (“CCMCs”) that took effect in January 2021. To the extent that any company in an Underlying Index is identified as a CMIC at any time (or was previously designed as a CCMC), it may have material adverse effect on a fund’s ability to track its Underlying Index.
7. Line of Credit
The Trust has entered into a senior unsecured credit facility with a syndication of banks which allows the Xtrackers Harvest CSI 300 China A-Shares ETF, Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF, Xtrackers MSCI China A Inclusion Equity ETF and certain other funds managed by the Advisor to borrow up to $105 million. Each Fund may borrow money under this credit facility to the extent necessary for temporary or emergency purposes, including the funding of shareholder redemption requests, trade settlements, and as necessary to distribute to shareholders any income necessary to maintain each Funds’ status as a regulated investment company. Borrowings are charged an interest rate of 1.25% per annum plus the greater of the Federal Funds Effective Rate or the one-month LIBOR Rate. Each Fund may borrow up to the lesser of 33 percent of its net assets as permitted by the Act or 25 percent of adjusted total net assets. The Funds had no outstanding loans at May 31, 2021.
8. Other — COVID-19 Pandemic
A novel coronavirus known as COVID-19, declared a pandemic by the World Health Organization, has caused significant uncertainty, market volatility, decreased economic and other activity, increased government activity, including economic stimulus measures, and supply chain interruptions. The full effects, duration and costs of the COVID-19 pandemic are impossible to predict, and the circumstances surrounding the COVID-19 pandemic will continue to evolve, including the risk of future increased rates of infection due to low vaccination rates and/or the lack of effectiveness of current vaccines against new variants. The pandemic has affected and may continue to affect certain countries, industries, economic sectors, companies and investment products more than others, may exacerbate existing economic, political, or social tensions and may increase the probability of an economic recession or depression. The Funds’ and their investments may be adversely affected by the effects of the COVID-19 pandemic, and the pandemic may result in the Funds and their service providers experiencing operational difficulties in coordinating a remote workforce and implementing their business continuity plans, among others. Management will continue to monitor the impact COVID-19 has on the Funds and reflect the consequences as appropriate in the Funds’ accounting and financial reporting.
57
DBX ETF Trust
To the Shareholders of
Xtrackers Harvest CSI 300 China A-Shares ETF, Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF, Xtrackers MSCI All China Equity ETF and Xtrackers MSCI China A Inclusion Equity ETF and the Board of Trustees of DBX ETF Trust
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities of Xtrackers Harvest CSI 300 China A-Shares ETF, Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF, Xtrackers MSCI All China Equity ETF and Xtrackers MSCI China A Inclusion Equity ETF (collectively referred to as the “Funds”), (four of the funds constituting DBX ETF Trust (the “Trust”)), including the schedules of investments, as of May 31, 2021, and the related statements of operations for the year ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds (four of the funds constituting DBX ETF Trust) at May 31, 2021, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and their financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Trust’s management. Our responsibility is to express an opinion on each of the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal control over financial reporting. As part of our audits we are required to obtain an understanding of the internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of May 31, 2021, by correspondence with the custodians and brokers or by other appropriate auditing procedures where replies from brokers were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more investment companies in the DWS family of funds since at least 1979, but we are unable to determine the specific year.
New York, New York
July 26, 2021
58
DBX ETF Trust
In accordance with Rule 22e-4 (the “Liquidity Rule”) under the Investment Company Act of 1940 (the “1940 Act”), your Fund has adopted a liquidity risk management program (the “Program”), and the Board has designated DBX Advisors LLC (“Advisors”) as Program administrator. The Program is designed to assess and manage your Fund’s liquidity risk (the risk that the Fund would be unable to meet requests to redeem shares of the Fund without significant dilution of remaining investors’ interests in the Fund). Advisors has designated a committee (the “Committee”) composed of personnel from multiple departments within an affiliate of Advisors that is responsible for the implementation and ongoing administration of the Program, which includes assessing the Fund’s liquidity risk under both normal and reasonably foreseeable stressed conditions. Under the Program, every investment held by a Fund is classified on a daily basis into one of four liquidity categories based on estimations of the investment’s ability to be sold during designated timeframes in current market conditions without significantly changing the investment’s market value.
Xtrackers MSCI All China Equity ETF
In February 2021, as required by the Program and the Liquidity Rule, Advisors provided the Board with an annual written report (the “Report”) addressing the operation of the Program and assessing the adequacy and effectiveness of its implementation during the period from December 1, 2019 through November 30, 2020 (the “Reporting Period”). During the Reporting Period, your Fund was primarily invested in highly liquid investments (investments that the Fund anticipates can be converted to cash within three business days or less in current market conditions without significantly changing their market value). As a result, your Fund is not required to adopt, and has not adopted, a “Highly Liquid Investment Minimum” as defined in the Liquidity Rule. During the Reporting Period, the Fund did not approach the 15% limit imposed by the Liquidity Rule on holdings in illiquid investments (investments that cannot be sold or disposed of in seven days or less in current market conditions without the sale of the investment significantly changing the market value of the investment). Your Fund did not experience any issues meeting investor redemptions at any time during the Reporting Period. In the Report, Advisors stated that it believes the Program has operated adequately and effectively to manage the Fund’s liquidity risk during the Reporting Period. Advisors also reported that there were no material changes made to the Program during the Reporting Period.
Xtrackers Harvest CSI 300 China A-Shares ETF, Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF and Xtrackers MSCI China A Inclusion Equity ETF
In February 2021, as required by the Program and the Liquidity Rule, Advisors provided the Board with an annual written report (the “Report”) addressing the operation of the Program and assessing the adequacy and effectiveness of its implementation during the period from December 1, 2019 through November 30, 2020 (the “Reporting Period”). During the Reporting Period, your Fund was primarily invested in highly liquid investments (investments that the Fund anticipates can be converted to cash within three business days or less in current market conditions without significantly changing their market value). As a result, your Fund is not required to adopt, and has not adopted, a “Highly Liquid Investment Minimum” as defined in the Liquidity Rule. During the Reporting Period, on two occasions the Fund did experience a temporary breach of the 15% limit imposed by the Liquidity Rule on holdings in illiquid investments (investments that cannot be sold or disposed of in seven days or less in current market conditions without the sale of the investment significantly changing the market value of the investment). The breach was caused by the temporary reclassification of Chinese securities as illiquid due to an extended Chinese and Taiwan holiday market closure in late January 2020 and a separate extended Chinese holiday market closure in early October 2020. In each instance, the temporary reclassification of Chinese securities caused the Fund to exceed the 15% limit on illiquid investments for a two day period. Because notifications to the Fund’s board of the anticipated extended holiday closures were made before the start of each holiday closure no filing on Form N-LIQUID was required. Also, because the holiday closures were anticipated in advance, no actions were needed to rebalance the Fund’s portfolio. Your Fund did not experience any issues meeting investor redemptions at any time during the Reporting Period. In the Report, Advisors stated that it believes the Program has operated adequately and effectively to manage the Fund’s liquidity risk during the Reporting Period. Advisors also reported that there were no material changes made to the Program during the Reporting Period.
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DBX ETF Trust
Xtrackers MSCI All China Equity ETF and Xtrackers MSCI China A Inclusion Equity ETF
Board Approval of Investment Advisory Agreement with DBX Advisors LLC
After discussions at the meeting of the Board of Trustees (“Board” or “Trustees”) held on February 17-18, 2021 (the “Meeting”), the Trustees, all of whom are the Independent Trustees (those not affiliated with DBX ETF Trust (the “Trust”) or its service providers), unanimously approved the continuance of the Investment Advisory Agreement with respect to Xtrackers MSCI All China Equity ETF, and Xtrackers MSCI China A Inclusion Equity ETF (each a “Fund,” and collectively, the “Funds”). The Independent Trustees were advised throughout the review and Meeting by K&L Gates LLP (“Independent Trustee Counsel”).
Before reaching their decision to approve the Investment Advisory Agreement for another annual period, the Independent Trustees evaluated the materials furnished to them in advance of the Meeting from DBX Advisors LLC (“DBX” or the “Advisor”) for purposes of reviewing the agreement’s terms, including statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”) regarding (a) fee and expense information for each Fund (including the fee and expense components and any amounts waived or reimbursed) as compared to a peer group of other exchange-traded funds (“ETFs”) selected pursuant to Broadridge’s proprietary methodology (each, a “Peer Group”) and (b) each Fund’s tracking error as compared to its underlying index over the previous five years (or since inception, if shorter). The Independent Trustees also took into consideration the discussions they had with management during the Meeting and among themselves during their Executive Sessions held on February 17 and February 18, 2021. The Independent Trustees also noted that they had received and should take into consideration a substantial amount of information furnished throughout the year at regular Board meetings, which information included, among other things, an analysis of each Fund’s investment performance, tracking error and related financial information, presentations given by DBX, as well as its periodic reports on brokerage commissions, portfolio execution and other services provided to the Funds.
In reaching its decision to continue in effect the Investment Advisory Agreement for another annual period, the Board considered all factors it believed relevant, including (1) the nature, extent and quality of the services provided to the Funds and their shareholders; (2) the financial resources of DBX and its resulting ability to perform its obligations under the Investment Advisory Agreement; (3) the competitiveness of the advisory fee; (4) the total cost of the services provided by and the profits realized by the Advisor from its relationship with the Funds; (5) the extent to which economies of scale have been realized, and if the Funds’ shareholders have benefitted from those economies; and (6) fall out benefits, if any, enjoyed by the Advisor.
The Board reached a determination, with the assistance of Independent Trustee Counsel and Dechert LLP (“Trust Counsel”) and through the exercise of its business judgment, that approval of the Investment Advisory Agreement and the compensation to be received thereunder is in the best interests of each Fund and its shareholders as well as consistent with the Board’s duties under state and federal law. The Board reached this conclusion based on multiple factors.
The Board considered the following in determining whether to approve the Investment Advisory Agreement:
Nature, Extent and Quality of Services. The Board reviewed in detail the nature, extent and quality of services provided and the risks incurred by the Advisor under the Investment Advisory Agreement. In doing so, the Board considered the information it had received from and the discussions it had with the Advisor continuously during the prior year, in addition to the information the Advisor had provided in response to the Board’s requests prior to the Meeting. The Board considered that these services include, among other things, furnishing a continuous investment program for the Funds, including arranging for, or implementing, the purchase and sale of portfolio securities, the provision of general corporate services such as portfolio management compliance services and the preparation and filing of certain reports on behalf of the Trust. The Board also considered, among other things, the professional experience, qualifications and performance of the senior management and key professional personnel of the Advisor, including portfolio management.
The Board considered that the Advisor provides, at its own expense, office facilities and equipment for use by the Funds and supervisory persons responsible for supervising and monitoring the Trust’s service providers. The Board also considered that the Advisor pays or arranges for the compensation of officers of the Trust who are
60
DBX ETF Trust
Board Considerations in Approval of Investment Advisory and Sub-Advisory Contracts (Unaudited) (Continued)
also officers or employees of the Advisor or one of its DWS Group affiliates, except as may otherwise be determined by the Board. In addition, the Board considered that the Advisor arranges for the provision of transfer agency, custody, fund administration and accounting, and other non-distribution services necessary for the Funds’ operations. The Board also considered that in addition to managing the Funds’ portfolios directly, the Advisor provides oversight of day-to-day operations, including monitoring tracking error, providing services in connection with the creation and redemption of creation units and assistance in meeting legal, compliance and regulatory requirements applicable to the Funds.
The Board considered the information regarding each Fund’s tracking error compared to its underlying index that had been provided by the Advisor and by Broadridge. The Board took note of the detailed information provided by the Advisor throughout the year with respect to each Fund’s tracking error and the sources thereof. The Trustees noted that tracking error for each Fund during the year was in an expected range.
Based on its review, the Board concluded that the nature, extent, and quality of services provided by the Advisor under the Investment Advisory Agreement are reasonable and appropriate in relation to the fees paid to the Advisor, taking special consideration of the fact that the advisory fee is a unitary fee and, as a result, a portion of the unitary advisory fee will be used to compensate the Funds’ service providers. The Board considered the staffing of the Advisor, including the training, qualifications and experience of investment personnel in managing the Funds. The Board also considered the expertise of the Advisor in supervising third party service providers to the Funds, such as the administrator and the custodian, noting the Advisor’s extensive work with these service providers (including onsite due diligence sessions) to conduct such supervision. The Board further considered the compliance program of the Advisor, which supports the Funds’ compliance program.
Advisor’s Financial Resources. In connection with the assessment of the ability of the Advisor to perform its duties under the Investment Advisory Agreement, the Board considered the Advisor’s financial condition and whether it has the resources necessary to carry out its functions. The Board concluded that the Advisor has the financial resources necessary to perform its obligations under the Investment Advisory Agreement.
Reasonableness of Advisory Fee. The Board compared each Fund’s advisory fee and total expenses to those of the other ETFs in its Peer Group. The Board noted that due to the special characteristics of certain Funds, there were limitations faced by Broadridge in providing comparable funds in the Peer Groups and the information in the Broadridge reports accordingly may or may not provide meaningful direct comparisons to the Funds. The Board also noted that the advisory fees and total expenses (after waivers/reimbursements) for many of the Funds were below or equal to the average and/or median of the ETFs in each Fund’s respective Peer Group compiled by Broadridge, but the following Fund had advisory fees and/or total expenses (after waivers/reimbursements) that were above the average and/or median of its Peer Group:
| Xtrackers MSCI China A Inclusion Equity ETF |
The Board considered, however, the following additional factor in connection with this Fund:
| Xtrackers MSCI China A Inclusion Equity ETF’s total expenses were below the average and median of its Peer Group. |
The Board accordingly noted that each Fund’s fee is competitive with the fees of applicable peer ETFs.
The Board considered that the fee for each of the Funds is a unitary fee pursuant to which the Advisor pays all of the Funds’ costs (subject to certain specified exceptions). The Board considered that each Fund’s fee had been priced to scale when it was established. The Board also considered that each Fund’s portfolio is managed on a day-to-day basis by the Advisor and that the Advisor also provides oversight of day-to-day operations, including monitoring tracking error, providing services in connection with creation and redemption units and assistance in meeting legal and regulatory requirements applicable to the Funds. Based on its review, the Board concluded that the advisory fee for each Fund is reasonable in light of the services provided.
Costs of Services and Profitability. The Board considered the expenses of the Advisor in developing and rendering services provided to the Funds and the information provided by the Advisor to the Board regarding the Funds’ profitability. The Board considered that the Advisor had provided extensive information about the
61
DBX ETF Trust
Board Considerations in Approval of Investment Advisory and Sub-Advisory Contracts (Unaudited) (Continued)
Advisor’s profitability and the Advisor’s methodology in determining profitability. While the Advisor had provided information about the Advisor’s expenses relating to marketing the Funds, the Board considered the Advisor’s profitability without accounting for such expenses. The Board determined that, although only some of the Funds were profitable as of this time, the Advisor’s profitability with respect to each profitable Fund was not excessive. The Board considered whether the Advisor would benefit in other ways from its relationships with the Funds and concluded that there were no material fall-out benefits likely to accrue to the Advisor related to the operation of the Funds.
Economies of Scale. The Board considered that certain Funds had attracted a substantial amount of assets, but determined that those Funds were not experiencing economies of scale beyond what was reflected in each Fund’s unitary fee, which the Board noted was very competitive. The Board considered that the other Funds were not experiencing economies of scale at this time and determined to revisit this matter after the Funds had attracted more assets.
Given all the information available to it and considering all material factors, the Board concluded that the Investment Advisory Agreement was fair and reasonable and it was unanimously approved.
Xtrackers Harvest CSI 300 China A-Shares ETF and Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF
Board Approval of Investment Advisory Agreement with DBX Advisors LLC and Investment Sub-Advisory Agreement with Harvest Global Investments Limited
After discussions at the meeting of the Board of Trustees (“Board” or “Trustees”) held on February 17-18, 2021 (the “Meeting”), the Trustees, all of whom are Independent Trustees (those not affiliated with DBX ETF Trust (the “Trust”) or its service providers), unanimously approved the continuance of the Investment Advisory Agreement and Investment Sub-Advisory Agreement with respect to Xtrackers Harvest CSI 300 China A-Shares ETF and Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF (each a “Fund,” and collectively, the “Funds”). The Independent Trustees were advised throughout the review and Meeting by K&L Gates LLP (“Independent Trustee Counsel”).
Before reaching their decision to continue in effect the Investment Advisory Agreement and the Investment Sub-Advisory Agreement for another annual period, the Independent Trustees evaluated the materials furnished to them in advance of the Meeting from DBX Advisors LLC (“DBX” or the “Advisor”) and Harvest Global Investments Limited (“Harvest” or “Sub-Advisor”) for purposes of reviewing the agreements’ terms and also took into consideration the discussions they had with management during the Meeting and among themselves during their Executive Sessions held on February 17 and February 18, 2021. The Independent Trustees also noted that they had received and should take into consideration a substantial amount of information furnished throughout the year at regular Board meetings, which information included, among other things, an analysis of each Fund’s investment performance and related financial information, presentations given by DBX and Harvest, as well as periodic reports on brokerage commissions, portfolio execution and other services provided to the Funds.
In reaching its decision with respect to the Investment Advisory Agreement, the Board considered all factors it believed relevant, including (1) the nature, extent and quality of the services provided to the Funds and their shareholders; (2) the financial resources of DBX and its resulting ability to perform its obligations under the Investment Advisory Agreement; (3) the competitiveness of the advisory fee; (4) the total cost of the services provided by and the profits realized by the Advisor from its relationship with the Funds; (5) the extent to which economies of scale have been realized, and if the Funds’ shareholders have benefitted from those economies; and (6) fall out benefits, if any, enjoyed by the Advisor.
In reaching its decision with respect to the Investment Sub-Advisory Agreement, the Board considered all factors it believed relevant, including (1) the nature, extent and quality of the services provided to the Funds and their shareholders; (2) the performance of Harvest with respect to its management of the Funds, as well as Harvest’s financial resources and its resulting ability to perform its obligations under the Investment Sub-Advisory Agreement; (3) the total cost of the services provided by Harvest from its relationship with the Funds; (4) the extent to which economies of scale have been realized, and if the Funds’ shareholders have benefitted from those economies; and (5) fall out benefits, if any, enjoyed by the Sub-Advisor.
62
DBX ETF Trust
Board Considerations in Approval of Investment Advisory and Sub-Advisory Contracts (Unaudited) (Continued)
The Board reached a determination, with the assistance of Independent Trustee Counsel and Dechert LLP (“Trust Counsel”) and through the exercise of its business judgment, that approval of the Investment Advisory Agreement and the Investment Sub-Advisory Agreement and the compensation to be received thereunder is in the best interests of each Fund and its shareholders as well as consistent with the Board’s duties under state and federal law. The Board reached this conclusion based on multiple factors.
The Board considered the following in determining whether to approve the Investment Advisory Agreement:
Nature, Extent and Quality of Services. The Board reviewed in detail the nature, extent and quality of services provided and the risks incurred by the Advisor under the Investment Advisory Agreement. In doing so, the Board considered the information it had received from and the discussions it had with the Advisor continuously during the prior year, in addition to the information the Advisor had provided in response to the Board’s requests prior to the Meeting. The Board considered that these services include, among other things, furnishing a continuous investment program for the Funds, including arranging for, or implementing, the purchase and sale of portfolio securities, the provision of general corporate services such as portfolio management compliance services and the preparation and filing of certain reports on behalf of the Trust. The Board also considered, among other things, the professional experience, qualifications and performance of the senior management and key professional personnel of the Advisor, including portfolio management.
The Board considered that the Advisor provides, at its own expense, office facilities and equipment for use by the Funds and supervisory persons responsible for supervising and monitoring the Trust’s service providers. The Board also considered that the Advisor pays or arranges for the compensation of officers of the Trust who are also officers or employees of the Advisor or one of its DWS Group affiliates, except as may otherwise be determined by the Board. The Board also considered that the Advisor arranges for the provision of transfer agency, custody, fund administration and accounting, and other non-distribution services necessary for the Funds’ operation. The Board also considered the role played by the Advisor in working with Harvest to manage the Funds’ portfolios, noting that the Advisor provides oversight of day-to-day operations, including monitoring tracking error, providing services in connection with the creation and redemption of creation units and assistance in meeting legal, compliance and regulatory requirements applicable to the Funds. The Board considered the information regarding each Fund’s tracking error compared to its underlying index that had been provided by the Advisor and by Broadridge Financial Solutions Inc. (“Broadridge”). The Board took note of the detailed information provided by the Advisor throughout the year with respect to each Fund’s tracking error and the sources thereof. The Trustees noted that tracking error for each Fund during the year was in an expected range.
Based on its review, the Board concluded that the nature, extent, and quality of services provided by the Advisor under the Investment Advisory Agreement are reasonable and appropriate in relation to the fees paid to the Advisor, taking special consideration of the fact that the advisory fee is a unitary fee and, as a result, a portion of the unitary advisory fee will be used to compensate the Funds’ service providers. The Board considered the staffing of the Advisor, including the training, qualifications and experience of investment personnel in managing the Funds. The Board also considered the expertise of the Advisor in supervising third party service providers to the Funds, such as the administrator and the custodian, noting the Advisor’s extensive work with these service providers (including onsite due diligence sessions) to conduct such supervision. The Board further considered the compliance program of the Advisor, which supports the Funds’ compliance program.
Advisor’s Financial Resources. In connection with the assessment of the ability of the Advisor to perform its duties under the Investment Advisory Agreement, the Board considered the Advisor’s financial condition and whether it has the resources necessary to carry out its functions. The Board concluded that the Advisor has the financial resources necessary to perform its obligations under the Investment Advisory Agreement.
Reasonableness of Advisory Fee. The Board compared each Fund’s advisory fee and total expenses to those of the other ETFs in its Peer Group. The Board noted that due to the special characteristics of certain Funds, there were limitations faced by Broadridge in providing comparable funds in the Peer Groups and the information in the Broadridge reports accordingly may or may not provide meaningful direct comparisons to the Funds. The Board considered that while each Fund’s advisory fees and total expenses after waivers/reimbursements were above the average and median of those Funds’ respective Peer Groups, many of those other ETFs in the Funds’
63
DBX ETF Trust
Board Considerations in Approval of Investment Advisory and Sub-Advisory Contracts (Unaudited) (Continued)
respective Peer Groups only invested directly in A-Shares through the Stock Connect programs, rather than also utilizing the Renminbi Qualified Foreign Institutional Investor (“RQFII”) program, as the Funds did using the quota allocated to the Sub-Advisor. The Board also noted that the Chinese authorities had recently abolished the quotas under the RQFII system, but that it remained in the Funds’ best interests to continue utilizing Harvest as the Funds’ sub-Advisor and that Harvest’s local market capabilities provided the Funds with the widest feasible range of means to access A-shares.
The Board considered that the fee for the Funds is a unitary fee pursuant to which the Advisor pays all of the Funds’ costs (subject to certain specified exceptions). The Board considered that each Fund’s fee had been priced to scale when it was established. The Board also considered that the Funds’ portfolios are managed on a day-to-day basis by the Sub-Advisor, which receives a fee from the Advisor. The Board considered the allocation of responsibilities between the Advisor and Sub-Advisor and noted that the Advisor provides oversight of day-to-day operations, including monitoring tracking error, providing services in connection with creation and redemption units and assistance in meeting legal and regulatory requirements applicable to the Funds. Based on its review, the Board concluded that the advisory fee is reasonable in light of the services provided.
Costs of Services and Profitability. The Board considered the expenses of the Advisor in developing and rendering services to the Funds and the information provided by the Advisor to the Board regarding the Funds’ profitability. The Board considered that the Advisor had provided extensive information about the Advisor’s profitability and the Advisor’s methodology in determining profitability. While the Advisor had provided information about the Advisor’s expenses relating to marketing the Funds, the Board considered the Advisor’s profitability without accounting for such expenses. The Board determined that only Xtrackers Harvest CSI 300 China A-Shares ETF was profitable as of this time and the Advisor’s profitability with respect to the Fund was not excessive. The Board also noted that since the fee paid by the Advisor to the Sub- Advisor under the Investment Sub-Advisory Agreement contained breakpoints, the Advisor could experience increased profitability as the Funds’ assets increased. The Board considered whether the Advisor would benefit in other ways from its relationships with the Funds and concluded that there were no material fall-out benefits likely to accrue to the Advisor related to the operation of the Funds.
Economies of Scale. The Board considered that Xtrackers Harvest CSI 300 China A-Shares ETF had attracted a substantial amount of assets, but determined that the Fund was not experiencing economies of scale beyond what was reflected in the Fund’s unitary fee, which the Board noted was very competitive. The Board considered that Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF was not experiencing economies of scale at this time and determined to evaluate the economies of scale on an ongoing basis as a result of asset growth of the Funds.
Given all the information available to it and considering all material factors, the Board concluded that the Investment Advisory Agreement was fair and reasonable and it was unanimously approved.
The Board considered the following in determining whether to approve the Investment Sub-Advisory Agreement:
Nature, Extent and Quality of Services. In considering the nature, extent and quality of services that Harvest provides to the Funds, the Board reviewed in detail the nature, extent and quality of services provided by Harvest under the Investment Sub-Advisory Agreement. In doing so, the Board considered the information it had received from the Sub-Advisor continuously during the prior year, in addition to the information the Sub-Advisor had provided in response to the Board’s requests prior to the Meeting. The Board considered that these services include, among other things, furnishing a continuous investment program for the Funds, including arranging for, or implementing, the purchase and sale of portfolio securities.
The Board also considered Harvest’s operational capabilities and resources, and its experience in serving as investment sub-Advisor to the Funds. The Board considered the professional experience, qualifications and performance of Harvest’s senior management and key professional personnel, as well as Harvest’s depth and breadth of experience in managing investment portfolios consisting of China A-Shares, and their techniques for implementing such strategies while minimizing index tracking error. The Board also noted that the Chinese
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DBX ETF Trust
Board Considerations in Approval of Investment Advisory and Sub-Advisory Contracts (Unaudited) (Continued)
authorities had recently abolished the quotas under the RQFII system, but that it remained in the Funds’ best interests to continue utilizing Harvest as the Funds’ sub-Advisor and that Harvest’s local market capabilities provided the Funds with the widest feasible range of means to access A-shares. In addition, the Board considered Harvest’s operational capabilities and resources, and Harvest’s experience in managing index funds covering various asset classes. The Board noted that Harvest manages its index-based portfolios using both full replication and sampling techniques and maintains strict discipline in the implementation of its indexing strategies. To that end, the Board noted that when there are changes to a benchmark index, Harvest closely monitors any such changes to devise strategies to realign its portfolios at the lowest possible cost while tracking the respective benchmark index. The Board also noted Harvest’s processes to minimize the cost of trading.
Based on its review, the Board concluded that the nature, extent, and quality of services provided by Harvest under the Investment Sub-Advisory Agreement are reasonable and appropriate in relation to the fees paid to Harvest, taking special consideration of the fact that the fees paid to Harvest are payable by the Advisor and not the Funds.
Performance of Harvest; Harvest’s Financial Resources. The Board considered Harvest’s performance in managing the Funds and its ability to minimize tracking error. The Board concluded that, given Harvest’s capabilities and experience in managing the Funds, Harvest had generally been able to keep the Funds’ tracking error within acceptable ranges.
The Board also considered Harvest’s financial condition and whether it has the resources necessary to carry out its functions. The Board concluded that Harvest has the financial resources necessary to perform its obligations under the Investment Sub-Advisory Agreement.
Reasonableness of Sub-Advisory Fee. The Board considered that the fee paid to Harvest in respect of the Funds would be paid by the Advisor and not the Funds. Based on its review, the Board concluded that the fees agreed upon with Harvest are reasonable in light of the nature and quality of investment advisory services rendered for each Fund. The Board reached its conclusion based in part on the aggregate fees paid by the Funds, the fact that the sub-advisory fee is paid by the Advisor and not the Funds, and fees paid by comparable funds to Advisors.
Costs of Services and Profitability. The Board considered that the fees paid by the Advisor to Harvest under the Investment Sub-Advisory Agreement contain breakpoints. The Board further considered that specific information about Harvest’s profitability with respect to its services provided to the Funds was not available because Harvest receives a fixed fee which is computed as a percentage of each Fund’s advisory fees and does not calculate the profitability of its sub-advisory services on a per-Fund level. The Board also considered that the overall fees paid by each Fund remained reasonable.
The Board also considered whether Harvest would benefit in other ways from its relationship with the Funds. The Board discussed Harvest’s practices regarding the selection and compensation of brokers and dealers that execute portfolio transactions for the Funds and the brokers’ and dealers’ provision of brokerage services to Harvest.
Economies of Scale. The Board considered that Xtrackers Harvest CSI 300 China A-Shares ETF had attracted a substantial amount of assets, but determined that the Fund was not experiencing economies of scale beyond what was reflected in the Fund’s unitary fee, which the Board noted was very competitive. The Board considered that Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF was not experiencing economies of scale at this time and determined to evaluate the economies of scale on an ongoing basis as a result of asset growth of the Funds.
Given all the information available to it and considering all material factors, the Board concluded that the Investment Sub-Advisory Agreement was fair and reasonable and it was unanimously approved.
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DBX ETF Trust
Identification and Background
The Board has responsibility for the overall management and operations of the funds, including general supervision of the duties performed by the Advisor and other service providers. Each Board Member serves until his or her successor is duly elected or appointed and qualified. Each officer serves until he or she resigns, is removed, dies, retires or becomes disqualified.
The Trust currently has three Board Members. The three Independent Board Members have no affiliation or business connection with the Advisor or any of its affiliated persons and do not own any stock or other securities issued by the Advisor.
The Independent Board Members of the Trust, their term of office and length of time served, their principal business occupations during the past five years, the number of portfolios in the fund complex (defined below) overseen by each Independent Board Member, and other directorships, if any, held by the Board Members are shown below. The fund complex includes all registered open- and closed-end funds (including all of their portfolios) advised by the Advisor and any registered funds that have an investment advisor that is an affiliated person of the Advisor. As of the date of this shareholder report, the fund complex consists of the funds in the Trust, as well as the registered funds advised by affiliates of the Advisor.
Shareholder Communications to the Board. Shareholders may send communications to the Trust’s Board by addressing the communications directly to the Board (or individual Board Members) and/or otherwise clearly indicating in the salutation that the communication is for the Board (or individual Board Members). The shareholder may send the communication to either the Trust’s office or directly to such Board members c/o 875 Third Avenue, New York, NY 10022. Other shareholder communications received by the Trust not directly addressed and sent to the Board will be reviewed and generally responded to by management. Such communications will be forwarded to the Board at management’s discretion based on the matters contained therein.
| Independent Board Members |
||||||
| Name, Year of Birth, Position with the Trust and Length of Time Served(1) |
Business Experience and Directorships During the Past 5 Years |
Number of Portfolios in Fund Complex Overseen |
Other Directorships Held by Board Member | |||
| Stephen R. Byers (1953) Chairman since 2016, and Board Member since 2011 (formerly, Lead Independent Board Member, 2015-2016) |
Independent Director (2011- present); Independent Consultant (2014-present); Director of Investment Management, the Dreyfus Corporation (2000-2006) and Vice Chairman and Chief Investment Officer, the Dreyfus Corporation (2002-2006). | 35 | The Arbitrage Funds, Sierra Income Corporation, Mutual Fund Directors Forum | |||
| George O. Elston (1964) Board Member since 2011, Chairman of the Audit Committee since 2015 |
Chief Financial Officer, Enzyvant (2018-present); Chief Executive Officer, 2X Oncology, Inc. (2017-2018); Senior Vice President and Chief Financial Officer, Juniper Pharmaceuticals, Inc. (2014-2016); Senior Vice President and Chief Financial Officer, KBI BioPharma Inc. (2013-2014); Managing Partner, Chatham Street Partners (2010-2013). | 35 | — | |||
| J. David Officer (1948) Board Member since 2011, Chairman of the Nominating Committee since 2015 |
Independent Director (2010-present); Vice Chairman, the Dreyfus Corporation (2006-2009); President, The Dreyfus Family of Funds, Inc. (2006-2009). | 35 | (Chairman of) Ilex Management Ltd; Old Westbury Funds |
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DBX ETF Trust
Board Members and Officers (Unaudited) (Continued)
| Officers(2) |
||
| Name, Year of Birth, Position with the Trust and Length of Time Served(3) |
Business Experience and Directorships During the Past 5 Years | |
| Freddi Klassen(4) (1975) President and Chief Executive Officer, 2016-present |
Programmes (Head since 2021), of DWS Investment Management Americas, Inc. and Manager and Chief Operating Officer of the Advisor (2016 -present). Formerly: Chief Operating Officer in the Americas for the Traditional Asset Classes Department (2014 -2020); Manager and Chief Operating Officer of DWS Investment Management Americas, Inc. (2018-present) and the Advisor (2016-present); Global Chief Operating Officer for Equities Technology in the Investment Bank Division at Deutsche Bank AG (2013-2014); Chief Operating Officer for Exchange Traded Funds and Systematic Funds in Europe (2008-2013). | |
| Diane Kenneally(4) (1966) Treasurer, Chief Financial Officer and Controller, 2019-present |
Fund Administration Treasurer’s Office (Co-Head since 2018), of DWS Investment Management Americas, Inc.; Chief Financial Officer and Treasurer for DWS US registered investment companies advised by DWS Investment Management Americas, Inc. (2018-present); Treasurer and Chief Financial Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018-present); formerly: Assistant Treasurer for the DWS funds (2007-2018). | |
| Frank Gecsedi(4) (1967) Chief Compliance Officer, 2010-present |
AFC Compliance US (Senior Team Lead), of DWS Investment Management Americas, Inc.; Compliance Department (2016-present), Vice President in the Deutsche Asset Management Compliance Department at Deutsche Bank AG (2013-2016) and Chief Compliance Officer of the Advisor (2010-present); Chief Compliance Officer of DWS Distributors, Inc. (2019-present); Vice President in Deutsche Bank’s Global Markets Legal, Risk and Capital Division (2010-2012). | |
| Bryan Richards(4) (1978) Vice President, 2016-present |
Portfolio Engineering, Systematic Investments Solutions (Head), of DWS Investment Management Americas, Inc.(2018-present); Portfolio Manager in the Passive Asset Management Department at DWS (2011-present); Primary Portfolio Manager for the PowerShares DB Commodity ETFs (2011-2015). | |
| John Millette(5) (1962) Secretary, 2020-present |
Legal (Associate General Counsel), DWS US Retail Legal (2003-present), of DWS Investment Management Americas, Inc.; Vice President and Secretary of DWS US registered investment companies advised by DWS Investment Management Americas, Inc. (1999-present); Chief Legal Officer, DWS Investment Management Americas, Inc. (2015-present); Director and Vice President of DWS Trust Company (2016-present); Vice President, DBX Advisors LLC (2021-present); Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2011-present); formerly: Secretary of Deutsche Investment Management Americas Inc. (2015-2017); and Assistant Secretary of DBX ETF Trust (2019-2020). |
67
DBX ETF Trust
Board Members and Officers (Unaudited) (Continued)
| Name, Year of Birth, Position with the Trust and Length of Time Served(3) |
Business Experience and Directorships During the Past 5 Years | |
| Caroline Pearson(5) (1962) Assistant Secretary, 2020-present |
Legal (Senior Team Lead), DWS US Retail Legal, of DWS Investment Management Americas, Inc.; Chief Legal Officer of DWS US registered investment companies advised by DWS Investment Management Americas, Inc. (2010-present); Chief Legal Officer, DBX Advisors LLC and DBX Strategic Advisors LLC (2020-present); Chief Legal Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2012-present); formerly: Secretary, Deutsche AM Distributors, Inc. (2002-2017); and Secretary, Deutsche AM Service Company (2010-2017). | |
| Paul Antosca(5) (1957) Assistant Treasurer, 2019-present |
Fund Administration Tax (Head), of DWS Investment Management Americas, Inc.; Assistant Treasurer for DWS US registered investment companies advised by DWS Investment Management Americas, Inc. (2007-present). | |
| Jeffrey Berry(5) (1959) Assistant Treasurer, 2019-present |
Fund Administration (Senior Specialist), of DWS Investment Management Americas, Inc. | |
| Sheila Cadogan(5) (1966) Assistant Treasurer, 2019-present |
Fund Administration Treasurer’s Office (Co-Head since 2018), of DWS Investment Management Americas, Inc.; Assistant Treasurer for DWS US registered investment companies advised by DWS Investment Management Americas, Inc. (2017-present); Director and Vice President, DWS Trust Company (2018-present); Assistant Treasurer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018-present). | |
| Christina A. Morse(6) (1964) Assistant Secretary, 2017-present |
Vice President at BNY Mellon Asset Servicing (2014-present); Vice President and Counsel at Lord Abbett & Co. LLC (2013-2014). | |
| Michelle Goveia-Pine(4) (1970) Interim Anti-Money Laundering Compliance Officer, since July 9, 2020 |
Anti-Financial Crime & Compliance US (Regional Head), of DWS Investment Management Americas, Inc.; Interim AML Officer, DWS Trust Company (since July 28, 2020); and Interim AML Officer of DWS US registered investment companies advised by DWS Investment Management Americas, Inc. (since July 10, 2020); Interim AML Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (since July 24, 2020). |
| (1) | The length of time served is represented by the year in which the Board Member joined the Board. |
| (2) | As a result of their respective positions held with the Advisor and its affiliates, these individuals are considered “interested persons” of the Advisor within the meaning of the 1940 Act. Interested persons receive no compensation from the Funds. |
| (3) | The length of time served is represented by the year in which the officer was first elected to the Trust in such capacity. |
| (4) | Address: 875 Third Avenue, New York, New York 10022. |
| (5) | Address: 100 Summer Street, Boston, MA 02110. |
| (6) | Address: BNY Mellon Asset Servicing, 240 Greenwich Street, New York, NY 10286. |
The Funds’ Statement of Additional Information (“SAI”) includes additional information about the Funds’ Board Members. The SAI is available by calling 855-329-3837, or on the Company’s website at www.Xtrackers.com.
68
DBX ETF Trust
Proxy Voting Policies and Procedures
The Funds’ policies and procedures for voting proxies for portfolio securities and information about how each Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 are available on our Web site — www.Xtrackers.com (click on “Resources” and “Proxy Voting” at the top of the page) — or on the SEC’s Web site — www.sec.gov. To obtain a written copy of the Funds’ policies and procedures without charge, upon request, call us toll free at (855) 329-3837.
Portfolio Holdings Information
The Funds are required to file their complete schedule of portfolio holdings with the SEC for their first and third fiscal quarters on Form N-PORT. Copies of the filings are available without charge, upon request on the SEC’s website at www.sec.gov and are available by calling the Trust at 855-329-3837.
Information about each Fund’s portfolio holdings is available daily at www.Xtrackers.com.
Discount & Premium Information
Information regarding how often shares of each Fund traded on NYSE Arca at a price above (i.e., at a premium) or below (i.e., at a discount) the NAV of the Fund can be found at www.Xtrackers.com.
Tax Information
Form 1099-DIV and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisors.
Each Fund designates the following amounts or, if subsequently determined to be different, the maximum allowable for its year ended May 31, 2021.
| Qualified Dividend Income* |
||||
| Xtrackers Harvest CSI 300 China A-Shares ETF |
100% | |||
| Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF |
100% | |||
| Xtrackers MSCI All China Equity ETF |
83% | |||
| Xtrackers MSCI China A Inclusion Equity ETF |
100% | |||
* The above percentage is based on ordinary income dividends paid to shareholders during each Fund’s fiscal year.
Each Fund intends to elect to pass through to shareholders the credit for taxes paid to foreign countries. The gross foreign source income and foreign taxes paid are as follows:
| Gross Foreign Income | Foreign Taxes Paid | |||||||
| Xtrackers Harvest CSI 300 China A-Shares ETF |
$35,335,711 | $3,523,781 | ||||||
| Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF |
400,247 | 40,663 | ||||||
| Xtrackers MSCI All China Equity ETF |
269,242 | 18,269 | ||||||
| Xtrackers MSCI China A Inclusion Equity ETF |
190,207 | 19,300 | ||||||
69
DBX ETF Trust
DBX Advisors LLC (“Advisors”) collects non-public information about you from the following sources: (i) information received from you on applications or other forms; and (ii) information about your transactions with the Advisors, Advisors’ affiliates and third-party service providers and vendors. Advisors does not disclose any non-public personal information about you to anyone, other than as set forth below, as permitted by applicable law and regulation. Advisors may disclose non-public personal information about you to the funds in which you invest, to Advisors’ affiliates, and to non-affiliated companies that work with Advisors to service your account(s), or to provide services or process transactions that you have requested. Advisors may disclose non-public personal information in situations that may include, but are not limited to, in response to legal and/or regulatory inquiries and the proposed or actual sale, assignment merger or other transfer of all or a portion of Advisors’ business to another business entity. Advisors may also disclose non-public personal information about you to parties representing you, such as your investment representative, your accountant, your tax advisor, or to other third parties at your direction/consent. Advisors will not sell, rent, license or trade your personal and financial information to or with third parties for their own direct marketing use unless you give us general or specific consent to do so. If you decide to close your account(s) or become an inactive customer, Advisors will adhere to the privacy policies and practices as described in this notice. Advisors restricts access to your personal and account information to those employees who need to know that information to provide products and services to you. Advisors maintains reasonable and customary physical, electronic and procedural safeguards to guard your non-public personal information.
California residents may go to https://fundsus.dws.com/us/en-us/legal-resources/privacy-policy.html to obtain additional information relating to their rights under California state law.
Advisors reserves the right, at their discretion, to change, modify, add, or remove portions of this Privacy Policy Notice, and any of the policies described herein, at any time. Advisors will indicate any such changes to the Privacy Policy Notice at the privacy link which can be found at www.Xtrackers.com. At all times, you are bound by the then-current version of the Privacy Policy and all applicable laws. Advisors highly recommends that you review this Privacy Policy Notice from time to time to ensure that you are familiar with the most recent version. The examples contained in this Privacy Policy Notice are illustrations; they are not intended to be exclusive.
70
DBX ETF Trust
This report is intended for the shareholders of DBX ETF Trust.
This report must be preceded or accompanied by a prospectus.
Investing involves risk, including possible loss of principal. Stocks may decline in value. Foreign investing involves greater and different risks than investing in U.S. companies, including currency fluctuations, less liquidity, less developed or less efficient trading markets, lack of comprehensive company information, political instability and differing auditing and legal standards. Funds investing in a single industry, country or in a limited geographic region generally are more volatile than more diversified funds. Special risks associated with investments in Chinese companies include exposure to currency fluctuations, less liquidity, less developed or less efficient trading markets, lack of comprehensive company information, political instability and differing auditing and legal standards, the nature and extent of intervention by the Chinese government in the Chinese securities markets, and the potential unavailability of A shares. Uncertainties in the Chinese tax rules governing taxation of income and gains from investments in A-shares could result in unexpected tax liabilities for the Funds which may reduce Fund returns. Any reduction or elimination of access to A-shares will have a material adverse effect on the ability of the Funds to achieve its investment objective. Performance of the Funds may diverge from that of the Underlying Index due to operating expenses, transaction costs, cash flows, use of sampling strategies or operational inefficiencies. An investment in these Funds should be considered only as a supplement to a complete investment program for those investors willing to accept the risks associated with the Funds. Please read the prospectus for more information.
The U.S. government has imposed restrictions on the ability of U.S. investors to hold and/or acquire securities of certain Chinese companies. To the extent that an Underlying Index includes such a security and the Fund excludes it, the Fund’s tracking error may increase and the performance of the Fund and Underlying Index may diverge.
War, terrorism, economic uncertainty, trade disputes, public health crises (including the recent pandemic spread of the novel coronavirus) and related geopolitical events could lead to increased market volatility, disruption to U.S. and world economies and markets and may have significant adverse effects on the Funds and their investments.
Shares of the Funds are bought and sold at market price (not NAV) throughout the day on the NYSE Arca, Inc. Transactions in Fund shares may result in brokerage commissions and may generate tax consequences. There can be no assurance that an active trading market for shares of a Fund will develop or be maintained.
DBX ETF Trust Funds are distributed by ALPS Distributors, Inc. (“ALPS”). The Funds are managed by DBX Advisors LLC which is not affiliated with ALPS.
The brand DWS represents DWS Group GmbH & Co. KGaA and any of its subsidiaries such as DWS Distributors, Inc. which offers investment products or DWS Investment Management Americas, Inc. and RREEF America L.L.C. which offer advisory services.
The CSI Indexes are calculated by China Securities Index Co., Ltd. (CSI). CSI does not make any warranties, express or implied, to its customers or any other party regarding the accuracy or completeness of any data related to the Index. All information is provided for information purposes only. CSI accepts no liability for any errors or any loss arising from the use of information it provides.
The Funds or securities referred to herein are not sponsored, endorsed, issued, sold or promoted by MSCI, and MSCI bears no liability with respect to any such Funds or securities or any index on which such Funds or securities are based. The prospectus contains a more detailed description of the limited relationship MSCI has with DBX Advisors LLC and any related funds.
Copyright © 2021 DWS Group. All rights reserved. XtrackersTM is a trademark of DWS Investment GmbH. All other trademarks, servicemarks or registered trademarks are the property of their respective owners.
Not FDIC Insured | No Bank Guarantee | May Lose Value
DBX ETF Trust
| Investment advisor DBX Advisors LLC 875 Third Avenue New York, NY 10022 |
Investment sub-advisor Harvest Global Investments Limited 31/F, One Exchange Square 8 Connaught Place Central, Hong Kong |
Administrator, custodian, fund accounting agent, lending agent & transfer agent The Bank of New York Mellon 240 Greenwich Street New York, NY 10286 | ||
| Distributor ALPS Distributors, Inc. 1290 Broadway Suite 1000 Denver, CO 80203 |
Independent registered public accounting firm Ernst & Young LLP 5 Times Square New York, NY 10036 |
Legal counsel Vedder Price P.C. 1633 Broadway New York, NY 10019 | ||
R-35360-8 (7/21) DBX004903 (7/22)
May 31, 2021
Annual Report
DBX ETF Trust
Xtrackers MSCI All World ex US Hedged Equity ETF (DBAW)
Xtrackers MSCI Emerging Markets Hedged Equity ETF (DBEM)
Xtrackers MSCI Europe Hedged Equity ETF (DBEU)
Xtrackers MSCI Eurozone Hedged Equity ETF (DBEZ)
Xtrackers MSCI Germany Hedged Equity ETF (DBGR)
Xtrackers MSCI Japan Hedged Equity ETF (DBJP)
DBX ETF Trust
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| Board Considerations in Approval of Investment Advisory and Sub-Advisory Contracts |
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To our Shareholders: (Unaudited)
Dear shareholder,
We are pleased to provide this annual report of our six currency hedged equity ETFs for the period ended May 31, 2021.
As major economies across the globe begin to reopen in a schemed manner, we are witnessing pent-up demand along with economic normalization. Moreover, affluent households spending their savings that were accumulated during COVID-19 lockdowns is also driving the economic recovery. Additionally, a gradual return of laborers, who had to leave the workforce in the initial stages of the pandemic, is contributing to this recovery. Leading economies worldwide have been successful in their efforts to forestall a major economic setback by administering significant fiscal and monetary policies.
The U.S. GDP1 increased at a positive annual rate in Q1 2021, reflecting a continued economic recovery, reopening of establishments, and stable government support amid the pandemic. Moreover, factors such as direct economic impact payments, expanded unemployment benefits, and various other schemes have assisted in the GDP growth of the first in Q1 2021. These coupled with breakthroughs in vaccine drives and assumptions that life will return to normalcy have helped boost the performance of the U.S. equity markets. The U.S. president has proposed two major reforms, the American Jobs Plan and the American Families Plan, both of which would have an optimistic impact on stock prices.
The Eurozone economy plunged during the second wave of the pandemic that started towards the end of 2020. A slow-paced vaccination rollout has resulted in prolonged restrictions on economic activities, which include closure of contact intensive services. The European Central Bank has increased its pandemic emergency purchase program by EUR500bn-EUR1.85tn in aggregate to date. Countries dependent on tourism are most vulnerable to the pandemic-related restrictions. In France, for example, travel within the country is forbidden and personal mobility is restricted. Despite the worsening impact of the second wave of the pandemic on economic activities, unemployment rate in the Eurozone has not increased. National Recovery and Resilience Plans under the Next Generation EU program have also been implemented to strengthen the recovery of the economy.
In emerging economies, manufacturing and industrial production volumes have rebounded as a response to the recovery in business activities of developed countries. Moreover, vaccine supplies are increasing at a steady pace, resulting in staggered reopening of economies. Overall, these economies have displayed significant resilience to the sharp collapses of early 2020. Various growth-oriented sectors, across emerging economies, significantly outperformed in 2020, but a sharp rise in bond yields during Q1 2021 caused a dip in the equity market. Also, after underperforming through the early phase of the COVID-19 crisis, emerging markets equities are now catching up with global equities.
Governments and policymakers need to adapt measures for a fuller recovery from the pandemic outburst. The focus on reducing unemployment rates and low investments would play a significant role in guiding the economic growth to pre-pandemic levels. With vaccination gaining momentum across the globe, major economies have started recovering from the pandemic-led collapse. Although, recent vaccine approvals have raised hopes for global economic recovery in the latter half of this year, new variants and renewed waves of the virus are still posing concerns. With economies around the world continuing to vaccinate their population, it is expected to provide a boost to global GDP. Economic recovery, however, would still remain divergent across countries, depending on the vaccine distribution programs adopted and effectiveness of economic policies
1
Our team appreciates your trust and looks forward to continue serving your investment needs through innovative index-driven strategies.
Sincerely,
/s/ Freddi Klassen
Freddi Klassen
President and Chief Executive Officer
1 The gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country’s borders in a specific time period.
Assumptions, estimates and opinions contained in this document constitute our judgment as of the date of the document and are subject to change without notice. Any projections are based on a number of assumptions as to market conditions and there can be no guarantee that any projected results will be achieved. Past performance is not a guarantee of future results.
2
DBX ETF Trust
Xtrackers MSCI All World ex US Hedged Equity ETF (DBAW)
The Xtrackers MSCI All World ex US Hedged Equity ETF (DBAW) seeks investment results that correspond generally to the performance, before fees and expenses, of the MSCI ACWI ex USA US Dollar Hedged Index (the DBAW Index). The DBAW Index is designed to provide exposure to equity securities in developed and emerging stock markets (excluding the U.S.), while at the same time mitigating exposure to fluctuation between the value of the U.S. dollar and select non-U.S. currencies. For the 12-month period ended May 31, 2021, DBAW returned 33.30%, compared to the DBAW Index return of 33.83%.
All sectors contributed positively to performance during the period with the greatest contributions coming from Financials, Information Technology and Consumer Discretionary. From a geographical perspective, Japan, Hong Kong and France were the major positive contributors, while Turkey and Egypt contributed negatively to performance. The Fund entered into forward foreign currency contracts during the period to hedge against changes in the value of the U.S. dollar against specified non-U.S. currencies. The currency hedging strategy contributed negatively to performance.
Xtrackers MSCI Emerging Markets Hedged Equity ETF (DBEM)
The Xtrackers MSCI Emerging Markets Hedged Equity ETF (DBEM) seeks investment results that correspond generally to the performance, before fees and expenses, of the MSCI EM US Dollar Hedged Index (the DBEM Index). The DBEM Index is designed to provide exposure to equity securities in the global emerging markets, while at the same time mitigating exposure to fluctuations between the value of the US dollar and the currencies of countries included in the underlying index. For the 12-month period ended May 31, 2021, DBEM returned 40.84%, compared to the DBEM Index return of 41.50%.
All sectors contributed positively to performance during the period with the greatest contributions coming from Information Technology, Financials and Consumer Discretionary. From a geographical perspective, Hong Kong, Taiwan and Korea were major positive contributors to performance during the period, while Turkey and Egypt contributed negatively. The Fund entered into forward foreign currency contracts during the period to hedge against changes in the value of the U.S. dollar against specified non-U.S. currencies. The currency hedging strategy contributed negatively to performance.
Xtrackers MSCI Europe Hedged Equity ETF (DBEU)
The Xtrackers MSCI Europe Hedged Equity ETF (DBEU) seeks investment results that correspond generally to the performance, before fees and expenses, of the MSCI Europe US Dollar Hedged Index (the DBEU Index). The DBEU index is designed to provide exposure to equity securities in 15 developed European stock markets, while at the same time mitigating exposure to fluctuations between the value of the U.S. dollar and selected non-U.S. currencies. For the 12-month period ended May 31, 2021, DBEU returned 30.29%, compared to the DBEU Index return of 30.50%.
All sectors contributed positively to performance during the period with the greatest contributions coming from Financials, Industrials and Consumer Discretionary. From a geographical perspective France, Great Britain and Germany were the major positive contributors to performance during the period. The Fund entered into forward foreign currency contracts during the period to hedge against changes in the value of the U.S. dollar against specified non-U.S. currencies. The currency hedging strategy contributed negatively to performance.
Xtrackers MSCI Eurozone Hedged Equity ETF (DBEZ)
The Xtrackers MSCI Eurozone Hedged Equity ETF (DBEZ) seeks investment results that correspond generally to the performance, before fees and expenses, of the MSCI EMU IMI U.S. Dollar Hedged Index (the DBEZ Index). The DBEZ Index is designed to provide exposure to equities in countries in the European Monetary Union, or the “Eurozone” that have adopted the euro as their common currency and sole legal tender, while at the same time mitigating exposure to the fluctuations between the value of the U.S. dollar and the euro. For the 12-month period ended May 31, 2021, DBEZ returned 38.59%, compared to the DBEZ Index return of 38.87%.
All sectors contributed positively to performance during the period with the greatest contributions coming from Consumer Discretionary, Industrials and Financials. From a geographical perspective, France, Germany and Netherlands were the major positive contributors to performance during the period. The Fund entered into
3
DBX ETF Trust
Management’s Discussion of Fund Performance (Unaudited) (Continued)
forward foreign currency contracts during the period to hedge against changes in the value of the U.S. dollar against the euro. The currency hedging strategy contributed negatively to performance.
Xtrackers MSCI Germany Hedged Equity ETF (DBGR)
The Xtrackers MSCI Germany Hedged Equity ETF (DBGR) seeks investment results that correspond generally to the performance, before fees and expenses, of the MSCI Germany US Dollar Hedged Index (the DBGR Index). The DBGR Index is designed to provide exposure to Germany’s equity market, while at the same time mitigating exposure to fluctuations between the value of the US dollar and euro. For the 12-month period ended May 31, 2021, DBGR returned 32.00%, compared to the DBGR Index return of 32.11%.
All sectors contributed positively to performance during the period with the greatest contributions coming from Consumer Discretionary, Industrials and Financials. The Fund entered into forward foreign currency contracts during the period to hedge against changes in the value of the U.S. dollar against specified non-U.S. currencies. The currency hedging strategy contributed negatively to performance.
Xtrackers MSCI Japan Hedged Equity ETF (DBJP)
The Xtrackers MSCI Japan Hedged Equity ETF (DBJP) seeks investment results that correspond generally to the performance, before fees and expenses, of the MSCI Japan US Dollar Hedged Index (the DBJP Index). The DBJP Index is designed to track the performance of the Japanese equity market, while at the same time mitigating exposure to fluctuations between the value of the U.S. dollar and Japanese yen. For the 12-month period ended May 31, 2021, DBJP returned 28.48%, compared to the DBJP Index return of 28.98%.
Majority of the sectors contributed positively to performance during the period with the greatest contributions coming from Consumer Discretionary, Industrials and Information Technology, while Utilities and Health Care sectors were the only negative contributors to performance. The Fund entered into forward foreign currency contracts during the period to hedge against changes in the value of the U.S. dollar against the Japanese yen. The currency hedging strategy contributed positively to performance.
*************************
Performance data quoted represents past performance and does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain the most recent month-end performance data visit www.Xtrackers.com. Returns assume that dividends and capital gains distributions have been reinvested. See pages 6-17 of this report for additional performance information, including performance data based on market value. The views expressed in this report reflect those of the portfolio management team only through the end of the period of the report as stated on the cover. The management team’s views are subject to change at any time based on market and other conditions and should not be construed as a recommendation. Current and future portfolio holdings are subject to risk.
4
This Page is Intentionally Left Blank
5
DBX ETF Trust
Xtrackers MSCI All World ex US Hedged Equity ETF (DBAW)
The Xtrackers MSCI All World ex US Hedged Equity ETF (the “Fund”), using a “passive” or indexing investment approach, seeks investment results that correspond generally to the performance, before fees and expenses, of the MSCI ACWI ex USA US Dollar Hedged Index (the “Underlying Index”). The Underlying Index is designed to track the performance of equity securities in developed and emerging stock markets (excluding the United States), while mitigating exposure to fluctuations between the value of the U.S. dollar and the currencies of the countries included in the Underlying Index. It is not possible to invest directly into an index.
| Performance as of May 31, 2021 | ||||||||
| Average Annual Total Return | ||||||||
| Net Asset Value | Market Value | MSCI ACWI ex USA US Dollar Hedged Index |
MSCI ACWI ex USA Index | |||||
| One Year |
33.30% | 33.81% | 33.83% | 42.62% | ||||
| Five Year |
10.86% | 11.07% | 11.33% | 10.86% | ||||
| Since Inception1 |
7.67% | 7.72% | 8.13% | 5.96% | ||||
| Cumulative Total Returns | ||||||||
| Net Asset Value | Market Value | MSCI ACWI ex USA US Dollar Hedged Index |
MSCI ACWI ex USA Index | |||||
| One Year |
33.30% | 33.81% | 33.83% | 42.62% | ||||
| Five Year |
67.44% | 69.04% | 71.00% | 67.42% | ||||
| Since Inception1 |
72.19% | 72.86% | 77.77% | 53.08% | ||||
1 Total returns are calculated based on the commencement of operations, January 23, 2014 (“Inception”).
Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at www.Xtrackers.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the sale of fund shares or redemption of fund creation units. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are sold in the market or redeemed. Performance for certain funds may reflect a waiver of a portion of the unitary advisory fee. Without such waiver, performance would have been lower. The gross expense ratio of the Fund, as stated in the fee table of the prospectus dated October 1, 2020, as revised February 8, 2021 was 0.41%, and may differ from the expense ratio disclosed in the Financial Highlights table in this report.
The Fund’s net asset value or “NAV” is calculated by dividing the value of the Fund’s total assets less total liabilities by the number of shares outstanding. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not have traded in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary trading, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.
6
DBX ETF Trust
Performance Summary (Unaudited)
Xtrackers MSCI All World ex US Hedged Equity ETF (DBAW) (Continued)
* As a percent of total investments excluding securities lending collateral and cash equivalents.
Portfolio holdings and characteristics are subject to change. For more complete details about the Fund’s investment portfolio see page 19.
7
DBX ETF Trust
Performance Summary (Unaudited)
Xtrackers MSCI Emerging Markets Hedged Equity ETF (DBEM)
The Xtrackers MSCI Emerging Markets Hedged Equity ETF (the “Fund”), using a “passive” or indexing investment approach, seeks investment results that correspond generally to the performance, before fees and expenses, of the MSCI EM US Dollar Hedged Index (the “Underlying Index”). The Underlying Index is designed to track emerging market performance while mitigating exposure to fluctuations between the value of the U.S. dollar and the currencies of the countries included in the Underlying Index. It is not possible to invest directly into and index.
| Performance as of May 31, 2021 |
| Average Annual Total Return | ||||||||
| Net Asset Value | Market Value | MSCI EM US Dollar Hedged Index |
MSCI EM Index | |||||
| One Year |
40.84% | 39.80% | 41.50% | 49.27% | ||||
| Five Year |
11.63% | 11.58% | 12.71% | 13.62% | ||||
| Since Inception1 |
3.97% | 3.96% | 5.76% | 4.18% | ||||
| Cumulative Total Returns | ||||||||
| Net Asset Value | Market Value | MSCI EM US Dollar Hedged Index |
MSCI EM Index | |||||
| One Year |
40.84% | 39.80% | 41.50% | 49.27% | ||||
| Five Year |
73.35% | 72.98% | 81.85% | 89.32% | ||||
| Since Inception1 |
47.48% | 47.37% | 74.86% | 50.52% | ||||
1 Total returns are calculated based on the commencement of operations, June 9, 2011 (“Inception”).
Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at www.Xtrackers.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the sale of fund shares or redemption of fund creation units. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are sold in the market or redeemed. Performance for certain funds may reflect a waiver of a portion of the unitary advisory fee. Without such waiver, performance would have been lower. The gross expense ratio of the Fund, as stated in the fee table of the prospectus dated October 1, 2020, as revised February 8, 2021 was 0.66%, and may differ from the expense ratio disclosed in the Financial Highlights table in this report.
The Fund’s net asset value or “NAV” is calculated by dividing the value of the Fund’s total assets less total liabilities by the number of shares outstanding. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not have traded in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary trading, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.
8
DBX ETF Trust
Performance Summary (Unaudited)
Xtrackers MSCI Emerging Markets Hedged Equity ETF (DBEM) (Continued)
* As a percent of total investments excluding exchange-traded funds, securities lending collateral and cash equivalents.
Portfolio holdings and characteristics are subject to change. For more complete details about the Fund’s investment portfolio see page 46.
9
DBX ETF Trust
Performance Summary (Unaudited)
Xtrackers MSCI Europe Hedged Equity ETF (DBEU)
The X-trackers MSCI Europe Hedged Equity ETF (the “Fund”), using a “passive” or indexing investment approach, seeks investment results that correspond generally to the performance, before fees and expenses, of the MSCI Europe US Dollar Hedged Index (the “Underlying Index”). The Underlying Index is designed to track the performance of the developed markets in Europe, while mitigating exposure to fluctuations between the value of the U.S. dollar and the currencies of the countries included in the Underlying Index. It is not possible to invest directly into an index.
| Performance as of May 31, 2021 |
| Average Annual Total Return | ||||||||
| Net Asset Value | Market Value | MSCI Europe US Dollar Hedged Index |
MSCI Europe Index | |||||
| One Year |
30.29% | 29.89% | 30.50% | 42.74% | ||||
| Five Year |
10.43% | 10.43% | 10.74% | 9.68% | ||||
| Since Inception1 |
8.49% | 8.47% | 8.80% | 5.87% | ||||
| Cumulative Total Returns | ||||||||
| Net Asset Value | Market Value | MSCI Europe US Dollar Hedged Index |
MSCI Europe Index | |||||
| One Year |
30.29% | 29.89% | 30.50% | 42.74% | ||||
| Five Year |
64.20% | 64.22% | 66.57% | 58.70% | ||||
| Since Inception1 |
86.74% | 86.55% | 91.00% | 54.95% | ||||
1 Total returns are calculated based on the commencement of operations, October 1, 2013 (“Inception”).
Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at www.Xtrackers.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the sale of fund shares or redemption of fund creation units. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are sold in the market or redeemed. Performance for certain funds may reflect a waiver of a portion of the unitary advisory fee. Without such waiver, performance would have been lower. The gross expense ratio of the Fund, as stated in the fee table of the prospectus dated October 1, 2020, as revised February 8, 2021 was 0.46%, and may differ from the expense ratio disclosed in the Financial Highlights table in this report.
The Fund’s net asset value or “NAV” is calculated by dividing the value of the Fund’s total assets less total liabilities by the number of shares outstanding. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not have traded in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary trading, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.
10
DBX ETF Trust
Performance Summary (Unaudited)
Xtrackers MSCI Europe Hedged Equity ETF (DBEU) (Continued)
* As a percent of total investments excluding exchange-traded funds, securities lending collateral and cash equivalents.
Portfolio holdings and characteristics are subject to change. For more complete details about the Fund’s investment portfolio see page 66.
11
DBX ETF Trust
Performance Summary (Unaudited)
Xtrackers MSCI Eurozone Hedged Equity ETF (DBEZ)
The Xtrackers MSCI Eurozone Hedged Equity ETF (the “Fund”), using a “passive” or indexing investment approach, seeks investment results that correspond generally to the performance, before fees and expenses, of the MSCI EMU IMI US Dollar Hedged Index (the “Underlying Index”). The Underlying Index is designed to track the performance of equity securities based in the countries in the European Monetary Union (the “EMU”), while seeking to mitigate exposure to fluctuations between the value of the U.S. dollar and the euro. It is not possible to invest directly into an index.
| Performance as of May 31, 2021 |
| Average Annual Total Return | ||||||||
| Net Asset Value | Market Value | MSCI EMU IMI US Dollar Hedged Index |
MSCI EMU Index | |||||
| One Year |
38.59% | 37.63% | 38.87% | 50.13% | ||||
| Five Year |
11.16% | 11.13% | 11.35% | 10.90% | ||||
| Since Inception1 |
9.70% | 9.66% | 9.87% | 7.71% | ||||
| Cumulative Total Returns | ||||||||
| Net Asset Value | Market Value | MSCI EMU IMI US Dollar Hedged Index |
MSCI EMU Index | |||||
| One Year |
38.59% | 37.63% | 38.87% | 50.13% | ||||
| Five Year |
69.71% | 69.51% | 71.14% | 67.76% | ||||
| Since Inception1 |
82.09% | 81.73% | 84.05% | 61.79% | ||||
1 Total returns are calculated based on the commencement of operations, December 10, 2014 (“Inception”).
Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at www.Xtrackers.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the sale of fund shares or redemption of fund creation units. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are sold in the market or redeemed. Performance for certain funds may reflect a waiver of a portion of the unitary advisory fee. Without such waiver, performance would have been lower. The gross expense ratio of the Fund, as stated in the fee table of the prospectus dated October 1, 2020, as revised February 8, 2021 was 0.47%, and may differ from the expense ratio disclosed in the Financial Highlights table in this report.
The Fund’s net asset value or “NAV” is calculated by dividing the value of the Fund’s total assets less total liabilities by the number of shares outstanding. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not have traded in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary trading, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.
12
DBX ETF Trust
Performance Summary (Unaudited)
Xtrackers MSCI Eurozone Hedged Equity ETF (DBEZ) (Continued)
* As a percent of total investments excluding exchange-traded funds, securities lending collateral and cash equivalents.
Portfolio holdings and characteristics are subject to change. For more complete details about the Fund’s investment portfolio see page 74.
13
DBX ETF Trust
Performance Summary (Unaudited)
Xtrackers MSCI Germany Hedged Equity ETF (DBGR)
The Xtrackers MSCI Germany Hedged Equity ETF (the “Fund”), using a “passive” or indexing investment approach, seeks investment results that correspond generally to the performance, before fees and expenses, of the MSCI Germany US Dollar Hedged Index (the “Underlying Index”). The Underlying Index is designed to track the performance of the German equity market while mitigating exposure to fluctuations between the value of the U.S. dollar and the euro. It is not possible to invest directly into an index.
| Performance as of May 31, 2021 |
| Average Annual Total Return | ||||||||
| Net Asset Value | Market Value | MSCI Germany US Dollar Hedged Index |
MSCI Germany Index | |||||
| One Year |
32.00% | 30.82% | 32.11% | 42.84% | ||||
| Five Year |
9.55% | 9.52% | 9.89% | 9.44% | ||||
| Since Inception1 |
6.57% | 6.54% | 6.90% | 4.50% | ||||
| Cumulative Total Returns | ||||||||
| Net Asset Value | Market Value | MSCI Germany US Dollar Hedged Index |
MSCI Germany Index | |||||
| One Year |
32.00% | 30.82% | 32.11% | 42.84% | ||||
| Five Year |
57.81% | 57.57% | 60.22% | 56.98% | ||||
| Since Inception1 |
88.76% | 88.28% | 94.66% | 55.13% | ||||
1 Total returns are calculated based on the commencement of operations, June 9, 2011 (“Inception”).
Prior to May 31, 2013, this Fund was known as dbx-trackers MSCI Canada Hedged Equity Fund (DBCN) and had a different investment strategy. Past performance may have been different if the Fund’s current investment strategy had been in effect
Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at www.Xtrackers.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the sale of fund shares or redemption of fund creation units. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are sold in the market or redeemed. Performance for certain funds may reflect a waiver of a portion of the unitary advisory fee. Without such waiver, performance would have been lower. The gross expense ratio of the Fund, as stated in the fee table of the prospectus dated October 1, 2020, as revised February 8, 2021 was 0.45%, and may differ from the expense ratio disclosed in the Financial Highlights table in this report.
The Fund’s net asset value or “NAV” is calculated by dividing the value of the Fund’s total assets less total liabilities by the number of shares outstanding. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not have traded in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary trading, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.
14
DBX ETF Trust
Performance Summary (Unaudited)
Xtrackers MSCI Germany Hedged Equity ETF (DBGR) (Continued)
* As a percent of total investments excluding exchange-traded funds, securities lending collateral and cash equivalents.
Portfolio holdings and characteristics are subject to change. For more complete details about the Fund’s investment portfolio see page 83.
15
DBX ETF Trust
Performance Summary (Unaudited)
Xtrackers MSCI Japan Hedged Equity ETF (DBJP)
The Xtrackers MSCI Japan Hedged Equity ETF (the “Fund”), using a “passive” or indexing investment approach, seeks investment results that correspond generally to the performance, before fees and expenses, of the MSCI Japan US Dollar Hedged Index (the “Underlying Index”). The Underlying Index is designed to track the performance of the Japanese equity market while mitigating exposure to fluctuations between the value of the U.S. dollar and Japanese yen. It is not possible to invest directly into an index.
| Performance as of May 31, 2021 |
| Average Annual Total Return | ||||||||
| Net Asset Value | Market Value | MSCI Japan US Dollar Hedged Index |
MSCI Japan Index | |||||
| One Year |
28.48% | 28.25% | 28.98% | 26.05% | ||||
| Five Year |
10.45% | 10.57% | 11.00% | 9.85% | ||||
| Since Inception1 |
10.70% | 10.64% | 11.36% | 7.58% | ||||
| Cumulative Total Returns | ||||||||
| Net Asset Value | Market Value | MSCI Japan US Dollar Hedged Index |
MSCI Japan Index | |||||
| One Year |
28.48% | 28.25% | 28.98% | 26.05% | ||||
| Five Year |
64.40% | 65.28% | 68.51% | 59.98% | ||||
| Since Inception1 |
175.82% | 174.49% | 192.96% | 107.48% | ||||
1 Total returns are calculated based on the commencement of operations, June 9, 2011 (“Inception”).
Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at www.Xtrackers.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the sale of fund shares or redemption of fund creation units. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are sold in the market or redeemed. Performance for certain funds may reflect a waiver of a portion of the unitary advisory fee. Without such waiver, performance would have been lower. The gross expense ratio of the Fund, as stated in the fee table of the prospectus dated October 1, 2020, as revised February 8, 2021 was 0.46%, and may differ from the expense ratio disclosed in the Financial Highlights table in this report.
The Fund’s net asset value or “NAV” is calculated by dividing the value of the Fund’s total assets less total liabilities by the number of shares outstanding. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not have traded in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary trading, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.
16
DBX ETF Trust
Performance Summary (Unaudited)
Xtrackers MSCI Japan Hedged Equity ETF (DBJP) (Continued)
* As a percent of total investments excluding exchange-traded funds, securities lending collateral and cash equivalents.
Portfolio holdings and characteristics are subject to change. For more complete details about the Fund’s investment portfolio see page 86.
17
DBX ETF Trust
As a shareholder of one or more of the Funds, you incur two types of costs: (1) transaction costs, including brokerage commissions paid on purchases and sales of fund shares, and (2) ongoing costs, including unitary advisory fees and other Fund expenses. In the most recent six-month period the Funds limted these expenses; had they not done so, expenses would have been higher. The expense examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds.
The examples in the tables are based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period (December 1, 2020 to May 31, 2021).
Actual expenses
The first line in the following tables provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expenses Paid During the Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The second line in the following tables provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses (which is not the Funds’ actual return). The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only, and do not reflect any transactional costs. Therefore the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Beginning Account Value December 1, 2020 |
Ending Account Value May 31, 2021 |
Annualized Expense Ratio |
Expenses Paid During the Period Per $1,000(1) |
|||||||||||||
| Xtrackers MSCI All World ex US Hedged Equity ETF |
|
|||||||||||||||
| Actual |
$ | 1,000.00 | $ | 1,140.50 | 0.40 | % | $ | 2.13 | ||||||||
| Hypothetical (5% return before expenses) |
$ | 1,000.00 | $ | 1,022.94 | 0.40 | % | $ | 2.02 | ||||||||
| Xtrackers MSCI Emerging Markets Hedged Equity ETF |
|
|||||||||||||||
| Actual |
$ | 1,000.00 | $ | 1,114.50 | 0.65 | % | $ | 3.43 | ||||||||
| Hypothetical (5% return before expenses) |
$ | 1,000.00 | $ | 1,021.69 | 0.65 | % | $ | 3.28 | ||||||||
| Xtrackers MSCI Europe Hedged Equity ETF |
|
|||||||||||||||
| Actual |
$ | 1,000.00 | $ | 1,161.00 | 0.45 | % | $ | 2.42 | ||||||||
| Hypothetical (5% return before expenses) |
$ | 1,000.00 | $ | 1,022.69 | 0.45 | % | $ | 2.27 | ||||||||
| Xtrackers MSCI Eurozone Hedged Equity ETF |
|
|||||||||||||||
| Actual |
$ | 1,000.00 | $ | 1,180.30 | 0.45 | % | $ | 2.45 | ||||||||
| Hypothetical (5% return before expenses) |
$ | 1,000.00 | $ | 1,022.69 | 0.45 | % | $ | 2.27 | ||||||||
| Xtrackers MSCI Germany Hedged Equity ETF |
|
|||||||||||||||
| Actual |
$ | 1,000.00 | $ | 1,163.50 | 0.45 | % | $ | 2.43 | ||||||||
| Hypothetical (5% return before expenses) |
$ | 1,000.00 | $ | 1,022.69 | 0.45 | % | $ | 2.27 | ||||||||
| Xtrackers MSCI Japan Hedged Equity ETF |
|
|||||||||||||||
| Actual |
$ | 1,000.00 | $ | 1,120.50 | 0.45 | % | $ | 2.38 | ||||||||
| Hypothetical (5% return before expenses) |
$ | 1,000.00 | $ | 1,022.69 | 0.45 | % | $ | 2.27 | ||||||||
(1) Expenses are equal to each Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 182 (the number of days in the most recent six-month period), then divided by 365.
18
DBX ETF Trust
Xtrackers MSCI All World ex US Hedged Equity ETF
May 31, 2021
| See Notes to Financial Statements. | 19 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI All World ex US Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 20 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI All World ex US Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 21 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI All World ex US Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 22 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI All World ex US Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 23 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI All World ex US Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 24 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI All World ex US Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 25 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI All World ex US Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 26 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI All World ex US Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 27 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI All World ex US Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 28 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI All World ex US Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 29 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI All World ex US Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 30 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI All World ex US Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 31 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI All World ex US Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 32 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI All World ex US Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 33 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI All World ex US Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 34 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI All World ex US Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 35 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI All World ex US Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 36 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI All World ex US Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 37 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI All World ex US Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 38 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI All World ex US Hedged Equity ETF (Continued)
May 31, 2021
A summary of the Fund’s transactions with affiliated investments during the year ended May 31, 2021 is as follows:
| Value ($) at 5/31/2020 |
Purchases Cost ($) |
Sales Proceeds ($) |
Net Realized Gain/(Loss) ($) |
Net Change in Unrealized Appreciation (Depreciation) ($) |
Income ($) | Capital Gain Distributions ($) |
Number of Shares at 5/31/2021 |
Value ($) at 5/31/2021 |
||||||||||||||||||||||||||||
| COMMON STOCKS — 0.1% |
|
|||||||||||||||||||||||||||||||||||
| Germany — 0.1% |
| |||||||||||||||||||||||||||||||||||
| Deutsche Bank AG*(d) |
| |||||||||||||||||||||||||||||||||||
| 82,252 | 10,421 | (18,164 | ) | (4,238 | ) | 61,852 | — | — | 8,862 | 132,123 | ||||||||||||||||||||||||||
| SECURITIES LENDING COLLATERAL — 1.9% |
| |||||||||||||||||||||||||||||||||||
| DWS Government & Agency Securities Portfolio “DWS Government Cash Institutional Shares”, 0.01% (e)(f) |
| |||||||||||||||||||||||||||||||||||
| 1,267,996 | 1,104,726 | (g) | — | — | — | 307 | — | 2,372,722 | 2,372,722 | |||||||||||||||||||||||||||
| CASH EQUIVALENTS —1.2% |
| |||||||||||||||||||||||||||||||||||
| DWS Government Money Market Series “Institutional Shares”, 0.03% (e) |
| |||||||||||||||||||||||||||||||||||
| 1,949,518 | 32,255,717 | (32,706,553 | ) | — | — | 783 | — | 1,498,682 | 1,498,682 | |||||||||||||||||||||||||||
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|
|||||||||||||||||||
| 3,299,766 | 33,370,864 | (32,724,717 | ) | (4,238 | ) | 61,852 | 1.090 | — | 3,880,266 | 4,003,527 | ||||||||||||||||||||||||||
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| * | Non-income producing security. |
| See Notes to Financial Statements. | 39 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI All World ex US Hedged Equity ETF (Continued)
May 31, 2021
| (a) | Stapled Security — A security contractually bound to one or more other securities to form a single saleable unit which cannot be sold separately. |
| (b) | All or a portion of these securities were on loan. In addition, “Other assets and liabilities, net” may include pending sales that are also on loan. The value of securities loaned at May 31, 2021 amounted to $3,484,766, which is 2.8% of net assets. |
| (c) | Investment was valued using significant unobservable inputs. |
| (d) | Affiliated issuer. This security is owned in proportion with its representation in the index. |
| (e) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
| (f) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. In addition, the Fund held non-cash U.S. Treasury securities collateral having a value of $1,351,926. |
| (g) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the year ended May 31, 2021. |
| ADR: | American Depositary Receipt |
| CDI: | Chess Depositary Interest |
| CPO: | Ordinary Participation Certificates |
| GDR: | Global Depositary Receipt |
| JSC: | Joint Stock Company |
| KSC: | Kuwait Shareholding Company |
| KSCP: | Kuwait Shareholding Company Public |
| NVDR: | Non Voting Depositary Receipt |
| PJSC: | Public Joint Stock Company |
| PSQC: | Public Shareholders Qatari Company |
| QPSC: | Qatari Public Shareholders Company |
| QSC: | Qatari Shareholders Company |
| REIT: | Real Estate Investment Trust |
| RSP: | Risparmio (Convertible Savings Shares) |
| SAE: | Societe Anonyme Egyptienne |
| SAQ: | Societe Anonyme Qatar |
| 144A: | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
Securities are listed in country of domicile.
At May 31, 2021, open futures contracts purchased were as follows:
| Contract Description |
Currency | Number of Contracts |
Notional Amount |
Contract Value |
Expiration Date |
Unrealized Appreciation |
||||||||||||
| MSCI EAFE Futures |
USD | 16 | $ | 1,791,330 | $ | 1,869,600 | 6/18/2021 | $ | 78,270 | |||||||||
| MSCI Emerging Markets Index Futures |
USD | 14 | 933,770 | 952,630 | 6/18/2021 | 18,860 | ||||||||||||
| MINI S&P/TSX 60 Futures |
CAD | 2 | 96,605 | 97,647 | 6/17/2021 | 1,042 | ||||||||||||
|
|
|
|||||||||||||||||
| Total unrealized appreciation |
$ | 98,172 | ||||||||||||||||
|
|
|
|||||||||||||||||
As of May 31, 2021, the Fund had the following forward foreign currency contracts outstanding:
| Counterparty |
Settlement Date |
Currency To Deliver |
Currency To Receive |
Unrealized Appreciation |
Unrealized Depreciation |
|||||||||||||||||
| Citigroup Global Markets |
6/3/2021 | AED | 625,100 | USD | 170,181 | $ | — | $ | (11 | ) | ||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | AUD | 3,401,500 | USD | 2,627,805 | — | (4,655 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | AUD | 192,700 | USD | 149,955 | 822 | — | |||||||||||||||
| RBC Capital Markets |
6/3/2021 | AUD | 238,000 | USD | 183,865 | — | (326 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | AUD | 3,394,500 | USD | 2,622,387 | — | (4,656 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | CAD | 3,325,900 | USD | 2,703,676 | — | (51,822 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | CAD | 3,465,700 | USD | 2,817,315 | — | (54,007 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | CAD | 151,000 | USD | 122,748 | — | (2,355 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | CAD | 3,009,700 | USD | 2,446,632 | — | (46,895 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | CAD | 272,700 | USD | 225,040 | — | (891 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | CHF | 2,381,700 | USD | 2,613,284 | — | (36,640 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | CHF | 2,091,700 | USD | 2,295,121 | — | (32,144 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | CHF | 1,969,200 | USD | 2,160,722 | — | (30,247 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | CHF | 176,500 | USD | 195,697 | — | (681 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | CLP | 102,090,400 | USD | 142,921 | 1,596 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | CLP | 13,480,400 | USD | 18,883 | 222 | — | |||||||||||||||
| See Notes to Financial Statements. | 40 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI All World ex US Hedged Equity ETF (Continued)
May 31, 2021
| Counterparty |
Settlement Date |
Currency To Deliver |
Currency To Receive |
Unrealized Appreciation |
Unrealized Depreciation |
|||||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | CNH | 292,300 | USD | 45,338 | $ | — | $ | (513 | ) | ||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | CNH | 10,669,100 | USD | 1,646,352 | — | (27,236 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | COP | 332,003,700 | USD | 88,603 | — | (917 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | COP | 23,380,500 | USD | 6,228 | — | (76 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | CZK | 1,161,500 | USD | 54,049 | — | (1,805 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | DKK | 888,000 | USD | 143,806 | — | (2,214 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | DKK | 321,000 | USD | 52,430 | — | (354 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | DKK | 4,234,700 | USD | 685,770 | — | (10,569 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | DKK | 6,595,100 | USD | 1,068,041 | — | (16,434 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | EGP | 632,000 | USD | 40,114 | — | (185 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | EUR | 7,613,900 | USD | 9,170,874 | — | (140,335 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | EUR | 565,800 | USD | 687,302 | — | (4,628 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | EUR | 6,350,600 | USD | 7,649,221 | — | (117,069 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | EUR | 6,689,000 | USD | 8,056,887 | — | (123,241 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | GBP | 2,638,200 | USD | 3,652,878 | — | (95,232 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | GBP | 2,801,300 | USD | 3,878,702 | — | (101,125 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | GBP | 214,200 | USD | 301,980 | — | (2,335 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | GBP | 2,378,400 | USD | 3,293,156 | — | (85,854 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | HKD | 42,024,600 | USD | 5,411,176 | — | (3,390 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | HKD | 2,243,600 | USD | 288,828 | — | (244 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | HKD | 1,211,000 | USD | 155,928 | — | (101 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | HKD | 38,654,200 | USD | 4,977,203 | — | (3,111 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | HUF | 5,831,900 | USD | 19,485 | — | (1,062 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | HUF | 16,042,500 | USD | 53,599 | — | (2,921 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | ILS | 650,100 | USD | 200,490 | 336 | — | |||||||||||||||
| RBC Capital Markets |
6/3/2021 | ILS | 165,000 | USD | 50,887 | 86 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | INR | 7,143,800 | USD | 97,201 | — | (1,123 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | INR | 260,746,900 | USD | 3,502,074 | — | (86,744 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | JPY | 748,777,700 | USD | 6,851,674 | 12,736 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | JPY | 677,347,700 | USD | 6,198,027 | 11,493 | — | |||||||||||||||
| RBC Capital Markets |
6/3/2021 | JPY | 644,296,500 | USD | 5,895,562 | 10,900 | — | |||||||||||||||
| RBC Capital Markets |
6/3/2021 | JPY | 53,697,900 | USD | 491,133 | 685 | — | |||||||||||||||
| Citigroup Global Markets |
6/3/2021 | KRW | 1,955,511,700 | USD | 1,758,032 | — | (2,042 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | KRW | 150,820,800 | USD | 133,011 | — | (2,737 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | KRW | 1,837,130,200 | USD | 1,651,947 | — | (1,577 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | KRW | 1,850,826,400 | USD | 1,664,038 | — | (1,813 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | KWD | 45,000 | USD | 149,259 | — | (329 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | MXN | 8,562,600 | USD | 423,022 | — | (6,592 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | MXN | 374,800 | USD | 18,821 | 16 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | MXN | 968,700 | USD | 47,862 | — | (741 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | MXN | 4,148,000 | USD | 204,926 | — | (3,193 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | MYR | 60,600 | USD | 14,681 | — | (10 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | MYR | 2,212,800 | USD | 539,839 | 3,406 | — | |||||||||||||||
| Citigroup Global Markets |
6/3/2021 | NOK | 3,495,200 | USD | 420,713 | 392 | — | |||||||||||||||
| Citigroup Global Markets |
6/3/2021 | NOK | 95,800 | USD | 11,637 | 116 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | NZD | 13,300 | USD | 9,542 | — | (138 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | NZD | 238,100 | USD | 170,817 | — | (2,483 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | PHP | 561,200 | USD | 11,598 | — | (167 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | PHP | 12,357,800 | USD | 255,353 | — | (3,723 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | QAR | 801,500 | USD | 220,059 | — | (24 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | RUB | 43,133,700 | USD | 573,331 | — | (13,765 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | RUB | 2,356,300 | USD | 31,789 | — | (283 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | RUB | 42,872,000 | USD | 569,641 | — | (13,893 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | SEK | 13,734,900 | USD | 1,624,699 | — | (32,214 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | SEK | 10,155,900 | USD | 1,201,373 | — | (23,787 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | SEK | 654,500 | USD | 78,550 | — | (406 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | SGD | 728,700 | USD | 547,676 | — | (3,822 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | SGD | 417,300 | USD | 313,629 | — | (2,194 | ) | ||||||||||||||
| See Notes to Financial Statements. | 41 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI All World ex US Hedged Equity ETF (Continued)
May 31, 2021
| Counterparty |
Settlement Date |
Currency To Deliver |
Currency To Receive |
Unrealized Appreciation |
Unrealized Depreciation |
|||||||||||||||||
| RBC Capital Markets |
6/3/2021 | SGD | 31,400 | USD | 23,576 | $ | — | $ | (189 | ) | ||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | TRY | 911,400 | USD | 108,319 | 1,096 | — | |||||||||||||||
| Citigroup Global Markets |
6/3/2021 | TWD | 42,005,500 | USD | 1,509,903 | — | (11,776 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | TWD | 4,769,000 | USD | 171,300 | — | (1,460 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | TWD | 44,841,500 | USD | 1,611,554 | — | (12,861 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | TWD | 4,177,000 | USD | 149,713 | — | (1,602 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | TWD | 60,844,000 | USD | 2,185,881 | — | (18,236 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 170,192 | AED | 625,100 | — | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 2,782,091 | AUD | 3,594,200 | — | (498 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 2,811,751 | AUD | 3,632,500 | — | (518 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 2,753,001 | CAD | 3,325,900 | 2,498 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 2,868,727 | CAD | 3,465,700 | 2,595 | — | |||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 2,841,986 | CAD | 3,433,400 | 2,576 | — | |||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 2,648,305 | CHF | 2,381,700 | 1,619 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 2,325,791 | CHF | 2,091,700 | 1,474 | — | |||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 2,385,898 | CHF | 2,145,700 | 1,448 | — | |||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 141,461 | CLP | 102,090,400 | — | (136 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 18,652 | CLP | 13,480,400 | 9 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 1,720,083 | CNH | 10,961,400 | — | (644 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 89,537 | COP | 332,003,700 | — | (17 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 6,299 | COP | 23,380,500 | 6 | — | |||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 55,815 | CZK | 1,161,500 | 39 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 894,911 | DKK | 5,443,700 | 231 | — | |||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 1,084,212 | DKK | 6,595,100 | 263 | — | |||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 40,332 | EGP | 632,000 | — | (33 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 9,309,287 | EUR | 7,613,900 | 1,922 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 8,456,336 | EUR | 6,916,400 | 1,884 | — | |||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 8,178,466 | EUR | 6,689,000 | 1,661 | — | |||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 3,750,201 | GBP | 2,638,200 | — | (2,091 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 3,982,048 | GBP | 2,801,300 | — | (2,220 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 3,685,386 | GBP | 2,592,600 | — | (2,060 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 5,414,634 | HKD | 42,024,600 | — | (68 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 5,425,483 | HKD | 42,108,800 | — | (68 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 20,533 | HUF | 5,831,900 | 14 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 56,482 | HUF | 16,042,500 | 38 | — | |||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 200,124 | ILS | 650,100 | 30 | — | |||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 50,793 | ILS | 165,000 | 7 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 3,692,498 | INR | 267,890,700 | — | (5,355 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 877,480 | JPY | 95,893,000 | — | (1,644 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 5,968,140 | JPY | 652,884,700 | — | (5,038 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 6,191,761 | JPY | 677,347,700 | — | (5,227 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 6,247,483 | JPY | 683,438,400 | — | (5,320 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 133,310 | JPY | 14,556,000 | — | (363 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 1,771,745 | KRW | 1,967,824,500 | — | (589 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 123,044 | KRW | 138,508,000 | 1,621 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 1,653,583 | KRW | 1,837,130,200 | — | (59 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 1,666,435 | KRW | 1,850,826,400 | — | (584 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 149,601 | KWD | 45,000 | — | (13 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 430,049 | MXN | 8,562,600 | — | (435 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 67,477 | MXN | 1,343,500 | — | (69 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 208,335 | MXN | 4,148,000 | — | (216 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 551,060 | MYR | 2,273,400 | 64 | — | |||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 431,649 | NOK | 3,591,000 | 192 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 9,682 | NZD | 13,300 | — | (2 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 173,337 | NZD | 238,100 | — | (37 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 11,775 | PHP | 561,200 | — | (10 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 259,008 | PHP | 12,357,800 | 67 | — | |||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 220,093 | QAR | 801,500 | — | (9 | ) | ||||||||||||||
| See Notes to Financial Statements. | 42 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI All World ex US Hedged Equity ETF (Continued)
May 31, 2021
| Counterparty |
Settlement Date |
Currency To Deliver |
Currency To Receive |
Unrealized Appreciation |
Unrealized Depreciation |
|||||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 587,493 | RUB | 43,133,700 | $ | — | $ | (397 | ) | ||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 616,105 | RUB | 45,228,300 | — | (500 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 1,656,364 | SEK | 13,734,900 | 550 | — | |||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 1,303,699 | SEK | 10,810,400 | 417 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 551,648 | SGD | 728,700 | — | (151 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 339,680 | SGD | 448,700 | — | (93 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 107,518 | TRY | 911,400 | — | (295 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 1,699,315 | TWD | 46,774,500 | — | (4,875 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 1,780,225 | TWD | 49,018,500 | — | (4,495 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 2,208,895 | TWD | 60,844,000 | — | (4,777 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 864,883 | ZAR | 11,866,200 | — | (1,996 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 695,084 | ZAR | 9,537,800 | — | (1,513 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | ZAR | 11,866,200 | USD | 814,651 | — | (48,237 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | ZAR | 570,800 | USD | 40,265 | — | (1,242 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | ZAR | 8,967,000 | USD | 615,502 | — | (36,561 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/4/2021 | BRL | 4,694,800 | USD | 862,862 | — | (32,819 | ) | ||||||||||||||
| RBC Capital Markets |
6/4/2021 | BRL | 252,700 | USD | 47,828 | — | (382 | ) | ||||||||||||||
| RBC Capital Markets |
6/4/2021 | BRL | 4,529,100 | USD | 832,794 | — | (31,275 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/4/2021 | IDR | 3,803,619,900 | USD | 262,029 | — | (4,235 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/4/2021 | IDR | 150,211,200 | USD | 10,504 | — | (11 | ) | ||||||||||||||
| RBC Capital Markets |
6/4/2021 | IDR | 1,679,087,700 | USD | 115,775 | — | (1,766 | ) | ||||||||||||||
| Citigroup Global Markets |
6/4/2021 | PLN | 607,200 | USD | 160,270 | — | (5,465 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/4/2021 | PLN | 54,900 | USD | 14,491 | — | (494 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/4/2021 | THB | 505,300 | USD | 16,088 | — | (90 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/4/2021 | THB | 18,443,600 | USD | 591,387 | 916 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/4/2021 | USD | 893,193 | BRL | 4,694,800 | 2,489 | — | |||||||||||||||
| RBC Capital Markets |
6/4/2021 | USD | 911,071 | BRL | 4,781,800 | 1,209 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/4/2021 | USD | 277,852 | IDR | 3,953,831,100 | — | (1,072 | ) | ||||||||||||||
| RBC Capital Markets |
6/4/2021 | USD | 117,955 | IDR | 1,679,087,700 | — | (414 | ) | ||||||||||||||
| Citigroup Global Markets |
6/4/2021 | USD | 165,759 | PLN | 607,200 | — | (23 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/4/2021 | USD | 14,987 | PLN | 54,900 | — | (2 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/4/2021 | USD | 607,399 | THB | 18,948,900 | — | (751 | ) | ||||||||||||||
| Citigroup Global Markets |
7/6/2021 | AED | 625,100 | USD | 170,192 | 3 | — | |||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | AUD | 3,594,200 | USD | 2,782,457 | 435 | — | |||||||||||||||
| RBC Capital Markets |
7/6/2021 | AUD | 3,632,500 | USD | 2,812,100 | 432 | — | |||||||||||||||
| RBC Capital Markets |
7/6/2021 | AUD | 238,000 | USD | 184,249 | 29 | — | |||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | BRL | 4,694,800 | USD | 890,617 | — | (2,437 | ) | ||||||||||||||
| RBC Capital Markets |
7/6/2021 | BRL | 4,781,800 | USD | 908,388 | — | (1,216 | ) | ||||||||||||||
| RBC Capital Markets |
7/6/2021 | BRL | 707,000 | USD | 134,291 | — | (196 | ) | ||||||||||||||
| Citigroup Global Markets |
7/6/2021 | CAD | 3,325,900 | USD | 2,752,909 | — | (2,465 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | CAD | 3,465,700 | USD | 2,868,551 | — | (2,643 | ) | ||||||||||||||
| RBC Capital Markets |
7/6/2021 | CAD | 3,433,400 | USD | 2,841,816 | — | (2,618 | ) | ||||||||||||||
| RBC Capital Markets |
7/6/2021 | CAD | 452,000 | USD | 374,114 | — | (350 | ) | ||||||||||||||
| Citigroup Global Markets |
7/6/2021 | CHF | 2,381,700 | USD | 2,650,471 | — | (1,709 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | CHF | 2,091,700 | USD | 2,327,714 | — | (1,532 | ) | ||||||||||||||
| RBC Capital Markets |
7/6/2021 | CHF | 2,145,700 | USD | 2,387,863 | — | (1,516 | ) | ||||||||||||||
| RBC Capital Markets |
7/6/2021 | CHF | 197,000 | USD | 219,234 | — | (139 | ) | ||||||||||||||
| Citigroup Global Markets |
7/6/2021 | CLP | 102,090,400 | USD | 141,408 | 131 | — | |||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | CLP | 13,480,400 | USD | 18,645 | — | (10 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | CNH | 10,961,400 | USD | 1,716,474 | 579 | — | |||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | CNH | 947,000 | USD | 148,247 | 4 | — | |||||||||||||||
| Citigroup Global Markets |
7/6/2021 | COP | 332,003,700 | USD | 89,392 | 54 | — | |||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | COP | 23,380,500 | USD | 6,286 | — | (6 | ) | ||||||||||||||
| Citigroup Global Markets |
7/6/2021 | CZK | 1,161,500 | USD | 55,813 | — | (40 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | DKK | 5,443,700 | USD | 895,334 | — | (264 | ) | ||||||||||||||
| RBC Capital Markets |
7/6/2021 | DKK | 6,595,100 | USD | 1,084,726 | — | (302 | ) | ||||||||||||||
| Citigroup Global Markets |
7/6/2021 | EUR | 7,613,900 | USD | 9,315,058 | — | (2,137 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | EUR | 6,916,400 | USD | 8,461,558 | — | (2,100 | ) | ||||||||||||||
| See Notes to Financial Statements. | 43 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI All World ex US Hedged Equity ETF (Continued)
May 31, 2021
| Counterparty |
Settlement Date |
Currency To Deliver |
Currency To Receive |
Unrealized Appreciation |
Unrealized Depreciation |
|||||||||||||||||
| RBC Capital Markets |
7/6/2021 | EUR | 689,000 | USD | 842,936 | $ | — | $ | (200 | ) | ||||||||||||
| RBC Capital Markets |
7/6/2021 | EUR | 6,689,000 | USD | 8,183,517 | — | (1,871 | ) | ||||||||||||||
| Citigroup Global Markets |
7/6/2021 | GBP | 2,638,200 | USD | 3,750,307 | 2,028 | — | |||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | GBP | 2,801,300 | USD | 3,982,160 | 2,153 | — | |||||||||||||||
| RBC Capital Markets |
7/6/2021 | GBP | 161,000 | USD | 228,867 | 123 | — | |||||||||||||||
| RBC Capital Markets |
7/6/2021 | GBP | 2,592,600 | USD | 3,685,490 | 1,998 | — | |||||||||||||||
| Citigroup Global Markets |
7/6/2021 | HKD | 16,029,000 | USD | 2,065,340 | — | (31 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | HKD | 42,024,600 | USD | 5,415,014 | 52 | — | |||||||||||||||
| RBC Capital Markets |
7/6/2021 | HKD | 42,108,800 | USD | 5,425,832 | 21 | — | |||||||||||||||
| Citigroup Global Markets |
7/6/2021 | HUF | 5,831,900 | USD | 20,524 | — | (11 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | HUF | 16,042,500 | USD | 56,451 | — | (38 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | IDR | 3,953,831,100 | USD | 276,976 | 975 | — | |||||||||||||||
| RBC Capital Markets |
7/6/2021 | IDR | 1,679,087,700 | USD | 117,583 | 373 | — | |||||||||||||||
| Citigroup Global Markets |
7/6/2021 | ILS | 650,100 | USD | 200,160 | — | (42 | ) | ||||||||||||||
| RBC Capital Markets |
7/6/2021 | ILS | 165,000 | USD | 50,800 | — | (12 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | INR | 16,644,000 | USD | 228,156 | 235 | — | |||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | INR | 267,890,700 | USD | 3,671,244 | 2,776 | — | |||||||||||||||
| Citigroup Global Markets |
7/6/2021 | JPY | 652,884,700 | USD | 5,969,466 | 4,833 | — | |||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | JPY | 677,347,700 | USD | 6,193,244 | 5,122 | — | |||||||||||||||
| RBC Capital Markets |
7/6/2021 | JPY | 683,438,400 | USD | 6,248,865 | 5,099 | — | |||||||||||||||
| Citigroup Global Markets |
7/6/2021 | KRW | 1,967,824,500 | USD | 1,771,857 | 541 | — | |||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | KRW | 1,837,130,200 | USD | 1,653,583 | — | (90 | ) | ||||||||||||||
| RBC Capital Markets |
7/6/2021 | KRW | 1,850,826,400 | USD | 1,666,435 | 434 | — | |||||||||||||||
| Citigroup Global Markets |
7/6/2021 | KWD | 45,000 | USD | 149,467 | 24 | — | |||||||||||||||
| Citigroup Global Markets |
7/6/2021 | MXN | 8,562,600 | USD | 428,435 | 453 | — | |||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | MXN | 1,343,500 | USD | 67,215 | 63 | — | |||||||||||||||
| RBC Capital Markets |
7/6/2021 | MXN | 4,148,000 | USD | 207,518 | 190 | — | |||||||||||||||
| RBC Capital Markets |
7/6/2021 | MYR | 2,273,400 | USD | 549,994 | — | (373 | ) | ||||||||||||||
| Citigroup Global Markets |
7/6/2021 | NOK | 3,591,000 | USD | 431,678 | — | (192 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | NZD | 13,300 | USD | 9,681 | 2 | — | |||||||||||||||
| RBC Capital Markets |
7/6/2021 | NZD | 238,100 | USD | 173,320 | 35 | — | |||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | PHP | 561,200 | USD | 11,742 | — | (11 | ) | ||||||||||||||
| RBC Capital Markets |
7/6/2021 | PHP | 12,357,800 | USD | 258,331 | — | (461 | ) | ||||||||||||||
| Citigroup Global Markets |
7/6/2021 | PLN | 466,000 | USD | 127,232 | 16 | — | |||||||||||||||
| Citigroup Global Markets |
7/6/2021 | PLN | 607,200 | USD | 165,787 | 24 | — | |||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | PLN | 54,900 | USD | 14,990 | 2 | — | |||||||||||||||
| Citigroup Global Markets |
7/6/2021 | QAR | 801,500 | USD | 220,032 | 42 | — | |||||||||||||||
| Citigroup Global Markets |
7/6/2021 | RUB | 43,133,700 | USD | 584,705 | 263 | — | |||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | RUB | 45,228,300 | USD | 613,169 | 346 | — | |||||||||||||||
| Citigroup Global Markets |
7/6/2021 | SAR | 3,900,000 | USD | 1,039,611 | — | (62 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | SEK | 13,734,900 | USD | 1,656,778 | — | (578 | ) | ||||||||||||||
| RBC Capital Markets |
7/6/2021 | SEK | 10,810,400 | USD | 1,304,042 | — | (423 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | SGD | 728,700 | USD | 551,592 | 147 | — | |||||||||||||||
| RBC Capital Markets |
7/6/2021 | SGD | 448,700 | USD | 339,641 | 87 | — | |||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | THB | 18,948,900 | USD | 606,293 | — | (291 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | TRY | 911,400 | USD | 105,562 | 264 | — | |||||||||||||||
| Citigroup Global Markets |
7/6/2021 | TWD | 46,774,500 | USD | 1,706,413 | 11,765 | — | |||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | TWD | 49,018,500 | USD | 1,787,887 | 11,938 | — | |||||||||||||||
| RBC Capital Markets |
7/6/2021 | TWD | 60,844,000 | USD | 2,217,751 | 13,362 | — | |||||||||||||||
| Citigroup Global Markets |
7/6/2021 | USD | 229,012 | TWD | 6,280,000 | — | (1,487 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | ZAR | 11,866,200 | USD | 861,043 | 1,967 | — | |||||||||||||||
| RBC Capital Markets |
7/6/2021 | ZAR | 9,537,800 | USD | 691,997 | 1,490 | — | |||||||||||||||
| Citigroup Global Markets |
7/7/2021 | EGP | 632,000 | USD | 40,038 | 100 | — | |||||||||||||||
|
|
|
|
|
|||||||||||||||||||
| Total unrealized appreciation (depreciation) |
$ | 140,751 | $ | (1,501,312 | ) | |||||||||||||||||
|
|
|
|
|
|||||||||||||||||||
For information on the Fund’s policy and additional disclosures regarding open futures contracts and forward foreign currency contracts, please refer to the Derivatives section of Note 2 in the accompanying Notes to Financial Statements.
| See Notes to Financial Statements. | 44 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI All World ex US Hedged Equity ETF (Continued)
May 31, 2021
Currency Abbreviations
Fair Value Measurements
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
The following is a summary of the inputs used as of May 31, 2021 in valuing the Fund’s investments. For information on the Fund’s policy regarding the valuation of investments, please refer to the Security Valuation section of Note 2 in the accompanying Notes to Financial Statements.
| Assets |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Common Stocks (h) |
$ | 121,058,547 | $ | — | $ | 19,934 | $ | 121,078,481 | ||||||||
| Preferred Stocks (h) |
1,282,037 | — | — | 1,282,037 | ||||||||||||
| Corporate Bonds |
— | 135 | 236 | 371 | ||||||||||||
| Rights (h) |
21,233 | — | 0 | 21,233 | ||||||||||||
| Warrants (h) |
3,094 | — | — | 3,094 | ||||||||||||
| Short-Term Investments (h) |
3,871,404 | — | — | 3,871,404 | ||||||||||||
| Derivatives (i) |
||||||||||||||||
| Forward Foreign Currency Contracts |
— | 140,751 | — | 140,751 | ||||||||||||
| Futures Contracts |
98,172 | — | — | 98,172 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| TOTAL |
$ | 126,334,487 | $ | 140,886 | $ | 20,170 | $ | 126,495,543 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Liabilities |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Derivatives (i) |
||||||||||||||||
| Forward Foreign Currency Contracts |
$ | — | $ | (1,501,312 | ) | $ | — | $ | (1,501,312 | ) | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
| TOTAL |
$ | — | $ | (1,501,312 | ) | $ | — | $ | (1,501,312 | ) | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (h) | See Schedule of Investments for additional detailed categorizations. |
| (i) | Derivatives include unrealized appreciation (depreciation) on open futures contracts and forward foreign currency contracts. |
During the year ended May 31, 2021, the amount of transfers from Level 1 to Level 3 was $13,268. The investment was transferred from Level 1 to Level 3 due to the lack of observable market data due to a decrease in market activity.
| See Notes to Financial Statements. | 45 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Emerging Markets Hedged Equity ETF
May 31, 2021
| See Notes to Financial Statements. | 46 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Emerging Markets Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 47 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Emerging Markets Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 48 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Emerging Markets Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 49 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Emerging Markets Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 50 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Emerging Markets Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 51 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Emerging Markets Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 52 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Emerging Markets Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 53 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Emerging Markets Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 54 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Emerging Markets Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 55 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Emerging Markets Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 56 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Emerging Markets Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 57 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Emerging Markets Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 58 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Emerging Markets Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 59 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Emerging Markets Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 60 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Emerging Markets Hedged Equity ETF (Continued)
May 31, 2021
A summary of the Fund’s transactions with affiliated investments during the year ended May 31, 2021 is as follows:
| Value ($) at |
Purchases Cost ($) |
Sales Proceeds ($) |
Net Realized Gain/(Loss) ($) |
Net Change in Unrealized Appreciation (Depreciation) ($) |
Income ($) |
Capital Gain Distributions ($) |
Number of Shares at 5/31/2021 |
Value ($) at 5/31/2021 |
||||||||||||||||||||||||||||
| SECURITIES LENDING COLLATERAL — 1.2% |
| |||||||||||||||||||||||||||||||||||
| DWS Government & Agency Securities Portfolio “DWS Government Cash Institutional Shares”, 0.01% (c)(d) |
| |||||||||||||||||||||||||||||||||||
| 404,374 | 1,001,687 | (e) | — | — | — | 177 | — | 1,406,061 | 1,406,061 | |||||||||||||||||||||||||||
| CASH EQUIVALENTS — 0.2% |
| |||||||||||||||||||||||||||||||||||
| DWS Government Money Market Series “Institutional Shares”, 0.03% (c) |
| |||||||||||||||||||||||||||||||||||
| 1,075,539 | 20,825,543 | (21,684,065 | ) | — | — | 624 | — | 217,017 | 217,017 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| 1,479,913 | 21,827,230 | (21,684,065 | ) | — | — | 801 | — | 1,623,078 | 1,623,078 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| * | Non-income producing security. |
| (a) | All or a portion of these securities were on loan. In addition, “Other assets and liabilities, net” may include pending sales that are also on loan. The value of securities loaned at May 31, 2021 amounted to $2,190,678, which is 1.9% of net assets. |
| (b) | Investment was valued using significant unobservable inputs. |
| (c) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
| (d) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. In addition, the Fund held non-cash U.S. Treasury securities collateral having a value of $858,086. |
| (e) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the year ended May 31, 2021. |
| ADR: | American Depositary Receipt |
| CPO: | Ordinary Participation Certificates |
| GDR: | Global Depositary Receipt |
| JSC: | Joint Stock Company |
| KSC: | Kuwait Shareholding Company |
| KSCP: | Kuwait Shareholding Company Public |
| NVDR: | Non Voting Depositary Receipt |
| PJSC: | Public Joint Stock Company |
| PSQC: | Public Shareholders Qatari Company |
| QPSC: | Qatari Public Shareholders Company |
| QSC: | Qatari Shareholders Company |
| REIT: | Real Estate Investment Trust |
| SAE: | Societe Anonyme Egyptienne |
| SAQ: | Societe Anonyme Qatar |
| 144A: | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
Securities are listed in country of domicile.
At May 31, 2021, open futures contracts purchased were as follows:
| Contract Description |
Currency | Number of Contracts |
Notional Amount |
Contract Value |
Expiration Date |
Unrealized Appreciation |
||||||||||||
| MSCI Emerging Markets Index Futures |
USD | 31 | $ | 2,080,200 | $2,109,395 | 6/18/2021 | $ | 29,195 | ||||||||||
As of May 31, 2021, the Fund had the following forward foreign currency contracts outstanding:
| Counterparty |
Settlement Date |
Currency To Deliver |
Currency To Receive |
Unrealized Appreciation |
Unrealized Depreciation |
|||||||||||||||||
| Citigroup Global Markets |
6/3/2021 | AED | 2,315,500 | USD | 630,385 | $ | — | $ | (42 | ) | ||||||||||||
| Citigroup Global Markets |
6/3/2021 | CLP | 363,705,300 | USD | 509,167 | 5,685 | — | |||||||||||||||
| RBC Capital Markets |
6/3/2021 | CLP | 95,364,400 | USD | 133,498 | 1,484 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | CNH | 17,237,700 | USD | 2,659,954 | — | (44,004 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | CNH | 1,611,000 | USD | 248,585 | — | (4,121 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | CNH | 17,335,400 | USD | 2,675,060 | — | (44,224 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | COP | 669,847,400 | USD | 178,764 | — | (1,850 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | CZK | 2,364,000 | USD | 109,979 | — | (3,700 | ) | ||||||||||||||
| See Notes to Financial Statements. | 61 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Emerging Markets Hedged Equity ETF (Continued)
May 31, 2021
| Counterparty |
Settlement Date |
Currency To Deliver |
Currency To Receive |
Unrealized Appreciation |
Unrealized Depreciation |
|||||||||||||||||
| Citigroup Global Markets |
6/3/2021 | EGP | 1,817,600 | USD | 115,367 | $ | — | $ | (532 | ) | ||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | EUR | 85,800 | USD | 103,345 | — | (1,582 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | HKD | 67,957,800 | USD | 8,750,232 | — | (5,639 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | HKD | 67,853,400 | USD | 8,736,947 | — | (5,473 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | HKD | 57,919,300 | USD | 7,457,821 | — | (4,662 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | HKD | 11,596,000 | USD | 1,493,096 | — | (965 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | HUF | 26,696,000 | USD | 89,193 | — | (4,861 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | HUF | 44,286,400 | USD | 147,957 | — | (8,070 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | INR | 415,766,500 | USD | 5,582,107 | — | (140,340 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | INR | 37,961,000 | USD | 510,462 | — | (12,019 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | INR | 402,343,100 | USD | 5,403,843 | — | (133,850 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | KRW | 8,513,652,700 | USD | 7,655,474 | — | (7,307 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | KRW | 679,296,000 | USD | 608,574 | — | (2,832 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | KRW | 9,150,564,400 | USD | 8,227,075 | — | (8,964 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | KWD | 175,000 | USD | 580,450 | — | (1,279 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | MXN | 13,916,900 | USD | 687,543 | — | (10,714 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | MXN | 14,587,300 | USD | 720,741 | — | (11,152 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | MXN | 13,253,500 | USD | 654,769 | — | (10,203 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | MYR | 6,765,000 | USD | 1,650,403 | 10,412 | — | |||||||||||||||
| Citigroup Global Markets |
6/3/2021 | PHP | 21,003,200 | USD | 432,200 | — | (8,122 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | PHP | 423,100 | USD | 8,744 | — | (126 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | PHP | 16,343,200 | USD | 337,704 | — | (4,923 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | QAR | 2,784,600 | USD | 764,538 | — | (85 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | RUB | 136,734,500 | USD | 1,817,468 | — | (43,634 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | RUB | 126,346,500 | USD | 1,678,767 | — | (40,944 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | RUB | 9,940,000 | USD | 131,881 | — | (3,413 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | TRY | 925,200 | USD | 109,960 | 1,113 | — | |||||||||||||||
| RBC Capital Markets |
6/3/2021 | TRY | 2,139,100 | USD | 253,899 | 2,242 | — | |||||||||||||||
| Citigroup Global Markets |
6/3/2021 | TWD | 34,963,000 | USD | 1,255,855 | — | (10,705 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | TWD | 145,424,700 | USD | 5,227,344 | — | (40,770 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | TWD | 149,584,300 | USD | 5,375,896 | — | (42,902 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | TWD | 165,041,700 | USD | 5,929,287 | — | (49,467 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 630,428 | AED | 2,315,500 | — | (1 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 503,967 | CLP | 363,705,300 | — | (485 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 132,150 | CLP | 95,364,400 | — | (136 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 2,957,772 | CNH | 18,848,700 | — | (1,108 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 236,406 | CNH | 1,536,000 | 4,536 | — | |||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 2,479,139 | CNH | 15,799,400 | — | (797 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 180,649 | COP | 669,847,400 | — | (35 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 113,601 | CZK | 2,364,000 | 79 | — | |||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 115,992 | EGP | 1,817,600 | — | (94 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 104,903 | EUR | 85,800 | 23 | — | |||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 8,755,993 | HKD | 67,957,800 | — | (122 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 8,742,530 | HKD | 67,853,400 | — | (110 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 1,181,107 | HKD | 9,174,000 | 896 | — | |||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 7,774,638 | HKD | 60,341,300 | — | (98 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 93,991 | HUF | 26,696,000 | 62 | — | |||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 155,923 | HUF | 44,286,400 | 104 | — | |||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 549,549 | INR | 40,839,000 | 12,542 | — | |||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 5,689,050 | INR | 412,888,500 | — | (6,215 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 5,545,735 | INR | 402,343,100 | — | (8,043 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 8,274,481 | KRW | 9,192,948,700 | — | (294 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 7,473,679 | KRW | 8,300,641,400 | — | (2,620 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 754,749 | KRW | 849,923,000 | 10,231 | — | |||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 581,782 | KWD | 175,000 | — | (52 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 698,964 | MXN | 13,916,900 | — | (707 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 732,641 | MXN | 14,587,300 | — | (748 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 665,662 | MXN | 13,253,500 | — | (690 | ) | ||||||||||||||
| See Notes to Financial Statements. | 62 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Emerging Markets Hedged Equity ETF (Continued)
May 31, 2021
| Counterparty |
Settlement Date |
Currency To Deliver |
Currency To Receive |
Unrealized Appreciation |
Unrealized Depreciation |
|||||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 1,639,801 | MYR | 6,765,000 | $ | 189 | $ | — | |||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 440,688 | PHP | 21,003,200 | — | (366 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 8,877 | PHP | 423,100 | — | (7 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 342,539 | PHP | 16,343,200 | 89 | — | |||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 764,653 | QAR | 2,784,600 | — | (30 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 1,862,360 | RUB | 136,734,500 | — | (1,258 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 165,290 | RUB | 12,429,000 | 3,882 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 1,687,202 | RUB | 123,857,500 | — | (1,370 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 109,146 | TRY | 925,200 | — | (299 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 252,200 | TRY | 2,139,100 | — | (543 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 5,730,203 | TWD | 157,726,700 | — | (16,440 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 811,606 | TWD | 22,661,000 | 9,305 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 5,432,515 | TWD | 149,584,300 | — | (13,717 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 5,991,712 | TWD | 165,041,700 | — | (12,958 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 2,341,101 | ZAR | 32,119,900 | — | (5,403 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 158,798 | ZAR | 2,308,000 | 9,036 | — | |||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 2,261,511 | ZAR | 31,032,000 | — | (4,923 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | ZAR | 32,119,900 | USD | 2,205,128 | — | (130,569 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | ZAR | 33,340,000 | USD | 2,288,483 | — | (135,938 | ) | ||||||||||||||
| Citigroup Global Markets |
6/4/2021 | BRL | 10,046,600 | USD | 1,846,717 | — | (69,990 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/4/2021 | BRL | 10,056,600 | USD | 1,848,314 | — | (70,301 | ) | ||||||||||||||
| RBC Capital Markets |
6/4/2021 | BRL | 1,832,000 | USD | 336,548 | — | (12,964 | ) | ||||||||||||||
| RBC Capital Markets |
6/4/2021 | BRL | 8,899,500 | USD | 1,636,408 | — | (61,453 | ) | ||||||||||||||
| Citigroup Global Markets |
6/4/2021 | IDR | 7,578,134,800 | USD | 522,421 | — | (8,071 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/4/2021 | IDR | 10,355,122,500 | USD | 713,359 | — | (11,530 | ) | ||||||||||||||
| RBC Capital Markets |
6/4/2021 | IDR | 3,930,153,600 | USD | 270,989 | — | (4,134 | ) | ||||||||||||||
| Citigroup Global Markets |
6/4/2021 | PLN | 1,963,100 | USD | 518,160 | — | (17,669 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/4/2021 | PLN | 662,200 | USD | 174,788 | — | (5,960 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/4/2021 | PLN | 480,000 | USD | 126,691 | — | (4,326 | ) | ||||||||||||||
| Citigroup Global Markets |
6/4/2021 | THB | 5,609,000 | USD | 179,891 | 319 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/4/2021 | THB | 62,265,400 | USD | 1,996,518 | 3,094 | — | |||||||||||||||
| Citigroup Global Markets |
6/4/2021 | USD | 1,652,952 | BRL | 8,675,600 | 2,193 | — | |||||||||||||||
| Citigroup Global Markets |
6/4/2021 | USD | 251,889 | BRL | 1,371,000 | 9,673 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/4/2021 | USD | 1,913,283 | BRL | 10,056,600 | 5,331 | — | |||||||||||||||
| RBC Capital Markets |
6/4/2021 | USD | 2,044,660 | BRL | 10,731,500 | 2,713 | — | |||||||||||||||
| Citigroup Global Markets |
6/4/2021 | USD | 532,094 | IDR | 7,578,134,800 | — | (1,602 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/4/2021 | USD | 135,092 | IDR | 1,962,078,000 | 2,259 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/4/2021 | USD | 589,813 | IDR | 8,393,044,500 | — | (2,275 | ) | ||||||||||||||
| RBC Capital Markets |
6/4/2021 | USD | 276,091 | IDR | 3,930,153,600 | — | (968 | ) | ||||||||||||||
| Citigroup Global Markets |
6/4/2021 | USD | 535,905 | PLN | 1,963,100 | — | (76 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/4/2021 | USD | 311,808 | PLN | 1,142,200 | — | (44 | ) | ||||||||||||||
| Citigroup Global Markets |
6/4/2021 | USD | 179,761 | THB | 5,609,000 | — | (189 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/4/2021 | USD | 1,995,891 | THB | 62,265,400 | — | (2,467 | ) | ||||||||||||||
| Citigroup Global Markets |
7/6/2021 | AED | 2,315,500 | USD | 630,428 | 11 | — | |||||||||||||||
| Citigroup Global Markets |
7/6/2021 | AED | 848,000 | USD | 230,862 | — | (14 | ) | ||||||||||||||
| Citigroup Global Markets |
7/6/2021 | BRL | 8,675,600 | USD | 1,648,304 | — | (1,987 | ) | ||||||||||||||
| Citigroup Global Markets |
7/6/2021 | BRL | 2,753,000 | USD | 522,316 | — | (1,366 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | BRL | 10,056,600 | USD | 1,907,766 | — | (5,221 | ) | ||||||||||||||
| RBC Capital Markets |
7/6/2021 | BRL | 10,731,500 | USD | 2,038,639 | — | (2,729 | ) | ||||||||||||||
| Citigroup Global Markets |
7/6/2021 | CLP | 363,705,300 | USD | 503,778 | 467 | — | |||||||||||||||
| RBC Capital Markets |
7/6/2021 | CLP | 95,364,400 | USD | 132,101 | 132 | — | |||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | CNH | 18,848,700 | USD | 2,951,566 | 996 | — | |||||||||||||||
| RBC Capital Markets |
7/6/2021 | CNH | 15,799,400 | USD | 2,473,948 | 715 | — | |||||||||||||||
| RBC Capital Markets |
7/6/2021 | CNH | 3,391,000 | USD | 530,966 | 140 | — | |||||||||||||||
| Citigroup Global Markets |
7/6/2021 | COP | 669,847,400 | USD | 180,357 | 108 | — | |||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | CZK | 2,364,000 | USD | 113,592 | — | (84 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | EUR | 85,800 | USD | 104,968 | — | (26 | ) | ||||||||||||||
| Citigroup Global Markets |
7/6/2021 | HKD | 67,957,800 | USD | 8,756,636 | 124 | — | |||||||||||||||
| See Notes to Financial Statements. | 63 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Emerging Markets Hedged Equity ETF (Continued)
May 31, 2021
| Counterparty |
Settlement Date |
Currency To Deliver |
Currency To Receive |
Unrealized Appreciation |
Unrealized Depreciation |
|||||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | HKD | 67,853,400 | USD | 8,743,144 | $ | 84 | $ | — | |||||||||||||
| RBC Capital Markets |
7/6/2021 | HKD | 60,341,300 | USD | 7,775,139 | 30 | — | |||||||||||||||
| RBC Capital Markets |
7/6/2021 | HKD | 52,883,000 | USD | 6,813,947 | — | (144 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | HUF | 26,696,000 | USD | 93,938 | — | (64 | ) | ||||||||||||||
| RBC Capital Markets |
7/6/2021 | HUF | 44,286,400 | USD | 155,836 | — | (106 | ) | ||||||||||||||
| Citigroup Global Markets |
7/6/2021 | IDR | 7,578,134,800 | USD | 530,418 | 1,419 | — | |||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | IDR | 8,393,044,500 | USD | 587,954 | 2,069 | — | |||||||||||||||
| RBC Capital Markets |
7/6/2021 | IDR | 3,930,153,600 | USD | 275,221 | 872 | — | |||||||||||||||
| Citigroup Global Markets |
7/6/2021 | INR | 412,888,500 | USD | 5,659,147 | 5,092 | — | |||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | INR | 402,343,100 | USD | 5,513,815 | 4,169 | — | |||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | INR | 73,932,000 | USD | 1,013,461 | 1,044 | — | |||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | KRW | 9,192,948,700 | USD | 8,274,481 | — | (450 | ) | ||||||||||||||
| RBC Capital Markets |
7/6/2021 | KRW | 8,300,641,400 | USD | 7,473,679 | 1,948 | — | |||||||||||||||
| RBC Capital Markets |
7/6/2021 | KRW | 384,567,000 | USD | 345,974 | — | (190 | ) | ||||||||||||||
| Citigroup Global Markets |
7/6/2021 | KWD | 175,000 | USD | 581,260 | 93 | — | |||||||||||||||
| Citigroup Global Markets |
7/6/2021 | MXN | 13,916,900 | USD | 696,341 | 736 | — | |||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | MXN | 14,587,300 | USD | 729,801 | 687 | — | |||||||||||||||
| RBC Capital Markets |
7/6/2021 | MXN | 13,253,500 | USD | 663,053 | 607 | — | |||||||||||||||
| RBC Capital Markets |
7/6/2021 | MYR | 6,765,000 | USD | 1,636,628 | — | (1,110 | ) | ||||||||||||||
| Citigroup Global Markets |
7/6/2021 | PHP | 21,003,200 | USD | 439,287 | — | (554 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | PHP | 423,100 | USD | 8,852 | — | (8 | ) | ||||||||||||||
| RBC Capital Markets |
7/6/2021 | PHP | 16,343,200 | USD | 341,644 | — | (610 | ) | ||||||||||||||
| Citigroup Global Markets |
7/6/2021 | PLN | 1,963,100 | USD | 535,996 | 78 | — | |||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | PLN | 1,142,200 | USD | 311,862 | 46 | — | |||||||||||||||
| Citigroup Global Markets |
7/6/2021 | QAR | 2,784,600 | USD | 764,443 | 147 | — | |||||||||||||||
| Citigroup Global Markets |
7/6/2021 | RUB | 136,734,500 | USD | 1,853,524 | 833 | — | |||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | RUB | 123,857,500 | USD | 1,679,162 | 948 | — | |||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | RUB | 30,169,000 | USD | 409,225 | 449 | — | |||||||||||||||
| Citigroup Global Markets |
7/6/2021 | SAR | 12,885,000 | USD | 3,434,716 | — | (203 | ) | ||||||||||||||
| Citigroup Global Markets |
7/6/2021 | THB | 5,609,000 | USD | 179,531 | — | (22 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | THB | 62,265,400 | USD | 1,992,257 | — | (957 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | TRY | 925,200 | USD | 107,161 | 268 | — | |||||||||||||||
| RBC Capital Markets |
7/6/2021 | TRY | 2,139,100 | USD | 247,245 | 104 | — | |||||||||||||||
| Citigroup Global Markets |
7/6/2021 | TWD | 157,726,700 | USD | 5,754,139 | 39,672 | — | |||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | TWD | 149,584,300 | USD | 5,455,896 | 36,430 | — | |||||||||||||||
| RBC Capital Markets |
7/6/2021 | TWD | 165,041,700 | USD | 6,015,735 | 36,245 | — | |||||||||||||||
| RBC Capital Markets |
7/6/2021 | USD | 122,008 | TWD | 3,344,000 | — | (855 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | ZAR | 32,119,900 | USD | 2,330,704 | 5,324 | — | |||||||||||||||
| RBC Capital Markets |
7/6/2021 | ZAR | 1,565,000 | USD | 113,539 | 238 | — | |||||||||||||||
| RBC Capital Markets |
7/6/2021 | ZAR | 31,032,000 | USD | 2,251,469 | 4,849 | — | |||||||||||||||
| Citigroup Global Markets |
7/7/2021 | EGP | 1,817,600 | USD | 115,147 | 287 | — | |||||||||||||||
|
|
|
|
|
|||||||||||||||||||
| Total unrealized appreciation (depreciation) |
$ | 244,953 | $ | (1,350,371 | ) | |||||||||||||||||
|
|
|
|
|
|||||||||||||||||||
For information on the Fund’s policy and additional disclosures regarding open futures contracts and forward foreign currency contracts, please refer to the Derivatives section of Note 2 in the accompanying Notes to Financial Statements.
Currency Abbreviations
| See Notes to Financial Statements. | 64 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Emerging Markets Hedged Equity ETF (Continued)
May 31, 2021
Fair Value Measurements
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
The following is a summary of the inputs used as of May 31, 2021 in valuing the Fund’s investments. For information on the Fund’s policy regarding the valuation of investments, please refer to the Security Valuation section of Note 2 in the accompanying Notes to Financial Statements.
| Assets |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Common Stocks (f) |
$ | 113,073,291 | $ | — | $ | 61,709 | $ | 113,135,000 | ||||||||
| Preferred Stocks (f) |
2,549,330 | — | — | 2,549,330 | ||||||||||||
| Corporate Bonds |
— | 420 | 633 | 1,053 | ||||||||||||
| Warrants |
666 | — | — | 666 | ||||||||||||
| Exchange-Traded Funds |
27,213 | — | — | 27,213 | ||||||||||||
| Short-Term Investments (f) |
1,623,078 | — | — | 1,623,078 | ||||||||||||
| Derivatives (g) |
||||||||||||||||
| Forward Foreign Currency Contracts |
— | 244,953 | — | 244,953 | ||||||||||||
| Futures Contracts |
29,195 | — | — | 29,195 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| TOTAL |
$ | 117,302,773 | $ | 244,953 | $ | 62,342 | $ | 117,610,488 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Liabilities |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Derivatives (g) |
||||||||||||||||
| Forward Foreign Currency Contracts |
$ | — | $ | (1,350,371 | ) | $ | — | $ | (1,350,371 | ) | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
| TOTAL |
$ | — | $ | (1,350,371 | ) | $ | — | $ | (1,350,371 | ) | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (f) | See Schedule of Investments for additional detailed categorizations. |
| (g) | Derivatives include unrealized appreciation (depreciation) on open futures contracts and forward foreign currency contracts. |
During year ended May 31, 2021, the amount of transfers from Level 1 to Level 3 was $ 67,631. The investments were transferred from Level 1 to Level 3 due to the lack of observable market data due to a decrease in market activity.
| See Notes to Financial Statements. | 65 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Europe Hedged Equity ETF
May 31, 2021
| See Notes to Financial Statements. | 66 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Europe Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 67 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Europe Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 68 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Europe Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 69 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Europe Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 70 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Europe Hedged Equity ETF (Continued)
May 31, 2021
A summary of the Fund’s transactions with affiliated investments during the year ended May 31, 2021 is as follows:
| Value ($) at 5/31/2020 |
Purchases Cost ($) |
Sales Proceeds ($) |
Net Realized Gain/(Loss) ($) |
Net Change in Unrealized Appreciation (Depreciation) ($) |
Income ($) | Capital Gain Distributions ($) |
Number of Shares at 5/31/2021 |
Value ($) at 5/31/2021 |
||||||||||||||||||||||||||||||||
| COMMON STOCKS — 0.3% |
| |||||||||||||||||||||||||||||||||||||||
| Germany — 0.3% |
| |||||||||||||||||||||||||||||||||||||||
| Deutsche Bank AG*(b) |
| |||||||||||||||||||||||||||||||||||||||
| 993,168 | 306,113 | (440,701 | ) | (940,977 | ) | 1,573,491 | — | — | 100,013 | 1,491,094 | ||||||||||||||||||||||||||||||
| SECURITIES LENDING COLLATERAL — 2.5% |
| |||||||||||||||||||||||||||||||||||||||
| DWS Government & Agency Securities Portfolio “DWS Government Cash Institutional Shares”, 0.01% (c)(d) |
| |||||||||||||||||||||||||||||||||||||||
| 7,981,610 | 6,154,357 | (e) | — | — | — | 1,296 | — | 14,135,967 | 14,135,967 | |||||||||||||||||||||||||||||||
| CASH EQUIVALENTS — 0.4% |
| |||||||||||||||||||||||||||||||||||||||
| DWS ESG Liquidity Fund “Capital Shares”, 0.08% (c) |
| |||||||||||||||||||||||||||||||||||||||
| 639,380 | 1,213 | — | — | (320 | ) | 1,245 | — | 640,337 | 640,273 | |||||||||||||||||||||||||||||||
| DWS Government Money Market Series “Institutional Shares”, 0.03% (c) |
| |||||||||||||||||||||||||||||||||||||||
| 8,725,094 | 218,369,589 | (225,760,820 | ) | — | — | 3,201 | — | 1,333,863 | 1,333,863 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| 18,339,252 | 224,831,272 | (226,201,521 | ) | (940,977 | ) | 1,573,171 | 5,742 | — | 16,210,180 | 17,601,197 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| * | Non-income producing security. |
| (a) | All or a portion of these securities were on loan. In addition, “Other assets and liabilities, net” may include pending sales that are also on loan. The value of securities loaned at May 31, 2021 amounted to $19,900,948, which is 3.5% of net assets. |
| (b) | Affiliated issuer. This security is owned in proportion with its representation in the index. |
| (c) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
| (d) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. In addition, the Fund held non-cash U.S. Treasury securities collateral having a value of $8,317,148. |
| (e) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the year ended May 31, 2021. |
| REIT: | Real Estate Investment Trust |
| RSP: | Risparmio (Convertible Savings Shares) |
| 144A: | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
Securities are listed in country of domicile.
At May 31, 2021, open futures contracts purchased were as follows:
| Contract Description |
Currency | Number of Contracts |
Notional Amount |
Contract Value |
Expiration Date |
Unrealized Appreciation (Depreciation) |
||||||||||||
| AMSTERDAM Index Futures |
EUR | 4 | $ | 690,472 | $ | 693,376 | 6/18/2021 | $ | 2,904 | |||||||||
| CAC40 10 EURO Futures |
EUR | 15 | 1,166,001 | 1,180,540 | 6/18/2021 | 14,539 | ||||||||||||
| DAX Index Futures |
EUR | 2 | 937,347 | 942,451 | 6/18/2021 | 5,104 | ||||||||||||
| FTSE 100 Index Futures |
GBP | 17 | 1,677,501 | 1,696,310 | 6/18/2021 | 18,809 | ||||||||||||
| FTSE/MIB Index Futures |
EUR | 2 | 294,364 | 307,816 | 6/18/2021 | 13,452 | ||||||||||||
| IBEX 35 Index Futures |
EUR | 1 | 111,967 | 111,700 | 6/18/2021 | (267 | ) | |||||||||||
| OMXS30 Index Futures |
SEK | 29 | 786,008 | 785,115 | 6/18/2021 | (893 | ) | |||||||||||
| SWISS MKT IX Futures |
CHF | 8 | 988,239 | 1,012,138 | 6/18/2021 | 23,899 | ||||||||||||
|
|
|
|||||||||||||||||
| Total net unrealized appreciation |
$ | 77,547 | ||||||||||||||||
|
|
|
|||||||||||||||||
| See Notes to Financial Statements. | 71 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Europe Hedged Equity ETF (Continued)
May 31, 2021
As of May 31, 2021, the Fund had the following forward foreign currency contracts outstanding:
| Counterparty |
Settlement Date |
Currency To Deliver |
Currency To Receive |
Unrealized Appreciation |
Unrealized Depreciation |
|||||||||||||||||
| Citigroup Global Markets |
6/3/2021 | CHF | 23,345,700 | USD | 25,615,713 | $ | — | $ | (359,151 | ) | ||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | CHF | 24,108,922 | USD | 26,453,553 | — | (370,486 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | CHF | 865,100 | USD | 966,315 | 3,788 | — | |||||||||||||||
| RBC Capital Markets |
6/3/2021 | CHF | 24,710,617 | USD | 27,113,943 | — | (379,554 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | DKK | 54,100,100 | USD | 8,761,150 | — | (134,878 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | DKK | 35,904,242 | USD | 5,814,358 | — | (89,607 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | DKK | 4,066,000 | USD | 658,463 | — | (10,135 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | DKK | 34,434,900 | USD | 5,576,547 | — | (85,805 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | DKK | 1,571,900 | USD | 258,916 | 438 | — | |||||||||||||||
| Citigroup Global Markets |
6/3/2021 | EUR | 65,968,700 | USD | 79,458,705 | — | (1,215,895 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | EUR | 2,814,100 | USD | 3,446,971 | 5,546 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | EUR | 64,538,023 | USD | 77,735,274 | — | (1,189,720 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | EUR | 1,686,000 | USD | 2,030,755 | — | (31,092 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | EUR | 98,378,573 | USD | 118,496,794 | — | (1,812,566 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | GBP | 33,577,054 | USD | 46,491,125 | — | (1,212,045 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | GBP | 1,065,800 | USD | 1,507,449 | — | (6,741 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | GBP | 26,470,050 | USD | 36,650,643 | — | (955,553 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | GBP | 26,374,620 | USD | 36,518,563 | — | (952,055 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | GBP | 706,000 | USD | 977,532 | — | (25,488 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | NOK | 18,668,700 | USD | 2,247,129 | 2,093 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | NOK | 11,518,691 | USD | 1,386,462 | 1,262 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | NOK | 537,400 | USD | 64,670 | 44 | — | |||||||||||||||
| RBC Capital Markets |
6/3/2021 | NOK | 13,746,800 | USD | 1,654,671 | 1,527 | — | |||||||||||||||
| Citigroup Global Markets |
6/3/2021 | SEK | 83,733,450 | USD | 9,905,041 | — | (196,168 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | SEK | 108,185,936 | USD | 12,797,299 | — | (253,742 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | SEK | 69,131,700 | USD | 8,177,806 | — | (161,916 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | SEK | 3,153,200 | USD | 381,885 | 1,498 | — | |||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 25,958,992 | CHF | 23,345,700 | 15,872 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 26,807,052 | CHF | 24,108,922 | 16,987 | — | |||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 26,829,778 | CHF | 24,128,717 | 16,285 | — | |||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 1,587,789 | CHF | 1,447,000 | 22,170 | — | |||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 8,893,874 | DKK | 54,100,100 | 2,154 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 6,570,865 | DKK | 39,970,242 | 1,699 | — | |||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 5,919,396 | DKK | 36,006,800 | 1,433 | — | |||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 80,657,950 | EUR | 65,968,700 | 16,650 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 82,348,073 | EUR | 67,352,123 | 18,347 | — | |||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 623,380 | EUR | 519,000 | 11,317 | — | |||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 121,711,784 | EUR | 99,545,573 | 24,727 | — | |||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 47,729,782 | GBP | 33,577,054 | — | (26,613 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 39,142,211 | GBP | 27,535,850 | — | (21,825 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 38,495,155 | GBP | 27,080,620 | — | (21,518 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 2,244,036 | NOK | 18,668,700 | 1,000 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 1,449,180 | NOK | 12,056,091 | 645 | — | |||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 1,652,422 | NOK | 13,746,800 | 723 | — | |||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 10,097,857 | SEK | 83,733,450 | 3,352 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 13,046,711 | SEK | 108,185,936 | 4,331 | — | |||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 388,012 | SEK | 3,280,000 | 7,671 | — | |||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 8,321,764 | SEK | 69,004,900 | 2,662 | — | |||||||||||||||
| Citigroup Global Markets |
7/6/2021 | CHF | 3,108,000 | USD | 3,458,829 | — | (2,134 | ) | ||||||||||||||
| Citigroup Global Markets |
7/6/2021 | CHF | 23,345,700 | USD | 25,980,225 | — | (16,753 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | CHF | 24,108,922 | USD | 26,829,217 | — | (17,659 | ) | ||||||||||||||
| RBC Capital Markets |
7/6/2021 | CHF | 24,128,717 | USD | 26,851,873 | — | (17,046 | ) | ||||||||||||||
| Citigroup Global Markets |
7/6/2021 | DKK | 54,100,100 | USD | 8,898,043 | — | (2,518 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | DKK | 39,970,242 | USD | 6,573,972 | — | (1,942 | ) | ||||||||||||||
| RBC Capital Markets |
7/6/2021 | DKK | 36,006,800 | USD | 5,922,200 | — | (1,647 | ) | ||||||||||||||
| RBC Capital Markets |
7/6/2021 | DKK | 3,976,000 | USD | 653,932 | — | (200 | ) | ||||||||||||||
| See Notes to Financial Statements. | 72 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Europe Hedged Equity ETF (Continued)
May 31, 2021
| Counterparty |
Settlement Date |
Currency To Deliver |
Currency To Receive |
Unrealized Appreciation |
Unrealized Depreciation |
|||||||||||||||||
| Citigroup Global Markets |
7/6/2021 | EUR | 65,968,700 | USD | 80,707,955 | $ | — | $ | (18,517 | ) | ||||||||||||
| Citigroup Global Markets |
7/6/2021 | EUR | 6,361,000 | USD | 7,782,289 | — | (1,722 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | EUR | 67,352,123 | USD | 82,398,924 | — | (20,454 | ) | ||||||||||||||
| RBC Capital Markets |
7/6/2021 | EUR | 99,545,573 | USD | 121,786,941 | — | (27,842 | ) | ||||||||||||||
| Citigroup Global Markets |
7/6/2021 | GBP | 33,577,054 | USD | 47,731,125 | 25,808 | — | |||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | GBP | 27,535,850 | USD | 39,143,312 | 21,164 | — | |||||||||||||||
| RBC Capital Markets |
7/6/2021 | GBP | 27,080,620 | USD | 38,496,239 | 20,869 | — | |||||||||||||||
| RBC Capital Markets |
7/6/2021 | GBP | 1,467,000 | USD | 2,085,389 | 1,117 | — | |||||||||||||||
| Citigroup Global Markets |
7/6/2021 | NOK | 18,668,700 | USD | 2,244,185 | — | (997 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | NOK | 12,056,091 | USD | 1,449,250 | — | (670 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | NOK | 1,311,000 | USD | 157,587 | — | (80 | ) | ||||||||||||||
| RBC Capital Markets |
7/6/2021 | NOK | 13,746,800 | USD | 1,652,501 | — | (751 | ) | ||||||||||||||
| Citigroup Global Markets |
7/6/2021 | SEK | 83,733,450 | USD | 10,100,506 | — | (3,403 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | SEK | 108,185,936 | USD | 13,049,976 | — | (4,554 | ) | ||||||||||||||
| RBC Capital Markets |
7/6/2021 | SEK | 69,004,900 | USD | 8,323,952 | — | (2,699 | ) | ||||||||||||||
| RBC Capital Markets |
7/6/2021 | SEK | 14,634,000 | USD | 1,765,212 | — | (637 | ) | ||||||||||||||
|
|
|
|
|
|||||||||||||||||||
| Total unrealized appreciation (depreciation) |
$ | 253,179 | $ | (9,654,778 | ) | |||||||||||||||||
|
|
|
|
|
|||||||||||||||||||
For information on the Fund’s policy and additional disclosures regarding open futures contracts and forward foreign currency contracts, please refer to the Derivatives section of Note 2 in the accompanying Notes to Financial Statements.
Currency Abbreviations
Fair Value Measurements
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
The following is a summary of the inputs used as of May 31, 2021 in valuing the Fund’s investments. For information on the Fund’s policy regarding the valuation of investments, please refer to the Security Valuation section of Note 2 in the accompanying Notes to Financial Statements.
| Assets |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Common Stocks (f) |
$ | 550,609,607 | $ | — | $ | — | $ | 550,609,607 | ||||||||
| Preferred Stocks |
5,627,247 | — | — | 5,627,247 | ||||||||||||
| Rights |
231,387 | — | — | 231,387 | ||||||||||||
| Warrants |
32,086 | — | — | 32,086 | ||||||||||||
| Exchange-Traded Funds |
472,080 | — | — | 472,080 | ||||||||||||
| Short-Term Investments (f) |
16,110,103 | — | — | 16,110,103 | ||||||||||||
| Derivatives (g) |
||||||||||||||||
| Forward Foreign Currency Contracts |
— | 253,179 | — | 253,179 | ||||||||||||
| Futures Contracts |
78,707 | — | — | 78,707 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| TOTAL |
$ | 573,161,217 | $ | 253,179 | $ | — | $ | 573,414,396 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Liabilities |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Derivatives (g) |
||||||||||||||||
| Forward Foreign Currency Contracts |
$ | — | $ | (9,654,778 | ) | $ | — | $ | (9,654,778 | ) | ||||||
| Futures Contracts |
(1,160 | ) | — | — | (1,160 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| TOTAL |
$ | (1,160 | ) | $ | (9,654,778 | ) | $ | — | $ | (9,655,938 | ) | |||||
|
|
|
|
|
|
|
|
|
|||||||||
| (f) | See Schedule of Investments for additional detailed categorizations. |
| (g) | Derivatives include unrealized appreciation (depreciation) on open futures contracts and forward foreign currency contracts. |
| See Notes to Financial Statements. | 73 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Eurozone Hedged Equity ETF
May 31, 2021
| See Notes to Financial Statements. | 74 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Eurozone Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 75 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Eurozone Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 76 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Eurozone Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 77 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Eurozone Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 78 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Eurozone Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 79 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Eurozone Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 80 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Eurozone Hedged Equity ETF (Continued)
May 31, 2021
A summary of the Fund’s transactions with affiliated investments during the year ended May 31, 2021 is as follows:
| Value ($) at 5/31/2020 |
Purchases Cost ($) |
Sales Proceeds ($) |
Net Realized Gain/(Loss) ($) |
Net Change in Unrealized Appreciation (Depreciation) ($) |
Income ($) | Capital Gain Distributions ($) |
Number of Shares at 5/31/2021 |
Value ($) at 5/31/2021 |
||||||||||||||||||||||||||||
| COMMON STOCKS — 0.5% |
|
|||||||||||||||||||||||||||||||||||
| Germany — 0.5% |
|
|||||||||||||||||||||||||||||||||||
| Deutsche Bank AG*(b) |
|
|||||||||||||||||||||||||||||||||||
| 79,251 | 6,613 | (51,892 | ) | (75,568 | ) | 114,143 | — | — | 4,866 | 72,547 | ||||||||||||||||||||||||||
| SECURITIES LENDING COLLATERAL — 4.3% |
|
|||||||||||||||||||||||||||||||||||
| DWS Government & Agency Securities Portfolio “DWS Government Cash Institutional Shares”, 0.01% (d)(e) |
|
|||||||||||||||||||||||||||||||||||
| 667,973 | — | (12,819 | )(f) | — | — | 76 | — | 655,154 | 655,154 | |||||||||||||||||||||||||||
| CASH EQUIVALENTS — 0.1% |
|
|||||||||||||||||||||||||||||||||||
| DWS Government Money Market Series “Institutional Shares”, 0.03% (d) |
|
|||||||||||||||||||||||||||||||||||
| 290,364 | 3,896,989 | (4,170,130 | ) | — | — | 121 | — | 17,223 | 17,223 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| 1,037,588 | 3,903,602 | (4,234,841 | ) | (75,568 | ) | 114,143 | 197 | — | 677,243 | 744,924 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| * | Non-income producing security. |
| (a) | All or a portion of these securities were on loan. In addition, “Other assets and liabilities, net” may include pending sales that are also on loan. The value of securities loaned at May 31, 2021 amounted to $1,132,551, which is 7.5% of net assets. |
| (b) | Affiliated issuer. This security is owned in proportion with its representation in the index. |
| (c) | Investment was valued using significant unobservable inputs. |
| (d) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
| (e) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. In addition, the Fund held non-cash U.S. Treasury securities collateral having a value of $576,172. |
| (f) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the year ended May 31, 2021. |
| REIT: | Real Estate Investment Trust |
| RSP: | Risparmio (Convertible Savings Shares) |
| 144A: | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
Securities are listed in country of domicile.
At May 31, 2021, open futures contracts purchased were as follows:
| Contract Description |
Currency | Number of Contracts |
Notional Amount |
Contract Value |
Expiration Date |
Unrealized Appreciation |
||||||||||||||||
| EURO STOXX 50 Futures |
EUR | 2 | $ | 97,213 | $ | 98,684 | 6/18/2021 | $ | 1,471 | |||||||||||||
As of May 31, 2021, the Fund had the following forward foreign currency contracts outstanding:
| Counterparty |
Settlement Date |
Currency To Deliver |
Currency To Receive |
Unrealized Appreciation |
Unrealized Depreciation |
|||||||||||||||||||||||
| Citigroup Global Markets |
6/3/2021 | EUR | 3,496,100 | USD | 4,211,021 | $ | — | $ | (64,438 | ) | ||||||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | EUR | 4,493,530 | USD | 5,412,403 | — | (82,835 | ) | ||||||||||||||||||||
| RBC Capital Markets |
6/3/2021 | EUR | 4,250,000 | USD | 5,119,117 | — | (78,304 | ) | ||||||||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 4,274,577 | EUR | 3,496,100 | 882 | — | |||||||||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 66,135 | EUR | 55,000 | 1,126 | — | |||||||||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 5,426,769 | EUR | 4,438,530 | 1,209 | — | |||||||||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 5,196,365 | EUR | 4,250,000 | 1,056 | — | |||||||||||||||||||||
| Citigroup Global Markets |
7/6/2021 | EUR | 3,496,100 | USD | 4,277,227 | — | (981 | ) | ||||||||||||||||||||
| Citigroup Global Markets |
7/6/2021 | EUR | 250,000 | USD | 305,860 | — | (68 | ) | ||||||||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | EUR | 4,438,530 | USD | 5,430,120 | — | (1,348 | ) | ||||||||||||||||||||
| RBC Capital Markets |
7/6/2021 | EUR | 4,250,000 | USD | 5,199,573 | — | (1,189 | ) | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||||||
| Total unrealized appreciation (depreciation) |
$ | 4,273 | $ | (229,163 | ) | |||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||||||
For information on the Fund’s policy and additional disclosures regarding open futures contracts and forward foreign currency contracts, please refer to the Derivatives section of Note 2 in the accompanying Notes to Financial Statements.
| See Notes to Financial Statements. | 81 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Eurozone Hedged Equity ETF (Continued)
May 31, 2021
Currency Abbreviations
| EUR | Euro |
| USD | U.S. Dollar |
Fair Value Measurements
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
The following is a summary of the inputs used as of May 31, 2021 in valuing the Fund’s investments. For information on the Fund’s policy regarding the valuation of investments, please refer to the Security Valuation section of Note 2 in the accompanying Notes to Financial Statements.
| Assets |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Common Stocks (g) |
$ | 14,795,471 | $ | — | $ | 847 | $ | 14,796,318 | ||||||||
| Preferred Stocks |
271,644 | — | — | 271,644 | ||||||||||||
| Rights |
— | 0 | — | 0 | ||||||||||||
| Warrants |
87 | — | — | 87 | ||||||||||||
| Exchange-Traded Funds |
23,439 | — | — | 23,439 | ||||||||||||
| Short-Term Investments (g) |
672,377 | — | — | 672,377 | ||||||||||||
| Derivatives (h) |
||||||||||||||||
| Forward Foreign Currency Contracts |
— | 4,273 | — | 4,273 | ||||||||||||
| Futures Contracts |
1,471 | — | — | 1,471 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| TOTAL |
$ | 15,764,489 | $ | 4,273 | $ | 847 | $ | 15,769,609 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Liabilities |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Derivatives (h) |
||||||||||||||||
| Forward Foreign Currency Contracts |
$ | — | $ | (229,163 | ) | $ | — | $ | (229,163 | ) | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
| TOTAL |
$ | — | $ | (229,163 | ) | $ | — | $ | (229,163 | ) | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (g) | See Schedule of Investments for additional detailed categorizations. |
| (h) | Derivatives include unrealized appreciation (depreciation) on open futures contracts and forward foreign currency contracts. |
| See Notes to Financial Statements. | 82 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Germany Hedged Equity ETF
May 31, 2021
| See Notes to Financial Statements. | 83 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Germany Hedged Equity ETF (Continued)
May 31, 2021
A summary of the Fund’s transactions with affiliated investments during the year ended May 31, 2021 is as follows:
| Value ($) at 5/31/2020 |
Purchases Cost ($) |
Sales Proceeds ($) |
Net Realized Gain/(Loss) ($) |
Net Change in Unrealized Appreciation (Depreciation) ($) |
Income ($) | Capital Gain Distributions ($) |
Number of Shares at 5/31/2021 |
Value ($) at 5/31/2021 |
||||||||||||||||||||||||||||
| COMMON STOCKS — 1.9% |
| |||||||||||||||||||||||||||||||||||
| Financials — 1.9% |
| |||||||||||||||||||||||||||||||||||
| Deutsche Bank AG*(a) |
| |||||||||||||||||||||||||||||||||||
| 213,743 | 30,464 | (96,276 | ) | (212,803 | ) | 337,409 | — | — | 18,280 | 272,537 | ||||||||||||||||||||||||||
| SECURITIES LENDING COLLATERAL — 0.2% |
| |||||||||||||||||||||||||||||||||||
| DWS Government & Agency Securities Portfolio “DWS Government Cash Institutional Shares”, 0.01% (c)(d) |
| |||||||||||||||||||||||||||||||||||
| 111,300 | — | (82,866 | )(e) | — | — | 3 | — | 28,434 | 28,434 | |||||||||||||||||||||||||||
| CASH EQUIVALENTS — 1.2% |
| |||||||||||||||||||||||||||||||||||
| DWS Government Money Market Series “Institutional Shares”, 0.03% (c) |
| |||||||||||||||||||||||||||||||||||
| 229,525 | 3,839,361 | (3,889,753 | ) | — | — | 121 | — | 179,133 | 179,133 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| 554,568 | 3,869,825 | (4,068,895 | ) | (212,803 | ) | 337,409 | 124 | — | 225,847 | 480,104 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| * | Non-income producing security. |
| (a) | Affiliated issuer. This security is owned in proportion with its representation in the index. |
| (b) | All or a portion of these securities were on loan. In addition, “Other assets and liabilities, net” may include pending sales that are also on loan. The value of securities loaned at May 31, 2021 amounted to $27,873, which is 0.2% of net assets. |
| (c) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
| (d) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. |
| (e) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the year ended May 31, 2021. |
| 144A: | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
At May 31, 2021, open futures contracts purchased were as follows:
| Contract Description |
Currency | Number of Contracts |
Notional Amount |
Contract Value |
Expiration Date |
Unrealized Appreciation |
||||||||||||
| DAX Mini Futures |
EUR | 2 | $ | 185,535 | $188,490 | 6/18/2021 | $ | 2,955 | ||||||||||
| See Notes to Financial Statements. | 84 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Germany Hedged Equity ETF (Continued)
May 31, 2021
As of May 31, 2021, the Fund had the following forward foreign currency contracts outstanding:
| Counterparty |
Settlement Date |
Currency To Deliver |
Currency To Receive |
Unrealized Appreciation |
Unrealized Depreciation |
|||||||||||||||||
| Citigroup Global Markets |
6/3/2021 | EUR | 4,184,067 | USD | 5,039,671 | $ | — | $ | (77,118 | ) | ||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | EUR | 4,039,000 | USD | 4,864,927 | — | (74,457 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | EUR | 3,898,919 | USD | 4,696,240 | — | (71,835 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 399,893 | EUR | 332,000 | 6,117 | — | |||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 4,709,807 | EUR | 3,852,067 | 972 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 92,542 | EUR | 77,000 | 1,623 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 4,844,139 | EUR | 3,962,000 | 1,079 | — | |||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 4,767,107 | EUR | 3,898,919 | 969 | — | |||||||||||||||
| Citigroup Global Markets |
7/6/2021 | EUR | 3,852,067 | USD | 4,712,727 | — | (1,081 | ) | ||||||||||||||
| Citigroup Global Markets |
7/6/2021 | EUR | 224,000 | USD | 274,053 | — | (58 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | EUR | 3,962,000 | USD | 4,847,131 | — | (1,203 | ) | ||||||||||||||
| RBC Capital Markets |
7/6/2021 | EUR | 3,898,919 | USD | 4,770,051 | — | (1,091 | ) | ||||||||||||||
|
|
|
|
|
|||||||||||||||||||
| Total unrealized appreciation (depreciation) |
$ | 10,760 | $ | (226,843 | ) | |||||||||||||||||
|
|
|
|
|
|||||||||||||||||||
For information on the Fund’s policy and additional disclosures regarding open futures contracts and forward foreign currency contracts, please refer to the Derivatives section of Note 2 in the accompanying Notes to Financial Statements.
Currency Abbreviations
| EUR | Euro |
| USD | U.S. Dollar |
Fair Value Measurements
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
The following is a summary of the inputs used as of May 31, 2021 in valuing the Fund’s investments. For information on the Fund’s policy regarding the valuation of investments, please refer to the Security Valuation section of Note 2 in the accompanying Notes to Financial Statements.
| Assets |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Common Stocks (f) |
$ | 13,370,473 | $ | — | $ | — | $ | 13,370,473 | ||||||||
| Preferred Stocks (f) |
981,280 | — | — | 981,280 | ||||||||||||
| Exchange-Traded Funds |
83,841 | — | — | 83,841 | ||||||||||||
| Short-Term Investments (f) |
207,567 | — | — | 207,567 | ||||||||||||
| Derivatives (g) |
||||||||||||||||
| Forward Foreign Currency Contracts |
— | 10,760 | — | 10,760 | ||||||||||||
| Futures Contracts |
2,955 | — | — | 2,955 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| TOTAL |
$ | 14,646,116 | $ | 10,760 | $ | — | $ | 14,656,876 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Liabilities |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Derivatives (g) |
||||||||||||||||
| Forward Foreign Currency Contracts |
$ | — | $ | (226,843 | ) | $ | — | $ | (226,843 | ) | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
| TOTAL |
$ | — | $ | (226,843 | ) | $ | — | $ | (226,843 | ) | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (f) | See Schedule of Investments for additional detailed categorizations. |
| (g) | Derivatives include unrealized appreciation (depreciation) on open futures contracts and forward foreign currency contracts. |
| See Notes to Financial Statements. | 85 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Japan Hedged Equity ETF
May 31, 2021
| See Notes to Financial Statements. | 86 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Japan Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 87 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Japan Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 88 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Japan Hedged Equity ETF (Continued)
May 31, 2021
A summary of the Fund’s transactions with affiliated investments during the year ended May 31, 2021 is as follows:
| Value ($) at 5/31/2020 |
Purchases Cost ($) |
Sales Proceeds ($) |
Net Realized Gain/(Loss) ($) |
Net Change in Unrealized Appreciation (Depreciation) ($) |
Income ($) | Capital Gain Distributions ($) |
Number of Shares at 5/31/2021 |
Value ($) at 5/31/2021 |
||||||||||||||||||||||||||||||||
| SECURITIES LENDING COLLATERAL — 0.9% |
||||||||||||||||||||||||||||||||||||||||
| DWS Government & Agency Securities Portfolio “DWS Government Cash Institutional Shares”, 0.01% (b)(c) |
||||||||||||||||||||||||||||||||||||||||
| 1,079,236 | 774,838(d | ) | — | — | — | 593 | — | 1,854,074 | 1,854,074 | |||||||||||||||||||||||||||||||
| CASH EQUIVALENTS — 2.7% |
||||||||||||||||||||||||||||||||||||||||
| DWS ESG Liquidity Fund “Capital Shares”, 0.08% (b) |
||||||||||||||||||||||||||||||||||||||||
| 117,580 | 223 | — | — | (59 | ) | 229 | — | 117,756 | 117,744 | |||||||||||||||||||||||||||||||
| DWS Government Money Market Series “Institutional Shares”, 0.03% (b) |
||||||||||||||||||||||||||||||||||||||||
| 4,794,642 | 73,622,683 | (73,226,216 | ) | — | — | 2,210 | — | 5,191,109 | 5,191,109 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| 5,991,458 | 74,397,744 | (73,226,216 | ) | — | (59 | ) | 3,032 | — | 7,162,939 | 7,162,927 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| * | Non-income producing security. |
| (a) | All or a portion of these securities were on loan. In addition, “Other assets and liabilities, net” may include pending sales that are also on loan. The value of securities loaned at May 31, 2021 amounted to $3,713,453, which is 1.9% of net assets. |
| (b) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
| (c) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. In addition, the Fund held non-cash U.S. Treasury securities collateral having a value of $2,113,794. |
| (d) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the year ended May 31, 2021. |
REIT: Real Estate Investment Trust
At May 31, 2021, open futures contracts purchased were as follows:
| Contract Description |
Currency | Number of Contracts |
Notional Amount |
Contract Value |
Expiration Date |
Unrealized Appreciation |
||||||||||||
| TOPIX Index Futures |
JPY | 29 | $ | 5,104,515 | $ | 5,107,909 | 6/10/2021 | $ | 3,394 | |||||||||
| Nikkei 225 Futures |
JPY | 5 | 1,321,465 | 1,322,952 | 6/10/2021 | 1,487 | ||||||||||||
|
|
|
|||||||||||||||||
| Total unrealized appreciation |
$ | 4,881 | ||||||||||||||||
|
|
|
|||||||||||||||||
As of May 31, 2021, the Fund had the following forward foreign currency contracts outstanding:
| Counterparty |
Settlement Date |
Currency To Deliver |
Currency To Receive |
Unrealized Appreciation |
Unrealized Depreciation |
|||||||||||||||||
| Citigroup Global Markets |
6/3/2021 | JPY | 7,881,614,100 | USD | 72,120,542 | $ | 134,064 | $ | — | |||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | JPY | 6,849,404,900 | USD | 62,675,047 | 116,220 | — | |||||||||||||||
| RBC Capital Markets |
6/3/2021 | JPY | 7,048,567,500 | USD | 64,497,118 | 119,245 | — | |||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 6,608,893 | JPY | 722,235,000 | — | (12,382 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 512,638 | JPY | 56,000,000 | — | (1,164 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 64,933,307 | JPY | 7,103,379,100 | — | (54,814 | ) | ||||||||||||||
| VJP Morgan & Chase Co. |
6/3/2021 | USD | 62,611,682 | JPY | 6,849,404,900 | — | (52,854 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 64,432,735 | JPY | 7,048,567,500 | — | (54,863 | ) | ||||||||||||||
| Citigroup Global Markets |
7/6/2021 | JPY | 7,103,379,100 | USD | 64,947,734 | 52,584 | — | |||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | JPY | 6,849,404,900 | USD | 62,626,681 | 51,791 | — | |||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | JPY | 695,113,000 | USD | 6,355,609 | 5,186 | — | |||||||||||||||
| RBC Capital Markets |
7/6/2021 | JPY | 7,048,567,500 | USD | 64,446,992 | 52,590 | — | |||||||||||||||
|
|
|
|
|
|||||||||||||||||||
| Total unrealized appreciation (depreciation) |
$ | 531,680 | $ | (176,077 | ) | |||||||||||||||||
|
|
|
|
|
|||||||||||||||||||
For information on the Fund’s policy and additional disclosures regarding open futures contracts and forward foreign currency contracts, please refer to the Derivatives section of Note 2 in the accompanying Notes to Financial Statements.
| See Notes to Financial Statements. | 89 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI Japan Hedged Equity ETF (Continued)
May 31, 2021
Currency Abbreviations
| JPY | Japanese Yen |
| USD | U.S. Dollar |
Fair Value Measurements
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
The following is a summary of the inputs used as of May 31, 2021 in valuing the Fund’s investments. For information on the Fund’s policy regarding the valuation of investments, please refer to the Security Valuation section of Note 2 in the accompanying Notes to Financial Statements.
| Assets |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Common Stocks (e) |
$ | 193,179,076 | $ | — | $ | — | $ | 193,179,076 | ||||||||
| Exchange-Traded Funds |
113,157 | — | — | 113,157 | ||||||||||||
| Short-Term Investments (e) |
7,162,927 | — | — | 7,162,927 | ||||||||||||
| Derivatives (f) |
||||||||||||||||
| Forward Foreign Currency Contracts |
— | 531,680 | — | 531,680 | ||||||||||||
| Futures Contracts |
4,881 | — | — | 4,881 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| TOTAL |
$ | 200,460,041 | $ | 531,680 | $ | — | $ | 200,991,721 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Liabilities |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Derivatives (f) |
||||||||||||||||
| Forward Foreign Currency Contracts |
$ | — | $ | (176,077 | ) | $ | — | $ | (176,077 | ) | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
| TOTAL |
$ | — | $ | (176,077 | ) | $ | — | $ | (176,077 | ) | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (e) | See Schedule of Investments for additional detailed categorizations. |
| (f) | Derivatives include unrealized appreciation (depreciation) on open futures contracts and forward foreign currency contracts. |
| See Notes to Financial Statements. | 90 |
This Page is Intentionally Left Blank
91
DBX ETF Trust
May 31, 2021
| Xtrackers MSCI All World ex US Hedged Equity ETF |
Xtrackers MSCI Emerging Markets Hedged Equity ETF |
Xtrackers MSCI Europe Hedged Equity ETF |
Xtrackers MSCI Eurozone Hedged Equity ETF |
|||||||||||||
| Assets |
||||||||||||||||
| Investment in non-affiliated securities at value |
$ | 122,253,093 | $ | 115,713,262 | $ | 555,481,313 | $ | 15,018,941 | ||||||||
| Investment in affiliated securities at value |
132,123 | — | 1,491,094 | 72,547 | ||||||||||||
| Investment in DWS ESG Liquidity Fund |
— | — | 640,273 | — | ||||||||||||
| Investment in DWS Government Money Market Series |
1,498,682 | 217,017 | 1,333,863 | 17,223 | ||||||||||||
| Investment in DWS Government & Agency Securities Portfolio* |
2,372,722 | 1,406,061 | 14,135,967 | 655,154 | ||||||||||||
| Cash |
390 | 1,263 | — | — | ||||||||||||
| Foreign currency at value |
1,194,363 | 1,758,588 | 1,967,326 | 98,649 | ||||||||||||
| Receivable for return of collateral pledged for forward foreign currency contracts |
1,160,323 | 667,245 | 8,561,786 | 27,354 | ||||||||||||
| Unrealized appreciation on forward foreign currency contracts |
140,751 | 244,953 | 253,179 | 4,273 | ||||||||||||
| Deposit with broker for futures contracts |
178,814 | 133,083 | 898,219 | 7,202 | ||||||||||||
| Receivables: | ||||||||||||||||
| Investment securities sold |
104,477 | 978,933 | 352,012 | 147,161 | ||||||||||||
| Variation margin on futures contracts |
80,357 | 44,249 | 378,864 | 3,531 | ||||||||||||
| Dividends |
327,535 | 217,583 | 757,840 | 20,028 | ||||||||||||
| Interest |
45 | 50 | 64 | 1 | ||||||||||||
| Securities lending income |
2,832 | 1,136 | 26,615 | 1,350 | ||||||||||||
| Foreign tax reclaim |
106,906 | 412 | 1,500,963 | 18,595 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total assets |
$ | 129,553,413 | $ | 121,383,835 | $ | 587,779,378 | $ | 16,092,009 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Liabilities |
||||||||||||||||
| Due to custodian |
— | — | 344 | — | ||||||||||||
| Payable upon return of securities loaned |
$ | 2,372,722 | $ | 1,406,061 | $ | 14,135,967 | $ | 655,154 | ||||||||
| Unrealized depreciation on forward foreign currency contracts |
1,501,312 | 1,350,371 | 9,654,778 | 229,163 | ||||||||||||
| Payables: | ||||||||||||||||
| Investment securities purchased |
393,671 | 831,507 | 671,267 | 33,817 | ||||||||||||
| Investment advisory fees |
41,186 | 63,323 | 210,188 | 5,709 | ||||||||||||
| Deferred foreign tax payable |
105,558 | 277,960 | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total liabilities |
4,414,449 | 3,929,222 | 24,672,544 | 923,843 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net Assets, at value |
$ | 125,138,964 | $ | 117,454,613 | $ | 563,106,834 | $ | 15,168,166 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net Assets Consist of |
||||||||||||||||
| Paid-in capital |
$ | 104,284,405 | $ | 100,155,524 | $ | 656,061,491 | $ | 15,430,971 | ||||||||
| Distributable earnings (loss) |
20,854,559 | 17,299,089 | (92,954,657 | ) | (262,805 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net Assets, at value |
$ | 125,138,964 | $ | 117,454,613 | $ | 563,106,834 | $ | 15,168,166 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Number of Common Shares outstanding |
3,750,001 | 4,000,800 | 16,550,001 | 400,001 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net Asset Value |
$ | 33.37 | $ | 29.36 | $ | 34.02 | $ | 37.92 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Investment in non-affiliated securities at cost |
$ | 92,444,968 | $ | 72,795,038 | $ | 501,147,837 | $ | 12,022,152 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Investment in affiliated securities at cost |
$ | 128,094 | $ | — | $ | 2,627,521 | $ | 137,327 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Value of securities loaned |
$ | 3,484,766 | $ | 2,190,678 | $ | 19,900,948 | $ | 1,132,551 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Investment in DWS ESG Liquidity Fund at cost |
$ | — | $ | — | $ | 640,337 | $ | — | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Investment in DWS Government Money Market Series at cost |
$ | 1,498,682 | $ | 217,017 | $ | 1,333,863 | $ | 17,223 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Investment in DWS Government & Agency Securities Portfolio at cost* |
$ | 2,372,722 | $ | 1,406,061 | $ | 14,135,967 | $ | 655,154 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Non-cash collateral for securities on loan |
$ | 1,351,926 | $ | 858,086 | $ | 8,317,148 | $ | 576,172 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Foreign currency at cost |
$ | 1,189,950 | $ | 1,752,358 | $ | 1,755,667 | $ | 96,255 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| * | Represents collateral on securities loaned. |
| See Notes to Financial Statements. | 92 |
DBX ETF Trust
Statements of Assets and Liabilities (Continued)
May 31, 2021
| Xtrackers MSCI Germany Hedged Equity ETF |
Xtrackers MSCI Japan Hedged Equity ETF |
|||||||
| Assets |
||||||||
| Investment in non-affiliated securities at value |
$ | 14,163,057 | $ | 193,292,233 | ||||
| Investment in affiliated securities at value |
272,537 | — | ||||||
| Investment in DWS ESG Liquidity Fund* |
— | 117,744 | ||||||
| Investment in DWS Government Money Market Series* |
179,133 | 5,191,109 | ||||||
| Investment in DWS Government & Agency Securities Portfolio** |
28,434 | 1,854,074 | ||||||
| Foreign currency at value |
40,081 | 802,699 | ||||||
| Receivable for return of collateral pledged for forward foreign currency contracts |
27,882 | — | ||||||
| Unrealized appreciation on forward foreign currency contracts |
10,760 | 531,680 | ||||||
| Deposit with broker for futures contracts |
14,616 | 293,557 | ||||||
| Receivables: | ||||||||
| Investment securities sold |
108,016 | 95,848 | ||||||
| Variation margin on futures contracts |
7,218 | 76,357 | ||||||
| Dividends |
4,564 | 1,412,454 | ||||||
| Interest |
4 | 72 | ||||||
| Securities lending income |
10 | 571 | ||||||
| Foreign tax reclaim |
29,105 | — | ||||||
|
|
|
|
|
|||||
| Total assets |
$ | 14,885,417 | $ | 203,668,398 | ||||
|
|
|
|
|
|||||
| Liabilities |
||||||||
| Payable upon return of securities loaned |
$ | 28,434 | $ | 1,854,074 | ||||
| Payable upon return of deposit for forward foreign currency contracts |
— | 770,854 | ||||||
| Unrealized depreciation on forward foreign currency contracts |
226,843 | 176,077 | ||||||
| Payables: | ||||||||
| Investment securities purchased |
— | 1,988,038 | ||||||
| Investment advisory fees |
5,530 | 74,901 | ||||||
|
|
|
|
|
|||||
| Total liabilities |
260,807 | 4,863,944 | ||||||
|
|
|
|
|
|||||
| Net Assets, at value |
$ | 14,624,610 | $ | 198,804,454 | ||||
|
|
|
|
|
|||||
| Net Assets Consist of |
||||||||
| Paid-in capital |
$ | 21,459,199 | $ | 343,722,539 | ||||
| Distributable earnings (loss) |
(6,834,589 | ) | (144,918,085 | ) | ||||
|
|
|
|
|
|||||
| Net Assets, at value |
$ | 14,624,610 | $ | 198,804,454 | ||||
|
|
|
|
|
|||||
| Number of Common Shares outstanding |
450,800 | 4,050,800 | ||||||
|
|
|
|
|
|||||
| Net Asset Value |
$ | 32.44 | $ | 49.08 | ||||
|
|
|
|
|
|||||
| Investment in non-affiliated securities at cost |
$ | 11,955,040 | $ | 173,539,414 | ||||
|
|
|
|
|
|||||
| Investment in affiliated securities at cost |
$ | 577,999 | $ | — | ||||
|
|
|
|
|
|||||
| Value of securities loaned |
$ | 27,873 | $ | 3,713,453 | ||||
|
|
|
|
|
|||||
| Investment in DWS ESG Liquidity Fund at cost* |
$ | — | $ | 117,754 | ||||
|
|
|
|
|
|||||
| Investment in DWS Government Money Market Series at cost* |
$ | 179,133 | $ | 5,191,109 | ||||
|
|
|
|
|
|||||
| Investment in DWS Government & Agency Securities Portfolio at cost** |
$ | 28,434 | $ | 1,854,074 | ||||
|
|
|
|
|
|||||
| Non-cash collateral for securities on loan |
$ | — | $ | 2,113,794 | ||||
|
|
|
|
|
|||||
| Foreign currency at cost |
$ | 37,505 | $ | 803,928 | ||||
|
|
|
|
|
|||||
| * Includes collateral held for forward foreign currency contracts |
$ | — | $ | 770,854 | ||||
|
|
|
|
|
|||||
| ** Represents collateral on securities loaned. |
||||||||
| See Notes to Financial Statements. | 93 |
DBX ETF Trust
For the Year Ended May 31, 2021
| Xtrackers MSCI All World ex US Hedged Equity ETF |
Xtrackers MSCI Emerging Markets Hedged Equity ETF |
Xtrackers MSCI Europe Hedged Equity ETF |
Xtrackers MSCI Eurozone Hedged Equity ETF |
|||||||||||||
| Investment Income |
||||||||||||||||
| Unaffiliated interest income |
$ | — | $ | — | $ | 2,534 | $ | — | ||||||||
| Unaffiliated dividend income* |
2,572,071 | 2,195,953 | 12,500,043 | 375,429 | ||||||||||||
| Income distributions from affiliated funds |
783 | 624 | 4,446 | 121 | ||||||||||||
| Affiliated securities lending income |
307 | 177 | 1,296 | 76 | ||||||||||||
| Unaffiliated non-cash dividend income |
171,445 | 140,196 | 1,426,543 | 84,102 | ||||||||||||
| Unaffiliated securities lending income, net of borrower rebates |
17,365 | 11,204 | 111,534 | 9,480 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total investment income |
2,761,971 | 2,348,154 | 14,046,396 | 469,208 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Expenses |
||||||||||||||||
| Investment advisory fees |
432,443 | 716,904 | 2,087,660 | 74,975 | ||||||||||||
| Other expenses |
529 | 747 | — | 73 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total expenses |
432,972 | 717,651 | 2,087,660 | 75,048 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Less fees waived (see note 3): |
||||||||||||||||
| Waiver |
(776 | ) | (736 | ) | (3,750 | ) | (116 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net expenses |
432,196 | 716,915 | 2,083,910 | 74,932 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net investment income (loss) |
2,329,775 | 1,631,239 | 11,962,486 | 394,276 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Realized and Unrealized Gain (Loss) |
||||||||||||||||
| Net realized gain (loss) from: |
||||||||||||||||
| Investments** |
(986,395 | ) | 1,613,432 | (19,036,405 | ) | (421,805 | ) | |||||||||
| Investments in affiliates |
(5,577 | ) | — | (316,303 | ) | (21,487 | ) | |||||||||
| In-kind redemptions |
2,283,834 | 1,688,963 | 8,230,127 | 1,649,039 | ||||||||||||
| In-kind redemptions in affiliates |
1,339 | — | (624,674 | ) | (54,081 | ) | ||||||||||
| Futures contracts |
1,187,619 | 930,059 | 3,719,630 | 79,446 | ||||||||||||
| Foreign currency transactions |
42,383 | (15,889 | ) | 19,762 | 21,445 | |||||||||||
| Forward foreign currency contracts |
(6,050,281 | ) | (4,690,314 | ) | (40,252,605 | ) | (1,650,879 | ) | ||||||||
| Payments by Affiliates (see note 6) |
82 | 878 | 242 | 8 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net realized gain (loss) |
(3,526,996 | ) | (472,871 | ) | (48,260,226 | ) | (398,314 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net change in unrealized appreciation (depreciation) on: |
||||||||||||||||
| Investments*** |
33,040,072 | 37,480,872 | 163,317,765 | 5,455,095 | ||||||||||||
| Investments in affiliates |
61,852 | — | 1,573,171 | 114,143 | ||||||||||||
| Futures contracts |
(319,138 | ) | (100,200 | ) | (573,363 | ) | (16,820 | ) | ||||||||
| Foreign currency translations |
(434 | ) | 8,879 | 169,570 | 1,445 | |||||||||||
| Forward foreign currency contracts |
(1,155,166 | ) | (974,015 | ) | (7,382,445 | ) | 36,191 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net change in unrealized appreciation (depreciation) |
31,627,186 | 36,415,536 | 157,104,698 | 5,590,054 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net realized and unrealized gain (loss) on investments, futures and foreign currency transactions |
28,100,190 | 35,942,665 | 108,844,472 | 5,191,740 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net Increase (Decrease) in Net Assets Resulting from Operations |
$ | 30,429,965 | $ | 37,573,904 | $ | 120,806,958 | $ | 5,586,016 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| * Unaffiliated foreign tax withheld |
$ | 298,295 | $ | 320,108 | $ | 1,367,237 | $ | 67,267 | ||||||||
| ** Net of foreign taxes |
$ | — | $ | 1,159 | $ | — | $ | — | ||||||||
| *** Net of change in deferred foreign taxes |
$ | 105,896 | $ | 277,960 | $ | — | $ | — | ||||||||
| See Notes to Financial Statements. | 94 |
DBX ETF Trust
Statements of Operations (Continued)
For the Year Ended May 31, 2021
| Xtrackers MSCI Germany Hedged Equity ETF |
Xtrackers MSCI Japan Hedged Equity ETF |
|||||||
| Investment Income |
||||||||
| Unaffiliated interest income |
$ | 67 | $ | — | ||||
| Unaffiliated dividend income* |
550,366 | 3,717,947 | ||||||
| Income distributions from affiliated funds |
121 | 2,439 | ||||||
| Affiliated securities lending income |
3 | 593 | ||||||
| Unaffiliated securities lending income, net of borrower rebates |
168 | 27,437 | ||||||
|
|
|
|
|
|||||
| Total investment income |
550,725 | 3,748,416 | ||||||
|
|
|
|
|
|||||
| Expenses |
||||||||
| Investment advisory fees |
66,331 | 905,522 | ||||||
| Other expenses |
57 | 1,632 | ||||||
|
|
|
|
|
|||||
| Total expenses |
66,388 | 907,154 | ||||||
|
|
|
|
|
|||||
| Less fees waived (see note 3): |
||||||||
| Waiver |
(106 | ) | (2,134 | ) | ||||
|
|
|
|
|
|||||
| Net expenses |
66,282 | 905,020 | ||||||
|
|
|
|
|
|||||
| Net investment income (loss) |
484,443 | 2,843,396 | ||||||
|
|
|
|
|
|||||
| Realized and Unrealized Gain (Loss) |
||||||||
| Net realized gain (loss) from: |
||||||||
| Investments |
(628,473 | ) | (2,902,879 | ) | ||||
| Investments in affiliates |
(83,336 | ) | — | |||||
| In-kind redemptions |
28,221 | 6,181,797 | ||||||
| In-kind redemptions in affiliates |
(129,467 | ) | — | |||||
| Futures contracts |
53,147 | 1,611,506 | ||||||
| Foreign currency transactions |
20,431 | (26,738 | ) | |||||
| Forward foreign currency contracts |
(1,281,904 | ) | 4,896,778 | |||||
| Payments by Affiliates (see note 6) |
9 | 21 | ||||||
|
|
|
|
|
|||||
| Net realized gain (loss) |
(2,021,372 | ) | 9,760,485 | |||||
|
|
|
|
|
|||||
| Net change in unrealized appreciation (depreciation) on: |
||||||||
| Investments |
4,882,729 | 38,568,069 | ||||||
| Investments in affiliates |
337,409 | (59 | ) | |||||
| Futures contracts |
(10,342 | ) | (651,107 | ) | ||||
| Foreign currency translations |
(971 | ) | 18,774 | |||||
| Forward foreign currency contracts |
(30,590 | ) | (1,547,527 | ) | ||||
|
|
|
|
|
|||||
| Net change in unrealized appreciation (depreciation) |
5,178,235 | 36,388,150 | ||||||
|
|
|
|
|
|||||
| Net realized and unrealized gain (loss) on investments, futures and foreign currency transactions |
3,156,863 | 46,148,635 | ||||||
|
|
|
|
|
|||||
| Net Increase (Decrease) in Net Assets Resulting from Operations |
$ | 3,641,306 | $ | 48,992,031 | ||||
|
|
|
|
|
|||||
| * Unaffiliated foreign tax withheld |
$ | 61,385 | $ | 412,879 | ||||
| See Notes to Financial Statements. | 95 |
DBX ETF Trust
| Xtrackers MSCI All World ex US Hedged Equity ETF |
Xtrackers MSCI Emerging Markets Hedged Equity ETF |
|||||||||||||||
| Year Ended May 31, 2021 |
Year Ended May 31, 2020 |
Year Ended May 31, 2021 |
Year Ended May 31, 2020 |
|||||||||||||
| Increase (Decrease) in Net Assets from Operations |
||||||||||||||||
| Net investment income (loss) |
$ | 2,329,775 | $ | 2,323,048 | $ | 1,631,239 | $ | 2,818,675 | ||||||||
| Net realized gain (loss) |
(3,526,996 | ) | (929,874 | ) | (472,871 | ) | 2,632,256 | |||||||||
| Net change in net unrealized appreciation (depreciation) |
31,627,186 | (2,635,262 | ) | 36,415,536 | (7,981,539 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net increase (decrease) in net assets resulting from operations |
30,429,965 | (1,242,088 | ) | 37,573,904 | (2,530,608 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Distributions to Shareholders |
(2,298,657 | ) | (3,108,889 | ) | (2,035,453 | ) | (3,043,154 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Fund Shares Transactions |
||||||||||||||||
| Proceeds from shares sold |
10,818,162 | 5,902,631 | 2,940,585 | 7,124,993 | ||||||||||||
| Value of shares redeemed |
(12,480,284 | ) | (1,340,557 | ) | (10,412,487 | ) | (24,500,575 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net increase (decrease) in net assets resulting from fund share transactions |
(1,662,122 | ) | 4,562,074 | (7,471,902 | ) | (17,375,582 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total net increase (decrease) in Net Assets |
26,469,186 | 211,097 | 28,066,549 | (22,949,344 | ) | |||||||||||
| Net Assets |
||||||||||||||||
| Beginning of year |
98,669,778 | 98,458,681 | 89,388,064 | 112,337,408 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| End of year |
$ | 125,138,964 | $ | 98,669,778 | $ | 117,454,613 | $ | 89,388,064 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Changes in Shares Outstanding |
||||||||||||||||
| Shares outstanding, beginning of year |
3,850,001 | 3,700,001 | 4,250,800 | 5,150,800 | ||||||||||||
| Shares sold |
350,000 | 200,000 | 100,000 | 300,000 | ||||||||||||
| Shares redeemed |
(450,000 | ) | (50,000 | ) | (350,000 | ) | (1,200,000 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Shares outstanding, end of year |
3,750,001 | 3,850,001 | 4,000,800 | 4,250,800 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| See Notes to Financial Statements. | 96 |
DBX ETF Trust
Statements of Changes in Net Assets (Continued)
| Xtrackers MSCI Europe Hedged Equity ETF |
Xtrackers MSCI Eurozone Hedged Equity ETF |
|||||||||||||||
| Year Ended May 31, 2021 |
Year Ended May 31, 2020 |
Year Ended May 31, 2021 |
Year Ended May 31, 2020 |
|||||||||||||
| Increase (Decrease) in Net Assets from Operations |
||||||||||||||||
| Net investment income (loss) |
$ | 11,962,486 | $ | 13,510,669 | $ | 394,276 | $ | 323,977 | ||||||||
| Net realized gain (loss) |
(48,260,226 | ) | 45,709,636 | (398,314 | ) | 1,822,432 | ||||||||||
| Net change in net unrealized appreciation (depreciation) |
157,104,698 | (40,400,909 | ) | 5,590,054 | (2,164,324 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net increase (decrease) in net assets resulting from operations |
120,806,958 | 18,819,396 | 5,586,016 | (17,915 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Distributions to Shareholders |
(11,732,653 | ) | (25,632,832 | ) | (395,611 | ) | (871,374 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Fund Shares Transactions |
||||||||||||||||
| Proceeds from shares sold |
115,314,044 | 93,076,067 | — | — | ||||||||||||
| Value of shares redeemed |
(148,297,491 | ) | (448,670,118 | ) | (11,099,293 | ) | (9,320,761 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net increase (decrease) in net assets resulting from fund share transactions |
(32,983,447 | ) | (355,594,051 | ) | (11,099,293 | ) | (9,320,761 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total net increase (decrease) in Net Assets |
76,090,858 | (362,407,487 | ) | (5,908,888 | ) | (10,210,050 | ) | |||||||||
| Net Assets |
||||||||||||||||
| Beginning of year |
487,015,976 | 849,423,463 | 21,077,054 | 31,287,104 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| End of year |
$ | 563,106,834 | $ | 487,015,976 | $ | 15,168,166 | $ | 21,077,054 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Changes in Shares Outstanding |
||||||||||||||||
| Shares outstanding, beginning of year |
18,100,001 | 30,000,001 | 750,001 | 1,050,001 | ||||||||||||
| Shares sold |
3,500,000 | 3,100,000 | — | — | ||||||||||||
| Shares redeemed |
(5,050,000 | ) | (15,000,000 | ) | (350,000 | ) | (300,000 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Shares outstanding, end of year |
16,550,001 | 18,100,001 | 400,001 | 750,001 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| See Notes to Financial Statements. | 97 |
DBX ETF Trust
Statements of Changes in Net Assets (Continued)
| Xtrackers MSCI Germany Hedged Equity ETF |
Xtrackers MSCI Japan Hedged Equity ETF |
|||||||||||||||
| Year Ended May 31, 2021 |
Year Ended May 31, 2020 |
Year Ended May 31, 2021 |
Year Ended May 31, 2020 |
|||||||||||||
| Increase (Decrease) in Net Assets from Operations |
||||||||||||||||
| Net investment income (loss) |
$ | 484,443 | $ | 163,999 | $ | 2,843,396 | $ | 5,328,423 | ||||||||
| Net realized gain (loss) |
(2,021,372 | ) | 226,042 | 9,760,485 | (14,608,871 | ) | ||||||||||
| Net change in net unrealized appreciation (depreciation) |
5,178,235 | 303,366 | 36,388,150 | 39,981,681 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net increase (decrease) in net assets resulting from operations |
3,641,306 | 693,407 | 48,992,031 | 30,701,233 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Distributions to Shareholders |
(431,830 | ) | (538,046 | ) | (5,950,806 | ) | (11,391,476 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Fund Shares Transactions |
||||||||||||||||
| Proceeds from shares sold |
— | — | 11,284,280 | 14,116,878 | ||||||||||||
| Value of shares redeemed |
(3,898,792 | ) | (8,052,872 | ) | (76,451,354 | ) | (226,135,390 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net increase (decrease) in net assets resulting from fund share transactions |
(3,898,792 | ) | (8,052,872 | ) | (65,167,074 | ) | (212,018,512 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total net increase (decrease) in Net Assets |
(689,316 | ) | (7,897,511 | ) | (22,125,849 | ) | (192,708,755 | ) | ||||||||
| Net Assets |
||||||||||||||||
| Beginning of year |
15,313,926 | 23,211,437 | 220,930,303 | 413,639,058 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| End of year |
$ | 14,624,610 | $ | 15,313,926 | $ | 198,804,454 | $ | 220,930,303 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Changes in Shares Outstanding |
||||||||||||||||
| Shares outstanding, beginning of year |
600,800 | 900,800 | 5,550,800 | 10,900,800 | ||||||||||||
| Shares sold |
— | — | 250,000 | 400,000 | ||||||||||||
| Shares redeemed |
(150,000 | ) | (300,000 | ) | (1,750,000 | ) | (5,750,000 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Shares outstanding, end of year |
450,800 | 600,800 | 4,050,800 | 5,550,800 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| See Notes to Financial Statements. | 98 |
DBX ETF Trust
| Xtrackers MSCI All World ex US Hedged Equity ETF Selected Per Share Data |
Years Ended May 31, | |||||||||||||||||||
| 2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
| Net Asset Value, beginning of year |
$ | 25.63 | $ | 26.61 | $ | 27.71 | $ | 26.20 | $ | 22.62 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||
| Net investment income (loss)(a) |
0.64 | 0.62 | 0.73 | 0.67 | 0.64 | |||||||||||||||
| Net realized and unrealized gain (loss) |
7.73 | (0.76 | ) | (1.12 | ) | 1.51 | 3.42 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total from investment operations |
8.37 | (0.14 | ) | (0.39 | ) | 2.18 | 4.06 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Less distributions from: |
| |||||||||||||||||||
| Net investment income |
(0.63 | ) | (0.84 | ) | (0.71 | ) | (0.67 | ) | (0.48 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total distributions |
(0.63 | ) | (0.84 | ) | (0.71 | ) | (0.67 | ) | (0.48 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net Asset Value, end of year |
$ | 33.37 | $ | 25.63 | $ | 26.61 | $ | 27.71 | $ | 26.20 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Return (%) |
33.10 | (b) | (0.78 | )(b) | (1.30 | )(b) | 8.43 | 18.30 | ||||||||||||
| Ratios to Average Net Assets and Supplemental Data |
||||||||||||||||||||
| Net Assets, end of year ($ millions) |
125 | 99 | 98 | 127 | 105 | |||||||||||||||
| Ratio of expenses before fee waiver (%) |
0.40 | 0.41 | 0.41 | 0.40 | 0.40 | |||||||||||||||
| Ratio of expenses after fee waiver (%) |
0.40 | 0.41 | 0.41 | 0.40 | 0.40 | |||||||||||||||
| Ratio of net investment income (loss) (%) |
2.15 | 2.29 | 2.74 | 2.46 | 2.67 | |||||||||||||||
| Portfolio turnover rate (%)(c) |
14 | 10 | 13 | 11 | 15 | |||||||||||||||
| Xtrackers MSCI Emerging Markets Hedged Equity ETF Selected Per Share Data |
Years Ended May 31, | |||||||||||||||||||
| 2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
| Net Asset Value, beginning of year |
$ | 21.03 | $ | 21.81 | $ | 23.91 | $ | 21.47 | $ | 18.62 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||
| Net investment income (loss)(a) |
0.39 | 0.58 | 0.52 | 0.41 | 0.35 | |||||||||||||||
| Net realized and unrealized gain (loss) |
8.42 | (0.74 | ) | (2.02 | ) | 2.39 | 2.81 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total from investment operations |
8.81 | (0.16 | ) | (1.50 | ) | 2.80 | 3.16 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Less distributions from: |
| |||||||||||||||||||
| Net investment income |
(0.48 | ) | (0.62 | ) | (0.60 | ) | (0.36 | ) | (0.31 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total distributions |
(0.48 | ) | (0.62 | ) | (0.60 | ) | (0.36 | ) | (0.31 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net Asset Value, end of year |
$ | 29.36 | $ | 21.03 | $ | 21.81 | $ | 23.91 | $ | 21.47 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Return (%) |
42.20 | (b) | (1.01 | )(b) | (6.18 | )(b) | 13.09 | 17.19 | ||||||||||||
| Ratios to Average Net Assets and Supplemental Data |
||||||||||||||||||||
| Net Assets, end of year ($ millions) |
117 | 89 | 112 | 195 | 188 | |||||||||||||||
| Ratio of expenses before fee waiver (%) |
0.65 | 0.66 | 0.66 | 0.65 | 0.65 | |||||||||||||||
| Ratio of expenses after fee waiver (%) |
0.65 | 0.66 | 0.66 | 0.65 | 0.65 | |||||||||||||||
| Ratio of net investment income (loss) (%) |
1.48 | 2.62 | 2.29 | 1.74 | 1.74 | |||||||||||||||
| Portfolio turnover rate (%)(c) |
13 | 20 | 13 | 15 | 43 | |||||||||||||||
| (a) | Based on average shares outstanding during the period. |
| (b) | Total Return would have been lower if certain expenses had not been reimbursed by the Advisor. |
| (c) | Portfolio turnover rate does not include securities received or delivered from processing creations or redemptions. |
| See Notes to Financial Statements. | 99 |
DBX ETF Trust
Financial Highlights (Continued)
| Xtrackers MSCI Europe Hedged Equity ETF Selected Per Share Data |
Years Ended May 31, | |||||||||||||||||||
| 2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
| Net Asset Value, beginning of year |
$ | 26.91 | $ | 28.31 | $ | 28.71 | $ | 28.29 | $ | 25.65 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||
| Net investment income (loss)(a) |
0.77 | 0.52 | 0.75 | 0.68 | 0.76 | |||||||||||||||
| Net realized and unrealized gain (loss) |
7.07 | (1.06 | )(b) | (0.26 | ) | 0.39 | 4.40 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total from investment operations |
7.84 | (0.54 | ) | 0.49 | 1.07 | 5.16 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Less distributions from: |
| |||||||||||||||||||
| Net investment income |
(0.73 | ) | (0.86 | ) | (0.89 | ) | (0.65 | ) | (0.85 | ) | ||||||||||
| Net realized gains |
— | — | — | — | (1.67 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total distributions |
(0.73 | ) | (0.86 | ) | (0.89 | ) | (0.65 | ) | (2.52 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net Asset Value, end of year |
$ | 34.02 | $ | 26.91 | $ | 28.31 | $ | 28.71 | $ | 28.29 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Return (%) |
29.68 | (c) | (2.16 | )(c) | 1.88 | (c) | 3.82 | 21.77 | ||||||||||||
| Ratios to Average Net Assets and Supplemental Data |
||||||||||||||||||||
| Net Assets, end of year ($ millions) |
563 | 487 | 849 | 1,543 | 2,747 | |||||||||||||||
| Ratio of expenses before fee waiver (%) |
0.45 | 0.46 | 0.47 | 0.45 | 0.45 | |||||||||||||||
| Ratio of expenses after fee waiver (%) |
0.45 | 0.46 | 0.47 | 0.45 | 0.45 | |||||||||||||||
| Ratio of net investment income (loss) (%) |
2.58 | 1.79 | 2.67 | 2.41 | 2.95 | |||||||||||||||
| Portfolio turnover rate (%)(d) |
9 | 13 | 7 | 11 | 17 | |||||||||||||||
| Xtrackers MSCI Eurozone Hedged Equity ETF Selected Per Share Data |
Years Ended May 31, | |||||||||||||||||||
| 2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
| Net Asset Value, beginning of year |
$ | 28.10 | $ | 29.80 | $ | 30.90 | $ | 30.29 | $ | 25.64 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||
| Net investment income (loss)(a) |
0.76 | 0.40 | 0.71 | 0.62 | 0.73 | |||||||||||||||
| Net realized and unrealized gain (loss) |
9.71 | (1.15 | ) | (1.13 | ) | 0.63 | 4.84 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total from investment operations |
10.47 | (0.75 | ) | (0.42 | ) | 1.25 | 5.57 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Less distributions from: |
| |||||||||||||||||||
| Net investment income |
(0.65 | ) | (0.95 | ) | (0.68 | ) | (0.64 | ) | (0.92 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total distributions |
(0.65 | ) | (0.95 | ) | (0.68 | ) | (0.64 | ) | (0.92 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net Asset Value, end of year |
$ | 37.92 | $ | 28.10 | $ | 29.80 | $ | 30.90 | $ | 30.29 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Return (%) |
37.79 | (c) | (2.80 | )(c) | (1.34 | )(c) | 4.19 | 22.56 | ||||||||||||
| Ratios to Average Net Assets and Supplemental Data |
||||||||||||||||||||
| Net Assets, end of year ($ millions) |
15 | 21 | 31 | 42 | 65 | |||||||||||||||
| Ratio of expenses before fee waiver (%) |
0.45 | 0.47 | 0.47 | 0.45 | 0.45 | |||||||||||||||
| Ratio of expenses after fee waiver (%) |
0.45 | 0.46 | 0.47 | 0.45 | 0.45 | |||||||||||||||
| Ratio of net investment income (loss) (%) |
2.37 | 1.31 | 2.42 | 2.05 | 2.76 | |||||||||||||||
| Portfolio turnover rate (%)(d) |
10 | 11 | 5 | 14 | 16 | |||||||||||||||
| (a) | Based on average shares outstanding during the period. |
| (b) | Because of the timing of subscriptions and redemptions in relation to fluctuating markets at value, the amount shown may not agree with the change in aggregate gains and losses. |
| (c) | Total Return would have been lower if certain expenses had not been reimbursed by the Advisor. |
| (d) | Portfolio turnover rate does not include securities received or delivered from processing creations or redemptions. |
| See Notes to Financial Statements. | 100 |
DBX ETF Trust
Financial Highlights (Continued)
| Xtrackers MSCI Germany Hedged Equity ETF Selected Per Share Data |
Years Ended May 31, | |||||||||||||||||||
| 2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
| Net Asset Value, beginning of year |
$ | 25.49 | $ | 25.77 | $ | 27.93 | $ | 27.87 | $ | 23.40 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||
| Net investment income (loss)(a) |
0.95 | 0.24 | 0.53 | 0.57 | 0.40 | |||||||||||||||
| Net realized and unrealized gain (loss) |
6.84 | 0.08 | (2.02 | ) | (0.09 | ) | 4.78 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total from investment operations |
7.79 | 0.32 | (1.49 | ) | 0.48 | 5.18 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Less distributions from: |
| |||||||||||||||||||
| Net investment income |
(0.84 | ) | (0.60 | ) | (0.67 | ) | (0.42 | ) | (0.71 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total distributions |
(0.84 | ) | (0.60 | ) | (0.67 | ) | (0.42 | ) | (0.71 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net Asset Value, end of year |
$ | 32.44 | $ | 25.49 | $ | 25.77 | $ | 27.93 | $ | 27.87 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Return (%) |
31.15 | (b) | 1.15 | (b) | (5.48 | )(b) | 1.73 | 22.93 | ||||||||||||
| Ratios to Average Net Assets and Supplemental Data |
||||||||||||||||||||
| Net Assets, end of year ($ millions) |
15 | 15 | 23 | 36 | 66 | |||||||||||||||
| Ratio of expenses before fee waiver (%) |
0.45 | 0.45 | 0.46 | 0.45 | 0.45 | |||||||||||||||
| Ratio of expenses after fee waiver (%) |
0.45 | 0.45 | 0.46 | 0.45 | 0.45 | |||||||||||||||
| Ratio of net investment income (loss) (%) |
3.29 | 0.90 | 2.03 | 2.04 | 1.63 | |||||||||||||||
| Portfolio turnover rate (%)(c) |
15 | 14 | 11 | 17 | 12 | |||||||||||||||
| Xtrackers MSCI Japan Hedged Equity ETF Selected Per Share Data |
Years Ended May 31, | |||||||||||||||||||
| 2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
| Net Asset Value, beginning of year |
$ | 39.80 | $ | 37.95 | $ | 42.95 | $ | 38.65 | $ | 34.32 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||
| Net investment income (loss)(a) |
0.62 | 0.67 | 0.64 | 0.52 | 0.53 | |||||||||||||||
| Net realized and unrealized gain (loss) |
9.82 | 2.27 | (4.24 | ) | 4.69 | 4.22 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total from investment operations |
10.44 | 2.94 | (3.60 | ) | 5.21 | 4.75 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Less distributions from: |
| |||||||||||||||||||
| Net investment income |
(1.16 | ) | (1.09 | ) | (1.40 | ) | (0.91 | ) | (0.42 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total distributions |
(1.16 | ) | (1.09 | ) | (1.40 | ) | (0.91 | ) | (0.42 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net Asset Value, end of year |
$ | 49.08 | $ | 39.80 | $ | 37.95 | $ | 42.95 | $ | 38.65 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Return (%) |
26.96 | (b) | 7.88 | (b) | (8.59 | )(b) | 13.74 | 14.08 | ||||||||||||
| Ratios to Average Net Assets and Supplemental Data |
||||||||||||||||||||
| Net Assets, end of year ($ millions) |
199 | 221 | 414 | 1,153 | 1,780 | |||||||||||||||
| Ratio of expenses before fee waiver (%) |
0.45 | 0.46 | 0.47 | 0.46 | 0.45 | |||||||||||||||
| Ratio of expenses after fee waiver (%) |
0.45 | 0.46 | 0.47 | 0.46 | 0.45 | |||||||||||||||
| Ratio of net investment income (loss) (%) |
1.41 | 1.69 | 1.55 | 1.24 | 1.50 | |||||||||||||||
| Portfolio turnover rate (%)(c) |
12 | 12 | 15 | 12 | 22 | |||||||||||||||
| (a) | Based on average shares outstanding during the period. |
| (b) | Total Return would have been lower if certain expenses had not been reimbursed by the Advisor. |
| (c) | Portfolio turnover rate does not include securities received or delivered from processing creations or redemptions. |
| See Notes to Financial Statements. | 101 |
DBX ETF Trust
1. Organization
DBX ETF Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end registered management investment company organized as a Delaware statutory trust.
As of May 31, 2021, the Trust consists of thirty-five investment series of exchange-traded funds (“ETFs”)(each a “Fund” and collectively, the “Funds”) in operation and trading. These financial statements report on the Funds listed below:
| Xtrackers MSCI All World ex US Hedged Equity ETF | ||
| Xtrackers MSCI Emerging Markets Hedged Equity ETF | ||
| Xtrackers MSCI Europe Hedged Equity ETF | ||
| Xtrackers MSCI Eurozone Hedged Equity ETF | ||
| Xtrackers MSCI Germany Hedged Equity ETF | ||
| Xtrackers MSCI Japan Hedged Equity ETF |
DBX Advisors LLC (“DBX” or the “Advisor”), an indirect, wholly-owned subsidiary of DWS Group GmbH & Co. KGaA (“DWS Group”), serves as investment advisor to the Funds and has overall responsibility for the general management and administration of the Funds, subject to the supervision of the Funds’ Board of Trustees (“Board”).
Each Fund offers shares that are listed and traded on the NYSE Arca, Inc. (“NYSE Arca”). Unlike conventional mutual funds, each Fund issues and redeems shares on a continuous basis, at net asset value (“NAV”), only in large specified lots consisting of 50,000 shares, each called a “Creation Unit”, to authorized participants who have entered into agreements with the Funds’ distributor. Shares are not individually redeemable securities of the Funds, and owners of the shares may acquire those shares from the Funds, or tender such shares for redemption to the Funds, in Creation Units only.
The investment objective of each Fund is to track the performance, before fees and expenses, of a particular index (the “Underlying Index”). The underlying indices for the Funds are:
| Fund |
Underlying Index | |
| Xtrackers MSCI All World ex US Hedged Equity ETF | MSCI ACWI ex USA US Dollar Hedged Index | |
| Xtrackers MSCI Emerging Markets Hedged Equity ETF | MSCI EM US Dollar Hedged Index | |
| Xtrackers MSCI Europe Hedged Equity ETF | MSCI Europe US Dollar Hedged Index | |
| Xtrackers MSCI Eurozone Hedged Equity ETF | MSCI EMU IMI US Dollar Hedged Index | |
| Xtrackers MSCI Germany Hedged Equity ETF | MSCI Germany US Dollar Hedged Index | |
| Xtrackers MSCI Japan Hedged Equity ETF | MSCI Japan US Dollar Hedged Index |
The MSCI ACWI ex USA US Dollar Hedged Index is designed to provide exposure to equity securities in developed and emerging stock markets (excluding the United States), while at the same time mitigating exposure to fluctuations between the value of the U.S. dollar and selected non-U.S. currencies.
The MSCI EM US Dollar Hedged Index is designed to provide exposure to equity securities in the global emerging markets, while at the same time mitigating exposure to fluctuations between the value of the U.S. dollar and selected emerging market currencies.
The MSCI Europe US Dollar Hedged Index is designed to provide exposure to the developed markets in Europe, while at the same time mitigating exposure to fluctuations between the value of the U.S. dollar and selected non-U.S. currencies.
The MSCI EMU IMI US Dollar Hedged Index is designed to provide exposure to equity securities in countries in the European Monetary Union, while mitigating exposure to fluctuations between the value of the U.S. dollar and the euro.
The MSCI Germany US Dollar Hedged Index is designed to provide exposure to German equity markets, while at the same time mitigating exposure to fluctuations between the value of the U.S. dollar and the euro.
The MSCI Japan US Dollar Hedged Index is designed to provide exposure to Japanese equity markets, while at the same time mitigating exposure to fluctuations between the value of the U.S. dollar and Japanese yen.
The MSCI Hedged Underlying Indices are rebalanced monthly on the last trading day of the month, when the index will take into account the effect of rolling into new 1-month forward contracts based on the newly
102
DBX ETF Trust
Notes to Financial Statements (Continued)
determined weights of currency to be sold for the next month’s index calculation. The currency weights are determined as of the close of two business days before the first calendar day of the following month and remain constant intra month. This means that no changes in the weights are made during the month to account for changes in the indexes due to price movement of securities, corporate events, additions, deletions or any other changes. The daily calculation of MSCI Hedged Indices marks to market the one-month forward contracts on a daily basis by using an equal and offsetting forward position.
Each Fund is entitled to use its respective Underlying Index pursuant to a licensing agreement between the Index Provider and DBX. There is no charge to the Funds in connection with these licensing agreements.
Xtrackers MSCI All World ex US Hedged Equity ETF, Xtrackers MSCI Emerging Markets Hedged Equity ETF, Xtrackers MSCI Europe Hedged Equity ETF, Xtrackers MSCI Eurozone Hedged Equity ETF and Xtrackers MSCI Japan Hedged Equity ETF are diversified series of the Trust. Xtrackers MSCI Germany Hedged Equity ETF is non-diversified and is not limited by the Act with regard to the percentage of its assets that may be invested in the securities of a single issuer. This means the securities of a particular issuer (or securities of issuers in particular industries) may dominate the Underlying Index of the Fund and, consequently, the Fund’s investment portfolio. This may adversely affect the Fund’s performance or subject the Fund’s shares to greater price volatility than that experienced by more diversified investment companies. In addition, each Fund may change its diversification status over time and then change it back again, without shareholder approval, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the index each Fund tracks.
Pursuant to the Trust’s organizational documents, the Trust’s officers and trustees are indemnified against certain liabilities that may arise out of the performance of their duties to the Funds. Additionally, in the normal course of business the Trust enters into contracts that contain a variety of representations that provide indemnification for certain liabilities. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Trust expects the risk of loss to be remote.
2. Significant Accounting Policies
The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), which require management to make certain estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. Each Fund qualifies as an investment company under Topic 946 of the Accounting Standards Codification of U.S. GAAP. The following is a summary of significant accounting policies followed by the Funds.
Security Valuation The NAV of each Fund’s shares is calculated each business day as of the close of regular trading on the New York Stock Exchange, generally 4:00 p.m. Eastern Time. NAV per share is calculated by dividing a Fund’s net assets by the number of Fund shares outstanding.
Various inputs are used in determining the value of the Funds’ investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, and credit risk). Level 3 includes significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
Equity securities and ETFs are valued at the most recent sale price or official closing price reported on the exchange (U.S. or foreign) or over-the-counter market on which they trade. Securities or ETFs for which no sales are reported are valued at the calculated mean between the most recent bid and asked quotations on the relevant market or, if a mean cannot be determined, at the most recent bid quotation. Equity securities and ETFs are generally categorized as Level 1.
Investments in open-end investment companies are valued at their NAV each business day and are categorized as Level 1.
Forward currency contracts are valued at the prevailing forward exchange rate of the underlying currencies and are categorized as Level 2.
103
DBX ETF Trust
Notes to Financial Statements (Continued)
Futures contracts are generally valued at the settlement prices established each day on the exchange on which they are traded and are categorized as Level 1.
Securities and other assets for which market quotations are not readily available or for which the above valuation procedures are deemed not to reflect fair value are valued in a manner that is intended to reflect their fair value as determined in accordance with procedures approved by the Board and are generally categorized as Level 3. In accordance with the Funds’ valuation procedures, factors considered in determining value may include, but are not limited to, the type of the security; the size of the holding; the initial cost of the security; the existence of any contractual restrictions on the security’s disposition; the price and extent of public trading in similar securities of the issuer or of comparable companies; quotations or evaluated prices from broker-dealers and/or pricing services; information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities); an analysis of the company’s or issuer’s financial statements; an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold; and with respect to debt securities, the maturity, coupon, creditworthiness, currency denomination and the movement of the market in which the security is normally traded. The value determined under these procedures may differ from published values for the same securities.
Fair value pricing could result in a difference between the prices used to calculate a Fund’s NAV and the prices used by the Fund’s Underlying Index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s Underlying Index.
Disclosure about the classification of the fair value measurements is included in a table following the Fund’s Schedule of Investments.
Cash Cash consists of cash held at banks and is on deposit with major financial institutions.
Investment Transactions and Investment Income Investment transactions are recorded as of the date that the securities are purchased or sold (trade date). Realized gains and losses from the sale or disposition of securities are calculated on the identified cost-method. Dividend income is net of any foreign taxes withheld at source. Certain dividends from foreign securities may be recorded subsequent to the ex-dividend date as soon as the Fund is informed of such dividends. Interest income is recorded on the accrual basis.
Tax Information and Dividends and Distributions to Shareholders It is each Fund’s policy to comply with all requirements of the Internal Revenue Code of 1986, as amended (“the Code”). Each Fund intends to qualify for and to elect treatment as a separate Regulated Investment Company (“RIC”) under Subchapter M of the Code. It is the policy of each Fund to pay out dividends from its net investment income, if any, to investors semi-annually. Taxable net realized gains from investment transactions, reduced by capital loss carryforwards, if any, are declared and distributed to shareholders at least annually. The capital loss carryforward amount, if any, is available to offset future net capital gains. The Funds may occasionally be required to make supplemental distributions at some other time during the year. The Funds reserve the right to declare special distributions if, in their reasonable discretion, such action is necessary or advisable to preserve the status of each Fund as a RIC or to avoid imposition of income or excise taxes on undistributed income. Dividends and distributions to shareholders, if any, are recorded on the ex-dividend date. The amount of dividends and distributions from net investment income and net realized capital gains are determined in accordance with Federal income tax regulations which may differ from U.S. GAAP. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified at the end of the year within the components of net assets based on their federal tax treatment; temporary differences do not require reclassification. Dividends and distributions, which exceed earnings and profits for the full year for tax purposes, are reported as a tax return of capital.
In accordance with U.S. GAAP requirements regarding accounting for uncertainties in income taxes, management has analyzed the Funds’ tax positions taken or expected to be taken on foreign, federal and state income tax returns for all open tax years and has concluded that no provision for income tax is required in the Funds’ financial statements.
The Funds recognize interest and penalties, if any, related to uncertain tax positions as income tax expense on the Statements of Operations. For the year ended May 31, 2021, the Funds did not incur any interest or penalties.
104
DBX ETF Trust
Notes to Financial Statements (Continued)
As of May 31, 2021, the components of accumulated earnings (losses) on a tax basis were as follows:
| Undistributed Ordinary Income |
Capital and Other Gains (Losses) |
Unrealized Appreciation (Depreciation) |
Total Accumulated Earnings (Losses) |
|||||||||||||
| Xtrackers MSCI All World ex US Hedged Equity ETF |
$ | 1,655,478 | $ | (8,702,978 | ) | $ | 27,902,059 | $ | 20,854,559 | |||||||
| Xtrackers MSCI Emerging Markets Hedged Equity ETF |
766,988 | (22,137,332 | ) | 38,669,433 | 17,299,089 | |||||||||||
| Xtrackers MSCI Europe Hedged Equity ETF |
9,151,999 | (147,454,713 | ) | 45,348,057 | (92,954,657 | ) | ||||||||||
| Xtrackers MSCI Eurozone Hedged Equity ETF |
227,628 | (3,213,924 | ) | 2,723,491 | (262,805 | ) | ||||||||||
| Xtrackers MSCI Germany Hedged Equity ETF |
263,720 | (8,730,441 | ) | 1,632,132 | (6,834,589 | ) | ||||||||||
| Xtrackers MSCI Japan Hedged Equity ETF |
4,661,581 | (166,371,689 | ) | 16,792,023 | (144,918,085 | ) | ||||||||||
The tax character of dividends and distributions declared for the years ended May 31, 2021 and May 31, 2020 were as follows:
| Year Ended May 31, 2021 |
||||
| Ordinary Income* | ||||
| Xtrackers MSCI All World ex US Hedged Equity ETF |
$ | 2,298,657 | ||
| Xtrackers MSCI Emerging Markets Hedged Equity ETF |
2,035,453 | |||
| Xtrackers MSCI Europe Hedged Equity ETF |
11,732,653 | |||
| Xtrackers MSCI Eurozone Hedged Equity ETF |
395,611 | |||
| Xtrackers MSCI Germany Hedged Equity ETF |
431,830 | |||
| Xtrackers MSCI Japan Hedged Equity ETF |
5,950,806 | |||
| Year Ended May 31, 2020 |
||||
| Ordinary Income* | ||||
| Xtrackers MSCI All World ex US Hedged Equity ETF |
$ | 3,108,889 | ||
| Xtrackers MSCI Emerging Markets Hedged Equity ETF |
3,043,154 | |||
| Xtrackers MSCI Europe Hedged Equity ETF |
25,632,832 | |||
| Xtrackers MSCI Eurozone Hedged Equity ETF |
871,374 | |||
| Xtrackers MSCI Germany Hedged Equity ETF |
538,046 | |||
| Xtrackers MSCI Japan Hedged Equity ETF |
11,391,476 | |||
| * | For tax purposes short-term capital gain distributions are considered ordinary income distributions. |
At May 31, 2021, for Federal income tax purposes, the Funds have capital loss carryforwards available as shown in the table below, to the extent provided by regulations, to offset future capital gains for an unlimited period. To the extent that these loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to shareholders.
| Short-Term | Long-Term | Total Amount | ||||||||||
| Xtrackers MSCI All World ex US Hedged Equity ETF |
$ | 2,278,369 | $ | 6,424,609 | $ | 8,702,978 | ||||||
| Xtrackers MSCI Emerging Markets Hedged Equity ETF |
12,359,976 | 9,777,356 | 22,137,332 | |||||||||
| Xtrackers MSCI Europe Hedged Equity ETF |
18,103,809 | 129,350,904 | 147,454,713 | |||||||||
| Xtrackers MSCI Eurozone Hedged Equity ETF |
570,465 | 2,643,459 | 3,213,924 | |||||||||
| Xtrackers MSCI Germany Hedged Equity ETF |
1,879,317 | 6,851,124 | 8,730,441 | |||||||||
| Xtrackers MSCI Japan Hedged Equity ETF |
69,568,208 | 96,803,481 | 166,371,689 | |||||||||
105
DBX ETF Trust
Notes to Financial Statements (Continued)
For the fiscal year ended May 31, 2021, the effect of permanent “book/tax” reclassifications to the components of net assets are included below. These differences are primarily due to recognition of certain foreign currency gains (losses) as ordinary income (loss), Passive Foreign Investment Companies (“PFICs”), redemptions-in-kind, partnership investments, and accrued foreign capital gain taxes.
| Distributable earnings (loss) |
Paid-In Capital |
|||||||
| Xtrackers MSCI All World ex US Hedged Equity ETF |
$ | (2,115,903 | ) | $ | 2,115,903 | |||
| Xtrackers MSCI Emerging Markets Hedged Equity ETF |
(1,533,406 | ) | 1,533,406 | |||||
| Xtrackers MSCI Europe Hedged Equity ETF |
(5,207,617 | ) | 5,207,617 | |||||
| Xtrackers MSCI Eurozone Hedged Equity ETF |
(1,275,633 | ) | 1,275,633 | |||||
| Xtrackers MSCI Germany Hedged Equity ETF |
158,075 | (158,075 | ) | |||||
| Xtrackers MSCI Japan Hedged Equity ETF |
(4,995,858 | ) | 4,995,858 | |||||
As of May 31, 2021, the aggregate cost of investments for federal income tax purposes, the net unrealized appreciation or depreciation and the aggregated gross unrealized appreciation (depreciation) on investments were as follows:
| Aggregate Tax Cost |
Net Unrealized Appreciation (Depreciation) |
Aggregate Gross Unrealized Appreciation |
Aggregate Gross Unrealized (Depreciation) |
|||||||||||||
| Xtrackers MSCI All World ex US Hedged Equity ETF |
$ | 98,166,648 | $ | 27,998,795 | $ | 34,441,292 | $ | (6,442,497 | ) | |||||||
| Xtrackers MSCI Emerging Markets Hedged Equity ETF |
78,245,387 | 38,944,258 | 45,983,485 | (7,039,227 | ) | |||||||||||
| Xtrackers MSCI Europe Hedged Equity ETF |
527,787,042 | 45,055,821 | 96,739,297 | (51,683,476 | ) | |||||||||||
| Xtrackers MSCI Eurozone Hedged Equity ETF |
13,046,854 | 2,720,158 | 4,195,288 | (1,475,130 | ) | |||||||||||
| Xtrackers MSCI Germany Hedged Equity ETF |
13,016,939 | 1,629,242 | 3,395,732 | (1,766,490 | ) | |||||||||||
| Xtrackers MSCI Japan Hedged Equity ETF |
183,514,023 | 16,783,487 | 34,008,779 | (17,225,292 | ) | |||||||||||
Foreign Taxes The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, capital gains on investments, certain foreign currency transactions or other corporate events. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and are reflected in their Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on capital gains from sales of investments and foreign currency transactions are included in their respective net realized gain (loss) categories, and deferred foreign taxes on unrealized gains are included in net change in unrealized appreciation (depreciation). Receivables and payables related to foreign taxes as of May 31, 2021, if any, are disclosed in the Funds’ Statements of Assets and Liabilities.
Foreign Currency Translations The books and records of the Funds are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the prevailing exchange rates at period end. Purchases and sales of investment securities, income and expenses are translated into U.S. dollars at the prevailing exchange rates on the respective dates of the transactions.
Net realized and unrealized gains and losses on foreign currency transactions represent net gains and losses between trade and settlement dates on securities transactions, the acquisition and disposition of foreign currencies, and the difference between the amount of net investment income accrued and the U.S. dollar amount actually received. The portion of both realized and unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed, but is included with net realized and unrealized gain/appreciation and loss/depreciation on investments.
Securities Lending The Funds may lend securities to certain financial institutions under the terms of their securities lending agreement. During the term of the loans the Funds continue to receive interest and dividends generated by the securities and to participate in any changes in their market value. The Funds require the borrowers of the securities to maintain collateral with the Funds consisting of cash and/or securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities having a value at least equal to the value of the securities loaned. When the collateral falls below specified amounts, the lending agent will use its best effort
106
DBX ETF Trust
Notes to Financial Statements (Continued)
to obtain additional collateral on the next business day to meet required amounts under the securities lending agreement. During the year ended May 31, 2021, the Funds invested the cash collateral into a joint trading account in DWS Government & Agency Securities Portfolio, an affiliated money market fund managed by DWS Investment Management Americas, Inc. DWS Investment Management Americas, Inc. receives a management/administration fee (0.01% annualized effective rate as of May 31, 2021) on the cash collateral invested in DWS Government & Agency Securities Portfolio. The Funds receive compensation for lending their securities either in the form of fees or by earning interest on invested cash collateral, net of borrower rebates and fees paid to a lending agent. Either the Fund or the borrower may terminate the loan at any time and the borrower, after notice, is required to return borrowed securities within a standard time period. There may be risks of delay and costs in recovery of securities or even loss of rights in the collateral should the borrower of the securities fail financially. If the Funds are not able to recover securities lent, the Funds may sell the collateral and purchase a replacement investment in the market, incurring the risk that the value of the replacement security is greater than the value of the collateral. The Funds are also subject to all investment risks associated with the reinvestment of any cash collateral received, including, but not limited to, interest rate, credit and liquidity risk associated with such investments.
As of May 31, 2021, the Funds listed below had securities on loan. The value of the related collateral exceeded the value of the securities loaned at period end.
| Remaining Contractual Maturity of the Agreements, as of May 31, 2021 |
||||||||||||||||||||
| Securities Lending Transactions | Overnight and Continuous |
<30 Days | Between 30 & 90 days |
>90 days | Total | |||||||||||||||
| Xtrackers MSCI All World ex US Hedged Equity ETF |
| |||||||||||||||||||
| Common Stocks |
$ | 2,372,722 | $ | 5,343 | $ | 10,258 | $ | 1,336,325 | $ | 3,724,648 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Gross amount of recognized liabilities and non-cash collateral for securities lending transactions |
|
$ | 3,724,648 | |||||||||||||||||
| Xtrackers MSCI Emerging Markets Hedged Equity ETF |
| |||||||||||||||||||
| Common Stocks |
$ | 1,406,061 | $ | 8,877 | $ | 27,698 | $ | 821,511 | $ | 2,264,147 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Gross amount of recognized liabilities and non-cash collateral for securities lending transactions |
|
$ | 2,264,147 | |||||||||||||||||
| Xtrackers MSCI Europe Hedged Equity ETF |
| |||||||||||||||||||
| Common Stocks |
$ | 13,708,192 | $ | — | $ | 4,355 | $ | 8,312,793 | $ | 22,025,340 | ||||||||||
| Exchange-Traded Funds |
427,775 | — | — | — | 427,775 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Borrowings |
$ | 14,135,967 | $ | — | $ | 4,355 | $ | 8,312,793 | $ | 22,453,115 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Gross amount of recognized liabilities and non-cash collateral for securities lending transactions |
|
$ | 22,453,115 | |||||||||||||||||
| Xtrackers MSCI Eurozone Hedged Equity ETF |
| |||||||||||||||||||
| Common Stocks |
$ | 632,479 | $ | — | $ | 340 | $ | 575,832 | $ | 1,208,651 | ||||||||||
| Exchange-Traded Funds |
22,675 | — | — | — | 22,675 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Borrowings |
$ | 655,154 | $ | — | $ | 340 | $ | 575,832 | $ | 1,231,326 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Gross amount of recognized liabilities and non-cash collateral for securities lending transactions |
|
$ | 1,231,326 | |||||||||||||||||
| Xtrackers MSCI Germany Hedged Equity ETF |
| |||||||||||||||||||
| Common Stocks |
$ | 28,434 | $ | — | $ | — | $ | — | $ | 28,434 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Gross amount of recognized liabilities for securities lending transactions |
|
$ | 28,434 | |||||||||||||||||
| Xtrackers MSCI Japan Hedged Equity ETF |
| |||||||||||||||||||
| Common Stocks |
$ | 1,854,074 | $ | 9,069 | $ | 200,306 | $ | 1,790,667 | $ | 3,854,116 | ||||||||||
| Exchange-Traded Funds |
— | — | — | 113,752 | 113,752 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Borrowings |
$ | 1,854,074 | $ | 9,069 | $ | 200,306 | $ | 1,904,419 | $ | 3,967,868 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Gross amount of recognized liabilities and non-cash collateral for securities lending transactions |
|
$ | 3,967,868 | |||||||||||||||||
107
DBX ETF Trust
Notes to Financial Statements (Continued)
Derivatives
Forward Foreign Currency Contracts Each Fund may enter into forward foreign currency contracts (“forward currency contracts”) designed to offset the Fund’s exposure to non-U.S. currencies. In addition, the Funds may enter into forward currency contracts and foreign currency futures contracts to facilitate local securities settlements or to protect against currency exposure in connection with distributions to shareholders.
A forward currency contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. For the year ended May 31, 2021, The Xtrackers MSCI All World ex US Hedged Equity ETF, Xtrackers MSCI Emerging Markets Hedged Equity ETF, Xtrackers MSCI Europe Hedged Equity ETF and Xtrackers MSCI Eurozone Hedged Equity ETF invested in forward currency contracts to hedge against changes in the value of the U.S. dollar against specified non-U.S. currencies. Similarly, the Xtrackers MSCI Germany Hedged Equity ETF and Xtrackers MSCI Japan Hedged Equity ETF each invested in forward currency contracts to hedge against changes in the value of the U.S. dollar against the euro and the Japanese yen, respectively.
The gain or loss arising from the difference between the original contract and the closing of such contract would be included in net realized gain or loss on forward currency contracts. Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. The face or contract amount, in U.S. dollars reflects the total exposure the Fund has in that particular currency contract.
A summary of the open forward currency contracts as of May 31, 2021 is included in a table following the Funds’ Schedule of Investments. The investment in forward currency contracts short vs. U.S. dollars had a contract value generally indicative of a range of the total exposure the respective Fund had to the value of non U.S currencies during the year ended May 31, 2021.
Futures Contracts Each Fund may enter into futures contracts. These futures contracts will be used to simulate investment in the respective Underlying Index, to facilitate trading or to reduce transaction costs. Each Fund will enter into futures contracts that are traded on a U.S. or non-U.S. exchange. No Fund will use futures for speculative purposes. Futures contracts provide for the future sale by one party and purchase by another party of a specified amount of a specific instrument or index at a specified future time and at a specified price. For the year ended May 31, 2021, Xtrackers MSCI All World ex US Hedged Equity ETF, Xtrackers MSCI Emerging Markets Hedged Equity ETF, Xtrackers MSCI Europe Hedged Equity ETF, Xtrackers MSCI Eurozone Hedged Equity ETF, Xtrackers MSCI Germany Hedged Equity ETF and Xtrackers MSCI Japan Hedged Equity ETF utilized futures in order to simulate investments in the Funds’ Underlying Index. To the extent required by law, liquid assets committed to futures contracts will be maintained.
At the time each Fund enters into a futures contract, each Fund deposits and maintains as collateral an initial margin with the broker, as required by the exchange on which the transaction is affected. Pursuant to the contract, each Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by each Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for exchange-traded futures contracts is generally less than privately negotiated futures contracts, since the clearinghouse, which is the issuer or counterparty to each exchange-traded future, provides a guarantee of performance. The guarantee is supported by a daily payment system (i.e., margin requirements).
Use of long futures contracts subjects each Fund to risk of loss in excess of the amounts shown on the Statement of Assets and Liabilities, up to the notional value of the futures contracts. Use of short futures contracts subjects each Fund to unlimited risk of loss. Under some circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day’s settlement price, which could effectively prevent liquidation of unfavorable positions.
A summary of the open futures contracts as of May 31, 2021 is included in a table following the Funds’ Schedule of Investments
108
DBX ETF Trust
Notes to Financial Statements (Continued)
The following tables summarize the value of the Funds’ derivative instruments held as of May 31, 2021 and the related location in the accompanying Statement of Assets and Liabilities, presented by primary underlying risk exposure:
| Asset Derivatives |
Liability Derivatives |
|||||||||||||
| Xtrackers MSCI All World ex US Hedged Equity ETF |
| |||||||||||||
| Equity contracts | Unrealized appreciation on futures contracts* | $ | 98,172 | Unrealized depreciation on futures contracts* | $ | — | ||||||||
| Foreign exchange contracts | Unrealized appreciation on forward foreign currency contracts | $ | 140,751 | Unrealized depreciation on forward foreign currency contracts | $ | 1,501,312 | ||||||||
|
|
|
|
|
|||||||||||
| Total | $ | 238,923 | Total | $ | 1,501,312 | |||||||||
|
|
|
|
|
|||||||||||
| Xtrackers MSCI Emerging Markets Hedged Equity ETF |
| |||||||||||||
| Equity contracts | Unrealized appreciation on futures contracts* | $ | 29,195 | Unrealized depreciation on futures contracts* | $ | — | ||||||||
| Foreign exchange contracts | Unrealized appreciation on forward foreign currency contracts | $ | 244,953 | Unrealized depreciation on forward foreign currency contracts | 1,350,371 | |||||||||
|
|
|
|
|
|||||||||||
| Total | $ | 274,148 | Total | $ | 1,350,371 | |||||||||
|
|
|
|
|
|||||||||||
| Xtrackers MSCI Europe Hedged Equity ETF |
| |||||||||||||
| Equity contracts | Unrealized appreciation on futures contracts* | $ | 78,707 | Unrealized depreciation on futures contracts* | $ | 1,160 | ||||||||
| Foreign exchange contracts | Unrealized appreciation on forward foreign currency contracts | 253,179 | Unrealized depreciation on forward foreign currency contracts | 9,654,778 | ||||||||||
|
|
|
|
|
|||||||||||
| Total | $ | 331,886 | Total | $ | 9,655,938 | |||||||||
|
|
|
|
|
|||||||||||
| Xtrackers MSCI Eurozone Hedged Equity ETF |
| |||||||||||||
| Equity contracts | Unrealized appreciation on futures contracts* | $ | 1,471 | Unrealized depreciation on futures contracts* | $ | — | ||||||||
| Foreign exchange contracts | Unrealized appreciation on forward foreign currency contracts | 4,273 | Unrealized depreciation on forward foreign currency contracts | 229,163 | ||||||||||
|
|
|
|
|
|||||||||||
| Total | $ | 5,744 | Total | $ | 229,163 | |||||||||
|
|
|
|
|
|||||||||||
| Xtrackers MSCI Germany Hedged Equity ETF |
| |||||||||||||
| Equity contracts | Unrealized appreciation on futures contracts* | $ | 2,955 | Unrealized depreciation on futures contracts* | $ | — | ||||||||
| Foreign exchange contracts | Unrealized appreciation on forward foreign currency contracts | 10,760 | Unrealized depreciation on forward foreign currency contracts | 226,843 | ||||||||||
|
|
|
|
|
|||||||||||
| Total | $ | 13,715 | Total | $ | 226,843 | |||||||||
|
|
|
|
|
|||||||||||
| Xtrackers MSCI Japan Hedged Equity ETF |
| |||||||||||||
| Equity contracts | Unrealized appreciation on futures contracts* | $ | 4,881 | Unrealized depreciation on futures contracts* | $ | — | ||||||||
| Foreign exchange contracts | Unrealized appreciation on forward foreign currency contracts | 531,680 | Unrealized depreciation on forward foreign currency contracts | 176,077 | ||||||||||
|
|
|
|
|
|||||||||||
| Total | $ | 536,561 | $ | 176,077 | ||||||||||
|
|
|
|
|
|||||||||||
| * | Includes cumulative appreciation or cumulative depreciation on futures contracts as disclosed in the Schedule of Investments. Unsettled variation margin is disclosed separately within the Statement of Assets and Liabilities. |
109
DBX ETF Trust
Notes to Financial Statements (Continued)
Additionally, the amount of realized and unrealized gains and losses on derivative instruments recognized in the Funds’ earnings during the year ended May 31, 2021 and the related location in the accompanying Statement of Operations is summarized in the following tables by primary underlying risk exposure:
| Net Realized Gain (Loss) from: |
||||||||||||
| Futures Contracts — Equity Contracts |
Forward Foreign Currency Contracts — Foreign Exchange Contracts |
Total | ||||||||||
| Xtrackers MSCI All World ex US Hedged Equity ETF |
$ | 1,187,619 | $ | (6,050,281 | ) | $ | (4,862,662 | ) | ||||
| Xtrackers MSCI Emerging Markets Hedged Equity ETF |
930,059 | (4,690,314 | ) | (3,760,255 | ) | |||||||
| Xtrackers MSCI Europe Hedged Equity ETF |
3,719,630 | (40,252,605 | ) | (36,532,975 | ) | |||||||
| Xtrackers MSCI Eurozone Hedged Equity ETF |
79,446 | (1,650,879 | ) | (1,571,433 | ) | |||||||
| Xtrackers MSCI Germany Hedged Equity ETF |
53,147 | (1,281,904 | ) | (1,228,757 | ) | |||||||
| Xtrackers MSCI Japan Hedged Equity ETF |
1,611,506 | 4,896,778 | 6,508,284 | |||||||||
| Net Change in Unrealized Appreciation (Depreciation) on: |
|
|||||||||||
| Futures Contracts — Equity Contracts |
Forward Foreign Currency Contracts — Foreign Exchange Contracts |
Total | ||||||||||
| Xtrackers MSCI All World ex US Hedged Equity ETF |
$ | (319,138 | ) | $ | (1,155,166 | ) | $ | (1,474,304 | ) | |||
| Xtrackers MSCI Emerging Markets Hedged Equity ETF |
(100,200 | ) | (974,015 | ) | (1,074,215 | ) | ||||||
| Xtrackers MSCI Europe Hedged Equity ETF |
(573,363 | ) | (7,382,445 | ) | (7,955,808 | ) | ||||||
| Xtrackers MSCI Eurozone Hedged Equity ETF |
(16,820 | ) | 36,191 | 19,371 | ||||||||
| Xtrackers MSCI Germany Hedged Equity ETF |
(10,342 | ) | (30,590 | ) | (40,932 | ) | ||||||
| Xtrackers MSCI Japan Hedged Equity ETF |
(651,107 | ) | (1,547,527 | ) | (2,198,634 | ) | ||||||
For the year ended May 31, 2021 the average monthly volume of derivatives was as follows:
| Futures Contracts (Contract Value) |
Forward Foreign Currency Contracts (Contract Value) |
|||||||
| Xtrackers MSCI All World ex US Hedged Equity ETF |
$ | 2,683,592 | $ | (102,656,123 | ) | |||
| Xtrackers MSCI Emerging Markets Hedged Equity ETF |
2,240,447 | (93,288,242 | ) | |||||
| Xtrackers MSCI Europe Hedged Equity ETF |
12,331,618 | (450,574,921 | ) | |||||
| Xtrackers MSCI Eurozone Hedged Equity ETF |
286,611 | (16,264,921 | ) | |||||
| Xtrackers MSCI Germany Hedged Equity ETF |
250,612 | (14,186,453 | ) | |||||
| Xtrackers MSCI Japan Hedged Equity ETF |
5,734,648 | (196,244,066 | ) | |||||
110
DBX ETF Trust
Notes to Financial Statements (Continued)
As of May 31, 2021, the Funds have transactions subject to enforceable master netting agreements which govern the terms of certain transactions, and reduce the counterparty risk associated with such transactions. Master netting agreements allow a Fund to close out and net total exposure to a counterparty in the event of a deterioration in the credit quality or contractual default with respect to all of the transactions with a counterparty. As defined by the master netting agreement, the Funds may have collateral agreements with certain counterparties to mitigate risk. Interest expense from collateral received, if any, is included in Other expenses on the Statements of Operations. For financial reporting purposes the Statement of Assets and Liabilities generally shows derivatives assets and liabilities on a gross basis, which reflects the full risks and exposures prior to netting. A reconciliation of the gross amounts on the Statement of Assets and Liabilities to the net amounts by counterparty, including any collateral exposure, is included in the following tables:
| Fund |
Gross Amounts of Assets Presented in the Statement of Assets and Liabilities |
Financial Instruments and Derivatives Available for Offset |
Collateral Received (a) |
Net Amount of Derivatives Assets |
Gross Amounts of Liabilities Presented in the Statements of Assets and Liabilities |
Financial Instruments and Derivatives Available for Offset |
Collateral Pledged (a) |
Net Amount of Derivatives Liabilities |
||||||||||||||||||||||||
| Xtrackers MSCI All World ex US Hedged Equity ETF |
| |||||||||||||||||||||||||||||||
| Citigroup Global Markets |
$ | 43,388 | $ | (43,388 | ) | $ | — | $ | — | $ | 395,675 | $ | (43,388 | ) | $ | (350,323 | ) | $ | 1,964 | |||||||||||||
| JP Morgan & Chase Co. |
50,901 | (50,901 | ) | — | — | 635,366 | (50,901 | ) | (390,000 | ) | 194,465 | |||||||||||||||||||||
| RBC Capital Markets |
46,462 | (46,462 | ) | — | — | 470,271 | (46,462 | ) | (420,000 | ) | 3,809 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| $ | 140,751 | $ | (140,751 | ) | $ | — | $ | — | $ | 1,501,312 | $ | (140,751 | ) | $ | (1,160,323 | ) | $ | 200,238 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Xtrackers MSCI Emerging Markets Hedged Equity ETF |
| |||||||||||||||||||||||||||||||
| Citigroup Global Markets |
$ | 88,784 | $ | (88,784 | ) | $ | — | $ | — | $ | 403,279 | $ | (88,784 | ) | $ | (277,245 | ) | $ | 37,250 | |||||||||||||
| JP Morgan & Chase Co. |
68,357 | (68,357 | ) | — | — | 571,648 | (68,357 | ) | (280,000 | ) | 223,291 | |||||||||||||||||||||
| RBC Capital Markets |
87,812 | (87,812 | ) | — | — | 375,444 | (87,812 | ) | (110,000 | ) | 177,632 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| $ | 244,953 | $ | (244,953 | ) | $ | — | $ | — | $ | 1,350,371 | $ | (244,953 | ) | $ | (667,245 | ) | $ | 438,173 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Xtrackers MSCI Europe Hedged Equity ETF |
| |||||||||||||||||||||||||||||||
| Citigroup Global Markets |
$ | 66,929 | $ | (66,929 | ) | $ | — | $ | — | $ | 3,190,794 | $ | (66,929 | ) | $ | (2,811,786 | ) | $ | 312,079 | |||||||||||||
| JP Morgan & Chase Co. |
70,025 | (70,025 | ) | — | — | 2,943,168 | (70,025 | ) | (2,620,000 | ) | 253,143 | |||||||||||||||||||||
| RBC Capital Markets |
116,225 | (116,225 | ) | — | — | 3,520,816 | (116,225 | ) | (3,130,000 | ) | 274,591 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| $ | 253,179 | $ | (253,179 | ) | $ | — | $ | — | $ | 9,654,778 | $ | (253,179 | ) | $ | (8,561,786 | ) | $ | 839,813 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Xtrackers MSCI Eurozone Hedged Equity ETF |
| |||||||||||||||||||||||||||||||
| Citigroup Global Markets |
$ | 882 | $ | (882 | ) | $ | — | $ | — | $ | 65,487 | $ | (882 | ) | $ | (7,354 | ) | $ | 57,251 | |||||||||||||
| JP Morgan & Chase Co. |
2,335 | (2,335 | ) | — | — | 84,183 | (2,335 | ) | — | 81,848 | ||||||||||||||||||||||
| RBC Capital Markets |
1,056 | (1,056 | ) | — | — | 79,493 | (1,056 | ) | (20,000 | ) | 58,437 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| $ | 4,273 | $ | (4,273 | ) | $ | — | $ | — | $ | 229,163 | $ | (4,273 | ) | $ | (27,354 | ) | $ | 197,536 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Xtrackers MSCI Germany Hedged Equity ETF |
| |||||||||||||||||||||||||||||||
| Citigroup Global Markets |
$ | 7,089 | $ | (7,089 | ) | $ | — | $ | — | $ | 78,257 | $ | (7,089 | ) | $ | (27,883 | ) | $ | 43,285 | |||||||||||||
| JP Morgan & Chase Co. |
2,702 | (2,702 | ) | — | — | 75,660 | (2,702 | ) | — | 72,958 | ||||||||||||||||||||||
| RBC Capital Markets |
969 | (969 | ) | — | — | 72,926 | (969 | ) | — | 71,957 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| $ | 10,760 | $ | (10,760 | ) | $ | — | $ | — | $ | 226,843 | $ | (10,760 | ) | $ | (27,883 | ) | $ | 188,200 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Xtrackers MSCI Japan Hedged Equity ETF |
| |||||||||||||||||||||||||||||||
| Citigroup Global Markets |
$ | 186,648 | $ | (68,360 | ) | $ | 118,288 | $ | — | $ | 68,360 | $ | (68,360 | ) | $ | — | $ | — | ||||||||||||||
| JP Morgan & Chase Co. |
173,197 | (52,854 | ) | 120,343 | — | 52,854 | (52,854 | ) | — | — | ||||||||||||||||||||||
| RBC Capital Markets |
171,835 | (54,863 | ) | 116,972 | — | 54,863 | (54,863 | ) | — | — | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| $ | 531,680 | $ | (176,077 | ) | $ | 355,603 | $ | — | $ | 176,077 | $ | (176,077 | ) | $ | — | $ | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| (a) | The actual collateral received or pledged may be more than amount shown. |
Affiliated Cash Management Vehicles The Funds may invest uninvested cash balances in DWS Government Money Market Series and DWS ESG Liquidity Fund, affiliated money market funds which are managed by DWS
111
DBX ETF Trust
Notes to Financial Statements (Continued)
Investment Management Americas, Inc. (“DIMA”), also an indirect, wholly owned subsidiary of DWS Group GmbH & Co. KGaA. Each affiliated money market fund is managed in accordance with Rule 2a-7 under the 1940 Act, which governs the quality, maturity, diversity and liquidity of instruments in which a money market fund may invest. DWS Government Money Market Series seeks to maintain a stable NAV, and DWS ESG Liquidity Fund maintains a floating NAV. The Funds indirectly bear their proportionate share of the expenses of each affiliated money market fund in which they invest. The Advisor will waive an amount of the unitary advisory fee payable to the Advisor by the Funds equal to such acquired fund’s fees and expenses on the Funds’ assets invested in the affiliated money market funds.
3. Investment Advisory and Other Agreements
The Advisor has overall responsibility for the general management and administration of the Funds, subject to the supervision of the Funds’ Board of Trustees. Under an investment advisory agreement between the Trust, on behalf of the Funds, and the Advisor (the “Investment Advisory Agreement”), the Advisor is responsible for arranging sub-advisory, transfer agency, custody, fund administration, and all other non-distribution related services for the Funds to operate.
For its investment advisory services to the Funds below, the Advisor was entitled to receive a unitary advisory fee based on each Fund’s average daily net assets, computed and accrued daily and payable monthly, at an annual rate equal to:
| Unitary Advisory Fee |
||||
| Xtrackers MSCI All World ex US Hedged Equity ETF |
0.40 | % | ||
| Xtrackers MSCI Emerging Markets Hedged Equity ETF |
0.65 | % | ||
| Xtrackers MSCI Europe Hedged Equity ETF |
0.45 | % | ||
| Xtrackers MSCI Eurozone Hedged Equity ETF |
0.45 | % | ||
| Xtrackers MSCI Germany Hedged Equity ETF |
0.45 | % | ||
| Xtrackers MSCI Japan Hedged Equity ETF |
0.45 | % | ||
The Advisor for the funds below has contractually agreed to waive a portion of its unitary advisory fee in an amount equal to the acquired fund’s fees and expenses attributable to the Fund’s investments in affiliated cash management vehicles. For the year ended May 31, 2021, the Advisor waived expenses of the Funds as follows:
| Expenses Waived |
||||
| Xtrackers MSCI All World ex US Hedged Equity ETF |
$ | 776 | ||
| Xtrackers MSCI Emerging Markets Hedged Equity ETF |
736 | |||
| Xtrackers MSCI Europe Hedged Equity ETF |
3,750 | |||
| Xtrackers MSCI Eurozone Hedged Equity ETF |
116 | |||
| Xtrackers MSCI Germany Hedged Equity ETF |
106 | |||
| Xtrackers MSCI Japan Hedged Equity ETF |
2,134 | |||
Out of the unitary advisory fee, the Advisor pays substantially all expenses of each Fund, including the cost of transfer agency, custody, fund administration, legal, audit and other services, and expenses of the Independent Trustees. Each Fund is responsible for the payment of interest expense, acquired fund fees and expenses, taxes, brokerage expenses, distribution fees or expenses, if any, litigation expenses and extraordinary expenses.
The Bank of New York Mellon, a wholly-owned subsidiary of The Bank of New York Mellon Corporation, serves as Administrator, Custodian, Accounting Agent, Lending Agent and Transfer Agent for each Fund.
ALPS Distributors, Inc. (the “Distributor”) serves as the distributor of Creation Units for each Fund on an agency basis. The Distributor does not maintain a secondary market in shares of the Funds.
The Board of Trustees is currently comprised of three Independent Trustees. The Advisor paid retainer fees and attendance fees to each Independent Trustee; retainer fees to the Chairman of the Board of Trustees and Chairman of the Audit Committee; and attendance fees to each member of the Audit Committee (which is comprised of all of the Funds’ Independent Trustees
112
DBX ETF Trust
Notes to Financial Statements (Continued)
4. Investment Portfolio Transactions
For the year ended May 31, 2021, the cost of investments purchased and proceeds from sale of investments (excluding in-kind transactions and short-term investments) were as follows:
| Purchases | Sales | |||||||
| Xtrackers MSCI All World ex US Hedged Equity ETF |
$ | 14,330,390 | $ | 20,458,898 | ||||
| Xtrackers MSCI Emerging Markets Hedged Equity ETF |
14,155,039 | 24,635,313 | ||||||
| Xtrackers MSCI Europe Hedged Equity ETF |
41,365,505 | 85,027,560 | ||||||
| Xtrackers MSCI Eurozone Hedged Equity ETF |
1,585,227 | 3,030,860 | ||||||
| Xtrackers MSCI Germany Hedged Equity ETF |
2,054,540 | 3,199,799 | ||||||
| Xtrackers MSCI Japan Hedged Equity ETF |
24,221,587 | 23,192,859 | ||||||
For the year ended May 31, 2021, the cost of in-kind purchases and proceeds from in-kind sales were as follows:
| Purchases | Sales | |||||||
| Xtrackers MSCI All World ex US Hedged Equity ETF |
$ | 8,145,275 | $ | 10,005,799 | ||||
| Xtrackers MSCI Emerging Markets Hedged Equity ETF |
768,189 | 4,073,814 | ||||||
| Xtrackers MSCI Europe Hedged Equity ETF |
113,267,270 | 143,941,015 | ||||||
| Xtrackers MSCI Eurozone Hedged Equity ETF |
— | 11,021,027 | ||||||
| Xtrackers MSCI Germany Hedged Equity ETF |
— | 3,872,342 | ||||||
| Xtrackers MSCI Japan Hedged Equity ETF |
10,924,098 | 74,401,038 | ||||||
5. Fund Share Transactions
As of May 31, 2021, there were unlimited Fund shares, no par value, authorized by the Trust. Fund shares are issued and redeemed by each Fund only in Creation Units or multiples thereof. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the Statements of Changes in Net Assets. The consideration for the purchase of Creation Units of a Fund generally consists of the in-kind contribution of a designated portfolio of securities constituting a portfolio sampling representation of the securities included in the respective Fund’s Underlying Index and an amount of cash, which under certain circumstances may include cash in lieu of portfolio securities. Investors purchasing and redeeming Creation Units pay a purchase transaction fee and a redemption transaction fee to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units.
6. Payments by Affiliates
During the year ended May 31, 2021, the Advisor agreed to reimburse Xtrackers MSCI All World ex US Hedged Equity ETF $82 for a loss due to a trade executed incorrectly. The amount compensated was less than 0.01% of the Fund’s average net assets, thus having no impact on the Fund’s total return.
During the year ended May 31, 2021, the Advisor agreed to reimburse Xtrackers MSCI Emerging Markets Hedged Equity ETF $878 for a loss due to a trade executed incorrectly. The amount compensated was less than 0.01% of the Fund’s average net assets, thus having no impact on the Fund’s total return.
During the year ended May 31, 2021, the Advisor agreed to reimburse Xtrackers MSCI Europe Hedged Equity ETF $242 for a loss due to a trade executed incorrectly. The amount compensated was less than 0.01% of the Fund’s average net assets, thus having no impact on the Fund’s total return.
During the year ended May 31, 2021, the Advisor agreed to reimburse Xtrackers MSCI Eurozone Hedged Equity ETF $8 for a loss due to a trade executed incorrectly. The amount compensated was less than 0.01% of the Fund’s average net assets, thus having no impact on the Fund’s total return.
During the year ended May 31, 2021, the Advisor agreed to reimburse Xtrackers MSCI Germany Hedged Equity ETF $9 for a loss due to a trade executed incorrectly. The amount compensated was less than 0.01% of the Fund’s average net assets, thus having no impact on the Fund’s total return.
During the year ended May 31, 2021, the Advisor agreed to reimburse Xtrackers MSCI Japan Hedged Equity ETF $21 for a loss due to a trade executed incorrectly. The amount compensated was less than 0.01% of the Fund’s average net assets, thus having no impact on the Fund’s total return.
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DBX ETF Trust
Notes to Financial Statements (Continued)
7. Investing in Emerging Markets
The securities of issuers located in emerging markets tend to be more volatile and less liquid than securities of issuers located in more mature economies, and emerging markets generally have less diverse and less mature economic structures and less stable political systems than those of developed countries. The securities of issuers located or doing substantial business in emerging markets are often subject to rapid and large changes in price.
Investing in securities of Chinese issuers involves certain risks and considerations not typically associated with investing in securities of U.S. issuers, including, among others; more frequent (and potentially widespread) trading suspensions and government interventions with respect to Chinese issuers, resulting in lack of liquidity and in price volatility; currency revaluations and other currency exchange rate fluctuations or blockage; the nature and extent of intervention by the Chinese government in the Chinese securities markets (including both direct and indirect market stabilization efforts, which may affect valuations of Chinese issuers), whether such intervention will continue and the impact of such intervention or its discontinuation; the risk of nationalization or expropriation of assets; the risk that the Chinese government may decide not to continue to support economic reform programs; limitations on the use of brokers (or action by the Chinese government that discourages brokers from serving international clients); higher rates of inflation; greater political, economic and social uncertainty; higher market volatility caused by any potential regional territorial conflicts or natural disasters; the risk of increased trade tariffs, embargoes and other trade limitations; restrictions on foreign ownership; custody risks associated with investing through Stock Connect, an RQFII or other programs to access the Chinese securities markets, both interim and permanent market regulations which may affect the ability of certain stockholders to sell Chinese securities when it would otherwise be advisable; and different and less stringent financial reporting standards. In addition, in June 2021, President Biden issued an executive order (“CMIC Order”) prohibiting U.S. persons, including the Funds, from purchasing or selling publicly traded securities (including publicly traded securities that are derivative of, or designed to provide exposure to, such securities) of any Chinese company identified as a “Chinese Military-Industrial Complex Company” (“CMIC”). This prohibition, effective August 2, 2021, expands on similar sanctions imposed by the prior administration on certain designated Chinese military companies (“CCMCs”) that took effect in January 2021. To the extent that any company in an Underlying Index is identified as a CMIC at any time (or was previously designated as a CCMC), it may have material adverse effect on a fund’s ability to track its Underlying Index.
8. Line of Credit
The Trust has entered into a senior unsecured credit facility with a syndication of banks which allows the Xtrackers MSCI All World ex US Hedged Equity ETF, Xtrackers MSCI Emerging Markets Hedged Equity ETF and certain other funds managed by the Advisor to borrow up to $105 million. Each Fund may borrow money under this credit facility to the extent necessary for temporary or emergency purposes, including the funding of shareholder redemption requests, trade settlements, and as necessary to distribute to shareholders any income necessary to maintain each Funds’ status as a regulated investment company. Borrowings are charged an interest rate of 1.25% per annum plus the greater of the Federal Funds Effective Rate or the one-month LIBOR Rate. Each Fund may borrow up to the lesser of 33 percent of its net assets as permitted by the Act or 25 percent of adjusted total net assets. The Funds had no outstanding loans at May 31, 2021.
9. Other — COVID-19 Pandemic
A novel coronavirus known as COVID-19, declared a pandemic by the World Health Organization, has caused significant uncertainty, market volatility, decreased economic and other activity, increased government activity, including economic stimulus measures, and supply chain interruptions. The full effects, duration and costs of the COVID-19 pandemic are impossible to predict, and the circumstances surrounding the COVID-19 pandemic will continue to evolve, including the risk of future increased rates of infection due to low vaccination rates and/or the lack of effectiveness of current vaccines against new variants. The pandemic has affected and may continue to affect certain countries, industries, economic sectors, companies and investment products more than others, may exacerbate existing economic, political, or social tensions and may increase the probability of an economic recession or depression. The Funds’ and their investments may be adversely affected by the effects of the COVID-19 pandemic, and the pandemic may result in the Funds and their service providers experiencing operational difficulties in coordinating a remote workforce and implementing their business continuity plans, among others. Management will continue to monitor the impact COVID-19 has on the Funds and reflect the consequences as appropriate in the Funds’ accounting and financial reporting.
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DBX ETF Trust
To the Shareholders of
Xtrackers MSCI All World ex US Hedged Equity ETF, Xtrackers MSCI Emerging Markets Hedged Equity ETF, Xtrackers MSCI Europe Hedged Equity ETF, Xtrackers MSCI Eurozone Hedged Equity ETF, Xtrackers MSCI Germany Hedged Equity ETF and Xtrackers MSCI Japan Hedged Equity ETF and the Board of Trustees of DBX ETF Trust
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities of Xtrackers MSCI All World ex US Hedged Equity ETF, Xtrackers MSCI Emerging Markets Hedged Equity ETF, Xtrackers MSCI Europe Hedged Equity ETF, Xtrackers MSCI Eurozone Hedged Equity ETF, Xtrackers MSCI Germany Hedged Equity ETF and Xtrackers MSCI Japan Hedged Equity ETF (collectively referred to as the “Funds”), (six of the funds constituting DBX ETF Trust (the “Trust”)), including the schedules of investments, as of May 31, 2021, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds (six of the funds constituting DBX ETF Trust) at May 31, 2021, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and their financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Trust’s management. Our responsibility is to express an opinion on each of the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal control over financial reporting. As part of our audits we are required to obtain an understanding of the internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of May 31, 2021, by correspondence with the custodians and brokers or by other appropriate auditing procedures where replies from brokers were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more investment companies in the DWS family of funds since at least 1979, but we are unable to determine the specific year.
New York, New York
July 26, 2021
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DBX ETF Trust
In accordance with Rule 22e-4 (the “Liquidity Rule”) under the Investment Company Act of 1940 (the “1940 Act”), your Fund has adopted a liquidity risk management program (the “Program”), and the Board has designated DBX Advisors LLC (“Advisors”) as Program administrator. The Program is designed to assess and manage your Fund’s liquidity risk (the risk that the Fund would be unable to meet requests to redeem shares of the Fund without significant dilution of remaining investors’ interests in the Fund). Advisors has designated a committee (the “Committee”) composed of personnel from multiple departments within an affiliate of Advisors that is responsible for the implementation and ongoing administration of the Program, which includes assessing the Fund’s liquidity risk under both normal and reasonably foreseeable stressed conditions. Under the Program, every investment held by a Fund is classified on a daily basis into one of four liquidity categories based on estimations of the investment’s ability to be sold during designated timeframes in current market conditions without significantly changing the investment’s market value.
In February 2021, as required by the Program and the Liquidity Rule, Advisors provided the Board with an annual written report (the “Report”) addressing the operation of the Program and assessing the adequacy and effectiveness of its implementation during the period from December 1, 2019 through November 30, 2020 (the “Reporting Period”). During the Reporting Period, your Fund was primarily invested in highly liquid investments (investments that the Fund anticipates can be converted to cash within three business days or less in current market conditions without significantly changing their market value). As a result, your Fund is not required to adopt, and has not adopted, a “Highly Liquid Investment Minimum” as defined in the Liquidity Rule. During the Reporting Period, the Fund did not approach the 15% limit imposed by the Liquidity Rule on holdings in illiquid investments (investments that cannot be sold or disposed of in seven days or less in current market conditions without the sale of the investment significantly changing the market value of the investment). Your Fund did not experience any issues meeting investor redemptions at any time during the Reporting Period. In the Report, Advisors stated that it believes the Program has operated adequately and effectively to manage the Fund’s liquidity risk during the Reporting Period. Advisors also reported that there were no material changes made to the Program during the Reporting Period.
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DBX ETF Trust
Xtrackers MSCI All World ex-US Hedged Equity ETF, Xtrackers MSCI Emerging Markets Hedged Equity ETF, Xtrackers MSCI Europe Hedged Equity ETF, Xtrackers MSCI Eurozone Hedged Equity ETF, Xtrackers MSCI Germany Hedged Equity ETF, and Xtrackers MSCI Japan Hedged Equity ETF
Board Approval of Investment Advisory Agreement with DBX Advisors LLC
After discussions at the meeting of the Board of Trustees (“Board” or “Trustees”) held on February 17-18, 2021 (the “Meeting”), the Trustees, all of whom are the Independent Trustees (those not affiliated with DBX ETF Trust (the “Trust”) or its service providers), unanimously approved the continuance of the Investment Advisory Agreement with respect to Xtrackers MSCI All World ex-US Hedged Equity ETF, Xtrackers MSCI Emerging Markets Hedged Equity ETF, Xtrackers MSCI Europe Hedged Equity ETF, Xtrackers MSCI Eurozone Hedged Equity ETF, Xtrackers MSCI Germany Hedged Equity ETF, and Xtrackers MSCI Japan Hedged Equity ETF (each a “Fund,” and collectively, the “Funds”). The Independent Trustees were advised throughout the review and Meeting by K&L Gates LLP (“Independent Trustee Counsel”).
Before reaching their decision to approve the Investment Advisory Agreement for another annual period, the Independent Trustees evaluated the materials furnished to them in advance of the Meeting from DBX Advisors LLC (“DBX” or the “Advisor”) for purposes of reviewing the agreement’s terms, including statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”) regarding (a) fee and expense information for each Fund (including the fee and expense components and any amounts waived or reimbursed) as compared to a peer group of other exchange-traded funds (“ETFs”) selected pursuant to Broadridge’s proprietary methodology (each, a “Peer Group”) and (b) each Fund’s tracking error as compared to its underlying index over the previous five years (or since inception, if shorter). The Independent Trustees also took into consideration the discussions they had with management during the Meeting and among themselves during their Executive Sessions held on February 17 and February 18, 2021. The Independent Trustees also noted that they had received and should take into consideration a substantial amount of information furnished throughout the year at regular Board meetings, which information included, among other things, an analysis of each Fund’s investment performance, tracking error and related financial information, presentations given by DBX, as well as its periodic reports on brokerage commissions, portfolio execution and other services provided to the Funds.
In reaching its decision to continue in effect the Investment Advisory Agreement for another annual period, the Board considered all factors it believed relevant, including (1) the nature, extent and quality of the services provided to the Funds and their shareholders; (2) the financial resources of DBX and its resulting ability to perform its obligations under the Investment Advisory Agreement; (3) the competitiveness of the advisory fee; (4) the total cost of the services provided by and the profits realized by the Advisor from its relationship with the Funds; (5) the extent to which economies of scale have been realized, and if the Funds’ shareholders have benefitted from those economies; and (6) fall out benefits, if any, enjoyed by the Advisor.
The Board reached a determination, with the assistance of Independent Trustee Counsel and Dechert LLP (“Trust Counsel”) and through the exercise of its business judgment, that approval of the Investment Advisory Agreement and the compensation to be received thereunder is in the best interests of each Fund and its shareholders as well as consistent with the Board’s duties under state and federal law. The Board reached this conclusion based on multiple factors.
The Board considered the following in determining whether to approve the Investment Advisory Agreement:
Nature, Extent and Quality of Services. The Board reviewed in detail the nature, extent and quality of services provided and the risks incurred by the Advisor under the Investment Advisory Agreement. In doing so, the Board considered the information it had received from and the discussions it had with the Advisor continuously during the prior year, in addition to the information the Advisor had provided in response to the Board’s requests prior to the Meeting. The Board considered that these services include, among other things, furnishing a continuous investment program for the Funds, including arranging for, or implementing, the purchase and sale of portfolio securities, the provision of general corporate services such as portfolio management compliance services and the preparation and filing of certain reports on behalf of the Trust. The Board also considered, among other things, the professional experience, qualifications and performance of the senior management and key professional personnel of the Advisor, including portfolio management.
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DBX ETF Trust
Board Considerations in Approval of Investment Advisory Contracts (Unaudited) (Continued)
The Board considered that the Advisor provides, at its own expense, office facilities and equipment for use by the Funds and supervisory persons responsible for supervising and monitoring the Trust’s service providers. The Board also considered that the Advisor pays or arranges for the compensation of officers of the Trust who are also officers or employees of the Advisor or one of its DWS Group affiliates, except as may otherwise be determined by the Board. In addition, the Board considered that the Advisor arranges for the provision of transfer agency, custody, fund administration and accounting, and other non-distribution services necessary for the Funds’ operations. The Board also considered that in addition to managing the Funds’ portfolios directly, the Advisor provides oversight of day-to-day operations, including monitoring tracking error, providing services in connection with the creation and redemption of creation units and assistance in meeting legal, compliance and regulatory requirements applicable to the Funds.
The Board considered the information regarding each Fund’s tracking error compared to its underlying index that had been provided by the Advisor and by Broadridge. The Board took note of the detailed information provided by the Advisor throughout the year with respect to each Fund’s tracking error and the sources thereof. The Trustees noted that tracking error for each Fund during the year was in an expected range.
Based on its review, the Board concluded that the nature, extent, and quality of services provided by the Advisor under the Investment Advisory Agreement are reasonable and appropriate in relation to the fees paid to the Advisor, taking special consideration of the fact that the advisory fee is a unitary fee and, as a result, a portion of the unitary advisory fee will be used to compensate the Funds’ service providers. The Board considered the staffing of the Advisor, including the training, qualifications and experience of investment personnel in managing the Funds. The Board also considered the expertise of the Advisor in supervising third party service providers to the Funds, such as the administrator and the custodian, noting the Advisor’s extensive work with these service providers (including onsite due diligence sessions) to conduct such supervision. The Board further considered the compliance program of the Advisor, which supports the Funds’ compliance program.
Advisor’s Financial Resources. In connection with the assessment of the ability of the Advisor to perform its duties under the Investment Advisory Agreement, the Board considered the Advisor’s financial condition and whether it has the resources necessary to carry out its functions. The Board concluded that the Advisor has the financial resources necessary to perform its obligations under the Investment Advisory Agreement.
Reasonableness of Advisory Fee. The Board compared each Fund’s advisory fee and total expenses to those of the other ETFs in its Peer Group. The Board noted that due to the special characteristics of certain Funds, there were limitations faced by Broadridge in providing comparable funds in the Peer Groups and the information in the Broadridge reports accordingly may or may not provide meaningful direct comparisons to the Funds. The Board noted that the Peer Groups for currency-hedged Funds included ETFs that were not currency hedged. The Board also noted that the advisory fees and total expenses (after waivers/reimbursements) for many of the Funds were below or equal to the average and/or median of the ETFs in each Fund’s respective Peer Group compiled by Broadridge, but the following Funds had advisory fees and/or total expenses (after waivers/reimbursements) that were above the average and/or median of their respective Peer Groups:
| — | Xtrackers MSCI All World ex-US Hedged Equity ETF |
| — | Xtrackers MSCI Emerging Markets Hedged Equity ETF |
| — | Xtrackers MSCI Europe Hedged Equity ETF |
| — | Xtrackers MSCI Germany Hedged Equity ETF |
| — | Xtrackers MSCI Japan Hedged Equity ETF |
The Board considered, however, the following additional factors in connection with those Funds:
| — | The currency-hedged Funds had advisory fees and total expenses that were competitive with other currency-hedged ETFs in their respective Peer Groups. |
The Board accordingly noted that each Fund’s fee is competitive with the fees of applicable peer ETFs.
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DBX ETF Trust
Board Considerations in Approval of Investment Advisory Contracts (Unaudited) (Continued)
The Board considered that the fee for each of the Funds is a unitary fee pursuant to which the Advisor pays all of the Funds’ costs (subject to certain specified exceptions). The Board considered that each Fund’s fee had been priced to scale when it was established. The Board also considered that each Fund’s portfolio is managed on a day-to-day basis by the Advisor and that the Advisor also provides oversight of day-to-day operations, including monitoring tracking error, providing services in connection with creation and redemption units and assistance in meeting legal and regulatory requirements applicable to the Funds. Based on its review, the Board concluded that the advisory fee for each Fund is reasonable in light of the services provided.
Costs of Services and Profitability. The Board considered the expenses of the Advisor in developing and rendering services provided to the Funds and the information provided by the Advisor to the Board regarding the Funds’ profitability. The Board considered that the Advisor had provided extensive information about the Advisor’s profitability and the Advisor’s methodology in determining profitability. While the Advisor had provided information about the Advisor’s expenses relating to marketing the Funds, the Board considered the Advisor’s profitability without accounting for such expenses. The Board determined that, although only some of the Funds were profitable as of this time, the Advisor’s profitability with respect to each profitable Fund was not excessive. The Board considered whether the Advisor would benefit in other ways from its relationships with the Funds and concluded that there were no material fall-out benefits likely to accrue to the Advisor related to the operation of the Funds.
Economies of Scale. The Board considered that certain Funds had attracted a substantial amount of assets, but determined that those Funds were not experiencing economies of scale beyond what was reflected in each Fund’s unitary fee, which the Board noted was very competitive. The Board considered that the other Funds were not experiencing economies of scale at this time and determined to revisit this matter after the Funds had attracted more assets.
Given all the information available to it and considering all material factors, the Board concluded that the Investment Advisory Agreement was fair and reasonable and it was unanimously approved.
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DBX ETF Trust
Identification and Background
The Board has responsibility for the overall management and operations of the funds, including general supervision of the duties performed by the Advisor and other service providers. Each Board Member serves until his or her successor is duly elected or appointed and qualified. Each officer serves until he or she resigns, is removed, dies, retires or becomes disqualified.
The Trust currently has three Board Members. The three Independent Board Members have no affiliation or business connection with the Advisor or any of its affiliated persons and do not own any stock or other securities issued by the Advisor.
The Independent Board Members of the Trust, their term of office and length of time served, their principal business occupations during the past five years, the number of portfolios in the fund complex (defined below) overseen by each Independent Board Member, and other directorships, if any, held by the Board Members are shown below. The fund complex includes all registered open- and closed-end funds (including all of their portfolios) advised by the Advisor and any registered funds that have an investment advisor that is an affiliated person of the Advisor. As of the date of this shareholder report, the fund complex consists of the funds in the Trust, as well as the registered funds advised by affiliates of the Advisor.
Shareholder Communications to the Board. Shareholders may send communications to the Trust’s Board by addressing the communications directly to the Board (or individual Board Members) and/or otherwise clearly indicating in the salutation that the communication is for the Board (or individual Board Members). The shareholder may send the communication to either the Trust’s office or directly to such Board members c/o 875 Third Avenue, New York, NY 10022. Other shareholder communications received by the Trust not directly addressed and sent to the Board will be reviewed and generally responded to by management. Such communications will be forwarded to the Board at management’s discretion based on the matters contained therein.
| Independent Board Members |
||||||
| Name, Year of Birth, Position with the Trust and Length of Time Served(1) |
Business Experience and Directorships During the Past 5 Years |
Number of Portfolios in Fund Complex Overseen |
Other Directorships Held by Board Member | |||
| Stephen R. Byers (1953) Chairman since 2016, and Board Member since 2011 (formerly, Lead Independent Board Member, 2015-2016) |
Independent Director (2011- present); Independent Consultant (2014-present); Director of Investment Management, the Dreyfus Corporation (2000-2006) and Vice Chairman and Chief Investment Officer, the Dreyfus Corporation (2002-2006). | 35 | The Arbitrage Funds, Sierra Income Corporation, Mutual Fund Directors Forum | |||
| George O. Elston (1964) Board Member since 2011, Chairman of the Audit Committee since 2015 |
Chief Financial Officer, Enzyvant (2018-present); Chief Executive Officer, 2X Oncology, Inc. (2017-2018); Senior Vice President and Chief Financial Officer, Juniper Pharmaceuticals, Inc. (2014-2016); Senior Vice President and Chief Financial Officer, KBI BioPharma Inc. (2013-2014); Managing Partner, Chatham Street Partners (2010-2013). | 35 | — | |||
| J. David Officer (1948) Board Member since 2011, Chairman of the Nominating Committee since 2015 |
Independent Director (2010-present); Vice Chairman, the Dreyfus Corporation (2006-2009); President, The Dreyfus Family of Funds, Inc. (2006-2009). | 35 | (Chairman of) Ilex Management Ltd; Old Westbury Funds |
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DBX ETF Trust
Board Members and Officers (Unaudited) (Continued)
| Officers(2) |
||
| Name, Year of Birth, Position with the Trust and Length of Time Served(3) |
Business Experience and Directorships During the Past 5 Years | |
| Freddi Klassen(4) (1975) President and Chief Executive Officer, 2016-present |
Programmes (Head since 2021), of DWS Investment Management Americas, Inc. and Manager and Chief Operating Officer of the Advisor (2016-present). Formerly: Chief Operating Officer in the Americas for the Traditional Asset Classes Department (2014-2020); Manager and Chief Operating Officer of DWS Investment Management Americas, Inc. (2018-present) and the Advisor (2016-present); Global Chief Operating Officer for Equities Technology in the Investment Bank Division at Deutsche Bank AG (2013-2014); Chief Operating Officer for Exchange Traded Funds and Systematic Funds in Europe (2008-2013). | |
| Diane Kenneally(4) (1966) Treasurer, Chief Financial Officer and Controller, 2019-present |
Fund Administration Treasurer’s Office (Co-Head since 2018), of DWS Investment Management Americas, Inc.; Chief Financial Officer and Treasurer for DWS US registered investment companies advised by DWS Investment Management Americas, Inc. (2018-present); Treasurer and Chief Financial Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018-present); formerly: Assistant Treasurer for the DWS funds (2007-2018). | |
| Frank Gecsedi(4) (1967) Chief Compliance Officer, 2010-present |
AFC Compliance US (Senior Team Lead), of DWS Investment Management Americas, Inc.; Compliance Department (2016-present), Vice President in the Deutsche Asset Management Compliance Department at Deutsche Bank AG (2013-2016) and Chief Compliance Officer of the Advisor (2010-present); Chief Compliance Officer of DWS Distributors, Inc. (2019-present); Vice President in Deutsche Bank’s Global Markets Legal, Risk and Capital Division (2010-2012). | |
| Bryan Richards(4) (1978) Vice President, 2016-present |
Portfolio Engineering, Systematic Investments Solutions (Head), of DWS Investment Management Americas, Inc.(2018-present); Portfolio Manager in the Passive Asset Management Department at DWS (2011-present); Primary Portfolio Manager for the PowerShares DB Commodity ETFs (2011-2015). | |
| John Millette(5) (1962) Secretary, 2020-present |
Legal (Associate General Counsel), DWS US Retail Legal (2003-present), of DWS Investment Management Americas, Inc.; Vice President and Secretary of DWS US registered investment companies advised by DWS Investment Management Americas, Inc. (1999-present); Chief Legal Officer, DWS Investment Management Americas, Inc. (2015-present); Director and Vice President of DWS Trust Company (2016-present); Vice President, DBX Advisors LLC (2021-present); Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2011-present); formerly: Secretary of Deutsche Investment Management Americas Inc. (2015-2017); and Assistant Secretary of DBX ETF Trust (2019-2020). |
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DBX ETF Trust
Board Members and Officers (Unaudited) (Continued)
| Name, Year of Birth, Position with the Trust and Length of Time Served(3) |
Business Experience and Directorships During the Past 5 Years | |
| Caroline Pearson(5) (1962) Assistant Secretary, 2020-present |
Legal (Senior Team Lead), DWS US Retail Legal, of DWS Investment Management Americas, Inc.; Chief Legal Officer of DWS US registered investment companies advised by DWS Investment Management Americas, Inc. (2010-present); Chief Legal Officer, DBX Advisors LLC and DBX Strategic Advisors LLC (2020-present); Chief Legal Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2012-present); formerly: Secretary, Deutsche AM Distributors, Inc. (2002-2017); and Secretary, Deutsche AM Service Company (2010-2017). | |
| Paul Antosca(5) (1957) Assistant Treasurer, 2019-present |
Fund Administration Tax (Head), of DWS Investment Management Americas, Inc.; Assistant Treasurer for DWS US registered investment companies advised by DWS Investment Management Americas, Inc. (2007-present). | |
| Jeffrey Berry(5) (1959) Assistant Treasurer, 2019-present |
Fund Administration (Senior Specialist), of DWS Investment Management Americas, Inc. | |
| Sheila Cadogan(5) (1966) Assistant Treasurer, 2019-present |
Fund Administration Treasurer’s Office (Co-Head since 2018), of DWS Investment Management Americas, Inc.; Assistant Treasurer for DWS US registered investment companies advised by DWS Investment Management Americas, Inc. (2017-present); Director and Vice President, DWS Trust Company (2018-present); Assistant Treasurer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018-present). | |
| Christina A. Morse(6) (1964) Assistant Secretary, 2017-present |
Vice President at BNY Mellon Asset Servicing (2014-present); Vice President and Counsel at Lord Abbett & Co. LLC (2013-2014). | |
| Michelle Goveia-Pine(4) (1970) Interim Anti-Money Laundering Compliance Officer, since July 9, 2020 |
Anti-Financial Crime & Compliance US (Regional Head), of DWS Investment Management Americas, Inc.; Interim AML Officer, DWS Trust Company (since July 28, 2020); and Interim AML Officer of DWS US registered investment companies advised by DWS Investment Management Americas, Inc. (since July 10, 2020); Interim AML Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (since July 24, 2020). |
| (1) | The length of time served is represented by the year in which the Board Member joined the Board. |
| (2) | As a result of their respective positions held with the Advisor and its affiliates, these individuals are considered “interested persons” of the Advisor within the meaning of the 1940 Act. Interested persons receive no compensation from the Funds. |
| (3) | The length of time served is represented by the year in which the officer was first elected to the Trust in such capacity. |
| (4) | Address: 875 Third Avenue, New York, New York 10022. |
| (5) | Address: 100 Summer Street, Boston, MA 02110. |
| (6) | Address: BNY Mellon Asset Servicing, 240 Greenwich Street, New York, NY 10286. |
The Funds’ Statement of Additional Information (“SAI”) includes additional information about the Funds’ Board Members. The SAI is available by calling 855-329-3837, or on the Company’s website at www.Xtrackers.com.
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DBX ETF Trust
Proxy Voting Policies and Procedures
The Funds’ policies and procedures for voting proxies for portfolio securities and information about how each Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 are available on our Web site — www.Xtrackers.com (click on “Resources” and “Proxy Voting” at the top of the page) — or on the SEC’s Web site — www.sec.gov. To obtain a written copy of the Funds’ policies and procedures without charge, upon request, call us toll free at 855-329-3837.
Portfolio Holdings Information
The Funds are required to file their complete schedule of portfolio holdings with the SEC for their first and third fiscal quarters on Form N-PORT. Copies of the filings are available without charge, upon request on the SEC’s website at www.sec.gov and are available by calling the Trust at 855-329-3837.
Information about each Fund’s portfolio holdings is available daily at www.Xtrackers.com.
Discount/Premium Information
Information regarding how often shares of each Fund traded on NYSE Arca or Cboe, as applicable, at a price above (i.e., at a premium) or below (i.e., at a discount) the NAV of the Fund can be found at www.Xtrackers.com.
Tax Information
Form 1099-DIV and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisors.
Each Fund designates the following amounts or, if subsequently determined to be different, the maximum allowable for its period ended May 31, 2021.
| Qualified Dividend Income* |
||||
| Xtrackers MSCI All World ex US Hedged Equity ETF |
71% | |||
| Xtrackers MSCI Emerging Markets Hedged Equity ETF |
67% | |||
| Xtrackers MSCI Europe Hedged Equity ETF |
92% | |||
| Xtrackers MSCI Eurozone Hedged Equity ETF |
92% | |||
| Xtrackers MSCI Germany Hedged Equity ETF |
100% | |||
| Xtrackers MSCI Japan Hedged Equity ETF |
100% | |||
* The above percentage is based on ordinary income dividends paid to shareholders during each Fund’s fiscal year.
Each Fund intends to elect to pass through to shareholders the credit for taxes paid to foreign countries. The gross foreign source income and foreign taxes paid are as follows:
| Gross Foreign Income |
Foreign Taxes Paid |
|||||||
| Xtrackers MSCI All World ex US Hedged Equity ETF |
$2,995,244 | $205,471 | ||||||
| Xtrackers MSCI Emerging Markets Hedged Equity ETF |
2,649,818 | 310,874 | ||||||
| Xtrackers MSCI Europe Hedged Equity ETF |
15,118,984 | 925,564 | ||||||
| Xtrackers MSCI Eurozone Hedged Equity ETF |
520,040 | 47,350 | ||||||
| Xtrackers MSCI Germany Hedged Equity ETF |
610,250 | 61,168 | ||||||
| Xtrackers MSCI Japan Hedged Equity ETF |
4,132,271 | 314,909 | ||||||
123
DBX ETF Trust
DBX Advisors LLC (“Advisors”) collects non-public information about you from the following sources: (i) information received from you on applications or other forms; and (ii) information about your transactions with the Advisors, Advisors’ affiliates and third-party service providers and vendors. Advisors does not disclose any non-public personal information about you to anyone, other than as set forth below, as permitted by applicable law and regulation. Advisors may disclose non-public personal information about you to the funds in which you invest, to Advisors’ affiliates, and to non-affiliated companies that work with Advisors to service your account(s), or to provide services or process transactions that you have requested. Advisors may disclose non-public personal information in situations that may include, but are not limited to, in response to legal and/or regulatory inquiries and the proposed or actual sale, assignment merger or other transfer of all or a portion of Advisors’ business to another business entity. Advisors may also disclose non-public personal information about you to parties representing you, such as your investment representative, your accountant, your tax advisor, or to other third parties at your direction/consent. Advisors will not sell, rent, license or trade your personal and financial information to or with third parties for their own direct marketing use unless you give us general or specific consent to do so. If you decide to close your account(s) or become an inactive customer, Advisors will adhere to the privacy policies and practices as described in this notice. Advisors restricts access to your personal and account information to those employees who need to know that information to provide products and services to you. Advisors maintains reasonable and customary physical, electronic and procedural safeguards to guard your non-public personal information.
California residents may go to https://fundsus.dws.com/us/en-us/legal-resources/privacy-policy.html to obtain additional information relating to their rights under California state law.
Advisors reserves the right, at their discretion, to change, modify, add, or remove portions of this Privacy Policy Notice, and any of the policies described herein, at any time. Advisors will indicate any such changes to the Privacy Policy Notice at the privacy link which can be found at www.Xtrackers.com. At all times, you are bound by the then-current version of the Privacy Policy and all applicable laws. Advisors highly recommends that you review this Privacy Policy Notice from time to time to ensure that you are familiar with the most recent version. The examples contained in this Privacy Policy Notice are illustrations; they are not intended to be exclusive.
124
DBX ETF Trust
This report is intended for the shareholders of DBX ETF Trust.
This report must be preceded or accompanied by a prospectus.
Investing involves risk, including the possible loss of principal. Stocks may decline in value. Foreign investing involves greater and different risks than investing in U.S companies, including currency fluctuations, less liquidity, less developed or less efficient trading markets, lack of comprehensive company information, political instability and differing auditing and legal standards. Emerging markets tend to be more volatile and less liquid than the markets of more mature economies, and generally have less diverse and less mature economic structures and less stable political systems than those of developed countries. The European financial markets have recently experienced volatility and adverse trends in recent years due to concerns about economic downturns or rising government debt levels in several European countries, including Greece, Ireland, Italy, Portugal and Spain. A default or debt restructuring by any European country would adversely impact holders of that country’s debt, and sellers of credit default swaps linked to that country’s creditworthiness (which may be located in countries other than those listed in the previous sentence). These events have adversely affected the exchange rate of the euro, the common currency of certain EU countries, and may continue to significantly affect every country in Europe, including countries that do not use the euro. Italy, Portugal and Spain currently have high levels of debt and public spending, which may stifle economic growth, contribute to prolonged periods of recession or lower sovereign debt ratings and adversely impact investments in the Fund. The Funds’ use of forward currency contracts may not be successful in hedging currency exchange rates changes and could eliminate some or all of the benefit of an increase in the value of a foreign currency versus the U.S. dollar. Funds investing in a single industry, country or in a limited geographic region generally are more volatile than more diversified funds. Investing in derivatives entails special risks relating to liquidity, leverage and credit that may reduce returns and/or increase volatility. DBGR is non-diversified and can take larger positions in fewer issues, increasing the Fund’s potential risk. Performance of the Funds may diverge from that of the Underlying Index due to operating expenses, transaction costs, cash flows, use of sampling strategies or operational inefficiencies. An investment in these Funds should be considered only as a supplement to a complete investment program for those investors willing to accept the risks associated with the Funds. Please read the prospectus for more information.
The U.S. government has imposed restrictions on the ability of U.S. investors to hold and/or acquire securities of certain Chinese companies. To the extent that an Underlying Index includes such a security and the Fund excludes it, the Fund’s tracking error may increase and the performance of the Fund and Underlying Index may diverge.
War, terrorism, economic uncertainty, trade disputes, public health crises (including the recent pandemic spread of the novel coronavirus) and related geopolitical events could lead to increased market volatility, disruption to U.S. and world economies and markets and may have significant adverse effects on the Funds and their investments.
In June 2016, citizens of the United Kingdom approved a referendum to leave the European Union (EU) and in March 2017, the United Kingdom initiated the formal process of withdrawing from the EU. On January 31, 2020, the United Kingdom officially withdrew from the EU pursuant to a withdrawal agreement, providing for a transition period in which the United Kingdom negotiated and finalized a trade deal with the EU, the EU-UK Trade and Cooperation Agreement provisionally applied effective January 1, 2021. As a result, as of January 1, 2021 the United Kingdom is no longer part of the EU customs union and single market, nor is it subject to EU policies and international agreements. The long-term impact of the United Kingdom’s withdrawal from the EU is still unknown and could have adverse economic and political effects on the United Kingdom, the EU and its member countries, and the global economy, including financial markets and asset valuations.
Shares of the Funds are bought and sold at market price (not NAV) throughout the day on the NYSE Arca, Inc. Transactions in Fund shares may result in brokerage commissions and may generate tax consequences. There can be no assurance that an active trading market for shares of a Fund will develop or be maintained.
DBX ETF Trust Funds are distributed by ALPS Distributors, Inc. (“ALPS”). The Funds are managed by DBX Advisors LLC which is not affiliated with ALPS.
The brand DWS represents DWS Group GmbH & Co. KGaA and any of its subsidiaries such as DWS Distributors, Inc. which offers investment products or DWS Investment Management Americas, Inc. and RREEF America L.L.C. which offer advisory services.
The Funds or securities referred to herein are not sponsored, endorsed, issued, sold or promoted by MSCI, and MSCI bears no liability with respect to any such Funds or securities or any index on which such Funds or securities are based. The prospectus contains a more detailed description of the limited relationship MSCI has with DBX Advisors LLC and any related funds.
Copyright © 2021 DWS Group. All rights reserved. XtrackersTM is a trademark of DWS Investment GmbH. All other trademarks, servicemarks or registered trademarks are the property of their respective owners.
Not FDIC Insured | No Bank Guarantee | May Lose Value
DBX ETF Trust
| Investment advisor DBX Advisors LLC 875 Third Avenue New York, NY 10022 |
Administrator, custodian, fund accounting agent, lending agent & transfer agent The Bank of New York Mellon 240 Greenwich Street New York, NY 10286 |
Distributor ALPS Distributors, Inc. 1290 Broadway Suite 1000 Denver, CO 80203 | ||
| Independent registered public accounting firm Ernst & Young LLP 5 Times Square New York, NY 10036 |
Legal counsel Vedder Price P.C. 1633 Broadway New York, NY 10019 |
|||
R-35361-8 (7/21) DBX004904 (7/22)
May 31, 2021
Annual Report
DBX ETF Trust
Xtrackers MSCI EAFE Hedged Equity ETF (DBEF)
DBX ETF Trust
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| Board Considerations in Approval of Investment Advisory Contracts |
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To our Shareholders: (Unaudited)
We are pleased to provide this annual report for the period ended May 31, 2021.
Economies around the globe saw a steady rebound in growth after experiencing one of the most challenging phases during the beginning of the reporting period owing to the COVID-19 pandemic. Globally, governments were forced to shut down the majority of economic activities given the unprecedented spread of the COVID-19 contagion, which eventually took a toll on the profitability of businesses. The U.S. health-care system provided strong support in supplying vaccines globally, which aided in a gradual drop in coronavirus cases. By Q4 2020, the success rate of the vaccination programs had boosted consumer confidence and, in turn, industrial growth, international trade, and overall economic recovery. Emerging markets, like China and Taiwan, outpaced the developed markets with stringent lockdown measures, while India continued to tackle the second wave. Many central banks, which have been preemptively providing fiscal stimulus, lowered interest rates to maintain substantial liquidity.
Owing to the pandemic-induced crisis, the U.S. economy experienced peak job loss claims in Q2 2020 as it slowed industrial production, trade, and tourism. During the same period, uncertainties around the U.S. elections were significant, which swayed global markets. However, equity markets received the announcement of the Biden administration’s control on the Senate with optimism, leading to a sharp resurgence globally. The U.S. government has been taking appropriate measures to assist citizens with greater-than-expected fiscal stimulus, which continued in Q1 2021 with a USD1.9tn relief package under the CARES Act1 to meet health-care expenses and provide assistance for job loss claims. Meanwhile, the Federal Reserve Board left the interest rates unchanged at 0.25% to stimulate economic activity. Despite the weak demand for fuel, the U.S. economy progressed rapidly towards economic revival, helped by successful vaccination drives and improving employment and retail sales numbers.
In contrast, the Eurozone entered into a second technical recession2 in Q4 2020, marked by a significant decline in growth, due to uncertainties over the finalization of Brexit3, resulting in financial distress in the EU and the U.K. The second wave of the COVID-19 outbreak slowed economic activity further in the manufacturing, export, and tourism industries. Export-oriented countries, like Germany, Belgium, and Ireland, slumped initially, but showed resilience in Q1 2021. When businesses were cutting costs during stressful periods, furlough4 and wage subsidy schemes were introduced to reduce unemployment claims. Although the Purchasing Managers’ Index (PMI5) advanced sharply in Q1 2021, signaling economic resurgence, there was fear of rising infections in some countries, which cast doubt on the prospects of the services industry, especially tourism. Given this backdrop, the EU decided to extend the fiscal stimulus measures until the end of 2021 to shore up recovery.
Across the Pacific, the Japanese economy slipped back into negative territory in Q2 2021, owing to the declaration of a state of emergency to curb the coronavirus infections. The Bank of Japan took measures to prop up the weakening economy, offering monetary stimulus and introducing the “Go To”6 campaign to stimulate private consumption. Additionally, hosting the much-awaited Olympics could help boost the media sector, although tourism, and hospitality industries could take a hit due to ban on overseas spectators. The Australian economy rebounded on increased household spending, reduced lockdown restrictions, and improved profitability due to lower interest rates.
Overall, markets demonstrate stability, as most economies have been easing lockdown restrictions to promote private consumption and business spending, thus gradually improving growth. While the near-term outlook remains challenging, the commitment of central banks and governments towards providing monetary and fiscal stimulus will likely remain pivotal to smoothing the path to recovery. In addition, vaccination drives are being conducted at a steady pace to eliminate the possibility of another phase of economic turbulence.
1
Our team appreciates your trust and looks forward to serving your investment needs through innovative index-driven strategies.
Sincerely,
/s/ Freddi Klassen
Freddi Klassen
President and Chief Executive Officer
1. Coronavirus Aid, Relief, and Economic Security (CARES) Act.
2. A “technical recession” is when you have 2 negative quarters of GDP, but it is due mainly to slowing growth or an isolated event rather than a major underlying cause. Technical recessions are usually short in duration and mild in severity. The gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country’s borders in a specified time period
3. Brexit is a combination of the words “Britain” and “Exit” and describes the exit of the United Kingdom from the European Union.
4. The Furlough scheme was introduced in 2020, to stop workers from being laid off by their employers during lockdown. Under this scheme, the government paid 80% of the wages of people who couldn’t work, or whose employers could no longer afford to pay them, up to a monthly limit of £2,500 and the remaining 20% was paid by the employers.
5. Purchasing Managers’ Indexes (PMI) are economic indicators derived from monthly surveys of private sector companies.
6. The ‘Go To’ campaign was temporarily introduced in Japan to promote domestic travel. It provided residents with subsidies of up to 50% on transportation, hotels, restaurants, tourist attractions and shopping, all within Japan.
Assumptions, estimates and opinions contained in this document constitute our judgment as of the date of the document and are subject to change without notice. Any projections are based on a number of assumptions as to market conditions and there can be no guarantee that any projected results will be achieved. Past performance is not a guarantee of future results.
2
DBX ETF Trust
Xtrackers MSCI EAFE Hedged Equity ETF (DBEF)
The Xtrackers MSCI EAFE Hedged Equity ETF (DBEF) seeks investment results that correspond generally to the performance, before fees and expenses, of the MSCI EAFE US Dollar Hedged Index (the DBEF Index). The DBEF Index is designed to provide exposure to equity securities in developed international stock markets while at the same time mitigating exposure to fluctuation between the value of the U.S. dollar and select non-U.S. currencies. For the 12-month period ended May 31, 2021, DBEF returned 30.27%, compared to the DBEF Index return of 30.53%.
All sectors contributed positively to performance during the period with the greatest contributions coming from Financials, Industrials and Consumer Discretionary. From geographical perspective, Japan, France and Great Britain were the major positive contributors to performance during the period. The Fund entered into forward foreign currency contracts during the period to hedge against changes in the value of the U.S. dollar against specified non-U.S. currencies. The currency hedging strategy contributed negatively to performance.
*************************
Performance data quoted represents past performance and does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain the most recent month-end performance data visit www.Xtrackers.com. Returns assume that dividends and capital gains distributions have been reinvested. See pages 4-5 of this report for additional performance information, including performance data based on market value. The views expressed in this report reflect those of the portfolio management team only through the end of the period of the report as stated on the cover. The management team’s views are subject to change at any time based on market and other conditions and should not be construed as a recommendation. Current and future portfolio holdings are subject to risk.
3
DBX ETF Trust
Xtrackers MSCI EAFE Hedged Equity ETF (DBEF)
The Xtrackers MSCI EAFE Hedged Equity ETF (the “Fund”), using a “passive” or indexing investment approach, seeks investment results that correspond generally to the performance, before fees and expenses, of the MSCI EAFE US Dollar Hedged Index (the “Underlying Index”). The Underlying Index is designed to track developed market performance while mitigating exposure to fluctuations between the value of the U.S. dollar and the currencies of the countries included in the Underlying Index. The MSCI EAFE Index includes large and mid capitalization securities across developed markets in Europe, Australasia and the Far East. It is not possible to invest directly into an index.
| Performance as of May 31, 2021 | ||||||||
| Average Annual Total Return | ||||||||
| Net Asset Value | Market Value | MSCI EAFE US Dollar Hedged Index |
MSCI EAFE Index | |||||
| One Year |
30.27% | 29.75% | 30.53% | 38.85% | ||||
| Five Year |
10.54% | 10.57% | 10.82% | 9.84% | ||||
| Since Inception1 |
8.81% | 8.79% | 9.17% | 6.19% | ||||
| Cumulative Total Returns | ||||||||
| Net Asset Value | Market Value | MSCI EAFE US Dollar Hedged Index |
MSCI EAFE Index | |||||
| One Year |
30.27% | 29.75% | 30.53% | 38.85% | ||||
| Five Year |
65.03% | 65.28% | 67.11% | 59.90% | ||||
| Since Inception1 |
132.18% | 132.02% | 140.13% | 82.22% | ||||
1 Total returns are calculated based on the commencement of operations, June 9, 2011 (“Inception”).
Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at www.Xtrackers.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the sale of fund shares or redemption of fund creation units. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are sold in the market or redeemed. Performance for certain funds may reflect a waiver of a portion of the unitary advisory fee. Without such waiver, performance would have been lower. The gross expense ratio of the Fund, as stated in the fee table of the prospectus dated October 1, 2020, was 0.36%, and may differ from the expense ratio disclosed in the Financial Highlights table in this report.
The Fund’s net asset value or “NAV” is calculated by dividing the value of the Fund’s total assets less total liabilities by the number of shares outstanding. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not have traded in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary trading, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.
4
DBX ETF Trust
Xtrackers MSCI EAFE Hedged Equity ETF (DBEF) (Continued)
* As a percent of total investments excluding securities lending collateral and cash equivalents.
Portfolio holdings and characteristics are subject to change. For more complete details about the Fund’s investment portfolio see page 7.
5
DBX ETF Trust
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions paid on purchases and sales of fund shares, and (2) ongoing costs, including unitary advisory fees and other Fund expenses. In the most resent six-month period the Fund limited these expenses; had it not done so, expenses would have been higher. The expense examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The examples in the tables are based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period (December 1, 2020 to May 31, 2021).
Actual expenses
The first line in the following tables provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expenses Paid During the Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The second line in the following tables provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratios and an assumed rate of return of 5% per year before expenses (which is not the Funds’ actual return). The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only, and do not reflect any transactional costs. Therefore the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Beginning Account Value December 1, 2020 |
Ending Account Value May 31, 2021 |
Annualized Expense Ratio |
Expenses Paid During the Period Per $1,000(1) |
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| Xtrackers MSCI EAFE Hedged Equity ETF | ||||||||||||||||
| Actual |
$ | 1,000.00 | $ | 1,149.70 | 0.35 | % | $ | 1.88 | ||||||||
| Hypothetical (5% return before expenses) |
$ | 1,000.00 | $ | 1,023.19 | 0.35 | % | $ | 1.77 | ||||||||
(1) Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 182 (the number of days in the most recent six-month period), then divided by 365.
6
DBX ETF Trust
Xtrackers MSCI EAFE Hedged Equity ETF
May 31, 2021
| See Notes to Financial Statements. | 7 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI EAFE Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 8 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI EAFE Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 9 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI EAFE Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 10 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI EAFE Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 11 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI EAFE Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 12 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI EAFE Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 13 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI EAFE Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 14 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI EAFE Hedged Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 15 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI EAFE Hedged Equity ETF (Continued)
May 31, 2021
A summary of the Fund’s transactions with affiliated investments during the year ended May 31, 2021 is as follows:
| Value ($) at 5/31/2020 |
Purchases Cost ($) |
Sales Proceeds ($) |
Net Realized Gain/(Loss) ($) |
Net Change in Unrealized Appreciation (Depreciation) ($) |
Income ($) | Capital Gain Distributions ($) |
Number of Shares at 5/31/2021 |
Value ($) at 5/31/2021 |
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| COMMON STOCKS — 0.2% |
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| Germany — 0.2% |
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| Deutsche Bank AG*(c) |
| |||||||||||||||||||||||||||||||||||
| 4,873,841 | 427,440 | (1,387,175 | ) | (3,237,185 | ) | 6,316,504 | — | — | 469,074 | 6,993,425 | ||||||||||||||||||||||||||
| SECURITIES LENDING COLLATERAL — 2.3% |
| |||||||||||||||||||||||||||||||||||
| DWS Government & Agency Securities Portfolio “DWS Government Cash Institutional Shares”, 0.01% (e) (f) |
| |||||||||||||||||||||||||||||||||||
| 56,545,490 | 35,576,093 | (g) | — | — | — | 9,148 | — | 92,121,583 | 92,121,583 | |||||||||||||||||||||||||||
| CASH EQUIVALENTS — 1.3% |
| |||||||||||||||||||||||||||||||||||
| DWS ESG Liquidity Fund “Capital Shares”, 0.08% (e) |
| |||||||||||||||||||||||||||||||||||
| 36,319,577 | 67,047 | (25,000,000 | ) | — | (15,659 | ) | 68,846 | — | 11,372,102 | 11,370,965 | ||||||||||||||||||||||||||
| DWS Government Money Market Series “Institutional Shares”, 0.03% (e) |
| |||||||||||||||||||||||||||||||||||
| 21,017,231 | 1,302,023,406 | (1,285,052,645 | ) | — | — | 16,817 | — | 37,987,992 | 37,987,992 | |||||||||||||||||||||||||||
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| 118,756,139 | 1,338,093,986 | (1,311,439,820 | ) | (3,237,185 | ) | 6,300,845 | 94,811 | — | 141,950,751 | 148,473,965 | ||||||||||||||||||||||||||
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| * | Non-income producing security. |
| (a) | Stapled Security — A security contractually bound to one or more other securities to form a single saleable unit which cannot be sold separately. |
| (b) | All or a portion of these securities were on loan. In addition, “Other assets and liabilities, net” may include pending sales that are also on loan. The value of securities loaned at May 31, 2021 amounted to $151,477,604, which is 3.8% of net assets. |
| (c) | Affiliated issuer. This security is owned in proportion with its representation in the index. |
| (d) | Investment was valued using significant unobservable inputs. |
| (e) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
| (f) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. In addition, the Fund held non-cash U.S. Treasury securities collateral having a value of $68,809,243. |
| (g) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the year ended May 31, 2021. |
| ADR: | American Depositary Receipt |
| CDI: | Chess Depositary Interest |
| REIT: | Real Estate Investment Trust |
| RSP: | Risparmio (Convertible Savings Shares) |
| 144A: | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
Securities are listed in country of domicile.
At May 31, 2021, open futures contracts purchased were as follows:
| Contract Description |
Currency | Number of Contracts |
Notional Amount |
Contract Value |
Expiration Date |
Unrealized Appreciation (Depreciation) |
||||||||||||
| AMSTERDAM Index Futures |
EUR | 48 | $ | 8,293,956 | $ | 8,320,514 | 6/18/2021 | $ | 26,558 | |||||||||
| CAC40 10 EURO Futures |
EUR | 125 | 9,715,263 | 9,837,838 | 6/18/2021 | 122,575 | ||||||||||||
| DAX Index Futures |
EUR | 14 | 6,484,805 | 6,597,160 | 6/18/2021 | 112,355 | ||||||||||||
| FTSE 100 Index Futures |
GBP | 130 | 12,775,372 | 12,971,779 | 6/18/2021 | 196,407 | ||||||||||||
| IBEX 35 Index Futures |
EUR | 20 | 2,242,618 | 2,234,002 | 6/18/2021 | (8,616 | ) | |||||||||||
| MSCI EAFE Futures |
USD | 85 | 9,432,565 | 9,932,250 | 6/18/2021 | 499,685 | ||||||||||||
| OMXS30 Index Futures |
SEK | 100 | 2,710,370 | 2,707,292 | 6/18/2021 | (3,078 | ) | |||||||||||
| SPI 200 Futures |
AUD | 60 | 8,031,819 | 8,318,655 | 6/17/2021 | 286,836 | ||||||||||||
| SWISS MKT IX Futures |
CHF | 75 | 9,197,769 | 9,488,791 | 6/18/2021 | 291,022 | ||||||||||||
| TOPIX Index Futures |
JPY | 135 | 23,718,836 | 23,778,199 | 6/10/2021 | 59,363 | ||||||||||||
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|
|
|||||||||||||||||
| Total net unrealized appreciation |
$ | 1,583,107 | ||||||||||||||||
|
|
|
|||||||||||||||||
| See Notes to Financial Statements. | 16 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI EAFE Hedged Equity ETF (Continued)
May 31, 2021
As of May 31, 2021, the Fund had the following forward foreign currency contracts outstanding:
| Counterparty |
Settlement Date |
Currency To Deliver |
Currency To Receive |
Unrealized Appreciation |
Unrealized Depreciation |
|||||||||||||||||
| Citigroup Global Markets |
6/3/2021 | AUD | 119,451,442 | USD | 92,280,898 | $ | — | $ | (163,948 | ) | ||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | AUD | 111,520,000 | USD | 86,153,995 | — | (152,616 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | AUD | 12,596,000 | USD | 9,730,914 | — | (17,276 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | AUD | 111,345,600 | USD | 86,018,930 | — | (152,711 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | CHF | 124,643,400 | USD | 136,763,070 | — | (1,917,517 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | CHF | 103,059,500 | USD | 113,082,202 | — | (1,583,732 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | CHF | 104,440,800 | USD | 114,598,590 | — | (1,604,205 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | DKK | 185,185,600 | USD | 29,989,571 | — | (461,689 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | DKK | 193,269,100 | USD | 31,298,133 | — | (482,348 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | DKK | 180,112,200 | USD | 29,168,204 | — | (448,804 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | DKK | 23,759,000 | USD | 3,847,554 | — | (59,291 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | EUR | 326,958,700 | USD | 393,818,812 | — | (6,026,305 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | EUR | 310,596,800 | USD | 374,110,118 | — | (5,725,665 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | EUR | 14,867,000 | USD | 17,907,034 | — | (274,153 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | EUR | 399,753,000 | USD | 481,501,689 | — | (7,365,208 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | GBP | 4,532,000 | USD | 6,275,066 | — | (163,580 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | GBP | 122,770,600 | USD | 169,989,400 | — | (4,431,700 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | GBP | 145,626,100 | USD | 201,635,063 | — | (5,257,016 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | GBP | 122,962,000 | USD | 170,254,415 | — | (4,438,609 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | HKD | 39,663,000 | USD | 5,106,938 | — | (3,353 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | HKD | 304,937,000 | USD | 39,263,623 | — | (25,304 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | HKD | 303,651,300 | USD | 39,098,781 | — | (24,493 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | HKD | 316,657,000 | USD | 40,773,475 | — | (25,489 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | ILS | 5,993,000 | USD | 1,835,025 | — | (10,116 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | ILS | 8,966,300 | USD | 2,765,200 | 4,631 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | ILS | 11,086,900 | USD | 3,419,186 | 5,722 | — | |||||||||||||||
| RBC Capital Markets |
6/3/2021 | ILS | 14,437,700 | USD | 4,452,631 | 7,512 | — | |||||||||||||||
| Citigroup Global Markets |
6/3/2021 | JPY | 32,661,623,300 | USD | 298,869,489 | 555,565 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | JPY | 39,937,915,000 | USD | 365,449,369 | 677,660 | — | |||||||||||||||
| RBC Capital Markets |
6/3/2021 | JPY | 31,459,058,100 | USD | 287,862,544 | 532,212 | — | |||||||||||||||
| Citigroup Global Markets |
6/3/2021 | NOK | 16,796,000 | USD | 2,014,365 | — | (5,466 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | NOK | 27,831,400 | USD | 3,350,033 | 3,121 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | NOK | 53,741,200 | USD | 6,468,628 | 5,890 | — | |||||||||||||||
| RBC Capital Markets |
6/3/2021 | NOK | 100,508,400 | USD | 12,097,967 | 11,161 | — | |||||||||||||||
| Citigroup Global Markets |
6/3/2021 | NZD | 5,267,200 | USD | 3,778,816 | — | (54,889 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | NZD | 5,240,400 | USD | 3,759,641 | — | (54,557 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | NZD | 5,217,900 | USD | 3,743,405 | — | (54,417 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | SEK | 364,967,900 | USD | 43,172,972 | — | (855,036 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | SEK | 358,126,700 | USD | 42,362,757 | — | (839,960 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | SEK | 452,131,000 | USD | 53,483,999 | — | (1,058,954 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | SGD | 23,623,900 | USD | 17,755,189 | — | (123,941 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | SGD | 15,880,600 | USD | 11,935,527 | — | (83,290 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | SGD | 15,754,700 | USD | 11,840,716 | — | (82,816 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 92,461,389 | AUD | 119,451,442 | — | (16,543 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 86,322,056 | AUD | 111,520,000 | — | (15,445 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 95,937,491 | AUD | 123,941,600 | — | (17,661 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 8,317,450 | CHF | 7,580,000 | 116,200 | — | |||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 130,167,347 | CHF | 117,063,400 | 79,589 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 114,593,317 | CHF | 103,059,500 | 72,617 | — | |||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 116,132,304 | CHF | 104,440,800 | 70,491 | — | |||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 30,443,887 | DKK | 185,185,600 | 7,372 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 31,772,265 | DKK | 193,269,100 | 8,216 | — | |||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 33,515,737 | DKK | 203,871,200 | 8,116 | — | |||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 399,762,594 | EUR | 326,958,700 | 82,523 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 397,928,315 | EUR | 325,463,800 | 88,655 | — | |||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 3,850,261 | EUR | 3,202,000 | 65,537 | — | |||||||||||||||
| See Notes to Financial Statements. | 17 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI EAFE Hedged Equity ETF (Continued)
May 31, 2021
| Counterparty |
Settlement Date |
Currency To Deliver |
Currency To Receive |
Unrealized Appreciation |
Unrealized Depreciation |
|||||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 484,852,597 | EUR | 396,551,000 | $ | 98,502 | $ | — | |||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 180,960,646 | GBP | 127,302,600 | — | (100,899 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 207,007,501 | GBP | 145,626,100 | — | (115,422 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 174,790,729 | GBP | 122,962,000 | — | (97,705 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 44,399,836 | HKD | 344,600,000 | — | (618 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 39,123,768 | HKD | 303,651,300 | — | (494 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 40,799,479 | HKD | 316,657,000 | — | (515 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 4,605,015 | ILS | 14,959,300 | 695 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 3,412,929 | ILS | 11,086,900 | 536 | — | |||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 4,444,486 | ILS | 14,437,700 | 632 | — | |||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 298,565,961 | JPY | 32,661,623,300 | — | (252,037 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 38,705,506 | JPY | 4,229,788,000 | — | (72,868 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 323,620,705 | JPY | 35,402,487,000 | — | (273,187 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 2,797,396 | JPY | 305,640,000 | — | (5,843 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 287,575,192 | JPY | 31,459,058,100 | — | (244,860 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 5,364,354 | NOK | 44,627,400 | 2,389 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 6,459,861 | NOK | 53,741,200 | 2,877 | — | |||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 12,081,521 | NOK | 100,508,400 | 5,285 | — | |||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 3,834,522 | NZD | 5,267,200 | — | (817 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 3,815,011 | NZD | 5,240,400 | — | (813 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 3,798,642 | NZD | 5,217,900 | — | (820 | ) | ||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 44,013,398 | SEK | 364,967,900 | 14,610 | — | |||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 43,188,382 | SEK | 358,126,700 | 14,336 | — | |||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 54,525,512 | SEK | 452,131,000 | 17,441 | — | |||||||||||||||
| Citigroup Global Markets |
6/3/2021 | USD | 17,884,023 | SGD | 23,623,900 | — | (4,893 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
6/3/2021 | USD | 12,022,105 | SGD | 15,880,600 | — | (3,289 | ) | ||||||||||||||
| RBC Capital Markets |
6/3/2021 | USD | 11,926,795 | SGD | 15,754,700 | — | (3,263 | ) | ||||||||||||||
| Citigroup Global Markets |
7/6/2021 | AUD | 119,451,442 | USD | 92,472,737 | 13,623 | — | |||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | AUD | 10,766,000 | USD | 8,334,219 | 1,002 | — | |||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | AUD | 111,520,000 | USD | 86,333,431 | 13,499 | — | |||||||||||||||
| RBC Capital Markets |
7/6/2021 | AUD | 123,941,600 | USD | 95,949,390 | 14,755 | — | |||||||||||||||
| Citigroup Global Markets |
7/6/2021 | CHF | 117,063,400 | USD | 130,273,816 | — | (84,007 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | CHF | 103,059,500 | USD | 114,688,067 | — | (75,489 | ) | ||||||||||||||
| RBC Capital Markets |
7/6/2021 | CHF | 104,440,800 | USD | 116,227,940 | — | (73,785 | ) | ||||||||||||||
| RBC Capital Markets |
7/6/2021 | CHF | 12,370,000 | USD | 13,766,103 | — | (8,709 | ) | ||||||||||||||
| Citigroup Global Markets |
7/6/2021 | DKK | 185,185,600 | USD | 30,458,158 | — | (8,620 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | DKK | 193,269,100 | USD | 31,787,289 | — | (9,389 | ) | ||||||||||||||
| RBC Capital Markets |
7/6/2021 | DKK | 203,871,200 | USD | 33,531,613 | — | (9,325 | ) | ||||||||||||||
| Citigroup Global Markets |
7/6/2021 | EUR | 29,949,000 | USD | 36,640,745 | — | (8,107 | ) | ||||||||||||||
| Citigroup Global Markets |
7/6/2021 | EUR | 326,958,700 | USD | 400,010,428 | — | (91,774 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | EUR | 325,463,800 | USD | 398,174,040 | — | (98,840 | ) | ||||||||||||||
| RBC Capital Markets |
7/6/2021 | EUR | 396,551,000 | USD | 485,151,993 | — | (110,912 | ) | ||||||||||||||
| Citigroup Global Markets |
7/6/2021 | GBP | 127,302,600 | USD | 180,965,738 | 97,846 | — | |||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | GBP | 145,626,100 | USD | 207,013,326 | 111,929 | — | |||||||||||||||
| RBC Capital Markets |
7/6/2021 | GBP | 5,671,000 | USD | 8,061,514 | 4,319 | — | |||||||||||||||
| RBC Capital Markets |
7/6/2021 | GBP | 122,962,000 | USD | 174,795,647 | 94,755 | — | |||||||||||||||
| Citigroup Global Markets |
7/6/2021 | HKD | 344,600,000 | USD | 44,403,097 | 630 | — | |||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | HKD | 303,651,300 | USD | 39,126,515 | 378 | — | |||||||||||||||
| RBC Capital Markets |
7/6/2021 | HKD | 316,657,000 | USD | 40,802,108 | 158 | — | |||||||||||||||
| Citigroup Global Markets |
7/6/2021 | ILS | 14,959,300 | USD | 4,605,838 | — | (963 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | ILS | 11,086,900 | USD | 3,413,665 | — | (609 | ) | ||||||||||||||
| RBC Capital Markets |
7/6/2021 | ILS | 14,437,700 | USD | 4,445,102 | — | (1,069 | ) | ||||||||||||||
| Citigroup Global Markets |
7/6/2021 | JPY | 32,661,623,300 | USD | 298,632,296 | 241,781 | — | |||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | JPY | 35,402,487,000 | USD | 323,698,230 | 267,694 | — | |||||||||||||||
| RBC Capital Markets |
7/6/2021 | JPY | 31,459,058,100 | USD | 287,638,823 | 234,720 | — | |||||||||||||||
| Citigroup Global Markets |
7/6/2021 | NOK | 44,627,400 | USD | 5,364,708 | — | (2,384 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | NOK | 53,741,200 | USD | 6,460,172 | — | (2,987 | ) | ||||||||||||||
| RBC Capital Markets |
7/6/2021 | NOK | 100,508,400 | USD | 12,082,102 | — | (5,491 | ) | ||||||||||||||
| See Notes to Financial Statements. | 18 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI EAFE Hedged Equity ETF (Continued)
May 31, 2021
| Counterparty |
Settlement Date |
Currency To Deliver |
Currency To Receive |
Unrealized Appreciation |
Unrealized Depreciation |
|||||||||||||||||
| Citigroup Global Markets |
7/6/2021 | NZD | 5,267,200 | USD | 3,834,153 | $ | 763 | $ | — | |||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | NZD | 5,240,400 | USD | 3,814,644 | 759 | — | |||||||||||||||
| RBC Capital Markets |
7/6/2021 | NZD | 5,217,900 | USD | 3,798,271 | 761 | — | |||||||||||||||
| Citigroup Global Markets |
7/6/2021 | SEK | 70,803,000 | USD | 8,540,700 | — | (2,924 | ) | ||||||||||||||
| Citigroup Global Markets |
7/6/2021 | SEK | 364,967,900 | USD | 44,024,946 | — | (14,833 | ) | ||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | SEK | 358,126,700 | USD | 43,199,192 | — | (15,076 | ) | ||||||||||||||
| RBC Capital Markets |
7/6/2021 | SEK | 452,131,000 | USD | 54,539,851 | — | (17,684 | ) | ||||||||||||||
| Citigroup Global Markets |
7/6/2021 | SGD | 23,623,900 | USD | 17,882,331 | 4,912 | — | |||||||||||||||
| JP Morgan & Chase Co. |
7/6/2021 | SGD | 15,880,600 | USD | 12,020,868 | 3,202 | — | |||||||||||||||
| RBC Capital Markets |
7/6/2021 | SGD | 15,754,700 | USD | 11,925,441 | 3,050 | — | |||||||||||||||
|
|
|
|
|
|||||||||||||||||||
| Total unrealized appreciation (depreciation) |
$ | 3,670,629 | $ | (45,899,423 | ) | |||||||||||||||||
|
|
|
|
|
|||||||||||||||||||
For information on the Fund’s policy and additional disclosures regarding open futures contracts and forward foreign currency contracts, please refer to the Derivatives section of Note 2 in the accompanying Notes to Financial Statements.
Currency Abbreviations
Fair Value Measurements
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
The following is a summary of the inputs used as of May 31, 2021 in valuing the Fund’s investments. For information on the Fund’s policy regarding the valuation of investments, please refer to the Security Valuation section of Note 2 in the accompanying Notes to Financial Statements.
| Assets |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Common Stocks (h) |
$ | 3,837,934,661 | $ | — | $ | — | $ | 3,837,934,661 | ||||||||
| Preferred Stocks |
25,293,924 | — | — | 25,293,924 | ||||||||||||
| Rights (h) |
999,064 | — | 0 | 999,064 | ||||||||||||
| Warrants |
167,929 | — | — | 167,929 | ||||||||||||
| Short-Term Investments (h) |
141,480,540 | — | — | 141,480,540 | ||||||||||||
| Derivatives (i) |
||||||||||||||||
| Forward Foreign Currency Contracts |
— | 3,670,629 | — | 3,670,629 | ||||||||||||
| Futures Contracts |
1,594,801 | — | — | 1,594,801 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| TOTAL |
$ | 4,007,470,919 | $ | 3,670,629 | $ | 0 | $ | 4,011,141,548 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Liabilities |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Derivatives (i) |
||||||||||||||||
| Forward Foreign Currency Contracts |
$ | — | $ | (45,899,423 | ) | $ | — | $ | (45,899,423 | ) | ||||||
| Futures Contracts |
(11,694 | ) | — | — | (11,694 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| TOTAL |
$ | (11,694 | ) | $ | (45,899,423 | ) | $ | — | $ | (45,911,117 | ) | |||||
|
|
|
|
|
|
|
|
|
|||||||||
| (h) | See Schedule of Investments for additional detailed categorizations. |
| (i) | Derivatives include unrealized appreciation (depreciation) on open futures contracts and forward foreign currency contracts. |
| See Notes to Financial Statements. | 19 |
DBX ETF Trust
May 31, 2021
| Xtrackers MSCI EAFE Hedged Equity ETF |
||||
| Assets |
||||
| Investment in non-affiliated securities at value |
$ | 3,857,402,153 | ||
| Investment in affiliated securities at value |
6,993,425 | |||
| Investment in DWS ESG Liquidity Fund |
11,370,965 | |||
| Investment in DWS Government Money Market Series |
37,987,992 | |||
| Investment in DWS Government & Agency Securities Portfolio* |
92,121,583 | |||
| Foreign currency at value |
22,578,128 | |||
| Receivable for return of collateral pledged for forward foreign currency contracts |
37,535,221 | |||
| Unrealized appreciation on forward foreign currency contracts |
3,670,629 | |||
| Deposit with broker for futures contracts |
8,075,625 | |||
| Receivables: | ||||
| Investment securities sold |
2,556,379 | |||
| Variation margin on futures contracts |
1,527,364 | |||
| Dividends |
12,642,110 | |||
| Interest |
601 | |||
| Securities lending income |
123,114 | |||
| Foreign tax reclaim |
7,119,503 | |||
|
|
|
|||
| Total assets |
$ | 4,101,704,792 | ||
|
|
|
|||
| Liabilities |
||||
| Due to custodian |
$ | 1,861 | ||
| Payable upon return of securities loaned |
92,121,583 | |||
| Unrealized depreciation on forward foreign currency contracts |
45,899,423 | |||
| Payables: | ||||
| Investment securities purchased |
7,524,991 | |||
| Investment advisory fees |
1,157,364 | |||
|
|
|
|||
| Total liabilities |
146,705,222 | |||
|
|
|
|||
| Net Assets, at value |
$ | 3,954,999,570 | ||
|
|
|
|||
| Net Assets Consist of |
||||
| Paid-in capital |
$ | 3,703,964,182 | ||
| Distributable earnings (loss) |
251,035,388 | |||
|
|
|
|||
| Net Assets, at value |
$ | 3,954,999,570 | ||
|
|
|
|||
| Number of Common Shares outstanding |
105,350,800 | |||
|
|
|
|||
| Net Asset Value |
$ | 37.54 | ||
|
|
|
|||
| Investment in non-affiliated securities at cost |
$ | 3,177,636,749 | ||
|
|
|
|||
| Investment in affiliated securities at cost |
$ | 15,029,912 | ||
|
|
|
|||
| Value of securities loaned |
$ | 151,477,604 | ||
|
|
|
|||
| Investment in DWS ESG Liquidity Fund at cost |
$ | 11,372,103 | ||
|
|
|
|||
| Investment in DWS Government Money Market Series at cost |
$ | 37,987,992 | ||
|
|
|
|||
| Investment in DWS Government & Agency Securities Portfolio at cost* |
$ | 92,121,583 | ||
|
|
|
|||
| Non-cash collateral for securities on loan |
$ | 68,809,243 | ||
|
|
|
|||
| Foreign currency at cost |
$ | 22,181,896 | ||
|
|
|
|||
| * | Represents collateral on securities loaned. |
| See Notes to Financial Statements. | 20 |
DBX ETF Trust
For the Year Ended May 31, 2021
| Xtrackers MSCI EAFE Hedged Equity ETF |
||||
| Investment Income |
||||
| Unaffiliated interest income |
$ | 676 | ||
| Unaffiliated dividend income* |
93,552,768 | |||
| Income distributions from affiliated funds |
85,663 | |||
| Affiliated securities lending income |
9,148 | |||
| Unaffiliated non-cash dividend income |
7,174,135 | |||
| Unaffiliated securities lending income, net of borrower rebates |
688,657 | |||
|
|
|
|||
| Total investment income |
101,511,047 | |||
|
|
|
|||
| Expenses |
||||
| Investment advisory fees |
13,150,027 | |||
| Other expenses |
2,048 | |||
|
|
|
|||
| Total expenses |
13,152,075 | |||
|
|
|
|||
| Less fees waived (see note 3): |
||||
| Waiver |
(40,221 | ) | ||
|
|
|
|||
| Net expenses |
13,111,854 | |||
|
|
|
|||
| Net investment income (loss) |
88,399,193 | |||
|
|
|
|||
| Realized and Unrealized Gain (Loss) |
||||
| Net realized gain (loss) from: |
||||
| Investments |
(90,065,881 | ) | ||
| Investments in affiliates |
(1,037,693 | ) | ||
| In-kind redemptions |
68,980,248 | |||
| In-kind redemptions in affiliates |
(2,199,492 | ) | ||
| Futures contracts |
33,451,686 | |||
| Foreign currency transactions |
4,547,272 | |||
| Forward foreign currency contracts |
(217,305,232 | ) | ||
| Payments by Affiliates (see note 6) |
926 | |||
|
|
|
|||
| Net realized gain (loss) |
(203,628,166 | ) | ||
| Net change in unrealized appreciation (depreciation) on: |
||||
| Investments |
1,119,670,226 | |||
| Investments in affiliates |
6,300,845 | |||
| Futures contracts |
(7,724,490 | ) | ||
| Foreign currency translations |
566,548 | |||
| Forward foreign currency contracts |
(37,204,364 | ) | ||
|
|
|
|||
| Net change in unrealized appreciation (depreciation) |
1,081,608,765 | |||
|
|
|
|||
| Net realized and unrealized gain (loss) on investments, futures and foreign currency transactions |
877,980,599 | |||
|
|
|
|||
| Net Increase (Decrease) in Net Assets Resulting from Operations |
$ | 966,379,792 | ||
|
|
|
|||
| * Unaffiliated foreign tax withheld |
$ | 8,765,678 | ||
| See Notes to Financial Statements. | 21 |
DBX ETF Trust
| Xtrackers MSCI EAFE Hedged Equity ETF |
||||||||
| Year Ended May 31, 2021 |
Year Ended May 31, 2020 |
|||||||
| Increase (Decrease) in Net Assets from Operations |
||||||||
| Net investment income (loss) |
$ | 88,399,193 | $ | 99,734,732 | ||||
| Net realized gain (loss) |
(203,628,166 | ) | (53,828,366 | ) | ||||
| Net change in net unrealized appreciation (depreciation) |
1,081,608,765 | (143,224,625 | ) | |||||
|
|
|
|
|
|||||
| Net increase (decrease) in net assets resulting from operations |
966,379,792 | (97,318,259 | ) | |||||
|
|
|
|
|
|||||
| Distributions to Shareholders |
(95,300,827 | ) | (157,107,983 | ) | ||||
|
|
|
|
|
|||||
| Fund Shares Transactions |
||||||||
| Proceeds from shares sold |
14,993,565 | 78,850,231 | ||||||
| Value of shares redeemed |
(761,591,407 | ) | (708,987,904 | ) | ||||
|
|
|
|
|
|||||
| Net increase (decrease) in net assets resulting from fund share transactions |
(746,597,842 | ) | (630,137,673 | ) | ||||
|
|
|
|
|
|||||
| Total net increase (decrease) in Net Assets |
124,481,123 | (884,563,915 | ) | |||||
| Net Assets |
||||||||
| Beginning of period |
3,830,518,447 | 4,715,082,362 | ||||||
|
|
|
|
|
|||||
| End of period |
$ | 3,954,999,570 | $ | 3,830,518,447 | ||||
|
|
|
|
|
|||||
| Changes in Shares Outstanding |
||||||||
| Shares outstanding, beginning of period |
128,750,800 | 152,750,800 | ||||||
| Shares sold |
400,000 | 2,400,000 | ||||||
| Shares redeemed |
(23,800,000 | ) | (26,400,000 | ) | ||||
|
|
|
|
|
|||||
| Shares outstanding, end of period |
105,350,800 | 128,750,800 | ||||||
|
|
|
|
|
|||||
| See Notes to Financial Statements. | 22 |
DBX ETF Trust
| Xtrackers MSCI EAFE Hedged Equity ETF Selected Per Share Data |
Years Ended May 31, | |||||||||||||||||||
| 2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
| Net Asset Value, beginning of year |
$ | 29.75 | $ | 30.87 | $ | 31.86 | $ | 30.68 | $ | 26.48 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||
| Net investment income (loss)(a) |
0.78 | 0.66 | 0.91 | 0.80 | 0.74 | |||||||||||||||
| Net realized and unrealized gain (loss) |
7.82 | (0.76 | ) | (1.00 | ) | 1.33 | 4.18 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total from investment operations |
8.60 | (0.10 | ) | (0.09 | ) | 2.13 | 4.92 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Less distributions from: |
| |||||||||||||||||||
| Net investment income |
(0.81 | ) | (1.02 | ) | (0.90 | ) | (0.95 | ) | (0.72 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total distributions |
(0.81 | ) | (1.02 | ) | (0.90 | ) | (0.95 | ) | (0.72 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net Asset Value, end of year |
$ | 37.54 | $ | 29.75 | $ | 30.87 | $ | 31.86 | $ | 30.68 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Return (%) |
29.41 | (b) | (0.56 | )(b) | (0.14 | )(b) | 7.05 | 19.17 | ||||||||||||
| Ratios to Average Net Assets and Supplemental Data |
||||||||||||||||||||
| Net Assets, end of year ($ millions) |
3,955 | 3,831 | 4,715 | 6,140 | 8,638 | |||||||||||||||
| Ratio of expenses before fee waiver (%) |
0.35 | 0.36 | 0.36 | 0.35 | 0.35 | |||||||||||||||
| Ratio of expenses after fee waiver (%) |
0.35 | 0.36 | 0.36 | 0.35 | 0.35 | |||||||||||||||
| Ratio of net investment income (loss) (%) |
2.35 | 2.10 | 2.93 | 2.57 | 2.72 | |||||||||||||||
| Portfolio turnover rate (%)(c) |
8 | 9 | 5 | 10 | 14 | |||||||||||||||
| (a) | Based on average shares outstanding during the period. |
| (b) | Total Return would have been lower if certain expenses had not been reimbursed by the Advisor. |
| (c) | Portfolio turnover rate does not include securities received or delivered from processing creations or redemptions. |
| See Notes to Financial Statements. | 23 |
DBX ETF Trust
1. Organization
DBX ETF Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end registered management investment company organized as a Delaware statutory trust.
As of May 31, 2021, the Trust consists of thirty-five investment series of exchange-traded funds (“ETFs”) in operation and trading. These financial statements report on Xtrackers MSCI EAFE Hedged Equity ETF (the “Fund”), a diversified series of the Trust. The Fund may change its diversification status over time and then change it back again, without shareholder approval, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the index each Fund tracks.
DBX Advisors LLC (“DBX” or the “Advisor”), an indirect, wholly-owned subsidiary of DWS Group GmbH & Co. KGaA (“DWS Group”), serves as investment advisor to the Fund and has overall responsibility for the general management and administration of the Fund, subject to the supervision of the Fund’s Board of Trustees (“Board”).
The Fund offers shares that are listed and traded on the NYSE Arca, Inc. (“NYSE Arca”). Unlike conventional mutual funds, the Fund issues and redeems shares on a continuous basis, at net asset value (“NAV”), only in large specified lots consisting of 200,000 shares, each called a “Creation Unit”, to authorized participants who have entered into agreements with the Fund’s distributor. Shares are not individually redeemable securities of the Fund, and owners of shares may acquire those shares from the Fund or tender such shares for redemption to the Fund, in Creation Units only.
The investment objective of the Fund is to track the performance, before fees and expenses, of the MSCI EAFE US Dollar Hedged Index (the “Underlying Index”).
MSCI is the creator of the MSCI EAFE US Dollar Hedged Index. The MSCI EAFE US Dollar Hedged Index is designed to provide exposure to equity securities in developed international stock markets, while at the same time mitigating exposure to fluctuations between the value of the U.S. dollar and selected non-U.S. currencies.
The Underlying Index is rebalanced monthly on the last trading day of the month, when the index will take into account the effect of rolling into new 1-month forward contracts based on the newly determined weights of currency to be sold for the next month’s index calculation. The currency weights are determined as of the close of two business days before the first calendar day of following month and remain constant intra month. This means that no changes in the weights are made during the month to account for changes in the indexes due to price movement of securities, corporate events, additions, deletions or any other changes. The daily calculation of the Underlying Index marks to market the one-month forward contracts on a daily basis by using an equal and offsetting forward position.
The Fund is entitled to use its Underlying Index pursuant to a licensing agreement between the Index Provider and DBX. There is no charge to the Fund in connection with the licensing agreement.
Pursuant to the Trust’s organizational documents, the Trust’s officers and trustees are indemnified against certain liabilities that may arise out of the performance of their duties to the Fund. Additionally, in the normal course of business the Trust enters into contracts that contain a variety of representations that provide indemnification for certain liabilities. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. However, the Trust expects the risk of loss to be remote.
2. Significant Accounting Policies
The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), which require management to make certain estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. The Fund qualifies as an investment company under Topic 946 of the Accounting Standards Codification of U.S. GAAP. The following is a summary of significant accounting policies followed by the Fund.
Security Valuation The NAV of the Fund’s shares is calculated each business day as of the close of regular trading on the New York Stock Exchange, generally 4:00 p.m. Eastern Time. NAV per share is calculated by dividing a Fund’s net assets by the number of Fund shares outstanding.
24
DBX ETF Trust
Notes to Financial Statements (Continued)
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
Equity securities are valued at the most recent sale price or official closing price reported on the exchange (U.S. or foreign) or over-the-counter market on which they trade. Securities for which no sales are reported are valued at the calculated mean between the most recent bid and asked quotations on the relevant market or, if a mean cannot be determined, at the most recent bid quotation. Equity securities are generally categorized as Level 1.
Investments in open-ended investment companies are valued at their NAV each business day and are categorized as Level 1.
Futures contracts are generally valued at the settlement prices established each day on the exchange on which they are traded and are categorized as Level 1.
Forward currency contracts are valued at the prevailing forward exchange rate of the underlying currencies and are categorized as Level 2.
Securities and other assets for which market quotations are not readily available or for which the above valuation procedures are deemed not to reflect fair value are valued in a manner that is intended to reflect their fair value as determined in accordance with procedures approved by the Board and are generally categorized as Level 3. In accordance with the Fund’s valuation procedures, factors considered in determining value may include, but are not limited to, the type of the security; the size of the holding; the initial cost of the security; the existence of any contractual restrictions on the security’s disposition; the price and extent of public trading in similar securities of the issuer or of comparable companies; quotations or evaluated prices from broker-dealers and/or pricing services; information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities); an analysis of the company’s or issuer’s financial statements; an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold; and with respect to debt securities, the maturity, coupon, creditworthiness, currency denomination and the movement of the market in which the security is normally traded. The value determined under these procedures may differ from published values for the same securities.
Fair value pricing could result in a difference between the prices used to calculate the Fund’s NAV and the prices used by the Fund’s Underlying Index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s Underlying Index.
Disclosure about the classification of the fair value measurements is included in a table following the Fund’s Schedule of Investments.
Cash Cash consists of cash held at banks and is on deposit with major financial institutions.
Investment Transactions and Investment Income Investment transactions are recorded as of the date that the securities are purchased or sold (trade date). Realized gains and losses from the sale or disposition of securities are calculated on the identified cost-method. Dividend income is net of any foreign taxes withheld at source. Certain dividends from foreign securities may be recorded subsequent to the ex-dividend date as soon as the fund is informed of such dividends. Interest income is recorded on the accrual basis.
Tax Information and Dividends and Distributions to Shareholders It is the Fund’s policy to comply with all requirements of the Internal Revenue Code of 1986, as amended (“the Code”). The Fund intends to qualify for and to elect treatment as a separate Regulated Investment Company (“RIC”) under Subchapter M of the Code. It is the policy of the Fund to pay out dividends from its net investment income, if any, to investors semi-annually. Taxable net realized gains from investment transactions, reduced by capital loss carryforwards, if any, are declared and distributed to shareholders at least annually. The capital loss carryforward amount, if any, is available to offset future net capital gains. The Fund may occasionally be required to make supplemental distributions at some other time during the year. The Fund reserves the right to declare special distributions if, in their reasonable discretion, such action is necessary or advisable to preserve the status of the Fund as a RIC or to
25
DBX ETF Trust
Notes to Financial Statements (Continued)
avoid imposition of income or excise taxes on undistributed income. Dividends and distributions to shareholders, if any, are recorded on the ex-dividend date. The amount of dividends and distributions from net investment income and net realized capital gains are determined in accordance with Federal income tax regulations which may differ from U.S. GAAP. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified at the end of the year within the components of net assets based on their federal tax treatment; temporary differences do not require reclassification. Dividends and distributions, which exceed earnings and profits for the full year for tax purposes, are reported as a tax return of capital.
In accordance with U.S. GAAP requirements regarding accounting for uncertainties in income taxes, management has analyzed the Fund’s tax positions taken or expected to be taken on foreign, federal and state income tax returns for all open tax years and has concluded that no provision for income tax is required in the Fund’s financial statements.
The Fund recognizes interest and penalties, if any, related to uncertain tax positions as income tax expense on the Statement of Operations. For the year ended May 31, 2021, the Fund did not incur any interest or penalties.
As of May 31, 2021, the components of accumulated earnings (losses) on a tax basis were as follows:
| Undistributed Ordinary Income* |
Capital and Other Gains (Losses) |
Unrealized Appreciation (Depreciation) |
Total Accumulated Earnings (Losses) |
|||||||||||||
| $ | 68,313,916 | $ | (446,439,849 | ) | $ | 629,161,321 | $ | 251,035,388 | ||||||||
The tax character of dividends and distributions declared for the years ended May 31, 2021 and May 31, 2020 were as follows:
| Ordinary Income* | ||||
| 2021 |
$ | 95,300,827 | ||
| 2020 |
157,107,983 | |||
| * | for tax purposes short-term capital gain distributions are considered ordinary income distributions |
At May 31, 2021, for Federal income tax purposes, the Fund had capital loss carryforwards available as shown in the table below, to the extent provided by regulations, to offset future capital gains for an unlimited period. To the extent that these capital loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to shareholders.
| Short-Term | Long-Term | Total Amount | ||||||||||
| $ | 79,777,782 | $ | 366,662,067 | $ | 446,439,849 | |||||||
For the fiscal year ended May 31, 2021, the effect of permanent “book/tax” reclassifications to the components of net assets are included below. These differences are primarily due to recognition of certain foreign currency gain (losses) as ordinary income (loss), passive foreign investment companies (“PFICs”), redemptions-in-kind and partnership investments.
| Distributable earnings (loss) |
Paid-In Capital |
|||||||
| $ | (60,376,121 | ) | $ | 60,376,121 | ||||
As of May 31, 2021, the aggregate cost of investments for federal income tax purposes, the net unrealized appreciation or depreciation and the aggregated gross unrealized appreciation (depreciation) on investments were as follows:
| Aggregate Tax Cost |
Net Unrealized Appreciation (Depreciation) |
Aggregate Gross Unrealized Appreciation |
Aggregate Gross Unrealized (Depreciation) |
|||||||||||||
| $ | 3,375,577,270 | $ | 628,372,265 | $ | 1,020,633,853 | $ | (392,261,588 | ) | ||||||||
Foreign Taxes The Fund may be subject to foreign taxes (a portion of which may be reclaimable) on income, capital gains on investments, certain foreign currency transactions or other corporate events. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Fund invests. These foreign taxes, if any, are paid by the Fund and are reflected in their Statement of
26
DBX ETF Trust
Notes to Financial Statements (Continued)
Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on capital gains from sales of investments and foreign currency transactions are included in their respective net realized gain (loss) categories. Receivables and payables related to foreign taxes as of May 31, 2021, if any, are disclosed in the Fund’s Statement of Assets and Liabilities.
Foreign Currency Translations The books and records of the Fund is maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the prevailing exchange rates at period end. Purchases and sales of investment securities, income and expenses are translated into U.S. dollars at the prevailing exchange rates on the respective dates of the transactions.
Net realized and unrealized gains and losses on foreign currency transactions represent net gains and losses between trade and settlement dates on securities transactions, the acquisition and disposition of foreign currencies, and the difference between the amount of net investment income accrued and the U.S. dollar amount actually received. The portion of both realized and unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed, but is included with net realized and unrealized gain/appreciation and loss/depreciation on investments.
Securities Lending The Fund may lend securities to certain financial institutions under the terms of its securities lending agreement. During the term of the loans, the Fund continues to receive interest and dividends generated by the securities and to participate in any changes in their market value. The Fund requires the borrowers of the securities to maintain collateral with the Fund consisting of cash and/or securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities having a value at least equal to the value of the securities loaned. When the collateral falls below specified amounts, the lending agent will use its best effort to obtain additional collateral on the next business day to meet required amounts under the securities lending agreement. During the year ended May 31, 2021, the Fund invested the cash collateral into a joint trading account in DWS Government & Agency Securities Portfolio, an affiliated money market fund managed by DWS Investment Management Americas, Inc. DWS Investment Management Americas, Inc. receives a management/administration fee (0.01% annualized effective rate as of May 31, 2021) on the cash collateral invested in DWS Government & Agency Securities Portfolio. The Fund receives compensation for lending its securities either in the form of fees or by earning interest on invested cash collateral, net of borrower rebates and fees paid to a lending agent. Either the Fund or the borrower may terminate the loan at any time and the borrower, after notice, is required to return borrowed securities within a standard time period. There may be risks of delay and costs in recovery of securities or even loss of rights in the collateral should the borrower of the securities fail financially. If the Fund is not able to recover securities lent, the Fund may sell the collateral and purchase a replacement investment in the market, incurring the risk that the value of the replacement security is greater than the value of the collateral. The Fund is also subject to all investment risks associated with the reinvestment of any cash collateral received, including, but not limited to, interest rate, credit and liquidity risk associated with such investments.
As of May 31, 2021, the Fund had securities on loan. The value of the related collateral exceeded the value of the securities loaned at period end.
| Remaining Contractual Maturity of the Agreements, as of May 31, 2021 |
||||||||||||||||||||
| Securities Lending Transactions | Overnight and Continuous |
<30 Days | Between 30 & 90 days |
>90 days | Total | |||||||||||||||
| Common Stocks |
$ | 92,121,583 | $ | 18,195 | $ | 226,983 | $ | 68,564,065 | $ | 160,930,826 | ||||||||||
|
|
|
|||||||||||||||||||
| Gross amount of recognized liabilities and non-cash collateral for securities lending transactions |
|
$ | 160,930,826 | |||||||||||||||||
Derivatives
Forward Foreign Currency Contracts The Fund may enter into forward foreign currency contracts (“forward currency contracts”) designed to offset the Fund’s exposure to non-U.S. currencies. In addition, the Fund may enter into forward currency contracts to facilitate local securities settlements or to protect against currency exposure in connection with distributions to shareholders.
A forward currency contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. For the year ended May 31, 2021, the Fund invested in forward currency contracts to hedge against changes in the value of the U.S. dollar against specified non-U.S. currencies.
27
DBX ETF Trust
Notes to Financial Statements (Continued)
The gain or loss arising from the difference between the original contract and the closing of such contract would be included in net realized gain or loss on forward currency contracts. Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. The face or contract amount, in U.S. dollars reflects the total exposure the Fund has in that particular currency contract.
A summary of the open forward currency contracts as of May 31, 2021 is included in a table following the Fund’s Schedule of Investments. The investment in forward currency contracts short vs. U.S. dollars had a contract value generally indicative of a range of the total exposure the Fund had to the value of non U.S currencies during the year ended May 31, 2021.
Futures Contracts The Fund may enter into futures contracts. These futures contracts will be used to simulate investment in the respective Underlying Index, to facilitate trading or to reduce transaction costs. The Fund will enter into futures contracts that are traded on a U.S. or non-U.S. exchange. The Fund will not use futures for speculative purposes. Futures contracts provide for the future sale by one party and purchase by another party of a specified amount of a specific instrument or index at a specified future time and at a specified price. For the year ended May 31, 2021, the Fund utilized futures in order to simulate investment in the Fund’s Underlying Index. To the extent required by law, liquid assets committed to futures contracts will be maintained.
At the time the Fund enters into a futures contract, the Fund deposits and maintains as collateral an initial margin with the broker, as required by the exchange on which the transaction is affected. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for exchange-traded futures contracts is generally less than privately negotiated futures contracts, since the clearinghouse, which is the issuer or counterparty to each exchange-traded future, provides a guarantee of performance. The guarantee is supported by a daily payment system (i.e., margin requirements).
Use of long futures contracts subjects the Fund to risk of loss in excess of the amounts shown on the Statement of Assets and Liabilities, up to the notional value of the futures contracts. Use of short futures contracts subjects the Fund to unlimited risk of loss. Under some circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day’s settlement price, which could effectively prevent liquidation of unfavorable positions.
A summary of the open futures contracts as of May 31, 2021 is included in a table following the Fund’s Schedule of Investments.
The following table summarizes the value of the Fund’s derivative instruments held as of May 31, 2021 and the related location in the accompanying Statement of Assets and Liabilities, presented by primary underlying risk exposure:
| Asset Derivatives |
Liability Derivatives |
|||||||||||||
| Equity contracts | Unrealized appreciation on futures contracts* | $ | 1,594,801 | Unrealized depreciation on futures contracts* | $ | 11,694 | ||||||||
| Foreign exchange contracts | Unrealized appreciation on forward foreign currency contracts | 3,670,629 | Unrealized depreciation on forward foreign currency contracts | 45,899,423 | ||||||||||
|
|
|
|
|
|||||||||||
| Total | $ | 5,265,430 | Total | $ | 45,911,117 | |||||||||
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| * | Includes cumulative appreciation or cumulative depreciation of futures contracts as disclosed in the Schedule of Investments. Unsettled variation margin is disclosed separately within the Statement of Assets and Liabilities. |
28
DBX ETF Trust
Notes to Financial Statements (Continued)
Additionally, the amount of realized and unrealized gains and losses on derivative instruments recognized in the Fund’s earnings during the year ended May 31, 2021 and the related location in the accompanying Statement of Operations is summarized in the following table by primary underlying risk exposure:
| Net Realized Gain (Loss) from: |
||||||||||||
| Futures Contracts — Equity Contracts |
Forward Foreign Currency Contracts — Foreign Exchange Contracts |
Total | ||||||||||
| $ | 33,451,686 | $ | (217,305,232 | ) | $ | (183,853,546 | ) | |||||
| Net Change in Unrealized Appreciation (Depreciation) on: |
||||||||||||
| Futures Contracts — Equity Contracts |
Forward Foreign Currency Contracts — Foreign Exchange Contracts |
Total | ||||||||||
| $ | (7,724,490 | ) | $ | (37,204,364 | ) | $ | (44,928,854 | ) | ||||
For the year ended May 31, 2021 the average monthly volume of derivatives was as follows:
| Futures Contracts (Contract Value) |
Forward Foreign Currency Contracts (Contract Value) |
|||||||
| $ | 101,737,610 | $ | (3,638,259,602 | ) | ||||
As of May 31, 2021, the Fund has transactions subject to enforceable master netting agreements which govern the terms of certain transactions, and reduce the counterparty risk associated with such transactions. Master netting agreements allow a Fund to close out and net total exposure to a counterparty in the event of a deterioration in the credit quality or contractual default with respect to all of the transactions with a counterparty. As defined by the master netting agreement, the Fund may have collateral agreements with certain counterparties to mitigate risk. Interest expense from collateral received, if any, is included in Other expenses on the Statement of Operations. For financial reporting purposes the Statement of Assets and Liabilities generally shows derivatives assets and liabilities on a gross basis, which reflects the full risks and exposures prior to netting. A reconciliation of the gross amounts on the Statement of Assets and Liabilities to the net amounts by counterparty, including any collateral exposure, is included in the following tables:
| Gross Amounts of Assets Presented in the Statement of Assets and Liabilities |
Financial Instruments and Derivatives Available for Offset |
Collateral Received(a) |
Net Amount of Derivatives Assets |
Gross Amounts of Liabilities Presented in the Statement of Assets and Liabilities |
Financial Instruments and Derivatives Available for Offset |
Collateral Pledged(a) |
Net Amount of Derivatives Liabilities |
|||||||||||||||||||||||||
| Citigroup Global Markets |
$ | 1,226,250 | $ | (1,226,250 | ) | $ | — | $ | — | $ | 14,832,263 | $ | (1,226,250 | ) | $ | (12,095,221 | ) | $ | 1,510,792 | |||||||||||||
| JP Morgan & Chase Co. |
1,274,972 | (1,274,972 | ) | — | — | 15,167,581 | (1,274,972 | ) | (12,390,000 | ) | $ | 1,502,609 | ||||||||||||||||||||
| RBC Capital Markets |
1,169,407 | (1,169,407 | ) | — | — | 15,899,579 | (1,169,407 | ) | (13,050,000 | ) | $ | 1,680,172 | ||||||||||||||||||||
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| $ | 3,670,629 | $ | (3,670,629 | ) | $ | — | $ | — | $ | 45,899,423 | $ | (3,670,629 | ) | $ | (37,535,221 | ) | $ | 4,693,573 | ||||||||||||||
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| (a) | The actual collateral received or pledged may be more than amount shown. |
Affiliated Cash Management Vehicles The Fund may invest uninvested cash balances in DWS Government Money Market Series and DWS ESG Liquidity Fund, affiliated money market funds which are managed by DWS Investment Management Americas, Inc. (“DIMA”), also an indirect, wholly owned subsidiary of DWS Group GmbH & Co. KGaA. Each affiliated money market fund is managed in accordance with Rule 2a-7 under the 1940 Act, which governs the quality, maturity, diversity and liquidity of instruments in which a money market fund may invest. DWS Government Money Market Series seeks to maintain a stable NAV and DWS ESG Liquidity Fund maintains a floating NAV. The Fund indirectly bears its proportionate share of the expenses of each affiliated money market fund in which it invests. The Advisor will waive an amount of the unitary advisory fee payable to the Advisor by the Funds equal to such acquired fund’s fees and expenses on the Funds’ assets invested in the affiliated money market funds.
29
DBX ETF Trust
Notes to Financial Statements (Continued)
3. Investment Advisory and Other Agreements
The Advisor has overall responsibility for the general management and administration of the Fund, subject to the supervision of the Fund’s Board of Trustees. Under an investment advisory agreement between the Trust, on behalf of the Fund, and the Advisor (the “Investment Advisory Agreement”), the Advisor is responsible for arranging sub-advisory, transfer agency, custody, fund administration, and all other non-distribution related services for the Fund to operate.
For its investment advisory services to the Fund, the Advisor is entitled to receive a unitary advisory fee from the Fund based on the Fund’s average daily net assets, computed and accrued daily and payable monthly, at an annual rate equal to 0.35%.
The Advisor for the Fund has contractually agreed to waive a portion of its unitary advisory fee in an amount equal to the acquired fund’s fees and expenses attributable to the Fund’s investments in affiliated cash management vehicles. For the period from June 1, 2020 through May 31, 2021, the Advisor waived $40,221 of expenses to the Fund.
Out of the unitary advisory fee, the Advisor pays substantially all expenses of the Fund, including the cost of transfer agency, custody, fund administration, legal, audit and other services, and expenses of the Independent Trustees. The Fund is responsible for the payment of interest expense, acquired fund fees and expenses, taxes, brokerage expenses, distribution fees or expenses, if any, litigation expenses and extraordinary expenses.
The Bank of New York Mellon, a wholly-owned subsidiary of The Bank of New York Mellon Corporation, serves as Administrator, Custodian, Accounting Agent, Lending Agent and Transfer Agent for the Fund.
ALPS Distributors, Inc. (the “Distributor”) serves as the distributor of Creation Units for the Fund on an agency basis. The Distributor does not maintain a secondary market in shares of the Fund.
The Board of Trustees is currently comprised of three Independent Trustees. The Advisor paid retainer fees and attendance fees to each Independent Trustee; retainer fees to the Chairman of the Board of Trustees and Chairman of the Audit Committee; and attendance fees to each member of the Audit Committee (which is comprised of all of the Fund’s Independent Trustees).
4. Investment Portfolio Transactions
For the year ended May 31, 2021, the cost of investments purchased and proceeds from sale of investments (excluding in-kind transactions and short-term investments) were as follows:
| Purchases | Sales | |||||||
| $ | 309,463,738 | $ | 571,642,574 | |||||
For the year ended May 31, 2021, the cost of in-kind purchases and proceeds from in-kind sales were as follows:
| Purchases | Sales | |||||||
| $ | — | $ | 739,780,452 | |||||
5. Fund Share Transactions
As of May 31, 2021, there were unlimited Fund shares, no par value, authorized by the Trust. Fund shares are issued and redeemed by the Fund only in Creation Units or multiples thereof. Except when aggregated in Creation Units, shares of the Fund are not redeemable. Transactions in capital shares for the Fund are disclosed in detail in the Statement of Changes in Net Assets. The consideration for the purchase of Creation Units of a Fund generally consists of the in-kind contribution of a designated portfolio of securities constituting a portfolio sampling representation of the securities included in the Fund’s Underlying Index and an amount of cash, which under certain circumstances may include cash in lieu of portfolio securities. Investors purchasing and redeeming Creation Units pay a purchase transaction fee and a redemption transaction fee to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units.
30
DBX ETF Trust
Notes to Financial Statements (Continued)
6. Payments by Affiliates
During the year ended May 31, 2021, the Advisor agreed to reimburse the Fund $926 for a loss due to a trade executed incorrectly. The amount compensated was less than 0.01% of the Fund’s average net assets, thus having no impact on the Fund’s total return.
7. Other — COVID-19 Pandemic
A novel coronavirus known as COVID-19, declared a pandemic by the World Health Organization, has caused significant uncertainty, market volatility, decreased economic and other activity, increased government activity, including economic stimulus measures, and supply chain interruptions. The full effects, duration and costs of the COVID-19 pandemic are impossible to predict, and the circumstances surrounding the COVID-19 pandemic will continue to evolve, including the risk of future increased rates of infection due to low vaccination rates and/or the lack of effectiveness of current vaccines against new variants. The pandemic has affected and may continue to affect certain countries, industries, economic sectors, companies and investment products more than others, may exacerbate existing economic, political, or social tensions and may increase the probability of an economic recession or depression. The Fund and its investments may be adversely affected by the effects of the COVID-19 pandemic, and the pandemic may result in the Fund and its service providers experiencing operational difficulties in coordinating a remote workforce and implementing their business continuity plans, among others. Management will continue to monitor the impact COVID-19 has on the Fund and reflect the consequences as appropriate in the Fund’s accounting and financial reporting.
31
DBX ETF Trust
To the Shareholders and the Board of Trustees of Xtrackers MSCI EAFE Hedged Equity ETF
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Xtrackers MSCI EAFE Hedged Equity ETF (the “Fund”), (one of the funds constituting DBX ETF Trust (the “Trust”)), including the schedule of investments, as of May 31, 2021, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the funds constituting DBX ETF Trust) at May 31, 2021, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Trust’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal control over financial reporting. As part of our audits we are required to obtain an understanding of the internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of May 31, 2021, by correspondence with the custodians and brokers or by other appropriate auditing procedures where replies from brokers were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more investment companies in the DWS family of funds since at least 1979, but we are unable to determine the specific year.
New York, New York
July 26, 2021
32
DBX ETF Trust
In accordance with Rule 22e-4 (the “Liquidity Rule”) under the Investment Company Act of 1940 (the “1940 Act”), your Fund has adopted a liquidity risk management program (the “Program”), and the Board has designated DBX Advisors LLC (“Advisors”) as Program administrator. The Program is designed to assess and manage your Fund’s liquidity risk (the risk that the Fund would be unable to meet requests to redeem shares of the Fund without significant dilution of remaining investors’ interests in the Fund). Advisors has designated a committee (the “Committee”) composed of personnel from multiple departments within an affiliate of Advisors that is responsible for the implementation and ongoing administration of the Program, which includes assessing the Fund’s liquidity risk under both normal and reasonably foreseeable stressed conditions. Under the Program, every investment held by a Fund is classified on a daily basis into one of four liquidity categories based on estimations of the investment’s ability to be sold during designated timeframes in current market conditions without significantly changing the investment’s market value.
In February 2021, as required by the Program and the Liquidity Rule, Advisors provided the Board with an annual written report (the “Report”) addressing the operation of the Program and assessing the adequacy and effectiveness of its implementation during the period from December 1, 2019 through November 30, 2020 (the “Reporting Period”). During the Reporting Period, your Fund was primarily invested in highly liquid investments (investments that the Fund anticipates can be converted to cash within three business days or less in current market conditions without significantly changing their market value). As a result, your Fund is not required to adopt, and has not adopted, a “Highly Liquid Investment Minimum” as defined in the Liquidity Rule. During the Reporting Period, the Fund did not approach the 15% limit imposed by the Liquidity Rule on holdings in illiquid investments (investments that cannot be sold or disposed of in seven days or less in current market conditions without the sale of the investment significantly changing the market value of the investment). Your Fund did not experience any issues meeting investor redemptions at any time during the Reporting Period. In the Report, Advisors stated that it believes the Program has operated adequately and effectively to manage the Fund’s liquidity risk during the Reporting Period. Advisors also reported that there were no material changes made to the Program during the Reporting Period.
33
DBX ETF Trust
Xtrackers MSCI EAFE Hedged Equity ETF
Board Approval of Investment Advisory Agreement with DBX Advisors LLC
After discussions at the meeting of the Board of Trustees (“Board” or “Trustees”) held on February 17-18, 2021 (the “Meeting”), the Trustees, all of whom are the Independent Trustees (those not affiliated with DBX ETF Trust (the “Trust”) or its service providers), unanimously approved the continuance of the Investment Advisory Agreement with respect to Xtrackers MSCI EAFE Hedged Equity ETF (the “Fund”). The Independent Trustees were advised throughout the review and Meeting by K&L Gates LLP (“Independent Trustee Counsel”).
Before reaching their decision to approve the Investment Advisory Agreement for another annual period, the Independent Trustees evaluated the materials furnished to them in advance of the Meeting from DBX Advisors LLC (“DBX” or the “Advisor”) for purposes of reviewing the agreement’s terms, including statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”) regarding (a) fee and expense information for the Fund (including the fee and expense components and any amounts waived or reimbursed) as compared to a peer group of other exchange-traded funds (“ETFs”) selected pursuant to Broadridge’s proprietary methodology (each, a “Peer Group”) and (b) the Fund’s tracking error as compared to its underlying index over the previous five years (or since inception, if shorter). The Independent Trustees also took into consideration the discussions they had with management during the Meeting and among themselves during their Executive Sessions held on February 17 and February 18, 2021. The Independent Trustees also noted that they had received and should take into consideration a substantial amount of information furnished throughout the year at regular Board meetings, which information included, among other things, an analysis of the Fund’s investment performance, tracking error and related financial information, presentations given by DBX, as well as its periodic reports on brokerage commissions, portfolio execution and other services provided to the Fund.
In reaching its decision to continue in effect the Investment Advisory Agreement for another annual period, the Board considered all factors it believed relevant, including (1) the nature, extent and quality of the services provided to the Fund and its shareholders; (2) the financial resources of DBX and its resulting ability to perform its obligations under the Investment Advisory Agreement; (3) the competitiveness of the advisory fee; (4) the total cost of the services provided by and the profits realized by the Advisor from its relationship with the Fund; (5) the extent to which economies of scale have been realized, and if the Fund’s shareholders have benefitted from those economies; and (6) fall out benefits, if any, enjoyed by the Advisor.
The Board reached a determination, with the assistance of Independent Trustee Counsel and Dechert LLP (“Trust Counsel”) and through the exercise of its business judgment, that approval of the Investment Advisory Agreement and the compensation to be received thereunder is in the best interests of the Fund and its shareholders as well as consistent with the Board’s duties under state and federal law. The Board reached this conclusion based on multiple factors.
The Board considered the following in determining whether to approve the Investment Advisory Agreement:
Nature, Extent and Quality of Services. The Board reviewed in detail the nature, extent and quality of services provided and the risks incurred by the Advisor under the Investment Advisory Agreement. In doing so, the Board considered the information it had received from and the discussions it had with the Advisor continuously during the prior year, in addition to the information the Advisor had provided in response to the Board’s requests prior to the Meeting. The Board considered that these services include, among other things, furnishing a continuous investment program for the Fund, including arranging for, or implementing, the purchase and sale of portfolio securities, the provision of general corporate services such as portfolio management compliance services and the preparation and filing of certain reports on behalf of the Trust. The Board also considered, among other things, the professional experience, qualifications and performance of the senior management and key professional personnel of the Advisor, including portfolio management.
The Board considered that the Advisor provides, at its own expense, office facilities and equipment for use by the Fund and supervisory persons responsible for supervising and monitoring the Trust’s service providers. The Board also considered that the Advisor pays or arranges for the compensation of officers of the Trust who are also officers or employees of the Advisor or one of its DWS Group affiliates, except as may otherwise be
34
DBX ETF Trust
Board Considerations in Approval of Investment Advisory Contracts (Unaudited) (Continued)
determined by the Board. In addition, the Board considered that the Advisor arranges for the provision of transfer agency, custody, fund administration and accounting, and other non-distribution services necessary for the Fund’s operations. The Board also considered that in addition to managing the Fund’s portfolios directly, the Advisor provides oversight of day-to-day operations, including monitoring tracking error, providing services in connection with the creation and redemption of creation units and assistance in meeting legal, compliance and regulatory requirements applicable to the Fund.
The Board considered the information regarding the Fund’s tracking error compared to its underlying index that had been provided by the Advisor and by Broadridge. The Board took note of the detailed information provided by the Advisor throughout the year with respect to the Fund’s tracking error and the sources thereof. The Trustees noted that tracking error for the Fund during the year was in an expected range.
Based on its review, the Board concluded that the nature, extent, and quality of services provided by the Advisor under the Investment Advisory Agreement are reasonable and appropriate in relation to the fees paid to the Advisor, taking special consideration of the fact that the advisory fee is a unitary fee and, as a result, a portion of the unitary advisory fee will be used to compensate the Fund’s service providers. The Board considered the staffing of the Advisor, including the training, qualifications and experience of investment personnel in managing the Fund. The Board also considered the expertise of the Advisor in supervising third party service providers to the Fund, such as the administrator and the custodian, noting the Advisor’s extensive work with these service providers (including onsite due diligence sessions) to conduct such supervision. The Board further considered the compliance program of the Advisor, which supports the Fund’s compliance program.
Advisor’s Financial Resources. In connection with the assessment of the ability of the Advisor to perform its duties under the Investment Advisory Agreement, the Board considered the Advisor’s financial condition and whether it has the resources necessary to carry out its functions. The Board concluded that the Advisor has the financial resources necessary to perform its obligations under the Investment Advisory Agreement.
Reasonableness of Advisory Fee. The Board compared the Fund’s advisory fee and total expenses to those of the other ETFs in its Peer Group. The Board noted that due to the special characteristics of certain funds, there were limitations faced by Broadridge in providing comparable funds in the Peer Groups and the information in the Broadridge reports accordingly may or may not provide meaningful direct comparisons to the Fund. The Board noted that the Peer Group for the Fund included ETFs that were not currency hedged. The Board also noted that the Fund had advisory fees and/or total expenses (after waivers/reimbursements) that were above the average and/or median of its Peer Group.
The Board considered, however, the following additional factor in connection with the Fund:
| — | The Fund had advisory fees and total expenses that were competitive with other currency-hedged ETFs in its Peer Group. |
The Board accordingly noted that the Fund’s fee is competitive with the fees of applicable peer ETFs.
The Board considered that the fee for the Fund is a unitary fee pursuant to which the Advisor pays all of the Fund’s costs (subject to certain specified exceptions). The Board considered that the Fund’s fee had been priced to scale when it was established. The Board also considered that the Fund’s portfolio is managed on a day-to-day basis by the Advisor and that the Advisor also provides oversight of day-to-day operations, including monitoring tracking error, providing services in connection with creation and redemption units and assistance in meeting legal and regulatory requirements applicable to the Fund. Based on its review, the Board concluded that the advisory fee for the Fund is reasonable in light of the services provided.
Costs of Services and Profitability. The Board considered the expenses of the Advisor in developing and rendering services provided to the Fund and the information provided by the Advisor to the Board regarding the Fund’s profitability. The Board considered that the Advisor had provided extensive information about the Advisor’s profitability and the Advisor’s methodology in determining profitability. While the Advisor had provided information about the Advisor’s expenses relating to marketing the Fund, the Board considered the Advisor’s profitability without accounting for such expenses. The Board determined that, although only some of the Funds
35
DBX ETF Trust
Board Considerations in Approval of Investment Advisory Contracts (Unaudited) (Continued)
were profitable as of this time, the Advisor’s profitability with respect to each profitable Fund was not excessive. The Board considered whether the Advisor would benefit in other ways from its relationships with the Fund and concluded that there were no material fall-out benefits likely to accrue to the Advisor related to the operation of the Fund.
Economies of Scale. The Board considered that certain Funds had attracted a substantial amount of assets, but determined that those Funds were not experiencing economies of scale beyond what was reflected in each Fund’s unitary fee, which the Board noted was very competitive. The Board considered that the other Funds were not experiencing economies of scale at this time and determined to revisit this matter after the Funds had attracted more assets.
Given all the information available to it and considering all material factors, the Board concluded that the Investment Advisory Agreement was fair and reasonable and it was unanimously approved.
36
Identification and Background
The Board has responsibility for the overall management and operations of the funds, including general supervision of the duties performed by the Advisor and other service providers. Each Board Member serves until his or her successor is duly elected or appointed and qualified. Each officer serves until he or she resigns, is removed, dies, retires or becomes disqualified.
The Trust currently has three Board Members. The three Independent Board Members have no affiliation or business connection with the Advisor or any of its affiliated persons and do not own any stock or other securities issued by the Advisor.
The Independent Board Members of the Trust, their term of office and length of time served, their principal business occupations during the past five years, the number of portfolios in the fund complex (defined below) overseen by each Independent Board Member, and other directorships, if any, held by the Board Members are shown below. The fund complex includes all registered open- and closed-end funds (including all of their portfolios) advised by the Advisor and any registered funds that have an investment advisor that is an affiliated person of the Advisor. As of the date of this shareholder report, the fund complex consists of the funds in the Trust, as well as the registered funds advised by affiliates of the Advisor.
Shareholder Communications to the Board. Shareholders may send communications to the Trust’s Board by addressing the communications directly to the Board (or individual Board Members) and/or otherwise clearly indicating in the salutation that the communication is for the Board (or individual Board Members). The shareholder may send the communication to either the Trust’s office or directly to such Board members c/o 875 Third Avenue, New York, NY 10022. Other shareholder communications received by the Trust not directly addressed and sent to the Board will be reviewed and generally responded to by management. Such communications will be forwarded to the Board at management’s discretion based on the matters contained therein.
| Independent Board Members |
||||||
| Name, Year of Birth, Position with the Trust and Length of Time Served(1) |
Business Experience and Directorships During the Past 5 Years |
Number of Portfolios in Fund Complex Overseen |
Other Directorships Held by Board Member | |||
| Stephen R. Byers (1953) Chairman since 2016, and Board Member since 2011 (formerly, Lead Independent Board Member, 2015-2016) |
Independent Director (2011- present); Independent Consultant (2014-present); Director of Investment Management, the Dreyfus Corporation (2000-2006) and Vice Chairman and Chief Investment Officer, the Dreyfus Corporation (2002-2006). | 35 | The Arbitrage Funds, Sierra Income Corporation, Mutual Fund Directors Forum | |||
| George O. Elston (1964) Board Member since 2011, Chairman of the Audit Committee since 2015 |
Chief Financial Officer, Enzyvant (2018-present); Chief Executive Officer, 2X Oncology, Inc. (2017-2018); Senior Vice President and Chief Financial Officer, Juniper Pharmaceuticals, Inc. (2014-2016); Senior Vice President and Chief Financial Officer, KBI BioPharma Inc. (2013-2014); Managing Partner, Chatham Street Partners (2010-2013). | 35 | — | |||
| J. David Officer (1948) Board Member since 2011, Chairman of the Nominating Committee since 2015 |
Independent Director (2010-present); Vice Chairman, the Dreyfus Corporation (2006-2009); President, The Dreyfus Family of Funds, Inc. (2006-2009). | 35 | (Chairman of) Ilex Management Ltd; Old Westbury Funds |
37
DBX ETF Trust
Board Members and Officers (Unaudited) (Continued)
| Officers(2) | ||||||
| Name, Year of Birth, Position with the Trust and Length of Time Served(3) |
Business Experience and Directorships During the Past 5 Years | |||||
| Freddi Klassen(4) (1975) President and Chief Executive Officer, 2016-present |
Programmes (Head since 2021), of DWS Investment Management Americas, Inc. and Manager and Chief Operating Officer of the Advisor (2016-present). Formerly: Chief Operating Officer in the Americas for the Traditional Asset Classes Department (2014-2020); Manager and Chief Operating Officer of DWS Investment Management Americas, Inc. (2018-present) and the Advisor (2016-present); Global Chief Operating Officer for Equities Technology in the Investment Bank Division at Deutsche Bank AG (2013-2014); Chief Operating Officer for Exchange Traded Funds and Systematic Funds in Europe (2008-2013). | |||||
| Diane Kenneally(4) (1966) Treasurer, Chief Financial Officer and Controller, 2019-present |
Fund Administration Treasurer’s Office (Co-Head since 2018), of DWS Investment Management Americas, Inc.; Chief Financial Officer and Treasurer for DWS US registered investment companies advised by DWS Investment Management Americas, Inc. (2018-present); Treasurer and Chief Financial Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018-present); formerly: Assistant Treasurer for the DWS funds (2007-2018). | |||||
| Frank Gecsedi(4) (1967) Chief Compliance Officer, 2010-present |
AFC Compliance US (Senior Team Lead), of DWS Investment Management Americas, Inc.; Compliance Department (2016-present), Vice President in the Deutsche Asset Management Compliance Department at Deutsche Bank AG (2013-2016) and Chief Compliance Officer of the Advisor (2010-present); Chief Compliance Officer of DWS Distributors, Inc. (2019-present); Vice President in Deutsche Bank’s Global Markets Legal, Risk and Capital Division (2010-2012). | |||||
| Bryan Richards(4) (1978) Vice President, 2016-present |
Portfolio Engineering, Systematic Investments Solutions (Head), of DWS Investment Management Americas, Inc.(2018-present); Portfolio Manager in the Passive Asset Management Department at DWS (2011-present); Primary Portfolio Manager for the PowerShares DB Commodity ETFs (2011-2015). | |||||
| John Millette(5) (1962) Secretary, 2020-present |
Legal (Associate General Counsel), DWS US Retail Legal (2003-present), of DWS Investment Management Americas, Inc.; Vice President and Secretary of DWS US registered investment companies advised by DWS Investment Management Americas, Inc. (1999-present); Chief Legal Officer, DWS Investment Management Americas, Inc. (2015-present); Director and Vice President of DWS Trust Company (2016-present); Vice President, DBX Advisors LLC (2021-present); Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2011-present); formerly: Secretary of Deutsche Investment Management Americas Inc. (2015-2017); and Assistant Secretary of DBX ETF Trust (2019-2020). | |||||
38
DBX ETF Trust
Board Members and Officers (Unaudited) (Continued)
| Name, Year of Birth, Position with the Trust and Length of Time Served(3) |
Business Experience and Directorships During the Past 5 Years | |||||
| Caroline Pearson(5) (1962) Assistant Secretary, 2020-present |
Legal (Senior Team Lead), DWS US Retail Legal, of DWS Investment Management Americas, Inc.; Chief Legal Officer of DWS US registered investment companies advised by DWS Investment Management Americas, Inc. (2010-present); Chief Legal Officer, DBX Advisors LLC and DBX Strategic Advisors LLC (2020-present); Chief Legal Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2012-present); formerly: Secretary, Deutsche AM Distributors, Inc. (2002-2017); and Secretary, Deutsche AM Service Company (2010-2017). | |||||
| Paul Antosca(5) (1957) Assistant Treasurer, 2019-present |
Fund Administration Tax (Head), of DWS Investment Management Americas, Inc.; Assistant Treasurer for DWS US registered investment companies advised by DWS Investment Management Americas, Inc. (2007-present). | |||||
| Jeffrey Berry(5) (1959) Assistant Treasurer, 2019-present |
Fund Administration (Senior Specialist), of DWS Investment Management Americas, Inc. | |||||
| Sheila Cadogan(5) (1966) Assistant Treasurer, 2019-present |
Fund Administration Treasurer’s Office (Co-Head since 2018), of DWS Investment Management Americas, Inc.; Assistant Treasurer for DWS US registered investment companies advised by DWS Investment Management Americas, Inc. (2017-present); Director and Vice President, DWS Trust Company (2018-present); Assistant Treasurer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018-present). | |||||
| Christina A. Morse(6) (1964) Assistant Secretary, 2017-present |
Vice President at BNY Mellon Asset Servicing (2014-present); Vice President and Counsel at Lord Abbett & Co. LLC (2013-2014). | |||||
| Michelle Goveia-Pine(4) (1970) Interim Anti-Money Laundering Compliance Officer, since July 9, 2020 |
Anti-Financial Crime & Compliance US (Regional Head), of DWS Investment Management Americas, Inc.; Interim AML Officer, DWS Trust Company (since July 28, 2020); and Interim AML Officer of DWS US registered investment companies advised by DWS Investment Management Americas, Inc. (since July 10, 2020); Interim AML Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (since July 24, 2020). | |||||
| (1) | The length of time served is represented by the year in which the Board Member joined the Board. |
| (2) | As a result of their respective positions held with the Advisor and its affiliates, these individuals are considered “interested persons” of the Advisor within the meaning of the 1940 Act. Interested persons receive no compensation from the Funds. |
| (3) | The length of time served is represented by the year in which the officer was first elected to the Trust in such capacity. |
| (4) | Address: 875 Third Avenue, New York, New York 10022. |
| (5) | Address: 100 Summer Street, Boston, MA 02110. |
| (6) | Address: BNY Mellon Asset Servicing, 240 Greenwich Street, New York, NY 10286. |
The Funds’ Statement of Additional Information (“SAI”) includes additional information about the Funds’ Board Members. The SAI is available by calling 855-329-3837, or on the Company’s website at www.Xtrackers.com.
39
DBX ETF Trust
Proxy Voting Policies and Procedures
The Fund’s policies and procedures for voting proxies for portfolio securities and information about how the Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 are available on our Web site — www.Xtrackers.com (click on “Resources” and “Proxy Voting” at the top of the page) — or on the SEC’s Web site — www.sec.gov. To obtain a written copy of the Fund’s policies and procedures without charge, upon request, call us toll free at (855) 329-3837.
Portfolio Holdings Information
The Fund is required to file its complete schedule of portfolio holdings with the SEC for its first and third fiscal quarters on Form N-PORT. Copies of the filings are available without charge, upon request on the SEC’s website at www.sec.gov and are available by calling the Trust at 855-329-3837.
Information about the Fund’s portfolio holdings is available daily at www.Xtrackers.com.
Discount & Premium Information
Information regarding how often shares of the Fund traded on NYSE Arca at a price above (i.e., at a premium) or below (i.e., at a discount) the NAV of the Fund can be found at www.Xtrackers.com.
Tax Information
Form 1099-DIV and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisors.
The Fund designates the following amounts or, if subsequently determined to be different, the maximum allowable for its fiscal year ended May 31, 2021.
| Qualified Dividend Income* | ||
| 84% |
* The above percentage is based on ordinary income dividends paid to shareholders during each Fund’s fiscal year.
The Fund intends to elect to pass through to shareholders the credit for taxes paid to foreign countries. The gross foreign source income and foreign taxes paid are as follows:
| Gross Foreign Income |
Foreign Taxes Paid | |||
| $108,616,234 | $6,193,460 |
40
DBX ETF Trust
DBX Advisors LLC (“Advisors”) collects non-public information about you from the following sources: (i) information received from you on applications or other forms; and (ii) information about your transactions with the Advisors, Advisors’ affiliates and third-party service providers and vendors. Advisors does not disclose any non-public personal information about you to anyone, other than as set forth below, as permitted by applicable law and regulation. Advisors may disclose non-public personal information about you to the funds in which you invest, to Advisors’ affiliates, and to non-affiliated companies that work with Advisors to service your account(s), or to provide services or process transactions that you have requested. Advisors may disclose non-public personal information in situations that may include, but are not limited to, in response to legal and/or regulatory inquiries and the proposed or actual sale, assignment merger or other transfer of all or a portion of Advisors’ business to another business entity. Advisors may also disclose non-public personal information about you to parties representing you, such as your investment representative, your accountant, your tax advisor, or to other third parties at your direction/consent. Advisors will not sell, rent, license or trade your personal and financial information to or with third parties for their own direct marketing use unless you give us general or specific consent to do so. If you decide to close your account(s) or become an inactive customer, Advisors will adhere to the privacy policies and practices as described in this notice. Advisors restricts access to your personal and account information to those employees who need to know that information to provide products and services to you. Advisors maintains reasonable and customary physical, electronic and procedural safeguards to guard your non-public personal information.
California residents may go to https://fundsus.dws.com/us/en-us/legal-resources/privacy-policy.html to obtain additional information relating to their rights under California state law.
Advisors reserves the right, at their discretion, to change, modify, add, or remove portions of this Privacy Policy Notice, and any of the policies described herein, at any time. Advisors will indicate any such changes to the Privacy Policy Notice at the privacy link which can be found at www.Xtrackers.com. At all times, you are bound by the then-current version of the Privacy Policy and all applicable laws. Advisors highly recommends that you review this Privacy Policy Notice from time to time to ensure that you are familiar with the most recent version. The examples contained in this Privacy Policy Notice are illustrations; they are not intended to be exclusive.
41
DBX ETF Trust
This report is intended for the shareholders of DBX ETF Trust.
This report must be preceded or accompanied by a prospectus.
Investing involves risk, including the possible loss of principal. Stocks may decline in value. Foreign investing involves greater and different risks than investing in U.S. companies, including currency fluctuations, less liquidity, less developed or less efficient trading markets, lack of comprehensive company information, political instability and differing auditing and legal standards. The Fund’s use of forward currency contracts may not be successful in hedging currency exchange rates changes and could eliminate some or all of the benefit of an increase in the value of a foreign currency versus the U.S. dollar. Funds investing in a single industry, country or in a limited geographic region generally are more volatile than more diversified funds. Investing in derivatives entails special risks relating to liquidity, leverage and credit that may reduce returns and/or increase volatility. Performance of the Fund may diverge from that of the Underlying Index due to operating expenses, transaction costs, cash flows, use of sampling strategies or operational inefficiencies. An investment in the Fund should be considered only as a supplement to a complete investment program for those investors willing to accept the risks associated with the Fund. Please read the prospectus for more information.
War, terrorism, economic uncertainty, trade disputes, public health crises (including the recent pandemic spread of the novel coronavirus) and related geopolitical events could lead to increased market volatility, disruption to U.S. and world economies and markets and may have significant adverse effects on the Funds and their investments.
Shares of the Funds are bought and sold at market price (not NAV) throughout the day on the NYSE Arca, Inc. Transactions in Fund shares may result in brokerage commissions and may generate tax consequences. There can be no assurance that an active trading market for shares of a Fund will develop or be maintained.
DBX ETF Trust Funds are distributed by ALPS Distributors, Inc. (“ALPS”). The Funds are managed by DBX Advisors LLC which is not affiliated with ALPS.
The brand DWS represents DWS Group GmbH & Co. KGaA and any of its subsidiaries such as DWS Distributors, Inc. which offers investment products or DWS Investment Management Americas, Inc. and RREEF America L.L.C. which offer advisory services.
The Funds or securities referred to herein are not sponsored, endorsed, issued, sold or promoted by MSCI, and MSCI bears no liability with respect to any such Funds or securities or any index on which such Funds or securities are based. The prospectus contains a more detailed description of the limited relationship MSCI has with DBX Advisors LLC and any related funds.
Copyright © 2021 DWS Group. All rights reserved. XtrackersTM is a trademark of DWS Investment GmbH. All other trademarks, servicemarks or registered trademarks are the property of their respective owners.
Not FDIC Insured | No Bank Guarantee | May Lose Value
DBX ETF Trust
| Investment advisor DBX Advisors LLC 875 Third Avenue New York, NY 10022 |
Administrator, custodian, fund accounting agent, lending agent & transfer agent The Bank of New York Mellon 240 Greenwich Street New York, NY 10286 |
Distributor ALPS Distributors, Inc. 1290 Broadway Suite 1000 Denver, CO 80203 | ||
| Independent registered public accounting firm Ernst & Young LLP 5 Times Square New York, NY 10036 |
Legal counsel Vedder Price P.C. 1633 Broadway New York, NY 10019 |
|||
R-38753-7 (7/21) DBX004905 (7/22)
May 31, 2021
Annual Report
DBX ETF Trust
Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF (ESCR)
Xtrackers J.P. Morgan ESG Emerging Markets Sovereign ETF (ESEB)
Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF (ESHY)
Xtrackers Municipal Infrastructure Revenue Bond ETF (RVNU)
Xtrackers MSCI All World ex US High Dividend Yield Equity ETF (HDAW)
Xtrackers MSCI EAFE High Dividend Yield Equity ETF (HDEF)
DBX ETF Trust
| Page | ||||
| 1 | ||||
| 3 | ||||
| Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF |
6 | |||
| 8 | ||||
| 10 | ||||
| 12 | ||||
| Xtrackers MSCI All World ex US High Dividend Yield Equity ETF |
14 | |||
| 16 | ||||
| 18 | ||||
| Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF |
19 | |||
| 29 | ||||
| 34 | ||||
| 47 | ||||
| Xtrackers MSCI All World ex US High Dividend Yield Equity ETF |
54 | |||
| 60 | ||||
| 64 | ||||
| 66 | ||||
| 68 | ||||
| 71 | ||||
| 74 | ||||
| 85 | ||||
| 86 | ||||
| Board Considerations in Approval of Investment Advisory Contracts |
87 | |||
| 90 | ||||
| 93 | ||||
| 94 | ||||
To our Shareholders: (Unaudited)
Dear Shareholder,
We are pleased to provide this annual report for six of our ETFs tracking the fixed income and equity dividend markets for the period ended May 31, 2021.
After facing a pandemic induced recession in 2020, the global economy started to recover in 2021 as vaccine rollouts helped governments control the spread of coronavirus and reopen the economies in a phased manner. The U.S. economy grew faster than its global peers, buoyed by large fiscal stimulus and improving health conditions. While the labor market continued to improve during the reporting period, it still needs to make substantial progress to reach pre-pandemic levels. The Eurozone economy continued to lag as higher infection rates and a slow vaccination rollout prevented the economy from reopening. On a positive note, labor markets remained strong, along with robust consumer disposable incomes. The resurgence of the COVID-19 pandemic remained a drag on emerging market economies. However, the reluctance to go for complete lockdowns, along with hopes of progress in vaccination programs, helped emerging markets stay afloat.
On the backdrop of the continued COVID-19-led uncertainty and economic shutdowns imposed by governments, central banks across the globe kept borrowing costs at ultra-low levels and continued with their asset buying programs. During the reporting period, the Federal Reserve Bank (FRB) took an array of actions to limit the economic damage of the pandemic. In addition to bringing the rates down to a range of 0% to 0.25%, it undertook a massive quantitative easing program to support smooth market functioning. Despite some concerns of inflation due to the expansionary monetary policy, the FRB termed it as transitory and reaffirmed its accommodative stance until substantial progress is made towards achieving maximum employment and price stability. Furthermore, President Joe Biden signed the USD1.9tn coronavirus relief package to provide additional aid to the economy. After ending 2020 under 1%, the 10-year U.S. Treasury yield has been rising since the beginning of the current calendar year on the prospect of strong economic growth and increasing concerns about inflation. Given that interest rates are at rock-bottom levels, investors sought out returns in securities, which led to the narrowing of U.S. high yield credit spreads as demand for riskier assets increased.
The Eurozone economy remained on a weak footing as a fresh wave of coronavirus forced countries to impose new lockdowns. All the major economies contracted as region-wide lockdowns hit private consumption. Given this backdrop, the European Central Bank (ECB) reiterated its loose monetary policy stance to support the nineteen euro area economies as they battle the COVID-19 shock. Furthermore, it announced its intention to continue bond purchases until March 2022 as part of its USD2.2tn Pandemic Emergency Purchase Program. In its latest meeting, the Bank of England held its main lending rate at 0.1% and maintained it target asset purchases at USD1.2tn. Elsewhere, the Bank of Japan kept interest rates at ultra-low levels as economy remained under the strain caused by the pandemic.
Renewed waves of infections and new variants of the virus in many countries pose a risk to the broad-based recovery of the world economy. Keeping economic growth on track while not giving inflation any room to expand remains another challenge for nations infused with high liquidity. That said, accelerated vaccinations and continued adaptation of economic activities to overcome pandemic-related restrictions should support economies going forward. In addition, support from policymakers on both fiscal and monetary front should ensure that economic recovery is firmly underway. A revival in the economic cycle and good corporate earnings should further expedite economic recovery.
1
Our team appreciates your trust and looks forward to serving your investment needs through innovative index-driven strategies.
Sincerely,
/s/ Freddi Klassen
Freddi Klassen
President and Chief Executive Officer
Assumptions, estimates and opinions contained in this document constitute our judgment as of the date of the document and are subject to change without notice. Any projections are based on a number of assumptions as to market conditions and there can be no guarantee that any projected results will be achieved. Past performance is not a guarantee of future results.
2
DBX ETF Trust
Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF (ESCR)
Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF (ESCR), seeks to track the performance, before fees and expenses, of the Bloomberg Barclays MSCI US Corporate Sustainability SRI Sector/Credit/Maturity Neutral Index (the ESCR Index). The ESCR index measures the investment grade, fixed-rate, taxable corporate bond market, including USD denominated securities publicly issued by US and non-US industrial, utility and financial issuers, while implementing ESG considerations. For the 12-month period ended May 31, 2021, ESCR returned 1.95%, compared to the ESCR Index return of 2.85%.
All sectors contributed positively to performance during the period with the greatest contributions coming from Financial Institutions, Energy, and Consumer Non-Cyclical.
Xtrackers J.P. Morgan ESG Emerging Markets Sovereign ETF (ESEB)
Xtrackers J.P. Morgan ESG Emerging Markets Sovereign ETF (ESEB), seeks to track the performance, before fees and expenses, of the J.P. Morgan ESG EMBI Global Diversified Sovereign Index (the ESEB Index). The index is an unmanaged, market-capitalization weighted, total-return index tracking the traded market for U.S.-dollar-denominated Brady bonds, Eurobonds, traded loans, and local market debt instruments issued by sovereign and quasi-sovereign entities, while implementing ESG considerations. For the 12-month period ended May 31, 2021, ESEB returned 9.57%, compared to the ESEB Index return of 9.57%.
From a geographical perspective, majority of the countries contributed positively with greatest contributions coming from Oman, Dominican Republic and Ecuador, while Argentina, Peru and Morocco detracted from performance.
Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF (ESHY)
Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF (ESHY), seeks to track the performance, before fees and expenses, of the J.P. Morgan ESG DM Corporate High Yield USD Index (the ESHY Index). The ESHY Index provides exposure to a USD denominated high yield corporate bond index of developed market issuers while implementing ESG considerations. For the 12-month period ended May 31, 2021, ESHY returned 15.22%, compared to the ESHY Index return of 14.42%.
All sectors contributed positively to performance during the period with the greatest contributions coming from Energy, Consumer Cyclical and Capital Goods.
Xtrackers Municipal Infrastructure Revenue Bond ETF (RVNU)
The Xtrackers Municipal Infrastructure Revenue Bond ETF (RVNU) seeks investment results that correspond generally to the performance, before fees and expenses, of the Solactive Municipal Infrastructure Revenue Bond Index (the RVNU Index). The RVNU Index is designed to track returns of the segment of the U.S. long-term tax-exempt bond market that consists of infrastructure revenue bonds. For the 12-month period ended May 31, 2021, RVNU returned 8.50%, compared to the RVNU Index return of 9.12%.
All sectors contributed positively to performance during the period with the greatest contributions coming from Transport and Utility sectors.
Xtrackers MSCI All World ex US High Dividend Yield Equity ETF (HDAW)
The Xtrackers MSCI All World ex US High Dividend Yield Equity ETF (HDAW) seeks investment results that correspond generally to the performance, before fees and expenses, of the MSCI ACWI ex USA High Dividend Yield Index (the HDAW Index). The HDAW Index is designed to give investors exposure to equity securities across developed and emerging market countries (excluding the United States), with higher dividend income and quality characteristics than average dividend yields of equities in its parent index (excluding REITs), where such higher dividend income and quality characteristics are both sustainable and persistent. For the 12-month period ended May 31, 2021, HDAW returned 34.36%, compared to the HDAW Index return of 34.37%.
All sectors contributed positively to performance during the reporting period with the greatest contributions coming from Financials, Materials and Industrials. From a geographical perspective, Canada, Great Britain and Germany were the major positive contributors.
3
DBX ETF Trust
Management’s Discussion of Fund Performance (Unaudited) (Continued)
Xtrackers MSCI EAFE High Dividend Yield Equity ETF (HDEF)
The Xtrackers MSCI EAFE High Dividend Yield Equity ETF (HDEF) seeks investment results that correspond generally to the performance, before fees and expenses, of the MSCI EAFE High Dividend Yield Index (the HDEF Index). The HDEF Index is designed to give investors exposure to equity securities in developed international stock markets, with higher dividend income and quality characteristics than average dividend yields of equities in its parent index (excluding REITs), where such higher dividend income and quality characteristics are both sustainable and persistent. For the 12-month period ended May 31, 2021, HDEF returned 32.32%, compared to the HDEF Index return of 32.21%.
All sectors contributed positively to performance during the period with the greatest contributions coming from Financials, Materials and Industrials. From a geographical perspective, Great Britain, Germany and Japan were the major positive contributors to the performance.
*************************
Performance data quoted represents past performance and does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain the most recent month-end performance data visit www.Xtrackers.com. Returns assume that dividends and capital gains distributions have been reinvested. See pages 6-17 of this report for additional performance information, including performance data based on market value. The views expressed in this report reflect those of the portfolio management team only through the end of the period of the report as stated on the cover. The management team’s views are subject to change at any time based on market and other conditions and should not be construed as a recommendation. Current and future portfolio holdings are subject to risk.
4
This Page is Intentionally Left Blank
5
DBX ETF Trust
Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF (ESCR)
The Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF (the “Fund”), using a “passive” or indexing investment approach, seeks investment results that correspond generally to the performance, before fees and expenses, of the Bloomberg Barclays MSCI US Corporate Sustainability SRI Sector/Credit/Maturity Neutral Index (the “Underlying Index”). The Underlying Index is designed to apply environmental, social and governance (“ESG”) considerations to a broader parent index. The Underlying Index generally aims to keep the broad characteristics of its parent index, the Bloomberg Barclays US Corporate Index (an investment grade corporate bond universe), resulting in a broad investment grade fixed income market exposure with ESG aspects. It is not possible to invest directly into an index.
| Performance as of May 31, 2021 |
| Average Annual Total Return | ||||||||
| Net Asset Value | Market Value | Bloomberg Barclays MSCI US Corporate Sustainability SRI Sector/Credit/Maturity Neutral Index2 |
Bloomberg Barclays US Corporate Index | |||||
| One Year |
1.95% | 1.53% | 2.85% | -0.40% | ||||
| Five Year |
1.97% | 1.87% | 1.05% | 3.25% | ||||
| Since Inception1 |
1.40% | 1.36% | 0.70% | 3.11% | ||||
| Cumulative Total Returns | ||||||||
| Net Asset Value | Market Value | Bloomberg Barclays MSCI US Corporate Sustainability SRI Sector/Credit/Maturity Neutral Index2 |
Bloomberg Barclays US Corporate Index | |||||
| One Year |
1.95% | 1.53% | 2.85% | -0.40% | ||||
| Five Year |
10.22% | 9.70% | 5.36% | 17.34% | ||||
| Since Inception1 |
9.04% | 8.84% | 4.44% | 21.11% | ||||
1 Total returns are calculated based on the commencement of operations, March 3, 2015 (“Inception”).
2 On May 12, 2020, the Fund changed its Underlying Index from Solactive Investment Grade Bond — Interest Rate Hedged Index to the Bloomberg Barclays MSCI US Corporate Sustainability SRI Sector/Credit/Maturity Neutral Index. Returns reflect performance for the Solactive Investment Grade Bond — Interest Rate Hedged Index through May 11, 2020.
Prior to May 12, 2020, the Fund was known as Xtrackers Investment Grade Bond — Interest Rate Hedged ETF and had a different investment strategy. Past performance may have been different if the Fund’s current investment strategy had been in effect.
Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at www.Xtrackers.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the sale of fund shares or redemption of fund creation units. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are sold in the market or redeemed. Performance for certain funds may reflect a waiver of a portion of the unitary advisory fee. Without such waiver, performance would have been lower. The gross expense ratio of the Fund, as stated in the fee table of the prospectus dated October 1, 2020, was 0.15%, and may differ from the expense ratio disclosed in the Financial Highlights table in this report.
The Fund’s net asset value or “NAV” is calculated by dividing the value of the Fund’s total assets less total liabilities by the number of shares outstanding. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not have traded in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary trading, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.
6
DBX ETF Trust
Performance Summary (Unaudited)
Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF (ESCR) (Continued)
* As a percent of total investments excluding securities lending collateral and cash equivalents.
Portfolio holdings and characteristics are subject to change. For more complete details about the Fund’s investment portfolio see page 19.
7
DBX ETF Trust
Performance Summary (Unaudited)
Xtrackers J.P. Morgan ESG Emerging Markets Sovereign ETF (ESEB)
The Xtrackers J.P. Morgan ESG Emerging Markets Sovereign ETF (the “Fund”), using a “passive” or indexing investment approach, seeks investment results that correspond generally to the performance, before fees and expenses, of the J.P. Morgan ESG EMBI Global Diversified Sovereign Index (the “Underlying Index”). The Underlying Index is designed to apply environmental, social and governance (“ESG”) considerations to a broader parent index. The Underlying Index generally aims to keep the broad characteristics of its parent index, the J.P. Morgan EMBI Global Diversified Sovereign Index, resulting in a broad emerging markets sovereign debt market exposure with ESG aspects. It is not possible to invest directly into an index.
| Performance as of May 31, 2021 |
| Average Annual Total Return | ||||||||
| Net Asset Value | Market Value | J.P. Morgan ESG EMBI Global Diversified Sovereign Index2 |
J.P. Morgan EMBI Global Diversified Sovereign Index | |||||
| One Year |
9.57% | 9.01% | 9.57% | 10.87% | ||||
| Five Year |
3.37% | 3.35% | 1.95% | 5.25% | ||||
| Since Inception1 |
3.03% | 3.07% | 1.83% | 5.13% | ||||
| Cumulative Total Returns | ||||||||
| Net Asset Value | Market Value | J.P. Morgan ESG EMBI Global Diversified Sovereign Index2 |
J.P. Morgan EMBI Global Diversified Sovereign Index | |||||
| One Year |
9.57% | 9.01% | 9.57% | 10.87% | ||||
| Five Year |
18.00% | 17.93% | 10.12% | 29.18% | ||||
| Since Inception1 |
20.51% | 20.80% | 11.98% | 36.70% | ||||
1 Total returns are calculated based on the commencement of operations, March 3, 2015 (“Inception”).
2 On May 12, 2020, the Fund changed its Underlying Index from Solactive Emerging Markets Bond — Interest Rate Hedged Index to the J.P. Morgan ESG EMBI Global Diversified Sovereign Index. Returns reflect performance for the Solactive Emerging Markets Bond — Interest Rate Hedged Index through May 11, 2020.
Prior to May 12, 2020, the Fund was known as Xtrackers Emerging Markets Bond — Interest Rate Hedged ETF and had a different investment strategy. Past performance may have been different if the Fund’s current investment strategy had been in effect.
Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at www.Xtrackers.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the sale of fund shares or redemption of fund creation units. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are sold in the market or redeemed. Performance for certain funds may reflect a waiver of a portion of the unitary advisory fee. Without such waiver, performance would have been lower. The gross expense ratio of the Fund, as stated in the fee table of the prospectus dated October 1, 2020, was 0.35%, and may differ from the expense ratio disclosed in the Financial Highlights table in this report.
The Fund’s net asset value or “NAV” is calculated by dividing the value of the Fund’s total assets less total liabilities by the number of shares outstanding. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not have traded in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary trading, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.
8
DBX ETF Trust
Performance Summary (Unaudited)
Xtrackers J.P. Morgan ESG Emerging Markets Sovereign ETF (ESEB) (Continued)
| Growth of an Assumed $10,000 Investment |
1 Based on Net Asset Value from commencement of operations, March 3, 2015.
| Quality* as of May 31, 2021 |
| Description | % of Market Value | |||
| AA |
5.2% | |||
| A |
9.6% | |||
| BBB |
36.0% | |||
| BB |
19.6% | |||
| B |
23.5% | |||
| CCC |
5.6% | |||
| C |
0.5% | |||
|
|
|
|||
| Total |
100.0% | |||
The quality ratings represents the average of Moody’s Investor Services, Inc. (“Moody’s”), S&P Global Ratings (S&P) or Fitch Ratings Inc. (Fitch) credit ratings. The ratings of Moody’s, S&P and Fitch represent their opinions as to the quality of the securities they rate. Credit quality measures a bond issuer’s ability to repay interest and principal in a timely manner and is measured on a scale that ranges from AAA (highest) to D (lowest). Ratings are relative and subjective and are not absolute standards of quality. Credit quality does not remove market risk and is subject to change.
| Country Diversification* as of May 31, 2021 |
| Saudi Arabia |
4.7% | |||
| Uruguay |
4.6% | |||
| Brazil |
4.4% | |||
| Oman |
4.3% | |||
| Qatar |
4.2% | |||
| Philippines |
4.2% | |||
| Indonesia |
3.9% | |||
| Panama |
3.9% | |||
| Ukraine |
3.6% | |||
| Dominican Republic |
3.6% | |||
| Russia |
3.2% | |||
| Ghana |
3.1% | |||
| Mexico |
3.1% | |||
| United Arab Emirates |
3.0% | |||
| Turkey |
2.9% | |||
| Colombia |
2.8% | |||
| Peru |
2.8% | |||
| Egypt |
2.3% | |||
| Bahrain |
2.1% | |||
| Poland |
2.0% | |||
| Argentina |
2.0% | |||
| Ecuador |
2.0% | |||
| Other |
27.3% | |||
|
|
|
|||
| Total |
100.0% |
Modified duration to worst as of May 31, 2021: 8.1 years
Modified duration to worst is the measure of sensitivity of the price of a bond to a change in interest rates, assuming worst case scenario.
* As a percentage of total investments excluding securities lending collateral and cash equivalents.
Portfolio holdings and characteristics are subject to change. For more complete details about the Fund’s investment portfolio see page 29.
9
DBX ETF Trust
Performance Summary (Unaudited)
Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF (ESHY)
The Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF (the “Fund”), using a “passive” or indexing investment approach, seeks investment results that correspond generally to the performance, before fees and expenses, of the J.P. Morgan ESG DM Corporate High Yield USD Index (the “Underlying Index”). The Underlying Index is designed to apply environmental, social and governance (“ESG”) considerations to a broader parent index. The Underlying Index generally aims to keep the broad characteristics of its parent index, the J.P. Morgan DM High Yield USD Index (a USD denominated high yield corporate bond index of developed market issuers), resulting in a broad high yield fixed income market expo-sure with ESG aspects. It is not possible to invest directly into an index.
| Performance as of May 31, 2021 |
| Average Annual Total Return | ||||||||
| Net Asset Value | Market Value | J.P. Morgan ESG DM Corporate High Yield USD Index2 |
Baseline JESG DM Corporate HY USD Index | |||||
| One Year |
15.22% | 13.75% | 14.42% | 14.17% | ||||
| Five Year |
5.26% | 5.18% | 4.17% | 7.31% | ||||
| Since Inception1 |
3.35% | 3.32% | 2.71% | 5.87% | ||||
| Cumulative Total Returns | ||||||||
| Net Asset Value | Market Value | J.P. Morgan ESG DM Corporate High Yield USD Index2 |
Baseline JESG DM Corporate HY USD Index | |||||
| One Year |
15.22% | 13.75% | 14.42% | 14.17% | ||||
| Five Year |
29.20% | 28.72% | 22.64% | 42.27% | ||||
| Since Inception1 |
22.88% | 22.64% | 18.22% | 42.85% | ||||
1 Total returns are calculated based on the commencement of operations, March 3, 2015 (“Inception”).
2 On May 12, 2020, the Fund changed its Underlying Index from Solactive High Yield Corporate Bond — Interest Rate Hedged Index to the J.P. Morgan ESG DM Corporate High Yield USD Index. Returns reflect performance for the Solactive High Yield Corporate Bond — Interest Rate Hedged Index through May 11, 2020.
Prior to May 12, 2020, the Fund was known as Xtrackers High Yield Corporate Bond — Interest Rate Hedged ETF and had a different investment strategy. Past performance may have been different if the Fund’s current investment strategy had been in effect.
Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at www.Xtrackers.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the sale of fund shares or redemption of fund creation units. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are sold in the market or redeemed. Performance for certain funds may reflect a waiver of a portion of the unitary advisory fee. Without such waiver, performance would have been lower. The gross expense ratio of the Fund, as stated in the fee table of the prospectus dated October 1, 2020, was 0.20%, and may differ from the expense ratio disclosed in the Financial Highlights table in this report.
The Fund’s net asset value or “NAV” is calculated by dividing the value of the Fund’s total assets less total liabilities by the number of shares outstanding. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not have traded in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary trading, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.
10
DBX ETF Trust
Performance Summary (Unaudited)
Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF (ESHY) (Continued)
* As a percentage of total investments excluding securities lending collateral and cash equivalents.
Portfolio holdings and characteristics are subject to change. For more complete details about the Fund’s investment portfolio see page 34.
11
DBX ETF Trust
Performance Summary (Unaudited)
Xtrackers Municipal Infrastructure Revenue Bond ETF (RVNU)
The Xtrackers Municipal Infrastructure Revenue Bond ETF (the “Fund”), using a “passive” or indexing investment approach, seeks investment results that correspond generally to the performance, before fees and expenses, of the Solactive Municipal Infrastructure Revenue Bond Index (the “Underlying Index”). The Underlying Index is designed to track the performance of the U.S. long-term tax exempt bond market, consisting of infrastructure revenue bonds. It is not possible to invest directly into an index.
| Performance as of May 31, 2021 |
| Average Annual Total Return | ||||||||
| Net Asset Value | Market Value | Solactive Municipal Infrastructure Revenue Bond Index |
S&P Municipal Bond Revenue Index | |||||
| One Year |
8.50% | 8.60% | 9.12% | 6.26% | ||||
| Five Year |
4.23% | 4.15% | 4.67% | 3.88% | ||||
| Since Inception1 |
4.91% | 4.93% | 5.22% | 4.19% | ||||
| Cumulative Total Returns | ||||||||
| Net Asset Value | Market Value | Solactive Municipal Infrastructure Revenue Bond Index |
S&P Municipal Bond Revenue Index | |||||
| One Year |
8.50% | 8.60% | 9.12% | 6.26% | ||||
| Five Year |
23.03% | 22.52% | 25.61% | 20.96% | ||||
| Since Inception1 |
46.70% | 46.97% | 50.22% | 38.81% | ||||
1 Total returns are calculated based on the commencement of operations, June 4, 2013 (“Inception”).
Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at www.Xtrackers.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the sale of fund shares or redemption of fund creation units. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are sold in the market or redeemed. Performance for certain funds may reflect a waiver of a portion of the unitary advisory fee. Without such waiver, performance would have been lower. The gross expense ratio of the Fund, as stated in the fee table of the prospectus dated October 1, 2020, was 0.15%, and may differ from the expense ratio disclosed in the Financial Highlights table in this report.
The Fund’s net asset value or “NAV” is calculated by dividing the value of the Fund’s total assets less total liabilities by the number of shares outstanding. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not have traded in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary trading, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.
12
DBX ETF Trust
Performance Summary (Unaudited)
Xtrackers Municipal Infrastructure Revenue Bond ETF (RVNU) (Continued)
* As a percent of total investments.
Portfolio holdings and characteristics are subject to change. For more complete details about the Fund’s investment portfolio see page 47.
13
DBX ETF Trust
Performance Summary (Unaudited)
Xtrackers MSCI All World ex US High Dividend Yield Equity ETF (HDAW)
The Xtrackers MSCI All World ex US High Dividend Yield Equity ETF (the “Fund”), using a “passive” or indexing investment approach, seeks investment results that correspond generally to the performance, before fees and expenses, of the MSCI ACWI ex USA High Dividend Yield Index (the “Underlying Index”). The Underlying Index is designed to reflect the performance of equities (excluding real estate investment trusts (“REITs”)) in developed and emerging stock markets (excluding the United States) in its parent index, the MSCI ACWI ex US Index, with higher dividend income and quality characteristics than average dividend yields of equities in the parent index, where such higher dividend income and quality characteristics are both sustainable and persistent. It is not possible to invest directly into an index.
| Performance as of May 31, 2021 |
| Average Annual Total Return | ||||||||
| Net Asset Value | Market Value | MSCI ACWI ex USA High Dividend Yield Index |
MSCI ACWI ex US Index | |||||
| One Year |
34.36% | 34.17% | 34.37% | 42.62% | ||||
| Five Year |
7.33% | 7.30% | 7.49% | 10.86% | ||||
| Since Inception1 |
5.03% | 5.05% | 5.19% | 7.81% | ||||
| Cumulative Total Returns | ||||||||
| Net Asset Value | Market Value | MSCI ACWI ex USA High Dividend Yield Index |
MSCI ACWI ex US Index | |||||
| One Year |
34.36% | 34.17% | 34.37% | 42.62% | ||||
| Five Year |
42.44% | 42.26% | 43.47% | 67.42% | ||||
| Since Inception1 |
32.94% | 33.10% | 34.13% | 54.75% | ||||
1 Total returns are calculated based on the commencement of operations, August 12, 2015 (“Inception”).
Prior to February 13, 2018, the Fund was known as Xtrackers MSCI All World ex US High Dividend Yield Hedged Equity ETF and had a different investment strategy. Past performance may have been different if the Fund’s current investment strategy had been in effect.
Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at www.Xtrackers.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the sale of fund shares or redemption of fund creation units. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are sold in the market or redeemed. Performance for certain funds may reflect a waiver of a portion of the unitary advisory fee. Without such waiver, performance would have been lower. The gross expense ratio of the Fund, as stated in the fee table of the prospectus dated October 1, 2020, was 0.20%, and may differ from the expense ratio disclosed in the Financial Highlights table in this report.
The Fund’s net asset value or “NAV” is calculated by dividing the value of the Fund’s total assets less total liabilities by the number of shares outstanding. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not have traded in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary trading, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.
14
DBX ETF Trust
Performance Summary (Unaudited)
Xtrackers MSCI All World ex US High Dividend Yield Equity ETF (HDAW) (Continued)
* As a percent of total investments excluding exchange-traded funds and securities lending collateral.
Portfolio holdings and characteristics are subject to change. For more complete details about the Fund’s investment portfolio see page 54.
15
DBX ETF Trust
Performance Summary (Unaudited)
Xtrackers MSCI EAFE High Dividend Yield Equity ETF (HDEF)
The Xtrackers MSCI EAFE High Dividend Yield Equity ETF (the “Fund”), using a “passive” or indexing investment approach, seeks investment results that correspond generally to the performance, before fees and expenses, of the MSCI EAFE High Dividend Yield Index (the “Underlying Index”). The Underlying Index is designed to reflect the performance of equities (excluding real estate investment trusts (“REITs”)) in its parent index, the MSCI EAFE Index, with higher dividend income and quality characteristics than average dividend yields of equities in the parent index, where such higher dividend income and quality characteristics are both sustainable and persistent. It is not possible to invest directly into an index.
| Performance as of May 31, 2021 |
| Average Annual Total Return | ||||||||
| Net Asset Value | Market Value | MSCI EAFE High Dividend Yield Index |
MSCI EAFE Index | |||||
| One Year |
32.32% | 31.65% | 32.21% | 38.85% | ||||
| Five Year |
6.98% | 6.95% | 7.11% | 9.84% | ||||
| Since Inception1 |
5.03% | 5.04% | 5.18% | 6.81% | ||||
| Cumulative Total Returns | ||||||||
| Net Asset Value | Market Value | MSCI EAFE High Dividend Yield Index |
MSCI EAFE Index | |||||
| One Year |
32.32% | 31.65% | 32.21% | 38.85% | ||||
| Five Year |
40.12% | 39.96% | 40.97% | 59.90% | ||||
| Since Inception1 |
33.00% | 33.04% | 34.10% | 46.64% | ||||
1 Total returns are calculated based on the commencement of operations, August 12, 2015 (“Inception”).
Prior to February 13, 2018, the Fund was known as Xtrackers MSCI EAFE High Dividend Yield Hedged Equity ETF and had a different investment strategy. Past performance may have been different if the Fund’s current investment strategy had been in effect.
Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at www.Xtrackers.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the sale of fund shares or redemption of fund creation units. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are sold in the market or redeemed. Performance for certain funds may reflect a waiver of a portion of the unitary advisory fee. Without such waiver, performance would have been lower. The gross expense ratio of the Fund, as stated in the fee table of the prospectus dated October 1, 2020, was 0.20%, and may differ from the expense ratio disclosed in the Financial Highlights table in this report.
The Fund’s net asset value or “NAV” is calculated by dividing the value of the Fund’s total assets less total liabilities by the number of shares outstanding. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not have traded in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary trading, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.
An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.
Generally accepted accounting principles require adjustments to be made to the net assets of the Fund at period end for financial reporting purposes only, and as such, the total return based on the unadjusted net asset value per share may differ from the total return reported in the financial highlights.
16
DBX ETF Trust
Performance Summary (Unaudited)
Xtrackers MSCI EAFE High Dividend Yield Equity ETF (HDEF) (Continued)
* As a percent of total investments excluding securities lending collateral and cash equivalents.
Portfolio holdings and characteristics are subject to change. For more complete details about the Fund’s investment portfolio see page 60.
17
DBX ETF Trust
As a shareholder of one or more of the Funds, you incur two types of costs: (1) transaction costs, including brokerage commissions paid on purchases and sales of fund shares, and (2) ongoing costs, including unitary advisory fees and other Fund expenses. In the most recent six-month period the Funds, except for Xtrackers Municipal Infrastructure Revenue Bond ETF, limited these expenses; had they not done so, expenses would have been higher. The expense examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds.
The examples in the tables are based on an investment of $1,000 invested at the beginning of the six month period and held for the entire period (December 1, 2020 to May 31, 2021).
Actual expenses
The first line in the following tables provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expenses Paid During the Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The second line in the following tables provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses (which is not the Funds’ actual return). The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5%hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only, and do not reflect any transactional costs. Therefore the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Beginning Account Value December 1, 2020 |
Ending Account Value May 31, 2021 |
Annualized Expense Ratio |
Expenses Paid During the Period Per $1,000(1) |
|||||||||||||
| Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF |
| |||||||||||||||
| Actual |
$ | 1,000.00 | $ | 968.70 | 0.15 | % | $ | 0.74 | ||||||||
| Hypothetical (5% return before expenses) |
$ | 1,000.00 | $ | 1,024.18 | 0.15 | % | $ | 0.76 | ||||||||
| Xtrackers J.P. Morgan ESG Emerging Markets Sovereign ETF |
| |||||||||||||||
| Actual |
$ | 1,000.00 | $ | 1,000.00 | 0.35 | % | $ | 1.75 | ||||||||
| Hypothetical (5% return before expenses) |
$ | 1,000.00 | $ | 1,023.19 | 0.35 | % | $ | 1.77 | ||||||||
| Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF |
| |||||||||||||||
| Actual |
$ | 1,000.00 | $ | 1,044.80 | 0.20 | % | $ | 1.02 | ||||||||
| Hypothetical (5% return before expenses) |
$ | 1,000.00 | $ | 1,023.93 | 0.20 | % | $ | 1.01 | ||||||||
| Xtrackers Municipal Infrastructure Revenue Bond ETF |
| |||||||||||||||
| Actual |
$ | 1,000.00 | $ | 1,026.40 | 0.15 | % | $ | 0.76 | ||||||||
| Hypothetical (5% return before expenses) |
$ | 1,000.00 | $ | 1,024.18 | 0.15 | % | $ | 0.76 | ||||||||
| Xtrackers MSCI All World ex US High Dividend Yield Equity ETF |
| |||||||||||||||
| Actual |
$ | 1,000.00 | $ | 1,164.20 | 0.20 | % | $ | 1.08 | ||||||||
| Hypothetical (5% return before expenses) |
$ | 1,000.00 | $ | 1,023.93 | 0.20 | % | $ | 1.01 | ||||||||
| Xtrackers MSCI EAFE High Dividend Yield Equity ETF |
| |||||||||||||||
| Actual |
$ | 1,000.00 | $ | 1,137.00 | 0.20 | % | $ | 1.07 | ||||||||
| Hypothetical (5% return before expenses) |
$ | 1,000.00 | $ | 1,023.93 | 0.20 | % | $ | 1.01 | ||||||||
(1) Expenses are equal to each Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 182 (the number of days in the most recent six-month period), then divided by 365.
18
DBX ETF Trust
Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF
May 31, 2021
| See Notes to Financial Statements. | 19 |
DBX ETF Trust
Schedule of Investments
Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 20 |
DBX ETF Trust
Schedule of Investments
Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 21 |
DBX ETF Trust
Schedule of Investments
Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 22 |
DBX ETF Trust
Schedule of Investments
Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 23 |
DBX ETF Trust
Schedule of Investments
Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 24 |
DBX ETF Trust
Schedule of Investments
Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 25 |
DBX ETF Trust
Schedule of Investments
Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 26 |
DBX ETF Trust
Schedule of Investments
Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 27 |
DBX ETF Trust
Schedule of Investments
Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF (Continued)
May 31, 2021
A summary of the Fund’s transactions with affiliated investments during the year ended May 31, 2021 is as follows:
| Value ($) at 5/31/2020 |
Purchases Cost ($) |
Sales Proceeds ($) |
Net Realized Gain/(Loss) ($) |
Net Change in Unrealized Appreciation (Depreciation) ($) |
Income ($) | Capital Gain Distributions ($) |
Number of Shares at 5/31/2021 |
Value ($) at 5/31/2021 |
||||||||||||||||||||||||||||
| CORPORATE BONDS — 0.1% |
|
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| Financial — 0.1% |
|
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| Deutsche Bank AG , 3.70%, 5/30/24 (b) |
|
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| 10,139 | 33 | — | — | 633 | 370 | — | 10,000 | 10,805 | ||||||||||||||||||||||||||||
| SECURITIES LENDING COLLATERAL — 0.6% |
|
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| DWS Government & Agency Securities Portfolio “DWS Government Cash Institutional Shares”, 0.01% (c)(d) |
|
|||||||||||||||||||||||||||||||||||
| 10,080 | 31,680 | (e) | — | — | — | 13 | — | 41,760 | 41,760 | |||||||||||||||||||||||||||
| CASH EQUIVALENTS — 1.4% |
|
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| DWS Government Money Market Series “Institutional Shares”, 0.03% (c) |
|
|||||||||||||||||||||||||||||||||||
| 83,235 | 756,322 | (730,654) | — | — | 20 | — | 108,903 | 108,903 | ||||||||||||||||||||||||||||
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| 103,454 | 788,035 | (730,654 | ) | — | 633 | 403 | — | 160,663 | 161,468 | |||||||||||||||||||||||||||
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| (a) | All or a portion of these securities were on loan. In addition, “Other assets and liabilities, net” may include pending sales that are also on loan. The value of securities loaned at May 31, 2021 amounted to $121,334, which is 1.6% of net assets. |
| (b) | Affiliated issuer. This security is owned in proportion with its representation in the index. |
| (c) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
| (d) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. In addition, the Fund held non-cash U.S. Treasury securities collateral having a value of $84,263. |
| (e) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the year ended May 31, 2021. |
| GMTN: | Global Medium Term Note |
| MTN: | Medium Term Note |
| 144A: | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
Fair Value Measurements
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
The following is a summary of the inputs used as of May 31, 2021 in valuing the Fund’s investments. For information on the Fund’s policy regarding the valuation of investments, please refer to the Security Valuation section of Note 2 in the accompanying Notes to Financial Statements.
| Assets |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Corporate Bonds (f) |
$ | — | $ | 7,586,695 | $ | — | $ | 7,586,695 | ||||||||
| Short-Term Investments (f) |
150,663 | — | — | 150,663 | ||||||||||||
|
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| TOTAL |
$ | 150,663 | $ | 7,586,695 | $ | — | $ | 7,737,358 | ||||||||
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| (f) | See Schedule of Investments for additional detailed categorizations. |
| See Notes to Financial Statements. | 28 |
DBX ETF Trust
Schedule of Investments
Xtrackers J.P. Morgan ESG Emerging Markets Sovereign ETF
May 31, 2021
| See Notes to Financial Statements. | 29 |
DBX ETF Trust
Schedule of Investments
Xtrackers J.P. Morgan ESG Emerging Markets Sovereign ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 30 |
DBX ETF Trust
Schedule of Investments
Xtrackers J.P. Morgan ESG Emerging Markets Sovereign ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 31 |
DBX ETF Trust
Schedule of Investments
Xtrackers J.P. Morgan ESG Emerging Markets Sovereign ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 32 |
DBX ETF Trust
Schedule of Investments
Xtrackers J.P. Morgan ESG Emerging Markets Sovereign ETF (Continued)
May 31, 2021
A summary of the Fund’s transactions with affiliated investments during the year ended May 31, 2021 is as follows:
| Value ($) at 5/31/2020 |
Purchases Cost ($) |
Sales Proceeds ($) |
Net Realized Gain/(Loss) ($) |
Net Change in Unrealized Appreciation (Depreciation) ($) |
Income ($) | Capital Gain Distributions ($) |
Number of Shares at 5/31/2021 |
Value ($) at 5/31/2021 |
||||||||||||||||||||||||||||
| SECURITIES LENDING COLLATERAL — 1.6% |
|
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| DWS Government & Agency Securities Portfolio “DWS Government Cash Institutional Shares”, 0.01% (c)(d) |
| |||||||||||||||||||||||||||||||||||
| — | 500,718 | (e) | — | — | — | 27 | — | 500,718 | 500,718 | |||||||||||||||||||||||||||
| CASH EQUIVALENTS — 1.4% |
| |||||||||||||||||||||||||||||||||||
| DWS Government Money Market Series “Institutional Shares”, 0.03% (c) |
| |||||||||||||||||||||||||||||||||||
| 127,325 | 6,677,246 | (6,386,817 | ) | — | — | 93 | — | 417,754 | 417,754 | |||||||||||||||||||||||||||
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| 127,325 | 7,177,964 | (6,386,817 | ) | — | — | 120 | — | 918,472 | 918,472 | |||||||||||||||||||||||||||
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| * | Non-income producing security. |
| (a) | All or a portion of these securities were on loan. In addition, “Other assets and liabilities, net” may include pending sales that are also on loan. The value of securities loaned at May 31, 2021 amounted to $744,493, which is 2.4% of net assets. |
| (b) | Defaulted security or security for which income has been deemed uncollectible. |
| (c) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
| (d) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. In addition, the Fund held non-cash U.S. Treasury securities collateral having a value of $231,800. |
| (e) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the year ended May 31, 2021. |
| GMTN: | Global Medium Term Note |
| MTN: | Medium Term Note |
| PIK: | Denotes that all or a portion of the income is paid in-kind in the form of additional principal. |
| REGS: | Securities sold under Regulation S may not be offered, sold or delivered within the United States or to, or for the account or benefit of, U.S. persons, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933. |
| 144A: | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
Fair Value Measurements
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
The following is a summary of the inputs used as of May 31, 2021 in valuing the Fund’s investments. For information on the Fund’s policy regarding the valuation of investments, please refer to the Security Valuation section of Note 2 in the accompanying Notes to Financial Statements.
| Assets |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Sovereign Bonds (f) |
$ | — | $ | 29,447,333 | $ | — | $ | 29,447,333 | ||||||||
| Short-Term Investments (f) |
918,472 | — | — | 918,472 | ||||||||||||
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| TOTAL |
$ | 918,472 | $ | 29,447,333 | $ | — | $ | 30,365,805 | ||||||||
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| (f) | See Schedule of Investments for additional detailed categorizations. |
| See Notes to Financial Statements. | 33 |
DBX ETF Trust
Schedule of Investments
Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF
May 31, 2021
| See Notes to Financial Statements. | 34 |
DBX ETF Trust
Schedule of Investments
Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 35 |
DBX ETF Trust
Schedule of Investments
Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 36 |
DBX ETF Trust
Schedule of Investments
Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 37 |
DBX ETF Trust
Schedule of Investments
Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 38 |
DBX ETF Trust
Schedule of Investments
Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 39 |
DBX ETF Trust
Schedule of Investments
Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 40 |
DBX ETF Trust
Schedule of Investments
Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 41 |
DBX ETF Trust
Schedule of Investments
Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 42 |
DBX ETF Trust
Schedule of Investments
Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 43 |
DBX ETF Trust
Schedule of Investments
Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 44 |
DBX ETF Trust
Schedule of Investments
Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF (Continued)
May 31, 2021
A summary of the Fund’s transactions with affiliated investments during the year ended May 31, 2021 is as follows:
| Value ($) at 5/31/2020 |
Purchases Cost ($) |
Sales Proceeds ($) |
Net Realized Gain/(Loss) ($) |
Net Change in Unrealized Appreciation (Depreciation) ($) |
Income ($) | Capital Gain Distributions ($) |
Number of Shares at 5/31/2021 |
Value ($) at 5/31/2021 |
||||||||||||||||||||||||||||
| CORPORATE BONDS — 0.5% |
|
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| Financial — 0.5% |
|
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| Deutsche Bank AG, 4.50%, 4/1/25 (b) |
|
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| — | 80,134 | — | — | 1,293 | 1,088 | — | 75,000 | 81,427 | ||||||||||||||||||||||||||||
| SECURITIES LENDING COLLATERAL — 0.7% |
|
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| DWS Government & Agency Securities Portfolio “DWS Government Cash Institutional Shares”, 0.01% (d)(e) |
|
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| 102,098 | 21,396 | (f) | — | — | — | 78 | — | 123,494 | 123,494 | |||||||||||||||||||||||||||
| CASH EQUIVALENTS — 0.6% |
|
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| DWS Government Money Market Series “Institutional Shares”, 0.03% (d) |
|
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| 121,095 | 4,370,302 | (4,386,696 | ) | — | — | 90 | — | 104,701 | 104,701 | |||||||||||||||||||||||||||
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| 223,193 | 4,471,832 | (4,386,696 | ) | — | 1,293 | 1,256 | — | 303,195 | 309,622 | |||||||||||||||||||||||||||
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| (a) | All or a portion of these securities were on loan. In addition, “Other assets and liabilities, net” may include pending sales that are also on loan. The value of securities loaned at May 31, 2021 amounted to $490,702, which is 2.9% of net assets. |
| (b) | Affiliated issuer. This security is owned in proportion with its representation in the index. |
| (c) | Perpetual, callable security with no stated maturity date. |
| (d) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
| (e) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. In addition, the Fund held non-cash U.S. Treasury securities collateral having a value of $387,040. |
| (f) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the year ended May 31, 2021. |
| MTN: | Medium Term Note |
| PIK: | Denotes that all or a portion of the income is paid in-kind in the form of additional principal. |
| REIT: | Real Estate Investment Trust |
| 144A: | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
| See Notes to Financial Statements. | 45 |
DBX ETF Trust
Schedule of Investments
Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF (Continued)
May 31, 2021
Fair Value Measurements
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
The following is a summary of the inputs used as of May 31, 2021 in valuing the Fund’s investments. For information on the Fund’s policy regarding the valuation of investments, please refer to the Security Valuation section of Note 2 in the accompanying Notes to Financial Statements.
| Assets |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Corporate Bonds (g) |
$ | — | $ | 16,782,838 | $ | — | $ | 16,782,838 | ||||||||
| Short-Term Investments (g) |
228,195 | — | — | 228,195 | ||||||||||||
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| TOTAL |
$ | 228,195 | $ | 16,782,838 | $ | — | $ | 17,011,033 | ||||||||
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| (g) | See Schedule of Investments for additional detailed categorizations. |
| See Notes to Financial Statements. | 46 |
DBX ETF Trust
Schedule of Investments
Xtrackers Municipal Infrastructure Revenue Bond ETF
May 31, 2021
| See Notes to Financial Statements. | 47 |
DBX ETF Trust
Schedule of Investments
Xtrackers Municipal Infrastructure Revenue Bond ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 48 |
DBX ETF Trust
Schedule of Investments
Xtrackers Municipal Infrastructure Revenue Bond ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 49 |
DBX ETF Trust
Schedule of Investments
Xtrackers Municipal Infrastructure Revenue Bond ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 50 |
DBX ETF Trust
Schedule of Investments
Xtrackers Municipal Infrastructure Revenue Bond ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 51 |
DBX ETF Trust
Schedule of Investments
Xtrackers Municipal Infrastructure Revenue Bond ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 52 |
DBX ETF Trust
Schedule of Investments
Xtrackers Municipal Infrastructure Revenue Bond ETF (Continued)
May 31, 2021
| AMT: | Alternative Minimum Tax |
Fair Value Measurements
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
The following is a summary of the inputs used as of May 31, 2021 in valuing the Fund’s investments. For information on the Fund’s policy regarding the valuation of investments, please refer to the Security Valuation section of Note 2 in the accompanying Notes to Financial Statements.
| Assets |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Municipal Bonds (a) |
$ | — | $ | 133,974,719 | $ | — | $ | 133,974,719 | ||||||||
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| TOTAL |
$ | — | $ | 133,974,719 | $ | — | $ | 133,974,719 | ||||||||
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| (a) | See Schedule of Investments for additional detailed categorizations. |
| See Notes to Financial Statements. | 53 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI All World ex US High Dividend Yield Equity ETF
May 31, 2021
| See Notes to Financial Statements. | 54 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI All World ex US High Dividend Yield Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 55 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI All World ex US High Dividend Yield Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 56 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI All World ex US High Dividend Yield Equity ETF (Continued)
May 31, 2021
| See Notes to Financial Statements. | 57 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI All World ex US High Dividend Yield Equity ETF (Continued)
May 31, 2021
A summary of the Fund’s transactions with affiliated investments during the year ended May 31, 2021 is as follows:
| Value ($) at 5/31/2020 |
Purchases Cost ($) |
Sales Proceeds ($) |
Net Realized Gain/(Loss) ($) |
Net Change in Unrealized Appreciation (Depreciation) ($) |
Income ($) | Capital Gain Distributions ($) |
Number of Shares at 5/31/2021 |
Value ($) at 5/31/2021 |
||||||||||||||||||||||||||||
| EXCHANGE-TRADED FUNDS — 0.0% |
|
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| Xtrackers MSCI EAFE High Dividend Yield Equity ETF (d) |
|
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| — | 272,920 | (273,169 | ) | 1,289 | 217 | 1,413 | — | 50 | 1,257 | |||||||||||||||||||||||||||
| SECURITIES LENDING COLLATERAL — 4.5% |
|
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| DWS Government & Agency Securities Portfolio “DWS Government Cash Institutional Shares”, 0.01% (e)(f) |
|
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| 237,415 | 772,804 | (g) | — | — | — | 96 | — | 1,010,219 | 1,010,219 | |||||||||||||||||||||||||||
| CASH EQUIVALENTS — 0.0% |
|
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| DWS Government Money Market Series “Institutional Shares”, 0.03% (e) |
|
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| 128,203 | 1,514,422 | (1,642,625 | ) | — | — | 17 | — | — | — | |||||||||||||||||||||||||||
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| 365,618 | 2,560,146 | (1,915,794 | ) | 1,289 | 217 | 1,526 | — | 1,010,269 | 1,011,476 | |||||||||||||||||||||||||||
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| (a) | All or a portion of these securities were on loan. In addition, “Other assets and liabilities, net” may include pending sales that are also on loan. The value of securities loaned at May 31, 2021 amounted to $989,668, which is 4.4% of net assets. |
| (b) | Company declared its annual dividend during the 12-month period ended May 31, 2021, the scheduled payment date was subsequent to May 31, 2021. |
| (c) | Stapled Security — A security contractually bound to one or more other securities to form a single saleable unit which cannot be sold separately. |
| (d) | Affiliated fund advised by DBX Advisors LLC. |
| (e) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
| See Notes to Financial Statements. | 58 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI All World ex US High Dividend Yield Equity ETF (Continued)
May 31, 2021
| (f) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. In addition, the Fund held non-cash U.S. Treasury securities collateral having a value of $28,987. |
| (g) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the year ended May 31, 2021. |
| ADR: | American Depositary Receipt |
| GDR: | Global Depositary Receipt |
| KSC: | Kuwait Shareholding Company |
| NVDR: | Non Voting Depositary Receipt |
| PJSC: | Public Joint Stock Company |
| QPSC: | Qatari Public Shareholders Company |
| SAE: | Societe Anonyme Egyptienne |
| 144A: | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
Securities are listed in country of domicile.
At May 31, 2021, open futures contracts purchased were as follows:
| Contract Description |
Currency | Number of Contracts |
Notional Amount |
Contract Value |
Expiration Date |
Unrealized Appreciation |
||||||||||||
| MSCI Emerging Markets Index Futures |
USD | 1 | $ | 67,330 | $ | 68,045 | 6/18/2021 | $ | 715 | |||||||||
| MSCI EAFE Futures |
USD | 1 | 116,475 | 116,850 | 6/18/2021 | 375 | ||||||||||||
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| Total unrealized appreciation |
$ | 1,090 | ||||||||||||||||
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For information on the Fund’s policy and additional disclosures regarding open futures contracts, please refer to the Derivatives section of Note 2 in the accompanying Notes to Financial Statements.
Currency Abbreviations
| USD | U.S. Dollar |
Fair Value Measurements
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
The following is a summary of the inputs used as of May 31, 2021 in valuing the Fund’s investments. For information on the Fund’s policy regarding the valuation of investments, please refer to the Security Valuation section of Note 2 in the accompanying Notes to Financial Statements.
| Assets |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Common Stocks (h) |
$ | 22,413,757 | $ | — | $ | — | $ | 22,413,757 | ||||||||
| Preferred Stocks |
17,948 | — | — | 17,948 | ||||||||||||
| Exchange-Traded Funds |
2,423 | — | — | 2,423 | ||||||||||||
| Short-Term Investments (h) |
1,010,219 | — | — | 1,010,219 | ||||||||||||
| Derivatives (i) |
||||||||||||||||
| Futures Contracts |
1,090 | — | — | 1,090 | ||||||||||||
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| TOTAL |
$ | 23,445,437 | $ | — | $ | — | $ | 23,445,437 | ||||||||
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| (h) | See Schedule of Investments for additional detailed categorizations. |
| (i) | Derivatives include unrealized appreciation (depreciation) on open futures contracts. |
| See Notes to Financial Statements. | 59 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI EAFE High Dividend Yield Equity ETF
May 31, 2021
| See Notes to Financial Statements. | 60 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI EAFE High Dividend Yield Equity ETF (Continued)
May 31, 2021
A summary of the Fund’s transactions with affiliated investments during the year ended May 31, 2021 is as follows:
| Value ($) at 5/31/2020 |
Purchases Cost ($) |
Sales Proceeds ($) |
Net Realized Gain/(Loss) ($) |
Net Change in Unrealized Appreciation (Depreciation) ($) |
Income ($) | Capital Gain Distributions ($) |
Number of Shares at 5/31/2021 |
Value ($) at 5/31/2021 |
||||||||||||||||||||||||||||
| SECURITIES LENDING COLLATERAL — 5.1% |
|
|||||||||||||||||||||||||||||||||||
| DWS Government & Agency Securities Portfolio “DWS Government Cash Institutional Shares”, 0.01% (c)(d) |
|
|||||||||||||||||||||||||||||||||||
| 5,636,041 | 32,413,527 | (e) | — | — | — | 2,809 | — | 38,049,568 | 38,049,568 | |||||||||||||||||||||||||||
| CASH EQUIVALENTS — 0.1% |
|
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| DWS Government Money Market Series “Institutional Shares”, 0.03% (c) |
|
|||||||||||||||||||||||||||||||||||
| 802,916 | 40,631,266 | (40,925,958 | ) | — | — | 660 | — | 508,224 | 508,224 | |||||||||||||||||||||||||||
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| 6,438,957 | 73,044,793 | (40,925,958 | ) | — | — | 3,469 | — | 38,557,792 | 38,557,792 | |||||||||||||||||||||||||||
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| (a) | All or a portion of these securities were on loan. In addition, “Other assets and liabilities, net” may include pending sales that are also on loan. The value of securities loaned at May 31, 2021 amounted to $26,182,425, which is 3.5% of net assets. |
| (b) | Stapled Security — A security contractually bound to one or more other securities to form a single saleable unit which cannot be sold separately. |
| (c) | Affiliated fund managed by DWS Investment Management Americas, Inc. The rate shown is the annualized seven-day yield at period end. |
| (d) | Represents cash collateral held in connection with securities lending. Income earned by the Fund is net of borrower rebates. In addition, the Fund held non-cash U.S. Treasury securities collateral having a value of $2,067,266. |
| (e) | Represents the net increase (purchase cost) or decrease (sales proceeds) in the amount invested in cash collateral for the year ended May 31, 2021. |
| See Notes to Financial Statements. | 61 |
DBX ETF Trust
Schedule of Investments
Xtrackers MSCI EAFE High Dividend Yield Equity ETF (Continued)
May 31, 2021
Securities are listed in country of domicile.
At May 31, 2021, open futures contracts purchased were as follows:
| Contract Description |
Currency |
Number of Contracts |
Notional Amount |
Contract Value |
Expiration Date |
Unrealized Appreciation |
||||||||||||
| MSCI EAFE Futures |
USD | 73 | $ | 8,211,172 | $ | 8,530,050 | 6/18/2021 | $ | 318,878 | |||||||||
For information on the Fund’s policy and additional disclosures regarding open futures contracts, please refer to the Derivatives section of Note 2 in the accompanying Notes to Financial Statements.
Currency Abbreviations
| USD | U.S. Dollar |
Fair Value Measurements
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
The following is a summary of the inputs used as of May 31, 2021 in valuing the Fund’s investments. For information on the Fund’s policy regarding the valuation of investments, please refer to the Security Valuation section of Note 2 in the accompanying Notes to Financial Statements.
| Assets |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Common Stocks (f) |
$ | 729,970,279 | $ | — | $ | — | $ | 729,970,279 | ||||||||
| Short-Term Investments (f) |
38,557,792 | — | — | 38,557,792 | ||||||||||||
| Derivatives (g) |
||||||||||||||||
| Futures Contracts |
318,878 | — | — | 318,878 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| TOTAL |
$ | 768,846,949 | $ | — | $ | — | $ | 768,846,949 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (f) | See Schedule of Investments for additional detailed categorizations. |
| (g) | Derivatives include unrealized appreciation (depreciation) on open futures contracts. |
| See Notes to Financial Statements. | 62 |
This Page is Intentionally Left Blank
63
DBX ETF Trust
May 31, 2021
| Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF |
Xtrackers J.P. Morgan ESG Emerging Markets Sovereign ETF |
Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF |
Xtrackers Municipal Infrastructure Revenue Bond ETF |
|||||||||||||
| Assets |
||||||||||||||||
| Investment in non-affiliated securities at value |
$ | 7,575,890 | $ | 29,447,333 | $ | 16,701,411 | $ | 133,974,719 | ||||||||
| Investment in affiliated securities at value |
10,805 | — | 81,427 | — | ||||||||||||
| Investment in DWS Government Money Market Series |
108,903 | 417,754 | 104,701 | — | ||||||||||||
| Investment in DWS Government & Agency Securities Portfolio* |
41,760 | 500,718 | 123,494 | — | ||||||||||||
| Cash |
— | — | — | 3,059,619 | ||||||||||||
| Receivables: | ||||||||||||||||
| Investment securities sold |
140,128 | 473,789 | 158,746 | — | ||||||||||||
| Interest |
61,942 | 380,932 | 262,330 | 1,461,039 | ||||||||||||
| Securities lending income |
28 | 80 | 183 | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total assets |
$ | 7,939,456 | $ | 31,220,606 | $ | 17,432,292 | $ | 138,495,377 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Liabilities |
||||||||||||||||
| Payable upon return of securities loaned |
$ | 41,760 | $ | 500,718 | $ | 123,494 | $ | — | ||||||||
| Payables: | ||||||||||||||||
| Investment securities purchased |
221,128 | 225,397 | 349,332 | 546,527 | ||||||||||||
| Investment advisory fees |
971 | 9,183 | 2,874 | 17,505 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total liabilities |
263,859 | 735,298 | 475,700 | 564,032 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net Assets, at value |
$ | 7,675,597 | $ | 30,485,308 | $ | 16,956,592 | $ | 137,931,345 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net Assets Consist of |
||||||||||||||||
| Paid-in capital |
$ | 8,590,175 | $ | 30,814,995 | $ | 17,371,967 | $ | 130,719,277 | ||||||||
| Distributable earnings (loss) |
(914,578 | ) | (329,687 | ) | (415,375 | ) | 7,212,068 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net Assets, at value |
$ | 7,675,597 | $ | 30,485,308 | $ | 16,956,592 | $ | 137,931,345 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Number of Common Shares outstanding |
350,001 | 1,400,001 | 800,001 | 4,700,001 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net Asset Value |
$ | 21.93 | $ | 21.78 | $ | 21.20 | $ | 29.35 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Investment in non-affiliated securities at cost |
$ | 7,310,203 | $ | 28,989,527 | $ | 15,676,717 | $ | 126,816,514 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Investment in affiliated securities at cost |
$ | 9,892 | $ | — | $ | 80,134 | $ | — | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Value of securities loaned |
$ | 121,334 | $ | 744,493 | $ | 490,702 | $ | — | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Investment in DWS Government Money Market Series at cost |
$ | 108,903 | $ | 417,754 | $ | 104,701 | $ | — | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Investment in DWS Government & Agency Securities Portfolio at cost* |
$ | 41,760 | $ | 500,718 | $ | 123,494 | $ | — | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Non-cash collateral for securities on loan |
$ | 84,263 | $ | 231,800 | $ | 387,040 | $ | — | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| * | Represents collateral on securities loaned. |
| See Notes to Financial Statements. | 64 |
DBX ETF Trust
Statements of Assets and Liabilities (Continued)
May 31, 2021
| Xtrackers MSCI All World ex US High Dividend Yield Equity ETF |
Xtrackers MSCI EAFE High Dividend Yield Equity ETF |
|||||||
| Assets |
||||||||
| Investment in non-affiliated securities at value |
$ | 22,432,871 | $ | 729,970,279 | ||||
| Investment in affiliated securities at value |
1,257 | — | ||||||
| Investment in DWS Government Money Market Series |
— | 508,224 | ||||||
| Investment in DWS Government & Agency Securities Portfolio* |
1,010,219 | 38,049,568 | ||||||
| Foreign currency at value |
998,737 | 23,258,906 | ||||||
| Deposit with broker for futures contracts |
11,421 | 520,344 | ||||||
| Receivables: | ||||||||
| Investment securities sold |
479,678 | 25,510,512 | ||||||
| Capital shares |
— | 562,330 | ||||||
| Variation margin on futures contracts |
605 | 24,831 | ||||||
| Dividends |
93,270 | 3,426,221 | ||||||
| Interest |
— | 10 | ||||||
| Securities lending income |
608 | 26,456 | ||||||
| Foreign tax reclaim |
45,619 | 1,291,702 | ||||||
|
|
|
|
|
|||||
| Total assets |
$ | 25,074,285 | $ | 823,149,383 | ||||
|
|
|
|
|
|||||
| Liabilities |
||||||||
| Due to custodian |
$ | 505,295 | $ | — | ||||
| Payable upon return of securities loaned |
1,010,219 | 38,049,568 | ||||||
| Payables: | ||||||||
| Investment securities purchased |
922,891 | 30,917,853 | ||||||
| Capital shares |
— | 15,415,168 | ||||||
| Investment advisory fees |
3,876 | 126,211 | ||||||
| Deferred foreign tax payable |
2,647 | — | ||||||
|
|
|
|
|
|||||
| Total liabilities |
2,444,928 | 84,508,800 | ||||||
|
|
|
|
|
|||||
| Net Assets, at value |
$ | 22,629,357 | $ | 738,640,583 | ||||
|
|
|
|
|
|||||
| Net Assets Consist of |
||||||||
| Paid-in capital |
$ | 24,188,650 | $ | 719,043,879 | ||||
| Distributable earnings (loss) |
(1,559,293 | ) | 19,596,704 | |||||
|
|
|
|
|
|||||
| Net Assets, at value |
$ | 22,629,357 | $ | 738,640,583 | ||||
|
|
|
|
|
|||||
| Number of Common Shares outstanding |
850,001 | 29,550,001 | ||||||
|
|
|
|
|
|||||
| Net Asset Value |
$ | 26.62 | $ | 25.00 | ||||
|
|
|
|
|
|||||
| Investment in non-affiliated securities at cost |
$ | 19,867,870 | $ | 654,629,600 | ||||
|
|
|
|
|
|||||
| Investment in affiliated securities at cost |
$ | 1,040 | $ | — | ||||
|
|
|
|
|
|||||
| Value of securities loaned |
$ | 989,668 | $ | 26,182,425 | ||||
|
|
|
|
|
|||||
| Investment in DWS Government Money Market Series at cost |
$ | — | $ | 508,224 | ||||
|
|
|
|
|
|||||
| Investment in DWS Government & Agency Securities Portfolio at cost* |
$ | 1,010,219 | $ | 38,049,568 | ||||
|
|
|
|
|
|||||
| Non-cash collateral for securities on loan |
$ | 28,987 | $ | 2,067,266 | ||||
|
|
|
|
|
|||||
| Foreign currency at cost |
$ | 998,395 | $ | 23,258,943 | ||||
|
|
|
|
|
|||||
| * | Represents collateral on securities loaned. |
| See Notes to Financial Statements. | 65 |
DBX ETF Trust
For the Year Ended May 31, 2021
| Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF |
Xtrackers J.P. Morgan ESG Emerging Markets Sovereign ETF |
Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF |
Xtrackers Municipal Infrastructure Revenue Bond ETF |
|||||||||||||
| Investment Income |
||||||||||||||||
| Unaffiliated interest income |
$ | 228,804 | $ | 1,134,894 | $ | 1,082,746 | $ | 2,985,155 | ||||||||
| Affiliated interest income |
370 | — | 1,088 | — | ||||||||||||
| Income distributions from affiliated funds |
20 | 93 | 90 | — | ||||||||||||
| Affiliated securities lending income |
13 | 27 | 78 | — | ||||||||||||
| Unaffiliated securities lending income, net of borrower rebates |
380 | 699 | 3,412 | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total investment income |
229,587 | 1,135,713 | 1,087,414 | 2,985,155 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Expenses |
||||||||||||||||
| Investment advisory fees |
13,824 | 94,289 | 35,447 | 174,167 | ||||||||||||
| Other expenses |
25 | 25 | 25 | 57 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total expenses |
13,849 | 94,314 | 35,472 | 174,224 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Less fees waived (see note 3): |
||||||||||||||||
| Waiver |
(21 | ) | (99 | ) | (113 | ) | — | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net expenses |
13,828 | 94,215 | 35,359 | 174,224 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net investment income (loss) |
215,759 | 1,041,498 | 1,052,055 | 2,810,931 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Realized and Unrealized Gain (Loss) |
||||||||||||||||
| Net realized gain (loss) from: |
||||||||||||||||
| Investments |
109,922 | 382,274 | 697,630 | (60,071 | ) | |||||||||||
| In-kind redemptions |
141,527 | 102,580 | 306,637 | 802,230 | ||||||||||||
| Payments by Affiliates (see note 6) |
— | — | 7,867 | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net realized gain (loss) |
251,449 | 484,854 | 1,012,134 | 742,159 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net change in unrealized appreciation (depreciation) on: |
||||||||||||||||
| Investments |
(230,311 | ) | 348,646 | 478,526 | 5,541,055 | |||||||||||
| Investments in affiliates |
633 | — | 1,293 | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net change in unrealized appreciation (depreciation) |
(229,678 | ) | 348,646 | 479,819 | 5,541,055 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net realized and unrealized gain (loss) on investments |
21,771 | 833,500 | 1,491,953 | 6,283,214 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net Increase (Decrease) in Net Assets Resulting from Operations |
$ | 237,530 | $ | 1,874,998 | $ | 2,544,008 | $ | 9,094,145 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| See Notes to Financial Statements. | 66 |
DBX ETF Trust
Statements of Operations (Continued)
For the Year Ended May 31, 2021
| Xtrackers MSCI All World ex US High Dividend Yield Equity ETF |
Xtrackers MSCI EAFE High Dividend Yield Equity ETF |
|||||||
| Investment Income |
||||||||
| Unaffiliated dividend income* |
$ | 968,476 | $ | 26,945,014 | ||||
| Income distributions from affiliated funds |
1,430 | 660 | ||||||
| Affiliated securities lending income |
96 | 2,809 | ||||||
| Unaffiliated non-cash dividend income |
108,376 | 3,105,697 | ||||||
| Unaffiliated securities lending income, net of borrower rebates |
4,734 | 185,872 | ||||||
|
|
|
|
|
|||||
| Total investment income |
1,083,112 | 30,240,052 | ||||||
|
|
|
|
|
|||||
| Expenses |
||||||||
| Investment advisory fees |
42,272 | 1,083,180 | ||||||
| Other expenses |
57 | 401 | ||||||
|
|
|
|
|
|||||
| Total expenses |
42,329 | 1,083,581 | ||||||
|
|
|
|
|
|||||
| Less fees waived (see note 3): |
||||||||
| Waiver |
(68 | ) | (583 | ) | ||||
|
|
|
|
|
|||||
| Net expenses |
42,261 | 1,082,998 | ||||||
|
|
|
|
|
|||||
| Net investment income (loss) |
1,040,851 | 29,157,054 | ||||||
|
|
|
|
|
|||||
| Realized and Unrealized Gain (Loss) |
||||||||
| Net realized gain (loss) from: | ||||||||
| Investments |
(732,318 | ) | (16,190,702 | ) | ||||
| Investments in affiliates |
1,289 | — | ||||||
| In-kind redemptions |
798,589 | 35,036,556 | ||||||
| Futures contracts |
66,848 | 1,507,261 | ||||||
| Foreign currency transactions |
3,821 | 317,456 | ||||||
|
|
|
|
|
|||||
| Net realized gain (loss) |
138,229 | 20,670,571 | ||||||
|
|
|
|
|
|||||
| Net change in unrealized appreciation (depreciation) on: |
||||||||
| Investments** |
5,047,713 | 94,153,711 | ||||||
| Investments in affiliates |
217 | — | ||||||
| Futures contracts |
(22,176 | ) | (69,969 | ) | ||||
| Foreign currency translations |
(1,093 | ) | (65,743 | ) | ||||
|
|
|
|
|
|||||
| Net change in unrealized appreciation (depreciation) |
5,024,661 | 94,017,999 | ||||||
|
|
|
|
|
|||||
| Net realized and unrealized gain (loss) on investments, futures and foreign currency transactions |
5,162,890 | 114,688,570 | ||||||
|
|
|
|
|
|||||
| Net Increase (Decrease) in Net Assets Resulting from Operations |
$ | 6,203,741 | $ | 143,845,624 | ||||
|
|
|
|
|
|||||
| * Unaffiliated foreign tax withheld |
$ | 93,139 | $ | 2,163,320 | ||||
| ** Net of change in deferred foreign taxes |
$ | 2,905 | $ | — | ||||
| See Notes to Financial Statements. | 67 |
DBX ETF Trust
| Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF |
Xtrackers J.P. Morgan ESG Emerging Markets Sovereign ETF |
|||||||||||||||
| Year Ended May 31, | Year Ended May 31, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Increase (Decrease) in Net Assets from Operations |
||||||||||||||||
| Net investment income (loss) |
$ | 215,759 | $ | 206,829 | $ | 1,041,498 | $ | 393,152 | ||||||||
| Net realized gain (loss) |
251,449 | (379,633 | ) | 484,854 | (276,150 | ) | ||||||||||
| Net change in net unrealized appreciation (depreciation) |
(229,678 | ) | 442,059 | 348,646 | 142,587 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net increase (decrease) in net assets resulting from operations |
237,530 | 269,255 | 1,874,998 | 259,589 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Distributions to Shareholders |
(218,315 | ) | (213,862 | ) | (1,002,086 | ) | (384,666 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Fund Shares Transactions |
||||||||||||||||
| Proceeds from shares sold |
— | 5,325,572 | 20,615,556 | 19,649,326 | ||||||||||||
| Value of shares redeemed |
(2,252,359 | ) | (2,383,293 | ) | (5,440,721 | ) | (12,017,544 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net increase (decrease) in net assets resulting from fund share transactions |
(2,252,359 | ) | 2,942,279 | 15,174,835 | 7,631,782 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total net increase (decrease) in Net Assets |
(2,233,144 | ) | 2,997,672 | 16,047,747 | 7,506,705 | |||||||||||
| Net Assets |
||||||||||||||||
| Beginning of year |
9,908,741 | 6,911,069 | 14,437,561 | 6,930,856 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| End of year |
$ | 7,675,597 | $ | 9,908,741 | $ | 30,485,308 | $ | 14,437,561 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Changes in Shares Outstanding |
||||||||||||||||
| Shares outstanding, beginning of year |
450,001 | 300,001 | 700,001 | 300,001 | ||||||||||||
| Shares sold |
— | 250,000 | 950,000 | 900,000 | ||||||||||||
| Shares redeemed |
(100,000 | ) | (100,000 | ) | (250,000 | ) | (500,000 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Shares outstanding, end of year |
350,001 | 450,001 | 1,400,001 | 700,001 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| See Notes to Financial Statements. | 68 |
DBX ETF Trust
Statements of Changes in Net Assets (Continued)
| Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF |
Xtrackers Municipal Infrastructure Revenue Bond ETF |
|||||||||||||||
| Year Ended May 31, | Year Ended May 31, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Increase (Decrease) in Net Assets from Operations |
||||||||||||||||
| Net investment income (loss) |
$ | 1,052,055 | $ | 572,901 | $ | 2,810,931 | $ | 2,110,866 | ||||||||
| Net realized gain (loss) |
1,012,134 | (1,416,344 | ) | 742,159 | 499,255 | |||||||||||
| Net change in net unrealized appreciation (depreciation) |
479,819 | 660,323 | 5,541,055 | (806,061 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net increase (decrease) in net assets resulting from operations |
2,544,008 | (183,120 | ) | 9,094,145 | 1,804,060 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Distributions to Shareholders |
(1,059,815 | ) | (514,773 | ) | (2,889,288 | ) | (1,935,086 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Fund Shares Transactions |
||||||||||||||||
| Proceeds from shares sold |
2,107,141 | 12,754,870 | 46,362,718 | 33,722,192 | ||||||||||||
| Value of shares redeemed |
(5,206,838 | ) | — | (11,773,539 | ) | (4,325,592 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net increase (decrease) in net assets resulting from fund share transactions |
(3,099,697 | ) | 12,754,870 | 34,589,179 | 29,396,600 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total net increase (decrease) in Net Assets |
(1,615,504 | ) | 12,056,977 | 40,794,036 | 29,265,574 | |||||||||||
| Net Assets |
||||||||||||||||
| Beginning of year |
18,572,096 | 6,515,119 | 97,137,309 | 67,871,735 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| End of year |
$ | 16,956,592 | $ | 18,572,096 | $ | 137,931,345 | $ | 97,137,309 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Changes in Shares Outstanding |
||||||||||||||||
| Shares outstanding, beginning of year |
950,001 | 300,001 | 3,500,001 | 2,450,001 | ||||||||||||
| Shares sold |
100,000 | 650,000 | 1,600,000 | 1,200,000 | ||||||||||||
| Shares redeemed |
(250,000 | ) | — | (400,000 | ) | (150,000 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Shares outstanding, end of year |
800,001 | 950,001 | 4,700,001 | 3,500,001 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| See Notes to Financial Statements. | 69 |
DBX ETF Trust
Statements of Changes in Net Assets (Continued)
| Xtrackers MSCI All World ex US High Dividend Yield Equity ETF |
Xtrackers MSCI EAFE High Dividend Yield Equity ETF |
|||||||||||||||
| Year Ended May 31, | Year Ended May 31, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Increase (Decrease) in Net Assets from Operations |
||||||||||||||||
| Net investment income (loss) |
$ | 1,040,851 | $ | 1,044,097 | $ | 29,157,054 | $ | 13,739,487 | ||||||||
| Net realized gain (loss) |
138,229 | (2,088,893 | ) | 20,670,571 | (44,165,173 | ) | ||||||||||
| Net change in net unrealized appreciation (depreciation) |
5,024,661 | (581,521 | ) | 94,017,999 | 2,053,231 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net increase (decrease) in net assets resulting from operations |
6,203,741 | (1,626,317 | ) | 143,845,624 | (28,372,455 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Distributions to Shareholders |
(1,043,240 | ) | (1,173,193 | ) | (24,511,986 | ) | (13,640,273 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Fund Shares Transactions |
||||||||||||||||
| Proceeds from shares sold |
2,655,173 | 9,841,629 | 394,847,467 | 266,608,659 | ||||||||||||
| Value of shares redeemed |
(5,014,288 | ) | (10,905,892 | ) | (184,212,039 | ) | (60,156,321 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net increase (decrease) in net assets resulting from fund share transactions |
(2,359,115 | ) | (1,064,263 | ) | 210,635,428 | 206,452,338 | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total net increase (decrease) in Net Assets |
2,801,386 | (3,863,773 | ) | 329,969,066 | 164,439,610 | |||||||||||
| Net Assets |
||||||||||||||||
| Beginning of year |
19,827,971 | 23,691,744 | 408,671,517 | 244,231,907 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| End of year |
$ | 22,629,357 | $ | 19,827,971 | $ | 738,640,583 | $ | 408,671,517 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Changes in Shares Outstanding |
||||||||||||||||
| Shares outstanding, beginning of year |
950,001 | 1,000,001 | 20,550,001 | 11,100,001 | ||||||||||||
| Shares sold |
100,000 | 400,000 | 16,750,000 | 12,200,000 | ||||||||||||
| Shares redeemed |
(200,000 | ) | (450,000 | ) | (7,750,000 | ) | (2,750,000 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Shares outstanding, end of year |
850,001 | 950,001 | 29,550,001 | 20,550,001 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| See Notes to Financial Statements. | 70 |
DBX ETF Trust
| Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF Selected Per Share Data |
Years Ended May 31, | |||||||||||||||||||
| 2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
| Net Asset Value, beginning of year |
$ | 22.02 | $ | 23.04 | $ | 23.84 | $ | 24.09 | $ | 23.79 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||
| Net investment income (loss)(a) |
0.53 | 0.73 | 0.83 | 0.78 | 0.73 | |||||||||||||||
| Net realized and unrealized gain (loss) |
(0.10 | )(b) | (0.98 | )(b) | (0.32 | ) | (0.28 | ) | 0.39 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total from investment operations |
0.43 | (0.25 | ) | 0.51 | 0.50 | 1.12 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Less distributions from: |
| |||||||||||||||||||
| Net investment income |
(0.52 | ) | (0.77 | ) | (0.83 | ) | (0.75 | ) | (0.82 | ) | ||||||||||
| Net realized gains |
— | — | (0.48 | ) | — | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total distributions |
(0.52 | ) | (0.77 | ) | (1.31 | ) | (0.75 | ) | (0.82 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net Asset Value, end of year |
$ | 21.93 | $ | 22.02 | $ | 23.04 | $ | 23.84 | $ | 24.09 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Return (%) |
1.95 | (c) | (1.16 | )(c) | 2.28 | (c) | 2.05 | 4.79 | ||||||||||||
| Ratios to Average Net Assets and Supplemental Data |
||||||||||||||||||||
| Net Assets, end of year ($ millions) |
8 | 10 | 7 | 10 | 6 | |||||||||||||||
| Ratio of expenses before fee waiver (%) |
0.15 | 0.24 | 0.25 | 0.25 | 0.25 | |||||||||||||||
| Ratio of expenses after fee waiver (%) |
0.15 | 0.24 | 0.25 | 0.25 | 0.25 | |||||||||||||||
| Ratio of net investment income (loss) (%) |
2.34 | 3.18 | 3.53 | 3.22 | 3.04 | |||||||||||||||
| Portfolio turnover rate (%)(d) |
29 | 57 | 25 | 33 | 26 | |||||||||||||||
| Xtrackers J.P. Morgan ESG Emerging Markets Sovereign ETF Selected Per Share Data |
Years Ended May 31, | |||||||||||||||||||
| 2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
| Net Asset Value, beginning of year |
$ | 20.63 | $ | 23.10 | $ | 24.36 | $ | 24.91 | $ | 23.96 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||
| Net investment income (loss)(a) |
0.84 | 0.89 | 1.05 | 0.99 | 1.07 | |||||||||||||||
| Net realized and unrealized gain (loss) |
1.12 | (2.37 | ) | (0.29 | ) | (0.48 | ) | 1.18 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total from investment operations |
1.96 | (1.48 | ) | 0.76 | 0.51 | 2.25 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Less distributions from: |
| |||||||||||||||||||
| Net investment income |
(0.81 | ) | (0.99 | ) | (1.04 | ) | (1.02 | ) | (1.30 | ) | ||||||||||
| Net realized gains |
— | — | (0.98 | ) | (0.04 | ) | — | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total distributions |
(0.81 | ) | (0.99 | ) | (2.02 | ) | (1.06 | ) | (1.30 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net Asset Value, end of year |
$ | 21.78 | $ | 20.63 | $ | 23.10 | $ | 24.36 | $ | 24.91 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Return (%) |
9.57 | (c) | (6.79 | )(c) | 3.31 | (c) | 2.03 | 9.61 | ||||||||||||
| Ratios to Average Net Assets and Supplemental Data |
||||||||||||||||||||
| Net Assets, end of year ($ millions) |
30 | 14 | 7 | 9 | 6 | |||||||||||||||
| Ratio of expenses before fee waiver (%) |
0.35 | 0.44 | 0.45 | 0.45 | 0.47 | |||||||||||||||
| Ratio of expenses after fee waiver (%) |
0.35 | 0.44 | 0.45 | 0.45 | 0.47 | |||||||||||||||
| Ratio of net investment income (loss) (%) |
3.87 | 3.85 | 4.37 | 3.94 | 4.35 | |||||||||||||||
| Portfolio turnover rate (%)(d) |
35 | 26 | 31 | 48 | 35 | |||||||||||||||
| (a) | Based on average shares outstanding during the period. |
| (b) | Because of the timing of subscriptions and redemptions in relation to fluctuating markets at value, the amount shown may not agree with the change in aggregate gains and losses. |
| (c) | Total Return would have been lower if certain expenses had not been reimbursed by the Advisor. |
| (d) | Portfolio turnover rate does not include securities received or delivered from processing creations or redemptions. |
| See Notes to Financial Statements. | 71 |
DBX ETF Trust
Financial Highlights (Continued)
| Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF Selected Per Share Data |
Years Ended May 31, | |||||||||||||||||||
| 2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
| Net Asset Value, beginning of year |
$ | 19.55 | $ | 21.72 | $ | 22.68 | $ | 23.42 | $ | 22.23 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||
| Net investment income (loss)(a) |
1.23 | 1.26 | 1.32 | 1.27 | 1.17 | |||||||||||||||
| Net realized and unrealized gain (loss) |
1.67 | (2.19 | ) | (0.82 | ) | (0.53 | ) | 1.30 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total from investment operations |
2.90 | (0.93 | ) | 0.50 | 0.74 | 2.47 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Less distributions from: |
| |||||||||||||||||||
| Net investment income |
(1.25 | ) | (1.24 | ) | (1.46 | ) | (1.48 | ) | (1.28 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total distributions |
(1.25 | ) | (1.24 | ) | (1.46 | ) | (1.48 | ) | (1.28 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net Asset Value, end of year |
$ | 21.20 | $ | 19.55 | $ | 21.72 | $ | 22.68 | $ | 23.42 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Return (%) |
15.22 | (b) | (4.58 | )(b) | 2.18 | (b) | 3.24 | (b) | 11.40 | |||||||||||
| Ratios to Average Net Assets and Supplemental Data |
||||||||||||||||||||
| Net Assets, end of year ($ millions) |
17 | 19 | 7 | 3 | 11 | |||||||||||||||
| Ratio of expenses before fee waiver (%) |
0.20 | 0.33 | (c) | 0.35 | (c) | 0.35 | (c) | 0.39 | ||||||||||||
| Ratio of expenses after fee waiver (%) |
0.20 | 0.19 | (c) | 0.14 | (c) | 0.33 | (c) | 0.39 | ||||||||||||
| Ratio of net investment income (loss) (%) |
5.94 | 6.06 | 5.91 | 5.47 | 5.08 | |||||||||||||||
| Portfolio turnover rate (%)(d) |
56 | 113 | 19 | 50 | 33 | |||||||||||||||
| Xtrackers Municipal Infrastructure Revenue Bond ETF Selected Per Share Data |
Years Ended May 31, | |||||||||||||||||||
| 2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
| Net Asset Value, beginning of year |
$ | 27.75 | $ | 27.70 | $ | 26.52 | $ | 26.71 | $ | 27.17 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||
| Net investment income (loss)(a) |
0.70 | 0.76 | 0.75 | 0.70 | 0.66 | |||||||||||||||
| Net realized and unrealized gain (loss) |
1.63 | 0.00 | (e) | 1.18 | (0.20 | ) | (0.46 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total from investment operations |
2.33 | 0.76 | 1.93 | 0.50 | 0.20 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Less distributions from: |
| |||||||||||||||||||
| Net investment income |
(0.73 | ) | (0.71 | ) | (0.75 | ) | (0.69 | ) | (0.66 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total distributions |
(0.73 | ) | (0.71 | ) | (0.75 | ) | (0.69 | ) | (0.66 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net Asset Value, end of year |
$ | 29.35 | $ | 27.75 | $ | 27.70 | $ | 26.52 | $ | 26.71 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Return (%) |
8.50 | 2.77 | 7.45 | (b) | 1.87 | 0.77 | ||||||||||||||
| Ratios to Average Net Assets and Supplemental Data |
||||||||||||||||||||
| Net Assets, end of year ($ millions) |
138 | 97 | 68 | 58 | 60 | |||||||||||||||
| Ratio of expenses (%) |
0.15 | 0.15 | 0.25 | 0.30 | 0.30 | |||||||||||||||
| Ratio of expenses after fee waiver (%) |
0.15 | 0.15 | 0.22 | 0.30 | 0.30 | |||||||||||||||
| Ratio of net investment income (loss) (%) |
2.42 | 2.72 | 2.85 | 2.61 | 2.50 | |||||||||||||||
| Portfolio turnover rate (%)(d) |
10 | 12 | 25 | 28 | 0 | |||||||||||||||
| (a) | Based on average shares outstanding during the period. |
| (b) | Total Return would have been lower if certain expenses had not been reimbursed by the Advisor. |
| (c) | The Fund invests in other ETFs and indirectly bears its proportionate shares of fees and expenses incurred by the Underlying Funds in which the Fund is invested. This ratio does not include these indirect fees and expenses. |
| (d) | Portfolio turnover rate does not include securities received or delivered from processing creations or redemptions. |
| (e) | Less than 0.005. |
| See Notes to Financial Statements. | 72 |
DBX ETF Trust
Financial Highlights (Continued)
| Xtrackers MSCI All World ex US High Dividend Yield Equity ETF Selected Per Share Data |
Years Ended May 31, | |||||||||||||||||||
| 2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
| Net Asset Value, beginning of year |
$ | 20.87 | $ | 23.69 | $ | 25.42 | $ | 26.14 | $ | 22.96 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||
| Net investment income (loss)(a) |
1.16 | 0.94 | 1.21 | 1.35 | 1.02 | |||||||||||||||
| Net realized and unrealized gain (loss) |
5.75 | (2.78 | ) | (1.92 | ) | (1.20 | ) | 3.07 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total from investment operations |
6.91 | (1.84 | ) | (0.71 | ) | 0.15 | 4.09 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Less distributions from: |
| |||||||||||||||||||
| Net investment income |
(1.16 | ) | (0.98 | ) | (1.02 | ) | (0.87 | ) | (0.60 | ) | ||||||||||
| Net realized gains |
— | — | — | — | (0.31 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total distributions |
(1.16 | ) | (0.98 | ) | (1.02 | ) | (0.87 | ) | (0.91 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net Asset Value, end of year |
$ | 26.62 | $ | 20.87 | $ | 23.69 | $ | 25.42 | $ | 26.14 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Return (%) |
34.16 | (b) | (8.19 | )(b) | (2.82 | )(b) | 0.54 | 18.17 | ||||||||||||
| Ratios to Average Net Assets and Supplemental Data |
||||||||||||||||||||
| Net Assets, end of year ($ millions) |
23 | 20 | 24 | 27 | 4 | |||||||||||||||
| Ratio of expenses before fee waiver (%) |
0.20 | 0.20 | 0.20 | 0.32 | 0.45 | |||||||||||||||
| Ratio of expenses after fee waiver (%) |
0.20 | 0.20 | 0.20 | 0.32 | 0.45 | |||||||||||||||
| Ratio of net investment income (loss) (%) |
4.92 | 3.94 | 4.96 | 5.29 | 4.17 | |||||||||||||||
| Portfolio turnover rate (%)(c) |
57 | 40 | 30 | 76 | 36 | |||||||||||||||
| Xtrackers MSCI EAFE High Dividend Yield Equity ETF Selected Per Share Data |
Years Ended May 31, | |||||||||||||||||||
| 2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
| Net Asset Value, beginning of year |
$ | 19.89 | $ | 22.00 | $ | 23.69 | $ | 24.99 | $ | 23.16 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||
| Net investment income (loss)(a) |
1.21 | 0.85 | 1.36 | 1.50 | 1.06 | |||||||||||||||
| Net realized and unrealized gain (loss) |
4.94 | (2.00 | ) | (2.25 | ) | (1.99 | ) | 3.03 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total from investment operations |
6.15 | (1.15 | ) | (0.89 | ) | (0.49 | ) | 4.09 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Less distributions from: |
| |||||||||||||||||||
| Net investment income |
(1.04 | ) | (0.96 | ) | (0.80 | ) | (0.81 | ) | (0.95 | ) | ||||||||||
| Net realized gains |
— | — | — | — | (1.31 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total distributions |
(1.04 | ) | (0.96 | ) | (0.80 | ) | (0.81 | ) | (2.26 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net Asset Value, end of year |
$ | 25.00 | $ | 19.89 | $ | 22.00 | $ | 23.69 | $ | 24.99 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Return (%) |
31.74 | (b) | (5.58 | )(b) | (3.76 | )(b) | (2.02 | ) | 18.93 | (d) | ||||||||||
| Ratios to Average Net Assets and Supplemental Data |
||||||||||||||||||||
| Net Assets, end of year ($ millions) |
739 | 409 | 244 | 24 | 5 | |||||||||||||||
| Ratio of expenses before fee waiver (%) |
0.20 | 0.20 | 0.20 | 0.33 | 0.45 | |||||||||||||||
| Ratio of expenses after fee waiver (%) |
0.20 | 0.20 | 0.20 | 0.33 | 0.45 | |||||||||||||||
| Ratio of net investment income (loss) (%) |
5.38 | 3.86 | 6.06 | 6.28 | 4.48 | |||||||||||||||
| Portfolio turnover rate (%)(c) |
57 | 57 | 20 | 56 | 41 | |||||||||||||||
| (a) | Based on average shares outstanding during the period. |
| (b) | Total Return would have been lower if certain expenses had not been reimbursed by the Advisor. |
| (c) | Portfolio turnover rate does not include securities received or delivered from processing creations or redemptions. |
| (d) | The Fund’s total return includes a reimbursement by the Advisor for a realized loss on a trade executed incorrectly, which otherwise would have reduced total return by 0.32%. |
| See Notes to Financial Statements. | 73 |
DBX ETF Trust
1. Organization
DBX ETF Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end registered management investment company organized as a Delaware statutory trust.
As of May 31, 2021, the Trust consists of thirty-five investment series of exchange-traded funds (“ETFs”)(each a “Fund” and collectively, the “Funds”) in operation and trading. These financial statements report on the Funds listed below:
| Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF | ||
| Xtrackers J.P. Morgan ESG Emerging Markets Sovereign ETF | ||
| Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF | ||
| Xtrackers Municipal Infrastructure Revenue Bond ETF | ||
| Xtrackers MSCI All World ex US High Dividend Yield Equity ETF | ||
| Xtrackers MSCI EAFE High Dividend Yield Equity ETF |
DBX Advisors LLC (“DBX” or the “Advisor”), an indirect, wholly-owned subsidiary of DWS Group GmbH & Co. KGaA (“DWS Group”), serves as investment advisor to the Funds and has overall responsibility for the general management and administration of the Funds, subject to the supervision of the Funds’ Board of Trustees (“Board”).
Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF, Xtrackers J.P. Morgan ESG Emerging Markets Sovereign ETF and Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF offer shares that are listed and traded on the Cboe Bats BZX Exchange. Inc. (“Cboe”). Xtrackers Municipal Infrastructure Revenue Bond ETF, Xtrackers MSCI All World ex US High Dividend Yield Equity ETF and Xtrackers MSCI EAFE High Dividend Yield Equity ETF offer shares that are listed and traded on the NYSE Arca, Inc. (“NYSE Arca”). Unlike conventional mutual funds, each Fund issues and redeems shares on a continuous basis, at net asset value, (“NAV”) only in large specified lots consisting of 50,000 shares, each called a “Creation Unit”, to authorized participants who have entered into agreements with the Funds’ distributor. Shares are not individually redeemable securities of the Funds, and owners of the shares may acquire those shares from the Funds, or tender such shares for redemption to the Funds, in Creation Units only.
The investment objective of each Fund is to track the performance, before fees and expenses, of a particular index (the “Underlying Index”). The underlying indices for the Funds are:
| Fund |
Underlying Index | |
| Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF | Bloomberg Barclays MSCI US Corporate Sustainability SRI Sector/Credit/Maturity Neutral Index | |
| Xtrackers J.P. Morgan ESG Emerging Markets Sovereign ETF | J.P. Morgan ESG EMBI Global Diversified Sovereign Index | |
| Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF | J.P. Morgan ESG DM Corporate High Yield USD Index | |
| Xtrackers Municipal Infrastructure Revenue Bond ETF | Solactive Municipal Infrastructure Revenue Bond Index | |
| Xtrackers MSCI All World ex US High Dividend Yield Equity ETF | MSCI ACWI ex USA High Dividend Yield Index | |
| Xtrackers MSCI EAFE High Dividend Yield Equity ETF | MSCI EAFE High Dividend Yield Index |
The Bloomberg Barclays MSCI US Corporate Sustainability SRI Sector/Credit/Maturity Neutral Index is designed to apply environmental, social and governance (“ESG”) considerations to a broader parent index. The Underlying Index generally aims to keep the broad characteristics of its parent index, the Bloomberg Barclays US Corporate Index (an investment grade corporate bond universe), resulting in a broad investment grade fixed income market exposure with ESG aspects. Under normal circumstances, the Bloomberg Barclays MSCI US Corporate Sustainability SRI Sector/Credit/Maturity Neutral Index is reconstituted and rebalanced on a monthly basis.
The J.P. Morgan ESG EMBI Global Diversified Sovereign Index is designed to apply environmental, social and governance (“ESG”) considerations to a broader parent index. The Underlying Index generally aims to keep the broad characteristics of its parent index, the J.P. Morgan EMBI Global Diversified Sovereign Index, resulting in a broad emerging markets sovereign debt market exposure with ESG aspects. The J.P. Morgan ESG DM Corporate High Yield USD Index is designed to apply environmental, social and governance (“ESG”) considerations to
74
DBX ETF Trust
Notes to Financial Statements (Continued)
a broader parent index. The Underlying Index generally aims to keep the broad characteristics of its parent index, the J.P. Morgan DM High Yield USD Index (a USD denominated high yield corporate bond index of developed market issuers), resulting in a broad high yield fixed income market exposure with ESG aspects. Under normal circumstances, the J.P. Morgan Indices are reconstituted and rebalanced on a monthly basis.
The Solactive Municipal Infrastructure Revenue Bond Index is designed to track the returns of the segment of the U.S. long term tax-exempt bond market, consisting of infrastructure revenue bonds. It is comprised of tax-exempt municipal securities issued by states, cities, counties, districts, their respective agencies and other tax-exempt issuers. The Underlying Index is intended to track bonds that have been issued with the intention of funding federal, state and local infrastructure projects such as water and sewer systems, public power systems, toll roads, bridges, tunnels and many other public use projects. It is designed to only hold bonds issued by state and local municipalities where the interest and principal repayments are generated from dedicated revenue streams or a double-barreled revenue stream (pledged revenue stream and a general obligation pledge). Under normal circumstances, the Solactive Municipal Infrastructure Revenue Bond Index is rebalanced monthly on the last business day of each month.
The MSCI ACWI ex USA High Dividend Yield Index is designed to track the performance of equity securities (excluding real estate investment trusts (“REITs”)) in developed and emerging stock markets (excluding the United States) in its parent index, the MSCI ACWI ex US Index, with higher dividend income and quality characteristics than average dividend yields of equities in the parent index, where such higher dividend income and quality characteristics are both sustainable and persistent. The MSCI EAFE High Dividend Yield Index is designed to reflect the performance of equities (excluding REITs) in developed markets in its parent index, the MSCI EAFE Index, with higher dividend income and quality characteristics than average dividend yields of equities in the parent index, where such higher dividend income and quality characteristics are both sustainable and persistent. Under normal circumstances, the MSCI High Dividend Yield Indices are rebalanced semi-annually in May and November.
Each Fund is entitled to use its respective Underlying Index pursuant to a licensing agreement between the Index Provider and DBX. There is no charge to the Funds in connection with these licensing agreements.
Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF, Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF, Xtrackers Municipal Infrastructure Revenue Bond ETF and Xtrackers MSCI All World ex US High Dividend Yield Equity ETF are diversified series of the Trust. Xtrackers J.P. Morgan ESG Emerging Markets Sovereign ETF and Xtrackers MSCI EAFE High Dividend Yield Equity ETF are non-diversified and are not limited by the Act with regard to the percentage of its assets that may be invested in the securities of a single issuer. This means the securities of a particular issuer (or securities of issuers in particular industries) may dominate the Underlying Index of the Fund and, consequently, the Fund’s investment portfolio. This may adversely affect the Fund’s performance or subject the Fund’s shares to greater price volatility than that experienced by more diversified investment companies. In addition, each Fund, with the exception of Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF, Xtrackers J.P. Morgan ESG Emerging Markets Sovereign ETF, Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF and Xtrackers Municipal Infrastructure Revenue Bond ETF, may change its diversification status over time and then change it back again, without shareholder approval, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the index each Fund tracks.
Pursuant to the Trust’s organizational documents, the Trust’s officers and trustees are indemnified against certain liabilities that may arise out of the performance of their duties to the Funds. Additionally, in the normal course of business the Trust enters into contracts that contain a variety of representations that provide indemnification for certain liabilities. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Trust expects the risk of loss to be remote.
2. Significant Accounting Policies
The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), which require management to make certain estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. Each Fund
75
DBX ETF Trust
Notes to Financial Statements (Continued)
qualifies as an investment company under Topic 946 of the Accounting Standards Codification of U.S. GAAP. The following is a summary of significant accounting policies followed by the Funds.
Security Valuation The NAV of each Fund’s shares is calculated each business day as of the close of regular trading on the New York Stock Exchange, generally 4:00 p.m. Eastern Time. NAV per share is calculated by dividing a Fund’s net assets by the number of Fund shares outstanding.
Various inputs are used in determining the value of the Funds’ investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, and credit risk). Level 3 includes significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.
Municipal debt securities are valued at prices supplied by independent pricing services approved by the Funds’ Board. Such services may use various pricing techniques which take into account appropriate factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as broker quotes. If the pricing services are unable to provide valuations, securities are valued at the mean between the bid and ask quotations or evaluated prices, as applicable, obtained from broker-dealers. These securities are generally categorized as Level 2.
Corporate and sovereign debt securities are valued at prices supplied by independent pricing services approved by the Funds’ Board. Such services may use various pricing techniques which take into account appropriate factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as broker quotes. If the pricing services are unable to provide valuations, securities are valued at the mean between the bid and ask quotations or evaluated prices, as applicable, obtained from broker dealers. These securities are generally categorized as Level 2.
Equity securities and ETFs are valued at the most recent sale price or official closing price reported on the exchange (U.S. or foreign) or over-the-counter market on which they trade. Securities or ETFs for which no sales are reported are valued at the calculated mean between the most recent bid and asked quotations on the relevant market or, if a mean cannot be determined, at the most recent bid quotation. Equity securities and ETFs are generally categorized as Level 1.
Investments in open-end investment companies are valued at their NAV each business day and are categorized as Level 1.
Futures contracts are generally valued at the settlement prices established each day on the exchange on which they are traded and are categorized as Level 1.
Securities and other assets for which market quotations are not readily available or for which the above valuation procedures are deemed not to reflect fair value are valued in a manner that is intended to reflect their fair value as determined in accordance with procedures approved by the Board and are generally categorized as Level 3. In accordance with the Funds’ valuation procedures, factors considered in determining value may include, but are not limited to, the type of the security; the size of the holding; the initial cost of the security; the existence of any contractual restrictions on the security’s disposition; the price and extent of public trading in similar securities of the issuer or of comparable companies; quotations or evaluated prices from broker-dealers and/or pricing services; information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities); an analysis of the company’s or issuer’s financial statements; an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold; and with respect to debt securities, the maturity, coupon, creditworthiness, currency denomination and the movement of the market in which the security is normally traded. The value determined under these procedures may differ from published values for the same securities.
Fair value pricing could result in a difference between the prices used to calculate a Fund’s NAV and the prices used by the Fund’s Underlying Index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s Underlying Index.
76
DBX ETF Trust
Notes to Financial Statements (Continued)
Disclosure about the classification of the fair value measurements is included in a table following the Fund’s Schedule of Investments
Cash Cash consists of cash held at banks and is on deposit with major financial institutions.
Investment Transactions and Investment Income Investment transactions are recorded as of the date that the securities are purchased or sold (trade date). Realized gains and losses from the sale or disposition of securities are calculated on the identified cost-method. Dividend income is net of any foreign taxes withheld at source. Certain dividends from foreign securities may be recorded subsequent to the ex-dividend date as soon as the Fund is informed of such dividends. Interest income is recorded on the accrual basis. All premiums and discounts are amortized/accreted for both tax and financial reporting purposes.
Tax Information and Dividends and Distributions to Shareholders It is each Fund’s policy to comply with all requirements of the Internal Revenue Code of 1986, as amended (“the Code”). Each Fund intends to qualify for and to elect treatment as a separate Regulated Investment Company (“RIC”) under Subchapter M of the Code. It is the policy of Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF, Xtrackers J.P. Morgan ESG Emerging Markets Sovereign ETF, Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF and Xtrackers Municipal Infrastructure Revenue Bond ETF to pay out dividends from its net investment income monthly and Xtrackers MSCI All World ex US High Dividend Yield Equity ETF and Xtrackers MSCI EAFE High Dividend Yield Equity ETF to pay out dividends from net investment income quarterly. Taxable net realized gains from investment transactions, reduced by capital loss carryforwards, if any, are declared and distributed to shareholders at least annually. The capital loss carryforward amount, if any, is available to offset future net capital gains. The Funds may occasionally be required to make supplemental distributions at some other time during the year. The Funds reserve the right to declare special distributions if, in their reasonable discretion, such action is necessary or advisable to preserve the status of each Fund as a RIC or to avoid imposition of income or excise taxes on undistributed income. Dividends and distributions to shareholders, if any, are recorded on the ex-dividend date. The amount of dividends and distributions from net investment income and net realized capital gains are determined in accordance with Federal income tax regulations which may differ from U.S. GAAP. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified at the end of the year within the components of net assets based on their federal tax treatment; temporary differences do not require reclassification. Dividends and distributions, which exceed earnings and profits for the full year for tax purposes, are reported as a tax return of capital.
In accordance with U.S. GAAP requirements regarding accounting for uncertainties in income taxes, management has analyzed the Funds’ tax positions taken or expected to be taken on foreign, federal and state income tax returns for all open tax years and has concluded that no provision for income tax is required in the Funds’ financial statements.
The Funds recognize interest and penalties, if any, related to uncertain tax positions as income tax expense on the Statements of Operations. For the year ended May 31, 2021, the Funds did not incur any interest or penalties.
As of May 31, 2021, the components of accumulated earnings (losses) on a tax basis were as follows:
| Undistributed Ordinary Income* |
Capital and Other Gains (Losses) |
Unrealized Appreciation (Depreciation) |
Total Accumulated Earnings (Losses) |
|||||||||||||
| Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF |
$ | 16,178 | $ | (1,194,180 | ) | $ | 263,424 | $ | (914,578 | ) | ||||||
| Xtrackers J.P. Morgan ESG Emerging Markets Sovereign ETF |
133,245 | (882,335 | ) | 419,403 | (329,687 | ) | ||||||||||
| Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF |
79,240 | (1,506,484 | ) | 1,011,869 | (415,375 | ) | ||||||||||
| Xtrackers Municipal Infrastructure Revenue Bond ETF |
255,587 | (201,296 | ) | 7,157,777 | 7,212,068 | |||||||||||
| Xtrackers MSCI All World ex US High Dividend Yield Equity ETF |
331,173 | (4,269,197 | ) | 2,378,731 | (1,559,293 | ) | ||||||||||
| Xtrackers MSCI EAFE High Dividend Yield Equity ETF |
13,068,109 | (55,935,238 | ) | 62,463,833 | 19,596,704 | |||||||||||
77
DBX ETF Trust
Notes to Financial Statements (Continued)
The tax character of dividends and distributions declared for the years ended May 31, 2021 and May 31, 2020 were as follows:
| Year Ended May 31, 2021 | ||||||||
| Ordinary Income* |
Tax-Exempt | |||||||
| Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF |
$ | 218,315 | $ | — | ||||
| Xtrackers J.P. Morgan ESG Emerging Markets Sovereign ETF |
1,002,086 | — | ||||||
| Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF |
1,059,815 | — | ||||||
| Xtrackers Municipal Infrastructure Revenue Bond ETF |
— | 2,889,288 | ||||||
| Xtrackers MSCI All World ex US High Dividend Yield Equity ETF |
1,043,240 | — | ||||||
| Xtrackers MSCI EAFE High Dividend Yield Equity ETF |
24,511,986 | — | ||||||
| Year Ended May 31, 2020 | ||||||||
| Ordinary Income* |
Tax-Exempt | |||||||
| Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF |
$ | 213,862 | $ | — | ||||
| Xtrackers J.P. Morgan ESG Emerging Markets Sovereign ETF |
384,666 | — | ||||||
| Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF |
514,773 | — | ||||||
| Xtrackers Municipal Infrastructure Revenue Bond ETF |
— | 1,935,086 | ||||||
| Xtrackers MSCI All World ex US High Dividend Yield Equity ETF |
1,173,193 | — | ||||||
| Xtrackers MSCI EAFE High Dividend Yield Equity ETF |
13,640,273 | — | ||||||
| * | For tax purposes short-term capital gain distributions are considered ordinary income distributions. |
At May 31, 2021, for Federal income tax purposes, the Funds have capital loss carryforwards available as shown in the table below, to the extent provided by regulations, to offset future capital gains for an unlimited period. To the extent that these loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to shareholders.
| Short-Term | Long-Term | Total Amount | ||||||||||
| Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF |
$ | 458,820 | $ | 735,360 | $ | 1,194,180 | ||||||
| Xtrackers J.P. Morgan ESG Emerging Markets Sovereign ETF |
59,556 | 804,847 | 864,403 | |||||||||
| Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF |
37,555 | 1,468,929 | 1,506,484 | |||||||||
| Xtrackers Municipal Infrastructure Revenue Bond ETF |
182,839 | 18,457 | 201,296 | |||||||||
| Xtrackers MSCI All World ex US High Dividend Yield Equity ETF |
817,005 | 3,452,192 | 4,269,197 | |||||||||
| Xtrackers MSCI EAFE High Dividend Yield Equity ETF |
19,350,281 | 36,584,957 | 55,935,238 | |||||||||
For the fiscal year ended May 31, 2021, the effect of permanent “book/tax” reclassifications to the components of net assets are included below. These differences are primarily due to the recognition of certain foreign currency gain (losses) as ordinary income (loss), redemptions-in-kind, defaulted security adjustments, amortization/accretion, and accrued foreign capital gains taxes.
| Distributable earnings (loss) |
Paid-In Capital |
|||||||
| Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF |
$ | (141,360 | ) | $ | 141,360 | |||
| Xtrackers J.P. Morgan ESG Emerging Markets Sovereign ETF |
(101,482 | ) | 101,482 | |||||
| Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF |
(306,637 | ) | 306,637 | |||||
| Xtrackers Municipal Infrastructure Revenue Bond ETF |
(802,230 | ) | 802,230 | |||||
| Xtrackers MSCI All World ex US High Dividend Yield Equity ETF |
(711,359 | ) | 711,359 | |||||
| Xtrackers MSCI EAFE High Dividend Yield Equity ETF |
(29,635,592 | ) | 29,635,592 | |||||
78
DBX ETF Trust
Notes to Financial Statements (Continued)
As of May 31, 2021, the aggregate cost of investments for federal income tax purposes, the net unrealized appreciation or depreciation and the aggregated gross unrealized appreciation (depreciation) on investments were as follows:
| Aggregate Tax Cost |
Net Unrealized Appreciation (Depreciation) |
Aggregate Gross Unrealized Appreciation |
Aggregate Gross Unrealized (Depreciation) |
|||||||||||||
| Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF |
$ | 7,473,934 | $ | 263,424 | $ | 327,012 | $ | (63,588 | ) | |||||||
| Xtrackers J.P. Morgan ESG Emerging Markets Sovereign ETF |
29,946,402 | 419,403 | 1,128,984 | (709,581 | ) | |||||||||||
| Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF |
15,999,164 | 1,011,869 | 1,068,573 | (56,704 | ) | |||||||||||
| Xtrackers Municipal Infrastructure Revenue Bond ETF |
126,816,514 | 7,157,777 | 7,260,884 | (103,107 | ) | |||||||||||
| Xtrackers MSCI All World ex US High Dividend Yield Equity ETF |
21,063,292 | 2,381,055 | 2,927,049 | (545,994 | ) | |||||||||||
| Xtrackers MSCI EAFE High Dividend Yield Equity ETF |
706,080,778 | 62,447,293 | 69,050,218 | (6,602,925 | ) | |||||||||||
Foreign Taxes The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, capital gains on investments, certain foreign currency transactions or other corporate events. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and are reflected in their Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on capital gains from sales of investments and foreign currency transactions are included in their respective net realized gain (loss) categories, and deferred foreign taxes on unrealized gains are included in net change in unrealized appreciation (depreciation). Receivables and payables related to foreign taxes as of May 31, 2021, if any, are disclosed in the Funds’ Statements of Assets and Liabilities.
Foreign Currency Translations The books and records of the Funds are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the prevailing exchange rates at period end. Purchases and sales of investment securities, income and expenses are translated into U.S. dollars at the prevailing exchange rates on the respective dates of the transactions.
Net realized and unrealized gains and losses on foreign currency transactions represent net gains and losses between trade and settlement dates on securities transactions, the acquisition and disposition of foreign currencies, and the difference between the amount of net investment income accrued and the U.S. dollar amount actually received. The portion of both realized and unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed, but is included with net realized and unrealized gain/appreciation and loss/depreciation on investments.
Securities Lending The Funds, except the Xtrackers Municipal Infrastructure Revenue Bond ETF, may lend securities to certain financial institutions under the terms of their securities lending agreement. During the term of the loans, the Funds continue to receive interest and dividends generated by the securities and to participate in any changes in their market value. The Funds require the borrowers of the securities to maintain collateral with the Funds consisting of cash and/or securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities having a value at least equal to the value of the securities loaned. When the collateral falls below specified amounts, the lending agent will use its best effort to obtain additional collateral on the next business day to meet required amounts under the securities lending agreement. During the year ended May 31, 2021, the Funds invested the cash collateral into a joint trading account in DWS Government & Agency Securities Portfolio, an affiliated money market fund managed by DWS Investment Management Americas, Inc. DWS Investment Management Americas, Inc. receives a management/administration fee (0.01% annualized effective rate as of May 31, 2021) on the cash collateral invested in DWS Government & Agency Securities Portfolio. The Funds receive compensation for lending their securities either in the form of fees or by earning interest on invested cash collateral, net of borrower rebates and fees paid to a lending agent. Either the Fund or the borrower may
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Notes to Financial Statements (Continued)
terminate the loan at any time and the borrower, after notice, is required to return borrowed securities within a standard time period. There may be risks of delay and costs in recovery of securities or even loss of rights in the collateral should the borrower of the securities fail financially. If the Funds are not able to recover securities lent, the Funds may sell the collateral and purchase a replacement investment in the market, incurring the risk that the value of the replacement security is greater than the value of the collateral. The Funds are also subject to all investment risks associated with the reinvestment of any cash collateral received, including, but not limited to, interest rate, credit and liquidity risk associated with such investments.
As of May 31, 2021, the Funds listed below had securities on loan. The value of the related collateral exceeded the value of the securities loaned at period end.
| Remaining Contractual Maturity of the Agreements, as of May 31, 2021 |
||||||||||||||||||||
| Securities Lending Transactions | Overnight and Continuous |
<30 Days | Between 30 & 90 days |
>90 days | Total | |||||||||||||||
| Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF |
|
|||||||||||||||||||
| Corporate Bonds |
$ | 41,760 | $ | — | $ | 2,040 | $ | 82,223 | $ | 126,023 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Gross amount of recognized liabilities and non-cash collateral for securities lending transactions |
|
$ | 126,023 | |||||||||||||||||
| Xtrackers J.P. Morgan ESG Emerging Markets Sovereign ETF |
|
|||||||||||||||||||
| Corporate Bonds |
$ | 500,718 | $ | — | $ | 11,449 | $ | 220,351 | $ | 732,518 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Gross amount of recognized liabilities and non-cash collateral for securities lending transactions |
|
$ | 732,518 | |||||||||||||||||
| Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF |
|
|||||||||||||||||||
| Corporate Bonds |
$ | 123,494 | $ | — | $ | 15,135 | $ | 371,905 | $ | 510,534 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Gross amount of recognized liabilities and non-cash collateral for securities lending transactions |
|
$ | 510,534 | |||||||||||||||||
| Xtrackers MSCI All World ex US High Dividend Yield Equity ETF |
|
|||||||||||||||||||
| Common Stocks |
$ | 1,000,101 | 1,670 | $ | 1 | $ | 27,316 | $ | 1,029,088 | |||||||||||
| Exchange-Traded Funds |
10,118 | — | — | — | $ | 10,118 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total Borrowings |
$ | 1,010,219 | $ | 1,670 | $ | 1 | $ | 27,316 | $ | 1,039,206 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Gross amount of recognized liabilities and non-cash collateral for securities lending transactions |
|
$ | 1,039,206 | |||||||||||||||||
| Xtrackers MSCI EAFE High Dividend Yield Equity ETF |
|
|||||||||||||||||||
| Common Stocks |
$ | 38,049,568 | — | $ | 1,241 | $ | 2,066,025 | $ | 40,116,834 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Gross amount of recognized liabilities and non-cash collateral for securities lending transactions |
|
$ | 40,116,834 | |||||||||||||||||
Derivatives
Futures Contracts Each Fund may enter into futures contracts. These futures contracts will be used to simulate investment in the respective Underlying Index, to facilitate trading or to reduce transaction costs. Each Fund will enter into futures contracts that are traded on a U.S. or non-U.S. exchange. No Fund will use futures for speculative purposes. Futures contracts provide for the future sale by one party and purchase by another party of a specified amount of a specific instrument or index at a specified future time and at a specified price. For the year ended May 31, 2021, Xtrackers MSCI All World ex US High Dividend Yield Equity ETF and Xtrackers MSCI EAFE High Dividend Yield Equity ETF utilized futures in order to simulate investment in the Underlying Index. To the extent required by law, liquid assets committed to futures contracts will be maintained.
At the time each Fund enters into a futures contract, each Fund deposits and maintains as collateral an initial margin with the broker, as required by the exchange on which the transaction is affected. Pursuant to the contract, each Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by each Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for exchange-traded futures contracts is generally less than privately negotiated futures contracts, since the clearinghouse, which is the issuer or counterparty to each
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Notes to Financial Statements (Continued)
exchange-traded future, provides a guarantee of performance. The guarantee is supported by a daily payment system (i.e., margin requirements).
Use of long futures contracts subjects each Fund to risk of loss in excess of the amounts shown on the Statement of Assets and Liabilities, up to the notional value of the futures contracts. Use of short futures contracts subjects each Fund to unlimited risk of loss. Under some circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day’s settlement price, which could effectively prevent liquidation of unfavorable positions.
A summary of the open futures contracts as of May 31, 2021 is included in a table following the Funds’ Schedule of Investments.
The following tables summarize the value of the Funds’ derivative instruments held as of May 31, 2021 and the related location in the accompanying Statement of Assets and Liabilities, presented by primary underlying risk exposure:
| Asset Derivatives |
Liability Derivatives |
|||||||||||||||
| Xtrackers MSCI All World ex US High Dividend Yield Equity ETF | ||||||||||||||||
| Equity contracts | Unrealized appreciation on futures contracts* | $ | 1,090 | Unrealized depreciation on futures contracts* | $ | — | ||||||||||
| Xtrackers MSCI EAFE High Dividend Yield Equity ETF | ||||||||||||||||
| Equity contracts | Unrealized appreciation on futures contracts* | $ | 318,878 | Unrealized depreciation on futures contracts* | $ | — | ||||||||||
| * | Includes cumulative appreciation or cumulative depreciation on futures contracts as disclosed in the Schedule of Investments. Unsettled variation margin is disclosed separately within the Statement of Assets and Liabilities. |
Additionally, the amount of realized and unrealized gains and losses on derivative instruments recognized in the Funds’ earnings during the year ended May 31, 2021 and the related location in the accompanying Statement of Operations is summarized in the following tables by primary underlying risk exposure:
| Net Realized Gain (Loss) from: |
||||
| Futures Contracts — Equity Contracts |
||||
| Xtrackers MSCI All World ex US High Dividend Yield Equity ETF |
$ | 66,848 | ||
| Xtrackers MSCI EAFE High Dividend Yield Equity ETF |
1,507,261 | |||
| Net Change in Unrealized Appreciation (Depreciation) on: |
||||
| Futures Contracts — Equity Contracts |
||||
| Xtrackers MSCI All World ex US High Dividend Yield Equity ETF |
$ | (22,176 | ) | |
| Xtrackers MSCI EAFE High Dividend Yield Equity ETF |
(69,969 | ) | ||
For the year ended May 31, 2021 the average monthly volume of derivatives was as follows:
| Futures Contracts (Contract Value) |
||||
| Xtrackers MSCI All World ex US High Dividend Yield Equity ETF |
$ | 143,396 | ||
| Xtrackers MSCI EAFE High Dividend Yield Equity ETF |
4,327,092 | |||
Affiliated Cash Management Vehicles The Funds may invest uninvested cash balances in DWS Government Money Market Series and DWS ESG Liquidity Fund, affiliated money market funds which are managed by DWS Investment Management Americas, Inc. (“DIMA”), also an indirect, wholly owned subsidiary of DWS Group GmbH & Co. KGaA. Each affiliated money market fund is managed in accordance with Rule 2a-7 under the 1940 Act, which governs the quality, maturity, diversity and liquidity of instruments in which a money market fund may invest. DWS Government Money Market Series seeks to maintain a stable NAV, and DWS ESG Liquidity Fund maintains a floating NAV. The Funds indirectly bear their proportionate share of the expenses of each affiliated money market fund in which they invest. The Advisor will waive an amount of the unitary advisory fee payable to
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the Advisor by the Funds equal to such acquired fund’s fees and expenses on the Funds’ assets invested in the affiliated money market funds.
3. Investment Advisory and Other Agreements
The Advisor has overall responsibility for the general management and administration of the Funds, subject to the supervision of the Funds’ Board of Trustees. Under an investment advisory agreement between the Trust, on behalf of the Funds, and the Advisor (the “Investment Advisory Agreement”), the Advisor is responsible for arranging sub-advisory, transfer agency, custody, fund administration, and all other non-distribution related services for the Funds to operate.
For its investment advisory services to the Funds below, the Advisor is entitled to receive a unitary advisory fee based on each Fund’s average daily net assets, computed and accrued daily and payable monthly, at an annual rate equal to:
| Unitary Advisory Fee |
||||
| Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF |
0.15 | % | ||
| Xtrackers J.P. Morgan ESG Emerging Markets Sovereign ETF |
0.35 | % | ||
| Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF |
0.20 | % | ||
| Xtrackers Municipal Infrastructure Revenue Bond ETF |
0.15 | % | ||
| Xtrackers MSCI All World ex US High Dividend Yield Equity ETF |
0.20 | % | ||
| Xtrackers MSCI EAFE High Dividend Yield Equity ETF |
0.20 | % | ||
The Advisor for Xtrackers MSCI All World ex US High Dividend Yield Equity ETF has contractually agreed to waive a portion of its unitary advisory fee in an amount equal to the acquired fund’s fees and expenses attributable to the Fund’s investments in affiliated funds. For the year ended May 31, 2021, the Advisor waived $49 of the expenses of the Fund.
The Advisor for the Funds below has contractually agreed to waive a portion of its unitary advisory fee in an amount equal to the acquired fund’s fees and expenses attributable to the Funds’ investments in affiliated cash management vehicles. For the year ended May 31, 2021, the Advisor waived expenses of the Funds as follows:
| Expenses Waived |
||||
| Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF |
$ | 21 | ||
| Xtrackers J.P. Morgan ESG Emerging Markets Sovereign ETF |
99 | |||
| Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF |
113 | |||
| Xtrackers MSCI All World ex US High Dividend Yield Equity ETF |
19 | |||
| Xtrackers MSCI EAFE High Dividend Yield Equity ETF |
583 | |||
Out of the unitary advisory fee, the Advisor pays substantially all expenses of each Fund, including the cost of transfer agency, custody, fund administration, legal, audit and other services, and expenses of the Independent Trustees. Each Fund is responsible for the payment of interest expense, acquired fund fees and expenses, taxes, brokerage expenses and extraordinary expenses.
The Bank of New York Mellon, a wholly-owned subsidiary of The Bank of New York Mellon Corporation, serves as Administrator, Custodian, Accounting Agent, Lending Agent and Transfer Agent for each Fund.
ALPS Distributors, Inc. (the “Distributor”) serves as the distributor of Creation Units for each Fund on an agency basis. The Distributor does not maintain a secondary market in shares of the Funds.
The Board of Trustees is currently comprised of three Independent Trustees. The Advisor paid retainer fees and attendance fees to each Independent Trustee; retainer fees to the Chairman of the Board of Trustees and the Chairman of the Audit Committee; and attendance fees to each member of the Audit Committee (which is comprised of all of the Funds’ Independent Trustees).
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4. Investment Portfolio Transactions
For the year ended May 31, 2021, the cost of investments purchased and proceeds from sale of investments (excluding in-kind transactions and short-term investments) were as follows:
| Purchases | Sales | |||||||
| Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF |
$ | 2,687,544 | $ | 2,622,752 | ||||
| Xtrackers J.P. Morgan ESG Emerging Markets Sovereign ETF |
15,993,528 | 9,169,687 | ||||||
| Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF |
9,676,313 | 10,778,886 | ||||||
| Xtrackers Municipal Infrastructure Revenue Bond ETF |
34,719,183 | 11,194,542 | ||||||
| Xtrackers MSCI All World ex US High Dividend Yield Equity ETF |
13,848,428 | 11,722,539 | ||||||
| Xtrackers MSCI EAFE High Dividend Yield Equity ETF |
437,629,397 | 304,657,731 | ||||||
For the year ended May 31, 2021, the cost of in-kind purchases and proceeds from in-kind sales were as follows:
| Purchases | Sales | |||||||
| Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF |
$ | — | $ | 2,243,566 | ||||
| Xtrackers J.P. Morgan ESG Emerging Markets Sovereign ETF |
10,940,108 | 3,198,430 | ||||||
| Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF |
2,205,418 | 4,113,846 | ||||||
| Xtrackers Municipal Infrastructure Revenue Bond ETF |
21,681,350 | 11,479,130 | ||||||
| Xtrackers MSCI All World ex US High Dividend Yield Equity ETF |
— | 4,545,918 | ||||||
| Xtrackers MSCI EAFE High Dividend Yield Equity ETF |
262,643,867 | 182,927,272 | ||||||
5. Fund Share Transactions
As of May 31, 2021, there were unlimited Fund shares, no par value, authorized by the Trust. Fund shares are issued and redeemed by each Fund only in Creation Units or multiples thereof. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the Statements of Changes in Net Assets. The consideration for the purchase of Creation Units of a Fund generally consists of the in-kind contribution of a designated portfolio of securities constituting a portfolio sampling representation of the securities included in the respective Fund’s Underlying Index and an amount of cash, which under certain circumstances may include cash in lieu of portfolio securities. Investors purchasing and redeeming Creation Units pay a purchase transaction fee and a redemption transaction fee to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units.
6. Payments by Affiliates
During the year ended May 31, 2021, the Advisor reimbursed Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF $7,867 for a loss due to a trade executed incorrectly. The amount compensated was 0.04% of the Fund’s average net assets. Excluding this reimbursement total return would have reduced by 0.04%.
7. Concentration of Ownership
From time to time, the Funds may have a concentration of several shareholder accounts holding a significant percentage of shares outstanding. Investment activities of these shareholders could have a material impact on the Fund. At May 31, 2021, there was one affiliated shareholder account for each of the funds listed below holding a significant percentage of the shares outstanding:
| Approximate Percent of Outstanding Shares Held |
||||
| Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF |
58 | % | ||
| Xtrackers J.P. Morgan ESG Emerging Markets Sovereign ETF |
32 | % | ||
| Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF |
47 | % | ||
8. Investing in Emerging Markets
The securities of issuers located in emerging markets tend to be more volatile and less liquid than securities of issuers located in more mature economies, and emerging markets generally have less diverse and less mature economic structures and less stable political systems than those of developed countries. The securities of issuers located or doing substantial business in emerging markets are often subject to rapid and large changes in price.
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9. Investing in High-Yield Debt Securities
High-yield debt securities or junk bonds are generally regarded as speculative with respect to the issuer’s continuing ability to meet principal and interest payments. A fund’s performance could be hurt if an issuer of a debt security suffers an adverse change in financial condition that results in the issuer not making timely payments of interest or principal, a security downgrade or an inability to meet a financial obligation. High-yield debt securities’ total return and yield may generally be expected to fluctuate more than the total return and yield of investment-grade debt securities. A real or perceived economic downturn or an increase in market interest rates could cause a decline in the value of high-yield debt securities, result in increased redemptions and/or result in increased portfolio turnover, which could result in a decline in NAV of a fund, reduce liquidity for certain investments and/or increase costs. High-yield debt securities are often thinly traded and can be more difficult to sell and value accurately than investment-grade debt securities as there may be no established secondary market. Investments in high-yield debt securities could increase liquidity risk for a fund. In addition, the market for high-yield debt securities can experience sudden and sharp volatility which is generally associated more with investments in stocks.
10. Line of Credit
The Trust has entered into a senior unsecured credit facility with a syndication of banks which allows the Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF, Xtrackers J.P. Morgan ESG Emerging Markets Sovereign ETF, Xtrackers MSCI All World ex US High Dividend Yield Equity ETF and certain other funds managed by the Advisor to borrow up to $105 million. Each Fund may borrow money under this credit facility to the extent necessary for temporary or emergency purposes, including the funding of shareholder redemption requests, trade settlements, and as necessary to distribute to shareholders any income necessary to maintain each Funds’ status as a regulated investment company. Borrowings are charged an interest rate of 1.25% per annum plus the greater of the Federal Funds Effective Rate or the one-month LIBOR Rate. Each Fund may borrow up to the lesser of 33 percent of its net assets as permitted by the Act or 25 percent of adjusted total net assets. The Funds had no outstanding loans at May 31, 2021.
11. Other – COVID-19 Pandemic
A novel coronavirus known as COVID-19, declared a pandemic by the World Health Organization, has caused significant uncertainty, market volatility, decreased economic and other activity, increased government activity, including economic stimulus measures, and supply chain interruptions. The full effects, duration and costs of the COVID-19 pandemic are impossible to predict, and the circumstances surrounding the COVID-19 pandemic will continue to evolve, including the risk of future increased rates of infection due to low vaccination rates and/or the lack of effectiveness of current vaccines against new variants. The pandemic has affected and may continue to affect certain countries, industries, economic sectors, companies and investment products more than others, may exacerbate existing economic, political, or social tensions and may increase the probability of an economic recession or depression. The Funds’ and their investments may be adversely affected by the effects of the COVID-19 pandemic, and the pandemic may result in the Funds and their service providers experiencing operational difficulties in coordinating a remote workforce and implementing their business continuity plans, among others. Management will continue to monitor the impact COVID-19 has on the Funds and reflect the consequences as appropriate in the Funds’ accounting and financial reporting.
12. Fund Name Change
Effective on or about August 24, 2021, Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF, a series of DBX ETF Trust, will be renamed to Xtrackers Bloomberg US Investment Grade Corporate ESG ETF. Also effective on or about August 24, 2021, the Fund’s Underlying Index, Bloomberg Barclays MSCI US Corporate Sustainability SRI Sector/Credit/Maturity Neutral Index, will be renamed to Bloomberg MSCI US Corporate Sustainability SRI Sector/Credit/Maturity Neutral Index. The name changes have no impact on the Fund’s investment objective, policies, or investment strategy.
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To the Shareholders of Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF, Xtrackers J.P. Morgan ESG Emerging Markets Sovereign ETF, Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF, Xtrackers Municipal Infrastructure Revenue Bond ETF, Xtrackers MSCI All World ex US High Dividend Yield Equity ETF and Xtrackers MSCI EAFE High Dividend Yield Equity ETF and the Board of Trustees of DBX ETF Trust
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities of Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF, Xtrackers J.P. Morgan ESG Emerging Markets Sovereign ETF, Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF, Xtrackers Municipal Infrastructure Revenue Bond ETF, Xtrackers MSCI All World ex US High Dividend Yield Equity ETF and Xtrackers MSCI EAFE High Dividend Yield Equity ETF (collectively referred to as the “Funds”), (six of the funds constituting DBX ETF Trust (the “Trust”)), including the schedules of investments, as of May 31, 2021, and the related statements of operations for the year ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds (six of the funds constituting DBX ETF Trust) at May 31, 2021, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and their financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Trust’s management. Our responsibility is to express an opinion on each of the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal control over financial reporting. As part of our audits we are required to obtain an understanding of the internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of May 31, 2021, by correspondence with the custodians and brokers or by other appropriate auditing procedures where replies from brokers were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more investment companies in the DWS family of funds since at least 1979, but we are unable to determine the specific year.
New York, New York
July 26, 2021
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DBX ETF Trust
In accordance with Rule 22e-4 (the “Liquidity Rule”) under the Investment Company Act of 1940 (the “1940 Act”), your Fund has adopted a liquidity risk management program (the “Program”), and the Board has designated DBX Advisors LLC (“Advisors”) as Program administrator. The Program is designed to assess and manage your Fund’s liquidity risk (the risk that the Fund would be unable to meet requests to redeem shares of the Fund without significant dilution of remaining investors’ interests in the Fund). Advisors has designated a committee (the “Committee”) composed of personnel from multiple departments within an affiliate of Advisors that is responsible for the implementation and ongoing administration of the Program, which includes assessing the Fund’s liquidity risk under both normal and reasonably foreseeable stressed conditions. Under the Program, every investment held by a Fund is classified on a daily basis into one of four liquidity categories based on estimations of the investment’s ability to be sold during designated timeframes in current market conditions without significantly changing the investment’s market value.
In February 2021, as required by the Program and the Liquidity Rule, Advisors provided the Board with an annual written report (the “Report”) addressing the operation of the Program and assessing the adequacy and effectiveness of its implementation during the period from December 1, 2019 through November 30, 2020 (the “Reporting Period”). During the Reporting Period, your Fund was primarily invested in highly liquid investments (investments that the Fund anticipates can be converted to cash within three business days or less in current market conditions without significantly changing their market value). As a result, your Fund is not required to adopt, and has not adopted, a “Highly Liquid Investment Minimum” as defined in the Liquidity Rule. During the Reporting Period, the Fund did not approach the 15% limit imposed by the Liquidity Rule on holdings in illiquid investments (investments that cannot be sold or disposed of in seven days or less in current market conditions without the sale of the investment significantly changing the market value of the investment). Your Fund did not experience any issues meeting investor redemptions at any time during the Reporting Period. In the Report, Advisors stated that it believes the Program has operated adequately and effectively to manage the Fund’s liquidity risk during the Reporting Period. Advisors also reported that there were no material changes made to the Program during the Reporting Period.
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DBX ETF Trust
Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF, Xtrackers J.P. Morgan ESG Emerging Markets Sovereign ETF, Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF, Xtrackers Municipal Infrastructure Revenue Bond ETF, Xtrackers MSCI All World ex US High Dividend Yield Equity ETF, and Xtrackers MSCI EAFE High Dividend Yield Equity ETF
Board Approval of Investment Advisory Agreement with DBX Advisors LLC
After discussions at the meeting of the Board of Trustees (“Board” or “Trustees”) held on February 17-18, 2021 (the “Meeting”), the Trustees, all of whom are the Independent Trustees (those not affiliated with DBX ETF Trust (the “Trust”) or its service providers), unanimously approved the continuance of the Investment Advisory Agreement with respect to Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF, Xtrackers J.P. Morgan ESG Emerging Markets Sovereign ETF, Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF, Xtrackers Municipal Infrastructure Revenue Bond ETF, Xtrackers MSCI All World ex US High Dividend Yield Equity ETF, and Xtrackers MSCI EAFE High Dividend Yield Equity ETF, (each a “Fund,” and collectively, the “Funds”). The Independent Trustees were advised throughout the review and Meeting by K&L Gates LLP (“Independent Trustee Counsel”).
Before reaching their decision to approve the Investment Advisory Agreement for another annual period, the Independent Trustees evaluated the materials furnished to them in advance of the Meeting from DBX Advisors LLC (“DBX” or the “Advisor”) for purposes of reviewing the agreement’s terms, including statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”) regarding (a) fee and expense information for each Fund (including the fee and expense components and any amounts waived or reimbursed) as compared to a peer group of other exchange-traded funds (“ETFs”) selected pursuant to Broadridge’s proprietary methodology (each, a “Peer Group”) and (b) each Fund’s tracking error as compared to its underlying index over the previous five years (or since inception, if shorter). The Independent Trustees also took into consideration the discussions they had with management during the Meeting and among themselves during their Executive Sessions held on February 17 and February 18, 2021. The Independent Trustees also noted that they had received and should take into consideration a substantial amount of information furnished throughout the year at regular Board meetings, which information included, among other things, an analysis of each Fund’s investment performance, tracking error and related financial information, presentations given by DBX, as well as its periodic reports on brokerage commissions, portfolio execution and other services provided to the Funds.
In reaching its decision to continue in effect the Investment Advisory Agreement for another annual period, the Board considered all factors it believed relevant, including (1) the nature, extent and quality of the services provided to the Funds and their shareholders; (2) the financial resources of DBX and its resulting ability to perform its obligations under the Investment Advisory Agreement; (3) the competitiveness of the advisory fee; (4) the total cost of the services provided by and the profits realized by the Advisor from its relationship with the Funds; (5) the extent to which economies of scale have been realized, and if the Funds’ shareholders have benefitted from those economies; and (6) fall out benefits, if any, enjoyed by the Advisor.
The Board reached a determination, with the assistance of Independent Trustee Counsel and Dechert LLP (“Trust Counsel”) and through the exercise of its business judgment, that approval of the Investment Advisory Agreement and the compensation to be received thereunder is in the best interests of each Fund and its shareholders as well as consistent with the Board’s duties under state and federal law. The Board reached this conclusion based on multiple factors.
The Board considered the following in determining whether to approve the Investment Advisory Agreement:
Nature, Extent and Quality of Services. The Board reviewed in detail the nature, extent and quality of services provided and the risks incurred by the Advisor under the Investment Advisory Agreement. In doing so, the Board considered the information it had received from and the discussions it had with the Advisor continuously during the prior year, in addition to the information the Advisor had provided in response to the Board’s requests prior to the Meeting. The Board considered that these services include, among other things, furnishing a continuous investment program for the Funds, including arranging for, or implementing, the purchase and sale of portfolio securities, the provision of general corporate services such as portfolio
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Board Considerations in Approval of Investment Advisory
Contracts (Unaudited) (Continued)
management compliance services and the preparation and filing of certain reports on behalf of the Trust. The Board also considered, among other things, the professional experience, qualifications and performance of the senior management and key professional personnel of the Advisor, including portfolio management.
The Board considered that the Advisor provides, at its own expense, office facilities and equipment for use by the Funds and supervisory persons responsible for supervising and monitoring the Trust’s service providers. The Board also considered that the Advisor pays or arranges for the compensation of officers of the Trust who are also officers or employees of the Advisor or one of its DWS Group affiliates, except as may otherwise be determined by the Board. In addition, the Board considered that the Advisor arranges for the provision of transfer agency, custody, fund administration and accounting, and other non-distribution services necessary for the Funds’ operations. The Board also considered that in addition to managing the Funds’ portfolios directly, the Advisor provides oversight of day-to-day operations, including monitoring tracking error, providing services in connection with the creation and redemption of creation units and assistance in meeting legal, compliance and regulatory requirements applicable to the Funds.
The Board considered the information regarding each Fund’s tracking error compared to its underlying index that had been provided by the Advisor and by Broadridge. The Board took note of the detailed information provided by the Advisor throughout the year with respect to each Fund’s tracking error and the sources thereof. The Trustees noted that tracking error for each Fund during the year was in an expected range.
Based on its review, the Board concluded that the nature, extent, and quality of services provided by the Advisor under the Investment Advisory Agreement are reasonable and appropriate in relation to the fees paid to the Advisor, taking special consideration of the fact that the advisory fee is a unitary fee and, as a result, a portion of the unitary advisory fee will be used to compensate the Funds’ service providers. The Board considered the staffing of the Advisor, including the training, qualifications and experience of investment personnel in managing the Funds. The Board also considered the expertise of the Advisor in supervising third party service providers to the Funds, such as the administrator and the custodian, noting the Advisor’s extensive work with these service providers (including onsite due diligence sessions) to conduct such supervision. The Board further considered the compliance program of the Advisor, which supports the Funds’ compliance program.
Advisor’s Financial Resources. In connection with the assessment of the ability of the Advisor to perform its duties under the Investment Advisory Agreement, the Board considered the Advisor’s financial condition and whether it has the resources necessary to carry out its functions. The Board concluded that the Advisor has the financial resources necessary to perform its obligations under the Investment Advisory Agreement.
Reasonableness of Advisory Fee. The Board compared each Fund’s advisory fee and total expenses to those of the other ETFs in its Peer Group. The Board noted that due to the special characteristics of certain Funds, there were limitations faced by Broadridge in providing comparable funds in the Peer Groups and the information in the Broadridge reports accordingly may or may not provide meaningful direct comparisons to the Funds. The Board also noted that the advisory fees and total expenses (after waivers/reimbursements) for many of the Funds were below or equal to the average and/or median of the ETFs in each Fund’s respective Peer Group compiled by Broadridge, but the following Funds had advisory fees and/or total expenses (after waivers/reimbursements) that were above the average and/or median of their respective Peer Groups:
| — | Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF |
The Board considered, however, the following additional factors in connection with this Fund:
| — | Xtrackers J.P. Morgan ESG USD High Yield Corporate Bond ETF’s total expenses were lower than the average of its Peer Group. |
The Board accordingly noted that each Fund’s fee is competitive with the fees of applicable peer ETFs.
The Board considered that the fee for each of the Funds is a unitary fee pursuant to which the Advisor pays all of the Funds’ costs (subject to certain specified exceptions). The Board considered that each Fund’s fee had been priced to scale when it was established. The Board also considered that each Fund’s portfolio is managed on a day-to-day basis by the Advisor and that the Advisor also provides oversight of day-to-day operations, including
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Board Considerations in Approval of Investment Advisory
Contracts (Unaudited) (Continued)
monitoring tracking error, providing services in connection with creation and redemption units and assistance in meeting legal and regulatory requirements applicable to the Funds. Based on its review, the Board concluded that the advisory fee for each Fund is reasonable in light of the services provided.
Costs of Services and Profitability. The Board considered the expenses of the Advisor in developing and rendering services provided to the Funds and the information provided by the Advisor to the Board regarding the Funds’ profitability. The Board considered that the Advisor had provided extensive information about the Advisor’s profitability and the Advisor’s methodology in determining profitability. While the Advisor had provided information about the Advisor’s expenses relating to marketing the Funds, the Board considered the Advisor’s profitability without accounting for such expenses. The Board determined that, although only some of the Funds were profitable as of this time, the Advisor’s profitability with respect to each profitable Fund was not excessive. The Board considered whether the Advisor would benefit in other ways from its relationships with the Funds and concluded that there were no material fall-out benefits likely to accrue to the Advisor related to the operation of the Funds.
Economies of Scale. The Board considered that certain Funds had attracted a substantial amount of assets, but determined that those Funds were not experiencing economies of scale beyond what was reflected in each Fund’s unitary fee, which the Board noted was very competitive. The Board considered that the other Funds were not experiencing economies of scale at this time and determined to revisit this matter after the Funds had attracted more assets.
Given all the information available to it and considering all material factors, the Board concluded that the Investment Advisory Agreement was fair and reasonable and it was unanimously approved.
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DBX ETF Trust
Identification and Background
The Board has responsibility for the overall management and operations of the funds, including general supervision of the duties performed by the Advisor and other service providers. Each Board Member serves until his or her success or is duly elected or appointed and qualified. Each officer serves until he or she resigns, is removed, dies, retires or becomes disqualified.
The Trust currently has three Board Members. The three Independent Board Members have no affiliation or business connection with the Advisor or any of its affiliated persons and do not own any stock or other securities issued by the Advisor.
The Independent Board Members of the Trust, their term of office and length of time served, their principal business occupations during the past five years, the number of portfolios in the fund complex (defined below) overseen by each Independent Board Member, and other directorships, if any, held by the Board Members are shown below. The fund complex includes all registered open-and closed-end funds (including all of their portfolios) advised by the Advisor and any registered funds that have an investment advisor that is an affiliated person of the Advisor. As of the date of this share holder report, the fund complex consists of the funds in the Trust, as well as the registered funds advised by affiliates of the Advisor.
Shareholder Communications to the Board. Shareholders may send communications to the Trust’s Board by addressing the communications directly to the Board (or individual Board Members) and/or otherwise clearly indicating in the salutation that the communication is for the Board (or individual Board Members). The shareholder may send the communication to either the Trust’s office or directly to such Board members c/o 875 Third Avenue, New York,, NY 10022. Other shareholder communications received by the Trust not directly addressed and sent to the Board will be reviewed and generally responded to by management. Such communications will be forwarded to the Board at management’s discretion based on the matters contained therein.
Independent Board Members
| Name, Year of Birth, Position with the Trust and Length of Time Served(1) |
Business Experience and Directorships During the Past 5 Years |
Number of Portfolios in Fund Complex Overseen |
Other Directorships Held by Board Member | |||
| Stephen R. Byers (1953) Chairman since 2016, and Board Member since 2011 (formerly, Lead Independent Board Member, 2015-2016) |
Independent Director (2011- present); Independent Consultant (2014-present); Director of Investment Management, the Dreyfus Corporation (2000-2006) and Vice Chairman and Chief Investment Officer, the Dreyfus Corporation (2002-2006). | 35 | The Arbitrage Funds, Sierra Income Corporation, Mutual Fund Directors Forum | |||
| George O. Elston (1964) Board Member since 2011, Chairman of the Audit Committee since 2015 |
Chief Financial Officer, Enzyvant (2018-present); Chief Executive Officer, 2X Oncology, Inc. (2017- 2018); Senior Vice President and Chief Financial Officer, Juniper Pharmaceuticals, Inc. (2014-2016); Senior Vice President and Chief Financial Officer, KBI BioPharma Inc. (2013-2014); Managing Partner, Chatham Street Partners (2010-2013). | 35 | — | |||
| J. David Officer (1948) Board Member since 2011, Chairman of the Nominating Committee since 2015 |
Independent Director (2010- present); Vice Chairman, the Dreyfus Corporation (2006-2009); President, The Dreyfus Family of Funds, Inc. (2006-2009). | 35 | (Chairman of) Ilex Management Ltd; Old Westbury Funds |
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DBX ETF Trust
Board Members and Officers (Unaudited) (Continued)
Officers(2)
| Name, Year of Birth, Position with the Trust and Length of Time Served(3) |
Business Experience and Directorships During the Past 5 Years | |
| Freddi Klassen(4) (1975) President and Chief Executive Officer, 2016-present |
Programmes (Head since 2021), of DWS Investment Management Americas, Inc. and Manager and Chief Operating Officer of the Advisor (2016 -present). Formerly: Chief Operating Officer in the Americas for the Traditional Asset Classes Department (2014 -2020); Manager and Chief Operating Officer of DWS Investment Management Americas, Inc. (2018-present) and the Advisor (2016- present); Global Chief Operating Officer for Equities Technology in the Investment Bank Division at Deutsche Bank AG (2013-2014); Chief Operating Officer for Exchange Traded Funds and Systematic Funds in Europe (2008-2013). | |
| Diane Kenneally(4) (1966) Treasurer, Chief Financial Officer and Controller, 2019-present |
Fund Administration Treasurer’s Office (Co-Head since 2018), of DWS Investment Management Americas, Inc.; Chief Financial Officer and Treasurer for DWS US registered investment companies advised by DWS Investment Management Americas, Inc. (2018-present); Treasurer and Chief Financial Officer, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2018-present); formerly: Assistant Treasurer for the DWS funds (2007-2018). | |
| Frank Gecsedi(4) (1967) Chief Compliance Officer, 2010-present |
AFC Compliance US (Senior Team Lead), of DWS Investment Management Americas, Inc.; Compliance Department (2016- present), Vice President in the Deutsche Asset Management Compliance Department at Deutsche Bank AG (2013-2016) and Chief Compliance Officer of the Advisor (2010-present); Chief Compliance Officer of DWS Distributors, Inc. (2019-present); Vice President in Deutsche Bank’s Global Markets Legal, Risk and Capital Division (2010-2012). | |
| Bryan Richards(4) (1978) Vice President, 2016-present |
Portfolio Engineering, Systematic Investments Solutions (Head), of DWS Investment Management Americas, Inc. (2018-present); Portfolio Manager in the Passive Asset Management Department at DWS (2011- present); Primary Portfolio Manager for the PowerShares DB Commodity ETFs (2011-2015). | |
| John Millette(5) (1962) Secretary, 2020-present |
Legal (Associate General Counsel), DWS US Retail Legal (2003-present), of DWS Investment Management Americas, Inc.; Vice President and Secretary of DWS US registered investment companies advised by DWS Investment Management Americas, Inc. (1999-present); Chief Legal Officer, DWS Investment Management Americas, Inc. (2015-present); Director and Vice President of DWS Trust Company (2016-present); Vice President, DBX Advisors LLC (2021-present); Secretary, The European Equity Fund, Inc., The New Germany Fund, Inc. and The Central and Eastern Europe Fund, Inc. (2011-present); formerly: Secretary of Deutsche Investment Management Americas Inc. (2015-2017); and Assistant Secretary of DBX ETF Trust (2019-2020). |
91
DBX ETF Trust
Board Members and Officers (Unaudited) (Continued)
| Name, Year of Birth, Position with the Trust and Length of Time Served(3) |
Business Experience and Directorships During the Past 5 Years | |
| Caroline Pearson(5)
(1962) Assistant Secretary, 2020-present |
||
| Paul Antosca(5)
(1957) Assistant Treasurer, 2019-present |
Fund Administration Tax (Head), of DWS Investment Management Americas, Inc.; Assistant Treasurer for DWS US registered investment companies advised by DWS Investment Management Americas, Inc. (2007-present). | |
| Jeffrey Berry(5) (1959) Assistant Treasurer, 2019-present |
Fund Administration (Senior Specialist), of DWS Investment Management Americas, Inc. | |
| Sheila Cadogan(5) (1966) Assistant Treasurer, 2019-present |
||
| Christina A. Morse(6)
(1964) Assistant Secretary, 2017-present |
Vice President at BNY Mellon Asset Servicing (2014-present); Vice President and Counsel at Lord Abbett & Co. LLC (2013-2014). | |
| Michelle Goveia-Pine(4)
(1970) Interim Anti-Money Laundering Compliance Officer, since July 9, 2020 |
| (1) | The length of time served is represented by the year in which the Board Member joined the Board. |
| (2) | As a result of their respective positions held with the Advisor and its affiliates, these individuals are considered “interested persons” of the Advisor within the meaning of the 1940 Act. Interested persons receive no compensation from the Funds. |
| (3) | The length of time served is represented by the year in which the officer was first elected to the Trust in such capacity. |
| (4) | Address: 875 Third Avenue, New York, New York 10022. |
| (5) | Address: 100 Summer Street, Boston, MA 02110. |
| (6) | Address: BNY Mellon Asset Servicing, 240 Greenwich Street, New York, NY 10286. |
The Funds’ Statement of Additional Information (“SAI”) includes additional information about the Funds’ Board Members. The SAI is available by calling 855-329-3837, or on the Company’s website at www.Xtrackers.com.
92
DBX ETF Trust
Proxy Voting Policies and Procedures
The Funds’ policies and procedures for voting proxies for portfolio securities and information about how each Fund voted proxies related to its portfolio securities during the most recent 12-month period ended June 30 are available on our Web site — www.Xtrackers.com (click on “Resources” and “Proxy Voting” at the top of the page) — or on the SEC’s Web site — www.sec.gov. To obtain a written copy of the Funds’ policies and procedures without charge, upon request, call us toll free at 855-329-3837.
Portfolio Holdings Information
The Funds are required to file their complete schedule of portfolio holdings with the SEC for their first and third fiscal quarters on Form N-PORT. Copies of the filings are available without charge, upon request on the SEC’s website at www.sec.gov and are available by calling the Trust at 855-329-3837.
Information about each Fund’s portfolio holdings is available daily at www.Xtrackers.com.
Discount/Premium Information
Information regarding how often shares of each Fund traded on NYSE Arca or Cboe, as applicable, at a price
above (i.e., at a premium) or below (i.e., at a discount) the NAV of the Fund can be found at www.Xtrackers.com.
Tax Information
Form 1099-DIV and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisors.
Each Fund designates the following amounts or, if subsequently determined to be different, the maximum allowable for its year ended May 31, 2021.
| Qualified Dividend Income* | ||
| Xtrackers MSCI All World ex US High Dividend Yield Equity ETF |
75% | |
| Xtrackers MSCI EAFE High Dividend Yield Equity ETF |
77% |
| * | The above percentage is based on ordinary income dividends paid to shareholders during each Fund’s fiscal year. |
Each Fund intends to elect to pass through to shareholders the credit for taxes paid to foreign countries. The gross foreign source income and foreign taxes paid are as follows:
| Gross Foreign Income | Foreign Taxes Paid | |||||||
| Xtrackers MSCI All World ex US High Dividend Yield Equity ETF |
$1,173,037 | $71,736 | ||||||
| Xtrackers MSCI EAFE High Dividend Yield Equity ETF |
32,214,605 | $1,438,733 | ||||||
93
DBX ETF Trust
DBX Advisors LLC (“Advisors”) collects non-public information about you from the following sources: (i) information received from you on applications or other forms; and (ii) information about your transactions with the Advisors, Advisors’ affiliates and third-party service providers and vendors. Advisors does not disclose any non-public personal information about you to anyone, other than as set forth below, as permitted by applicable law and regulation. Advisors may disclose non-public personal information about you to the funds in which you invest, to Advisors’ affiliates, and to non-affiliated companies that work with Advisors to service your account(s), or to provide services or process transactions that you have requested. Advisors may disclose non-public personal information in situations that may include, but are not limited to, in response to legal and/or regulatory inquiries and the proposed or actual sale, assignment merger or other transfer of all or a portion of Advisors’ business to another business entity. Advisors may also disclose non-public personal information about you to parties representing you, such as your investment representative, your accountant, your tax advisor, or to other third parties at your direction/consent. Advisors will not sell, rent, license or trade your personal and financial information to or with third parties for their own direct marketing use unless you give us general or specific consent to do so. If you decide to close your account(s) or become an inactive customer, Advisors will adhere to the privacy policies and practices as described in this notice. Advisors restricts access to your personal and account information to those employees who need to know that information to provide products and services to you. Advisors maintains reasonable and customary physical, electronic and procedural safeguards to guard your non-public personal information.
California residents may go to https://fundsus.dws.com/us/en-us/legal-resources/privacy-policy.html to obtain additional information relating to their rights under California state law.
Advisors reserves the right, at their discretion, to change, modify, add, or remove portions of this Privacy Policy Notice, and any of the policies described herein, at any time. Advisors will indicate any such changes to the Privacy Policy Notice at the privacy link which can be found at www.Xtrackers.com. At all times, you are bound by the then-current version of the Privacy Policy and all applicable laws. Advisors highly recommends that you review this Privacy Policy Notice from time to time to ensure that you are familiar with the most recent version. The examples contained in this Privacy Policy Notice are illustrations; they are not intended to be exclusive.
94
DBX ETF Trust
This report is intended for the shareholders of DBX ETF Trust.
This report must be preceded or accompanied by a prospectus.
Investing involves risk, including possible loss of principal. Bond investments are subject to interest-rate, credit, liquidity and market risks to varying degrees. When interest rates rise, bond prices generally fall. Credit risk refers to the ability of an issuer to make timely payments of principal and interest. Funds investing in a single industry, country or in a limited geographic region generally are more volatile than more diversified funds. In certain situations, it may be difficult or impossible to sell an investment at an acceptable price. Foreign investing involves greater and different risks than investing in U.S. companies, including currency fluctuations, less liquidity, less developed or less efficient trading markets, lack of comprehensive company information, political instability and differing auditing and legal standards. Emerging markets tend to be more volatile and less liquid than the markets of more mature economies, and generally have less diverse and less mature economic structures and less stable political systems than those of developed countries. Investments in lower-quality (“junk bonds”) and non-rated securities present greater risk of loss than investments in higher-quality securities. Municipal securities are subject to the risk that litigation, legislation or other political events, local business or economic conditions or the bankruptcy of the issuer could have a significant effect on an issuer’s ability to make payments of principal and/or interest. The market for municipal bonds may be less liquid than for taxable bonds and there may be less information available on the financial condition of issuers of municipal securities than for public corporations. Income from municipal bonds may be subject to state and local taxes and at times the alternative minimum tax. ESG criteria in a fund’s investment strategy does not guarantee a return or protect against a loss, limits the types and number of investment opportunities available to the Fund and, as a result, the Fund may underperform other funds that do not have an ESG focus. The Funds’ use of forward currency contracts may not be successful in hedging currency exchange rates changes and could eliminate some or all of the benefit of an increase in the value of a foreign currency versus the U.S. dollar. ESEB and HDEF are currently non-diversified and can take larger positions in fewer issues, increasing its potential risk. Stocks may decline in value. Dividends are not guaranteed. If the dividend-paying stocks held by the Fund reduce or stop paying dividends, the Fund’s ability to generate income may be adversely affected. Performance of the Funds may diverge from that of the Underlying Index due to operating expenses, transaction costs, cash flows, use of sampling strategies or operational inefficiencies. An investment in these Funds should be considered only as a supplement to a complete investment program for those investors willing to accept the risks associated with the Funds. Please read the prospectus for more information.
War, terrorism, economic uncertainty, trade disputes, public health crises (including the recent pandemic spread of the novel coronavirus) and related geopolitical events could lead to increased market volatility, disruption to U.S. and world economies and markets and may have significant adverse effects on the Funds and their investments.
Shares of the Funds are bought and sold at market price (not NAV) throughout the day on the NYSE Arca, Inc. or CBOE BZX Exchange, Inc., as applicable. Transactions in Fund shares may result in brokerage commissions and may generate tax consequences. There can be no assurance that an active trading market for shares of a Fund will develop or be maintained.
DBX ETF Trust Funds are distributed by ALPS Distributors, Inc. (“ALPS”). The Funds are managed by DBX Advisors LLC which is not affiliated with ALPS.
The brand DWS represents DWS Group GmbH & Co. KGaA and any of its subsidiaries such as DWS Distributors, Inc. which offers investment products or DWS Investment Management Americas, Inc. and RREEF America L.L.C. which offer advisory services.
ESHY and ESEB are not sponsored, endorsed, or promoted by JP Morgan Chase & Co. (“JP Morgan”) and JP Morgan bears no liability with respect to any index on which such fund is based. The accuracy, completeness or relevance of the information which has been obtained from external sources cannot be guaranteed, although it has been obtained from sources reasonably believed to be reliable. Subject to any applicable law, JP Morgan shall not assume any liability in this respect. The index described herein is a proprietary J.P. Morgan index. The prospectus contains a detailed description of the limited relationship that JP Morgan has with DBX Advisors, LLC. Index provider website: www.jpmorgan.com/country/US/en/jpmorgan/investbk/solutioins/research/indices/composition.
BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). BARCLAYS® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg or Bloomberg’s licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays is affiliated with, and neither approves, endorses, reviews or recommends the Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF. Neither Bloomberg nor Barclays guarantees the timeliness, accurateness or completeness of any data or information relating to the Bloomberg Barclays MSCI US Corporate Sustainability SRI Sector/Credit/Maturity Neutral Index, and neither shall be liable in any way to the DBX Advisors LLC, investors in the Xtrackers Bloomberg Barclays US Investment Grade Corporate ESG ETF or other third parties in respect of the use or accuracy of the Bloomberg Barclays MSCI US Corporate Sustainability SRI Sector/Credit/Maturity Neutral Index or any data included therein.
RVNU (the “Fund”) is not sponsored, endorsed, sold or promoted by Solactive. Neither Solactive nor any other party makes any representation or warranty, express or implied, to the owners of the Fund or any member of the public regarding advisability of investing in funds generally or in this Fund particularly or the ability of the Underlying Index to track general stock market performance. Neither Solactive nor any other party makes any express or implied warranties, and Solactive hereby expressly disclaims all warranties of merchantability or fitness for a particular purpose with respect to the Underlying Index or any data included therein. The prospectus contains a more detailed description of the limited relationship Solactive has with DBX Advisors LLC and any related funds.
The Funds or securities referred to herein are not sponsored, endorsed, issued, sold or promoted by MSCI, and MSCI bears no liability with respect to any such Funds or securities or any index on which such funds or securities are based. The prospectus contains a more detailed description of the limited relationship MSCI has with DBX Advisors LLC and any related funds.
Copyright © 2021 DWS Group. All rights reserved. XtrackersTM is a trademark of DWS Investment GmbH. All other trademarks, servicemarks or registered trademarks are the property of their respective owners.
Not FDIC Insured | No Bank Guarantee | May Lose Value
DBX ETF Trust
| Investment advisor DBX Advisors LLC 875 Third Avenue New York, NY 10022 |
Administrator, custodian, The Bank of New York Mellon 240 Greenwich Street New York, NY 10286 |
Distributor ALPS Distributors, Inc. 1290 Broadway Suite 1000 Denver, CO 80203 | ||
| Independent registered public accounting firm Ernst & Young LLP 5 Times Square New York, NY 10036 |
Legal counsel Vedder Price P.C. 1633 Broadway New York, NY 10019 |
|||
R-35362-8 (7/21) DBX004906 (7/22)
| Item 2. | Code of Ethics. |
| (a) | The registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. |
| (b) | There have been no amendments, during the period covered by this report, to a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics description. |
| (c) | The registrant has not granted any waivers, including an implicit waiver, from a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of this item’s instructions. |
| Item 3. | Audit Committee Financial Expert. |
Stephen R. Byers, George O. Elston, and J. David Officer are the designated financial experts on the Audit Committee of DBX ETF Trust. With respect to DBX ETF Trust, Stephen Byers, George O. Elston, and J. David Officer are not “interested persons” as such terms are defined by Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
| Item 4. | Principal Accountant Fees and Services. |
Audit Fees
| (a) | The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years are $466,035 for 2021 and $476,065 for 2020. |
Audit-Related Fees
| (b) | The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item are $0 for 2021 and $0 for 2020. |
Tax Fees
| (c) | The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning are $185,782 for 2021 and $288,970 for 2020. |
All Other Fees
| (d) | The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item are $0 for 2021 and $0 for 2020. |
| (e)(1) | Disclose the audit committee’s pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X. |
In accordance with Rule 2-01(c)(7)(A), the Audit Committee pre-approves all of the audit and permissible non-audit services of the Registrant.
| (e)(2) | All of the services described in paragraphs (b) through (d) above were approved by the Audit Committee in accordance with paragraph (c) (7) (i) (c) of Rule 2-01 of Regulation S-X. |
| (f) | Not Applicable. |
| (g) | The aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant was $0 for 2021 and $0 for 2020. |
| (h) | The registrant’s audit committee of the board of directors has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control |
| with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence. |
Pursuant to PCAOB Rule 3526, EY is required to describe in writing to the Funds’ Audit Committee, on at least an annual basis, all relationships between EY, or any of its affiliates, and the Xtrackers ETFs, or persons in financial reporting oversight roles at DWS that, as of the date of the communication, may reasonably be thought to bear on EY’s independence. Pursuant to PCAOB Rule 3526, EY has reported the matters set forth below that may reasonably be thought to bear on EY’s independence. With respect to each reported matter in the aggregate, EY advised the Audit Committee that, after careful consideration of the facts and circumstances and the applicable independence rules, it concluded that the matters do not and will not impair EY’s ability to exercise objective and impartial judgement in connection with the audits of the financial statements for the Funds and a reasonable investor with knowledge of all relevant facts and circumstances would conclude that EY has been and is capable of exercising objective and impartial judgment on all issues encompassed within EY’s audit engagements. EY also confirmed to the Audit Committee that it can continue act as the Independent Registered Public Accounting Firm for the Funds.
| • | EY advised the Fund’ Audit Committee that various covered persons within EY and EY’s affiliates held investments in, or had other financial relationships with, entities within the Xtrackers ETFs “investment company complex” (as defined in Regulation S-X). EY informed the Audit Committee that these investments and financial relationships were inconsistent with Rule 2-01(c)(1) of Regulation S-X. EY reported that all breaches have been resolved and that none of the breaches involved any professionals who were part of the audit engagement team for the Funds ETFs or in the position to influence the audit engagement team for the Funds. |
| Item 5. | Audit Committee of Listed Registrants. |
The Registrant is a listed issuer as defined in Rule 10A-3 under the Exchange Act and has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act. The Registrant’s audit committee members are Stephen R. Byers, George O. Elston, and J. David Officer.
| Item 6. | Investments. |
| (a) | Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1(b) of this form. |
| (b) | Not applicable. |
| Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
Not applicable.
| Item 8. | Portfolio Managers of Closed-End Management Investment Companies. |
Not applicable.
| Item 9. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not applicable.
| Item 10. | Submission of Matters to a Vote of Security Holders. |
There were no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees.
| Item 11. | Controls and Procedures. |
| (a) | The Chief Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report. |
| (b) | There have been no changes in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting. |
| Item 12. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies. |
Not applicable.
| Item 13. | Exhibits. |
| (a)(1) |
| (a)(2) |
| (b) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| (Registrant) | DBX ETF Trust | |
| By (Signature and Title) | /s/ Freddi Klassen | |
| Freddi Klassen | ||
| President and Chief Executive Officer | ||
| Date August 6, 2021 | ||
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By (Signature and Title) | /s/ Freddi Klassen | |
| Freddi Klassen | ||
| President and Chief Executive Officer | ||
| Date August 6, 2021 | ||
| By (Signature and Title) | /s/ Diane Kenneally | |
| Diane Kenneally | ||
| Treasurer and Chief Financial Officer | ||
| Date August 6, 2021 | ||