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)
60 Wall Street
New York, New York 10005
(Address of principal executive offices) (Zip code)
Alex Depetris
DBX ETF Trust
60 Wall Street
New York, New York 10005
(Name and address of agent for service)
Registrant’s telephone number, including area code: (212) 250-4352
Date of fiscal year end: May 31, 2012
Date of reporting period: May 31, 2012
Item 1. Report to Stockholders.
The Registrant’s annual report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 is as follows:
ANNUAL REPORT
May 31, 2012
DBX ETF Trust
db-X MSCI Brazil Currency-Hedged Equity Fund
db-X MSCI Canada Currency-Hedged Equity Fund
db-X MSCI EAFE Currency-Hedged Equity Fund
db-X MSCI Emerging Markets Currency-Hedged Equity Fund
db-X MSCI Japan Currency-Hedged Equity Fund
DBX ETF Trust
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Shareholder Letter (Unaudited) | 1 | |||
Management’s Discussion of Fund Performance (Unaudited) | 3 | |||
Performance Summary (Unaudited) | ||||
4 | ||||
6 | ||||
8 | ||||
10 | ||||
12 | ||||
Fees and Expenses (Unaudited) | 14 | |||
15 | ||||
17 | ||||
19 | ||||
28 | ||||
35 | ||||
38 | ||||
40 | ||||
42 | ||||
44 | ||||
47 | ||||
60 | ||||
Frequency Distribution of Discounts & Premiums (Unaudited) | 61 | |||
Officers and Trustees (Unaudited) | 63 | |||
Board Considerations in Approval of Investment Advisory and Sub-Advisory Contracts (Unaudited) | 67 | |||
Additional Information (Unaudited) | 70 | |||
Privacy Policy Notice (Unaudited) | 71 |
Dear Shareholder,
We are pleased to present this Annual Report for DBX ETF Trust, which covers the period from June 9, 2011, the commencement of operations, through May 31, 2012.
We believe that these funds fill a need in the marketplace by offering investors direct access to global markets with a built-in hedge against currency fluctuations. These ETFs provide investors direct access to some of the world’s most significant international markets with the goal of allowing investors to better manage their portfolios currency risk.
Deutsche Bank, a leading global banking institution, has managed and operated a successful and growing platform of exchange-traded products since 2006. Our team at Deutsche Bank values the trust that you have placed in us and we look forward to meeting your investment needs by continuing to offer innovative index-driven strategies.
Very truly yours,
Alex Depetris Chairman, President and Chief Executive Officer July 26, 2012 |
1
This Page is Intentionally Left Blank
2
DBX ETF Trust
MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
During the period ended May 31, 2012, global equity markets pulled back sharply in the late summer months of 2011 and remained depressed through December 2011 due to concerns over the sovereign debt crisis in Europe and the potential for renewed weakness in the global economy. A 2012 first-quarter rally was short-lived as continued Eurozone concerns sent major indices back to their lows for the period. While equities declined, the US dollar strengthened as measured by the DXY index, an index measuring the value of the dollar against a basket of currencies including the Euro, Great British pound, Japanese yen, Canadian dollar, Swedish krona and the Swiss franc.
For the period June 9, 2011 (commencement of operations) to May 31, 2012, the db-X MSCI Brazil Currency-Hedged Equity Fund returned -14.28% (based on net asset value or “NAV”) compared with the Underlying Index return of -10.95%. Fund returns were negatively impacted by weakness in Brazilian equity markets during the period, specifically in the Materials, Energy and Financial sectors. The negative returns in the equity markets were partially offset by gains on the Fund’s currency hedges, with the Brazilian real declining 28.01% during the period.
For the period June 9, 2011 (commencement of operations) to May 31, 2012, the db-X MSCI Canada Currency-Hedged Equity Fund returned -12.14% (based on NAV), compared with the Underlying Index return of -11.56%. Fund returns were negatively impacted by weakness in Canadian equity markets during the period, specifically in the Materials, Energy and Financial sectors. The negative returns in the equity markets were partially offset by gains on the Fund’s currency hedges, with the Canadian dollar declining 6.64% during the period.
For the period June 9, 2011 (commencement of operations) to May 31, 2012, the db-X MSCI EAFE Currency-Hedged Equity Fund returned -11.14% (based on NAV), compared with the Underlying Index return of -10.74%. The Fund’s returns were negatively impacted by weak performance in equities, with all 22 of the countries represented in the index contributing negative returns during the period. Specifically, high allocations and weakness in French, British and Japanese securities negatively impacted Fund performance. Negative performance was partially offset by strong performance in the Fund’s currency hedges. Since the currency hedges involve short positions in foreign currencies, the Fund benefitted from weakness in 10 of the 12 currencies (11 of the countries represented in the Fund use the Euro), specifically the Euro, Great British pound and Swiss franc.
For the period June 9, 2011 (commencement of operations) to May 31, 2012, the db-X MSCI Emerging Markets Currency-Hedged Equity Fund returned -12.52% (based on NAV), compared with the Underlying Index return of -10.00%. The Fund’s returns were negatively impacted by weak performance in equities, with only 4 of the 21 countries represented in the index contributing positive returns during the period. Specifically, high allocations and weakness in Brazilian, Chinese and South Korean securities negatively impacted Fund performance. Negative performance was partially offset by strong performance in the Fund’s currency hedges. Since the currency hedges involve short positions in foreign currencies, the Fund benefitted from weakness in 19 of the 21 currencies, specifically the Brazilian real, South Korean won and the South African rand.
For the period June 9, 2011 (commencement of operations) to May 31, 2012, the db-X MSCI Japan Currency-Hedged Equity Fund returned -12.16% (based on NAV), compared with the Underlying Index return of -11.49%. The Fund’s returns were negatively impacted by weakness in Japanese equity markets, specifically Information Technology, Industrial and Financial securities. The Fund was also negatively impacted by losses in the Fund’s currency hedges, with the Japanese yen strengthening 3.93% versus the dollar during the period.
*************************
Performance quoted above represents past performance, assumes reinvestment of all dividends and capital gains distributions at net asset value (“NAV”), and does not guarantee future results. A Fund’s NAV return is based on the changes in the Fund’s NAV per share for the period indicated. A Fund’s NAV per share is calculated by dividing the value of the Fund’s total assets less total liabilities by the number of shares outstanding. Current Fund performance may be higher or lower than the performance quoted. Fund performance data current to the most recent month end may be obtained by visiting www.dbxetf.com. See pages 4-13 of this report for additional performance information, including performance data based on market value.
An index is a statistical measure of a specified financial market or sector. An index does not actually hold a portfolio of securities, incur expenses, or pay any transaction costs. Therefore, index returns do not reflect deductions for fees or expenses and are not available for direct investment. In comparison, a Fund’s performance is negatively impacted by these deductions. Fund returns do not reflect brokerage commissions or taxes that a shareholder would pay on Fund distributions or on transactions in Fund shares.
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. Investment in the Funds poses investment risk, including possible loss of principal. The investment return and principal value of an investment will fluctuate, so that shares, when sold or redeemed, may be worth more or less than their original cost.
3
DBX ETF Trust
The db-X MSCI Brazil Currency-Hedged Equity Fund seeks investment results that correspond generally to the performance, before fees and expenses, of the MSCI Brazil US Dollar Hedged Index (the “Underlying Index”). The Underlying Index is designed to provide exposure to Brazilian equity markets, while at the same time mitigating exposure to fluctuations between the value of the U.S. dollar and Brazilian real.
For the period June 9, 2011 (commencement of operations) to May 31, 2012, the db-X MSCI Brazil Currency-Hedged Equity Fund returned -14.28% (based on NAV), compared with the Underlying Index return of -10.95%.
Performance as of 5/31/12
Cumulative Total Return | ||||||||
Net Asset Value | Market Price | MSCI Brazil US Dollar Hedged Index | MSCI Brazil Index | |||||
Since Inception1 | -14.28% | -14.85% | -10.95% | -26.21% |
1 Total returns are calculated based on the commencement of trading, 6/9/11 (“Inception”).
Performance quoted represents past performance, assumes reinvestment of all dividends and capital gain distributions, and does not guarantee future results. Current performance may be higher or lower than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.dbxetf.com. Investment in the fund poses investment risk including possible loss of principal. The investment return and principal value of an investment will fluctuate, so that shares, when sold or redeemed, may be worth more or less than their original cost. The estimated operating expense ratio as disclosed in the most recent prospectus dated May 12, 2011, was 0.61%.
The preceding performance chart is provided for comparative purposes and represents the period(s) noted. The net asset value return is based on the changes in the Fund’s net asset value per share (“NAV”). The Fund’s NAV is calculated by dividing the value of the Fund’s total assets less total liabilities by the number of shares outstanding. The market price return is based on the change in the market price on the NYSE Arca of a share of the Fund for the period(s) indicated. The price used to calculate market price returns is the midpoint of the bid/ask spread for Fund shares at 4 p.m. Eastern Time on the NYSE Arca. NAV and market returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and market price, respectively. The MSCI Brazil Index is a free float-adjusted market capitalization index that is designed to measure equity performance in Brazil. The MSCI Brazil US Dollar Hedged Index is the index that the Fund seeks to track. It is calculated using the same methodology as its corresponding MSCI Brazil Index, but is designed to mitigate exposure to fluctuations between the value of the U.S. dollar and non-U.S. currencies.
An index is a statistical measure of a specified financial market or sector. An index does not actually hold a portfolio of securities, incur expenses or pay any transaction costs. Therefore index returns do not reflect deductions for fees or expenses and are not available for direct investment. In comparison, the Fund’s performance is negatively impacted by these deductions. Fund returns do not reflect brokerage commissions or taxes that a shareholder would pay on Fund distributions or on transactions in Fund shares.
4
DBX ETF Trust
PERFORMANCE SUMMARY
db-X MSCI Brazil Fund (DBBR) (Continued)
Growth of a $10,000 Investment in DBBR2 as of 5/31/12
2 Based on Net Asset Value from commencement of trading, 6/9/11.
Sector Breakdown* as of 5/31/12
* Weightings are expressed as a percentage of total investments and may change over time. The sector classifications used above are based on company classifications under Bloomberg industry name.
Top Ten Holdings3 as of 5/31/12
Description | Shares | Value | % of Net Assets | |||||||||
Petroleo Brasileiro SA, Preferred Stock | 39,800 | $377,507 | 9.1% | |||||||||
Vale SA, Preferred Stock | 19,000 | 345,925 | 8.3% | |||||||||
Itau Unibanco Holding SA, Preferred Stock | 21,700 | 315,248 | 7.6% | |||||||||
Petroleo Brasileiro SA | 28,200 | 276,849 | 6.6% | |||||||||
Cia de Bebidas das Americas, Preferred Stock | 7,200 | 275,241 | 6.6% | |||||||||
Banco Bradesco SA, Preferred Stock | 18,200 | 267,110 | 6.4% | |||||||||
Vale SA | 12,400 | 231,111 | 5.5% | |||||||||
Itausa — Investimentos Itau SA, Preferred Stock | 24,390 | 106,540 | 2.6% | |||||||||
BRF — Brasil Foods SA | 6,200 | 96,496 | 2.3% | |||||||||
BM&FBovespa SA | 16,800 | 79,550 | 1.9% |
3 Holdings are subject to change without notice and there is no guarantee that the Fund will remain invested in any particular security. For a complete list of holdings go to www.dbxetf.com.
5
DBX ETF Trust
db-X MSCI Canada Fund (DBCN)
The db-X MSCI Canada Currency-Hedged Equity Fund seeks investment results that correspond generally to the performance, before fees and expenses, of the MSCI Canada US Dollar Hedged Index (the “Underlying Index”). The Underlying Index is designed to provide exposure to Canadian equity markets, while at the same time mitigating exposure to fluctuations between the value of the U.S. dollar and Canadian dollar.
For the period June 9, 2011 (commencement of operations) to May 31, 2012, the db-X MSCI Canada Currency-Hedged Equity Fund returned -12.14% (based on NAV), compared with the Underlying Index return of -11.56%.
Performance as of 5/31/12
Cumulative Total Return | ||||||||
Net Asset Value | Market Price | MSCI Canada US Dollar Hedged Index | MSCI Canada Index | |||||
Since Inception1 | -12.14% | -12.58% | -11.56% | -16.70% |
1 Total returns are calculated based on the commencement of trading, 6/9/11 (“Inception”).
Performance quoted represents past performance, assumes reinvestment of all dividends and capital gain distributions, and does not guarantee future results. Current performance may be higher or lower than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.dbxetf.com. Investment in the fund poses investment risk including possible loss of principal. The investment return and principal value of an investment will fluctuate, so that shares, when sold or redeemed, may be worth more or less than their original cost. The estimated operating expense ratio as disclosed in the most recent prospectus dated May 12, 2011, was 0.51%.
The preceding performance chart is provided for comparative purposes and represents the period(s) noted. The net asset value return is based on the changes in the Fund’s net asset value per share (“NAV”). The Fund’s NAV is calculated by dividing the value of the Fund’s total assets less total liabilities by the number of shares outstanding. The market price return is based on the change in the market price on the NYSE Arca of a share of the Fund for the period(s) indicated. The price used to calculate market price returns is the midpoint of the bid/ask spread for Fund shares at 4 p.m. Eastern Time on the NYSE Arca. NAV and market returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and market price, respectively. The MSCI Canada Index is a free float-adjusted market capitalization index that is designed to measure equity performance in Canada. The MSCI Canada US Dollar Hedged Index is the index that the Fund seeks to track. It is calculated using the same methodology as its corresponding MSCI Canada Index, but is designed to mitigate exposure to fluctuations between the value of the U.S. dollar and non-U.S. currencies.
An index is a statistical measure of a specified financial market or sector. An index does not actually hold a portfolio of securities, incur expenses or pay any transaction costs. Therefore index returns do not reflect deductions for fees or expenses and are not available for direct investment. In comparison, the Fund’s performance is negatively impacted by these deductions. Fund returns do not reflect brokerage commissions or taxes that a shareholder would pay on Fund distributions or on transactions in Fund shares.
6
DBX ETF Trust
PERFORMANCE SUMMARY
db-X MSCI Canada Fund (DBCN) (Continued)
Growth of a $10,000 Investment in DBCN2 as of 5/31/12
2 Based on Net Asset Value from commencement of trading, 6/9/11.
Sector Breakdown* as of 5/31/12
* Weightings are expressed as a percentage of total investments and may change over time. The sector classifications used above are based on company classifications under Bloomberg industry name.
Top Ten Holdings3 as of 5/31/12
Description | Shares | Value | % of Net Assets | |||||||||
Royal Bank of Canada | 5,520 | $275,505 | 6.4% | |||||||||
Bank of Nova Scotia | 4,180 | 214,372 | 5.0% | |||||||||
Toronto-Dominion Bank (The) | 2,740 | 209,761 | 4.8% | |||||||||
Suncor Energy, Inc. | 6,010 | 163,102 | 3.8% | |||||||||
Barrick Gold Corp. | 3,890 | 152,873 | 3.5% | |||||||||
Canadian National Railway Co. | 1,700 | 139,016 | 3.2% | |||||||||
Potash Corp. of Saskatchewan, Inc. | 3,350 | 132,690 | 3.1% | |||||||||
Bank of Montreal | 2,460 | 131,545 | 3.0% | |||||||||
Canadian Natural Resources Ltd | 4,260 | 122,333 | 2.8% | |||||||||
Goldcorp Inc | 3,150 | 114,978 | 2.7% |
3 Holdings are subject to change without notice and there is no guarantee that the Fund will remain invested in any particular security. For a complete list of holdings go to www.dbxetf.com.
7
DBX ETF Trust
The db-X MSCI EAFE Currency-Hedged Equity Fund 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 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. As of May 31, 2012, the Index included securities from the following 22 countries: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom.
For the period June 9, 2011 (commencement of operations) to May 31, 2012, the db-X MSCI EAFE Currency-Hedged Equity Fund returned -11.14% (based on NAV), compared with the Underlying Index return of -10.74%.
Performance as of 5/31/12
Cumulative Total Return | ||||||||
Net Asset Value | Market Price | MSCI EAFE US Dollar Hedged Index | MSCI EAFE Index | |||||
Since Inception1 | -11.14% | -9.00% | -10.74% | -18.40% |
1 Total returns are calculated based on the commencement of trading, 6/9/11 (“Inception”).
Performance quoted represents past performance, assumes reinvestment of all dividends and capital gain distributions, and does not guarantee future results. Current performance may be higher or lower than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.dbxetf.com. Investment in the fund poses investment risk including possible loss of principal. The investment return and principal value of an investment will fluctuate, so that shares, when sold or redeemed, may be worth more or less than their original cost. The estimated operating expense ratio as disclosed in the most recent prospectus dated May 12, 2011, was 0.36%.
The preceding performance chart is provided for comparative purposes and represents the period(s) noted. The net asset value return is based on the changes in the Fund’s net asset value per share (“NAV”). The Fund’s NAV is calculated by dividing the value of the Fund’s total assets less total liabilities by the number of shares outstanding. The market price return is based on the change in the market price on the NYSE Arca of a share of the Fund for the period(s) indicated. The price used to calculate market price returns is the midpoint of the bid/ask spread for Fund shares at 4 p.m. Eastern Time on the NYSE Arca. NAV and market returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and market price, respectively. The MSCI EAFE Index is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the U.S. and Canada. The MSCI EAFE US Dollar Hedged Index is the index that the Fund seeks to track. It is calculated using the same methodology as its corresponding MSCI EAFE Index, but is designed to mitigate exposure to fluctuations between the value of the U.S. dollar and non-U.S. currencies.
An index is a statistical measure of a specified financial market or sector. An index does not actually hold a portfolio of securities, incur expenses or pay any transaction costs. Therefore index returns do not reflect deductions for fees or expenses and are not available for direct investment. In comparison, the Fund’s performance is negatively impacted by these deductions. Fund returns do not reflect brokerage commissions or taxes that a shareholder would pay on Fund distributions or on transactions in Fund shares.
8
DBX ETF Trust
PERFORMANCE SUMMARY
db-X MSCI EAFE Fund (DBEF) (Continued)
Growth of a $10,000 Investment in DBEF2 as of 5/31/12
2 Based on Net Asset Value from commencement of trading, 6/9/11.
Country Breakdown* as of 5/31/12
* Weightings are expressed as a percentage of total investments and may change over time. The country classifications used above are based on company classifications under Bloomberg country name.
Top Ten Holdings3 as of 5/31/12
Description | Shares | Value | % of Net Assets | |||||||||
Nestle SA | 10,551 | $597,965 | 1.9% | |||||||||
HSBC Holdings PLC | 65,319 | 512,908 | 1.7% | |||||||||
Vodafone Group PLC | 182,754 | 487,269 | 1.6% | |||||||||
GlaxoSmithKline PLC | 19,864 | 440,231 | 1.4% | |||||||||
Royal Dutch Shell PLC, Class A | 13,157 | 407,779 | 1.3% | |||||||||
BP PLC | 64,494 | 392,521 | 1.3% | |||||||||
Roche Holding AG | 2,386 | 372,387 | 1.2% | |||||||||
BHP Billiton Ltd | 11,920 | 371,213 | 1.2% | |||||||||
Novartis AG | 6,610 | 343,311 | 1.1% | |||||||||
Toyota Motor Corp | 8,500 | 329,761 | 1.1% |
3 Holdings are subject to change without notice and there is no guarantee that the Fund will remain invested in any particular security. For a complete list of holdings go to www.dbxetf.com.
9
DBX ETF Trust
PERFORMANCE SUMMARY
db-X MSCI Emerging Markets Fund (DBEM)
The db-X MSCI Emerging Markets Currency-Hedged Equity Fund 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 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. As of May 31, 2012, the Index included securities from the following 21 countries: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, South Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand and Turkey.
For the period June 9, 2011 (commencement of operations) to May 31, 2012, the db-X MSCI Emerging Markets Currency-Hedged Equity Fund returned -12.52% (based on NAV), compared with the Underlying Index return of -10.00%.
Performance as of 5/31/12
Cumulative Total Return | ||||||||
Net Asset Value | Market Price | MSCI EM US Dollar Hedged Index | MSCI EM Index | |||||
Since Inception1 | -12.52% | -12.76% | -10.00% | -18.86% |
1 Total returns are calculated based on the commencement of trading, 6/9/11 (“Inception”).
Performance quoted represents past performance, assumes reinvestment of all dividends and capital gain distributions, and does not guarantee future results. Current performance may be higher or lower than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.dbxetf.com. Investment in the fund poses investment risk including possible loss of principal. The investment return and principal value of an investment will fluctuate, so that shares, when sold or redeemed, may be worth more or less than their original cost. The estimated operating expense ratio as disclosed in the most recent prospectus dated May 12, 2011, was 0.69%.
The preceding performance chart is provided for comparative purposes and represents the period(s) noted. The net asset value return is based on the changes in the Fund’s net asset value per share (“NAV”). The Fund’s NAV is calculated by dividing the value of the Fund’s total assets less total liabilities by the number of shares outstanding. The market price return is based on the change in the market price on the NYSE Arca of a share of the Fund for the period(s) indicated. The price used to calculate market price returns is the midpoint of the bid/ask spread for Fund shares at 4 p.m. Eastern Time on the NYSE Arca. NAV and market returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and market price, respectively. The MSCI EM Index is a free float-adjusted market capitalization index that is designed to measure equity performance in the global emerging markets. The MSCI EM US Dollar Hedged Index is the index that the Fund seeks to track. It is calculated using the same methodology as its corresponding MSCI EM Index, but is designed to mitigate exposure to fluctuations between the value of the U.S. dollar and non-U.S. currencies.
An index is a statistical measure of a specified financial market or sector. An index does not actually hold a portfolio of securities, incur expenses or pay any transaction costs. Therefore index returns do not reflect deductions for fees or expenses and are not available for direct investment. In comparison, the Fund’s performance is negatively impacted by these deductions. Fund returns do not reflect brokerage commissions or taxes that a shareholder would pay on Fund distributions or on transactions in Fund shares.
10
DBX ETF Trust
PERFORMANCE SUMMARY
db-X MSCI Emerging Markets Fund (DBEM) (Continued)
Growth of a $10,000 Investment in DBEM2 as of 5/31/12
2 Based on Net Asset Value from commencement of trading, 6/9/11.
Country Breakdown* as of 5/31/12
* Weightings are expressed as a percentage of total investments and may change over time. The country classifications used above are based on company classifications under Bloomberg country name.
Top Ten Holdings3 as of 5/31/12
Description | Shares | Value | % of Net Assets | |||||||||
Samsung Electronics Co. Ltd. | 143 | $146,727 | 3.4% | |||||||||
Hon Hai Precision Industry Co. Ltd. GDR | 19,950 | 115,810 | 2.7% | |||||||||
Sasol Ltd., ADR | 2,300 | 97,704 | 2.3% | |||||||||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 6,900 | 94,737 | 2.2% | |||||||||
China Mobile Ltd | 7,500 | 75,855 | 1.8% | |||||||||
AngloGold Ashanti Ltd., ADR | 2,100 | 75,726 | 1.8% | |||||||||
Chunghwa Telecom Co. Ltd., ADR | 2,300 | 68,632 | 1.6% | |||||||||
Gold Fields Ltd., ADR | 4,900 | 64,925 | 1.5% | |||||||||
China Construction Bank Corp., Class H | 93,000 | 64,464 | 1.5% | |||||||||
Advanced Semiconductor Engineering, Inc., ADR | 13,203 | 61,130 | 1.4% |
3 Holdings are subject to change without notice and there is no guarantee that the Fund will remain invested in any particular security. For a complete list of holdings go to www.dbxetf.com.
11
DBX ETF Trust
The db-X MSCI Japan Currency-Hedged Equity Fund 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 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.
For the period June 9, 2011 (commencement of operations) to May 31, 2012, the db-X MSCI Japan Currency-Hedged Equity Fund returned -12.16% (based on NAV), compared with the Underlying Index return of -11.49%.
Performance as of 5/31/12
Cumulative Total Return | ||||||||
Net Asset Value | Market Price | MSCI Japan US Dollar Hedged Index | MSCI Japan Index | |||||
Since Inception1 | -12.16% | -11.96% | -11.49% | -9.16% |
1 Total returns are calculated based on the commencement of trading, 6/9/11 (“Inception”).
Performance quoted represents past performance, assumes reinvestment of all dividends and capital gain distributions, and does not guarantee future results. Current performance may be higher or lower than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.dbxetf.com. Investment in the fund poses investment risk including possible loss of principal. The investment return and principal value of an investment will fluctuate, so that shares, when sold or redeemed, may be worth more or less than their original cost. The estimated operating expense ratio as disclosed in the most recent prospectus dated May 12, 2011, was 0.51%.
The preceding performance chart is provided for comparative purposes and represents the period(s) noted. The net asset value return is based on the changes in the Fund’s net asset value per share (“NAV”). The Fund’s NAV is calculated by dividing the value of the Fund’s total assets less total liabilities by the number of shares outstanding. The market price return is based on the change in the market price on the NYSE Arca of a share of the Fund for the period(s) indicated. The price used to calculate market price returns is the midpoint of the bid/ask spread for Fund shares at 4 p.m. Eastern Time on the NYSE Arca. NAV and market returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and market price, respectively. The MSCI Japan Index is a free float-adjusted market capitalization index that is designed to measure equity performance in Japan. The MSCI Japan US Dollar Hedged Index is the index that the Fund seeks to track. It is calculated using the same methodology as its corresponding MSCI Japan Index, but is designed to mitigate exposure to fluctuations between the value of the U.S. dollar and non-U.S. currencies.
An index is a statistical measure of a specified financial market or sector. An index does not actually hold a portfolio of securities, incur expenses or pay any transaction costs. Therefore index returns do not reflect deductions for fees or expenses and are not available for direct investment. In comparison, the Fund’s performance is negatively impacted by these deductions. Fund returns do not reflect brokerage commissions or taxes that a shareholder would pay on Fund distributions or on transactions in Fund shares.
12
DBX ETF Trust
PERFORMANCE SUMMARY
db-X MSCI Japan Fund (DBJP) (Continued)
Growth of a $10,000 Investment in DBJP2 as of 5/31/12
2 Based on Net Asset Value from commencement of trading, 6/9/11.
Sector Breakdown* as of 5/31/12
* Weightings are expressed as a percentage of total investments and may change over time. The sector classifications used above are based on company classifications under Bloomberg industry name.
Top Ten Holdings3 as of 5/31/12
Description | Shares | Value | % of Net Assets | |||||||||
Toyota Motor Corp. | 6,100 | $236,650 | 5.4% | |||||||||
Mitsubishi UFJ Financial Group, Inc. | 28,200 | 122,359 | 2.8% | |||||||||
Canon, Inc. | 2,500 | 100,498 | 2.3% | |||||||||
Honda Motor Co. Ltd. | 3,000 | 96,171 | 2.2% | |||||||||
Sumitomo Mitsui Financial Group, Inc. | 3,000 | 87,634 | 2.0% | |||||||||
Mizuho Financial Group, Inc. | 52,540 | 77,107 | 1.8% | |||||||||
Fanuc Corp. | 400 | 69,014 | 1.6% | |||||||||
Takeda Pharmaceutical Co. Ltd. | 1,600 | 66,870 | 1.5% | |||||||||
Hitachi Ltd. | 11,000 | 63,029 | 1.4% | |||||||||
Softbank Corp. | 2,000 | 62,532 | 1.4% |
3 Holdings are subject to change without notice and there is no guarantee that the Fund will remain invested in any particular security. For a complete list of holdings go to www.dbxetf.com.
13
DBX ETF Trust
As a shareholder of one or more of the funds of the DBX ETF Trust (each, a “Fund” and collectively, the “Funds”), you incur advisory fees and other Fund expenses. 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 are based on an investment of $1,000 made at the beginning of the period and held through the six month period ended May 31, 2012.
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, 2011 | Ending Account Value May 31, 2012 | Annualized Expense Ratio based on the number of days in the period | Expenses Paid During the Period(1) December 1, 2011 to May 31, 2012 | |||||||||||||
db-X MSCI Brazil Currency-Hedged Equity Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 964.80 | 0.88 | % | $ | 4.32 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.60 | 0.88 | % | $ | 4.45 | ||||||||
db-X MSCI Canada Currency-Hedged Equity Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 950.90 | 0.80 | % | $ | 3.90 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.00 | 0.80 | % | $ | 4.04 | ||||||||
db-X MSCI EAFE Currency-Hedged Equity Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 989.10 | 0.53 | % | $ | 2.64 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.35 | 0.53 | % | $ | 2.68 | ||||||||
db-X MSCI Emerging Markets Currency-Hedged Equity Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 967.30 | 0.94 | % | $ | 4.62 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.30 | 0.94 | % | $ | 4.75 | ||||||||
db-X MSCI Japan Currency-Hedged Equity Fund | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 964.00 | 0.80 | % | $ | 3.93 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.00 | 0.80 | % | $ | 4.04 |
(1) Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the period December 1, 2011 to May 31, 2012. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period; then multiplying the result by 183 days and then dividing the result by 366.
14
DBX ETF Trust
db-X MSCI Brazil Currency-Hedged Equity Fund
May 31, 2012
Number | Value | |||||||
COMMON STOCKS — 46.9% | ||||||||
Basic Materials — 8.6% | ||||||||
Cia Siderurgica Nacional SA | 6,900 | $ | 44,441 | |||||
Fibria Celulose SA | 2,300 | 15,076 | ||||||
MMX Mineracao e Metalicos SA* | 1,700 | 5,344 | ||||||
Ultrapar Participacoes SA | 3,100 | 63,772 | ||||||
Vale SA | 12,400 | 231,111 | ||||||
|
| |||||||
359,744 | ||||||||
|
| |||||||
Communications — 1.2% | ||||||||
Oi SA | 2,300 | 10,834 | ||||||
Tim Participacoes SA | 8,071 | 39,017 | ||||||
|
| |||||||
49,851 | ||||||||
|
| |||||||
Consumer, Cyclical — 2.1% | ||||||||
Cia Hering | 1,300 | 27,007 | ||||||
Lojas Renner SA | 1,100 | 31,715 | ||||||
MRV Engenharia e Participacoes SA | 2,900 | 12,452 | ||||||
Raia Drogasil SA | 1,800 | 16,645 | ||||||
|
| |||||||
87,819 | ||||||||
|
| |||||||
Consumer, Non-cyclical — 12.3% | ||||||||
Amil Participacoes SA | 1,200 | 11,305 | ||||||
Anhanguera Educacional Participacoes SA | 1,200 | 14,220 | ||||||
BRF — Brasil Foods SA | 6,200 | 96,496 | ||||||
CCR SA | 8,400 | 65,390 | ||||||
Cielo SA | 2,840 | 76,743 | ||||||
Cosan SA Industria e Comercio | 1,100 | 16,340 | ||||||
Diagnosticos da America SA | 2,200 | 15,435 | ||||||
Ecorodovias Infraestrutura e Logistica SA | 1,600 | 12,804 | ||||||
Hypermarcas SA | 3,300 | 18,047 | ||||||
JBS SA* | 3,900 | 10,539 | ||||||
Localiza Rent a Car SA | 1,300 | 20,626 | ||||||
Multiplus SA | 500 | 11,478 | ||||||
Natura Cosmeticos SA | 1,600 | 34,351 | ||||||
Obrascon Huarte Lain Brasil SA | 1,200 | 9,698 | ||||||
Redecard SA | 3,200 | 49,186 | ||||||
Souza Cruz SA | 3,600 | 48,194 | ||||||
|
| |||||||
510,852 | ||||||||
|
| |||||||
Energy — 8.3% | ||||||||
HRT Participacoes EM Petroleo SA* | 2,400 | 8,032 | ||||||
OGX Petroleo e Gas Participacoes SA* | 12,200 | 62,305 | ||||||
Petroleo Brasileiro SA | 28,200 | 276,849 | ||||||
|
| |||||||
347,186 | ||||||||
|
| |||||||
Financials — 8.4% | ||||||||
Banco do Brasil SA | 5,400 | 53,549 | ||||||
Banco Santander Brasil SA | 7,200 | 58,190 | ||||||
BM&FBovespa SA | 16,800 | 79,550 | ||||||
BR Malls Participacoes SA | 3,900 | 42,928 | ||||||
BR Properties SA | 1,800 | 20,438 | ||||||
CETIP SA — Balcao Organizado de Ativos e Derivativos | 1,900 | 27,414 | ||||||
Cyrela Brazil Realty SA Empreendimentos e Participacoes | 2,800 | 20,991 | ||||||
Odontoprev SA | 2,500 | 13,387 | ||||||
PDG Realty SA Empreendimentos e Participacoes | 10,600 | 17,659 |
Number | Value | |||||||
Financials (Continued) | ||||||||
Porto Seguro SA | 1,000 | $ | 8,870 | |||||
Sul America SA | 1,017 | 7,075 | ||||||
|
| |||||||
350,051 | ||||||||
|
| |||||||
Industrial — 2.0% | ||||||||
All America Latina Logistica SA | 4,200 | 17,451 | ||||||
Duratex SA | 2,300 | 11,016 | ||||||
Embraer SA | 5,300 | 37,710 | ||||||
Multiplan Empreendimentos Imobiliarios SA | 700 | 16,625 | ||||||
|
| |||||||
82,802 | ||||||||
|
| |||||||
Technology — 0.4% | ||||||||
Totvs SA | 1,000 | 18,098 | ||||||
|
| |||||||
Utilities — 3.6% | ||||||||
Centrais Eletricas Brasileiras SA | 2,500 | 16,449 | ||||||
Cia de Saneamento Basico do Estado de Sao Paulo | 1,100 | 38,729 | ||||||
Cia de Saneamento de Minas Gerais-Copasa | 600 | 12,792 | ||||||
CPFL Energia SA | 2,300 | 28,144 | ||||||
EDP — Energias do Brasil SA | 2,300 | 14,711 | ||||||
Light SA | 500 | 5,876 | ||||||
MPX Energia SA* | 400 | 6,872 | ||||||
Tractebel Energia SA | 1,600 | 26,537 | ||||||
|
| |||||||
150,110 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS | 1,956,513 | |||||||
|
| |||||||
PREFERRED STOCKS — 53.1% | ||||||||
Basic Materials — 11.4% | ||||||||
Braskem SA | 1,400 | 7,809 | ||||||
Gerdau SA | 8,200 | 64,483 | ||||||
Klabin SA | 4,200 | 17,701 | ||||||
Metalurgica Gerdau SA, Class A | 2,600 | 25,718 | ||||||
Usinas Siderurgicas de Minas Gerais SA | 3,600 | 15,172 | ||||||
Vale SA | 19,000 | 345,925 | ||||||
|
| |||||||
476,808 | ||||||||
|
| |||||||
Communications — 2.4% | ||||||||
Oi SA | 7,900 | 31,336 | ||||||
Telefonica Brasil SA | 2,800 | 66,639 | ||||||
|
| |||||||
97,975 | ||||||||
|
| |||||||
Consumer, Cyclical — 0.9% | ||||||||
Lojas Americanas SA | 3,823 | 23,031 | ||||||
TAM SA | 700 | 15,133 | ||||||
|
| |||||||
38,164 | ||||||||
|
| |||||||
Consumer, Non-cyclical — 7.4% | ||||||||
Cia Brasileira de Distribuicao Grupo Pao de Acucar | 900 | 34,093 | ||||||
Cia de Bebidas das Americas | 7,200 | 275,241 | ||||||
|
| |||||||
309,334 | ||||||||
|
| |||||||
Diversified — 2.6% | ||||||||
Itausa — Investimentos Itau SA | 24,390 | 106,540 | ||||||
|
| |||||||
Energy — 9.1% | ||||||||
Petroleo Brasileiro SA | 39,800 | 377,507 | ||||||
|
|
See Notes to Financial Statements. | 15 |
DBX ETF Trust
SCHEDULE OF INVESTMENTS
db-X MSCI Brazil Currency-Hedged Equity Fund (Continued)
May 31, 2012
Number | Value | |||||||
Financials — 15.1% | ||||||||
Banco Bradesco SA | 18,200 | $ | 267,110 | |||||
Banco do Estado do Rio Grande do Sul | 1,700 | 13,486 | ||||||
Bradespar SA | 2,100 | 32,861 | ||||||
Itau Unibanco Holding SA | 21,700 | 315,248 | ||||||
|
| |||||||
628,705 | ||||||||
|
| |||||||
Utilities — 4.2% | ||||||||
AES Tiete SA | 1,000 | 13,486 | ||||||
Centrais Eletricas Brasileiras SA | 2,100 | 19,471 | ||||||
Cia de Transmissao de Energia Electrica Paulista | 300 | 8,865 | ||||||
Cia Energetica de Minas Gerais | 4,525 | 78,930 | ||||||
Cia Energetica de Sao Paulo | 1,500 | 25,875 | ||||||
Cia Paranaense de Energia | 900 | 18,305 | ||||||
Eletropaulo Metropolitana Eletricidade de Sao Paulo SA | 900 | 10,710 | ||||||
|
| |||||||
175,642 | ||||||||
|
| |||||||
TOTAL PREFERRED STOCKS (Cost $2,792,577) | 2,210,675 | |||||||
|
| |||||||
TOTAL INVESTMENTS — 100.0% (Cost $5,290,184) | $ | 4,167,188 | ||||||
Liabilities in excess of other assets — (0.0%) | (1,852 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 4,165,336 | ||||||
|
|
As of May 31, 2012, the Fund had the following forward foreign currency contracts outstanding:
Counterparty | Settlement Date | Currency to Deliver | Currency to Receive | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||
JP Morgan & Chase Co. | 6/5/2012 | BRL | 4,332,000 | USD | 2,281,922 | $ | 136,407 | |||||||||||||||||
HSBC | 6/5/2012 | BRL | 3,904,879 | USD | 2,059,155 | 125,181 | ||||||||||||||||||
The Bank of New York Mellon | 6/5/2012 | BRL | 431,217 | USD | 229,670 | 16,101 | ||||||||||||||||||
The Bank of New York Mellon | 6/5/2012 | BRL | 222,658 | USD | 116,089 | 5,813 | ||||||||||||||||||
The Bank of New York Mellon | 6/5/2012 | BRL | 1,955 | USD | 1,017 | 48 | ||||||||||||||||||
JP Morgan & Chase Co. | 6/5/2012 | USD | 2,112,519 | BRL | 4,275,000 | 4,765 | ||||||||||||||||||
HSBC | 6/5/2012 | USD | 1,896,513 | BRL | 3,837,879 | 4,278 | ||||||||||||||||||
The Bank of New York Mellon | 6/5/2012 | USD | 212,972 | BRL | 430,981 | 480 | ||||||||||||||||||
The Bank of New York Mellon | 6/5/2012 | USD | 118,000 | BRL | 224,849 | (6,639 | ) | |||||||||||||||||
HSBC | 6/5/2012 | USD | 29,904 | BRL | 57,000 | (1,674 | ) | |||||||||||||||||
JP Morgan & Chase Co. | 6/5/2012 | USD | 29,904 | BRL | 57,000 | (1,674 | ) | |||||||||||||||||
HSBC | 6/5/2012 | USD | 5,174 | BRL | 10,000 | (221 | ) | |||||||||||||||||
HSBC | 7/5/2012 | BRL | 4,111,000 | USD | 2,019,701 | (3,205 | ) | |||||||||||||||||
JP Morgan & Chase Co. | 7/5/2012 | BRL | 4,111,000 | USD | 2,019,304 | (3,602 | ) | |||||||||||||||||
HSBC | 7/5/2012 | USD | 300,000 | BRL | 605,610 | (1,996 | ) | |||||||||||||||||
|
| |||||||||||||||||||||||
$ | 274,062 | |||||||||||||||||||||||
|
|
Currency Abbrevations
BRL – Brazilian Real
USD – U.S. Dollar
* Non-income producing securities.
See Notes to Financial Statements. | 16 |
DBX ETF Trust
SCHEDULE OF INVESTMENTS
db-X MSCI Canada Currency-Hedged Equity Fund
May 31, 2012
Number | Value | |||||||
COMMON STOCKS — 96.9% | ||||||||
Basic Materials — 19.4% | ||||||||
Agnico-Eagle Mines Ltd. | 600 | $ | 22,458 | |||||
Agrium, Inc. | 640 | 50,117 | ||||||
Barrick Gold Corp. | 3,890 | 152,873 | ||||||
Cameco Corp. | 1,500 | 28,843 | ||||||
Centerra Gold, Inc. | 600 | 6,268 | ||||||
Eldorado Gold Corp. | 2,600 | 28,848 | ||||||
First Quantum Minerals Ltd. | 1,850 | 32,402 | ||||||
Franco-Nevada Corp. | 500 | 21,024 | ||||||
Goldcorp, Inc. | 3,150 | 114,978 | ||||||
IAMGOLD Corp. | 1,400 | 15,005 | ||||||
Inmet Mining Corp. | 200 | 8,404 | ||||||
Ivanhoe Mines Ltd.* | 1,100 | 10,384 | ||||||
Kinross Gold Corp. | 4,300 | 34,513 | ||||||
New Gold, Inc.* | 1,800 | 15,911 | ||||||
Osisko Mining Corp.* | 1,500 | 11,197 | ||||||
Pan American Silver Corp. | 530 | 8,903 | ||||||
Potash Corp. of Saskatchewan, Inc. | 3,350 | 132,690 | ||||||
Silver Wheaton Corp. | 1,400 | 35,961 | ||||||
Sino-Forest Corp. (Hong Kong)* | 900 | — | ||||||
Teck Resources Ltd., Class B | 2,250 | 67,401 | ||||||
Yamana Gold, Inc. | 2,900 | 42,566 | ||||||
|
| |||||||
840,746 | ||||||||
|
| |||||||
Communications — 4.8% | ||||||||
BCE, Inc. | 1,000 | 39,908 | ||||||
Bell Aliant, Inc. | 300 | 7,648 | ||||||
Rogers Communications, Inc., Class B | 1,450 | 49,585 | ||||||
Shaw Communications, Inc., Class B | 1,500 | 28,683 | ||||||
TELUS Corp. | 200 | 11,642 | ||||||
TELUS Corp. — Non Vote, Class A | 600 | 34,077 | ||||||
Thomson Reuters Corp. | 1,400 | 38,482 | ||||||
|
| |||||||
210,025 | ||||||||
|
| |||||||
Consumer, Cyclical — 3.3% | ||||||||
Alimentation Couche Tard, Inc., Class B | 400 | 15,820 | ||||||
Canadian Tire Corp. Ltd., Class A | 300 | 19,525 | ||||||
Gildan Activewear, Inc. | 400 | 9,415 | ||||||
Magna International, Inc., Class A | 800 | 32,338 | ||||||
Shoppers Drug Mart Corp. | 800 | 31,920 | ||||||
Tim Hortons, Inc. | 600 | 31,979 | ||||||
|
| |||||||
140,997 | ||||||||
|
| |||||||
Consumer, Non-cyclical — 3.6% | ||||||||
Empire Co. Ltd., Class A | 100 | 5,337 | ||||||
George Weston Ltd. | 200 | 11,328 | ||||||
Loblaw Cos. Ltd. | 400 | 12,253 | ||||||
Metro, Inc., Class A | 400 | 19,755 | ||||||
Ritchie Bros Auctioneers, Inc. | 300 | 5,917 | ||||||
Saputo, Inc. | 500 | 20,720 | ||||||
SXC Health Solutions Corp.* | 300 | 27,565 | ||||||
Valeant Pharmaceuticals International, Inc.* | 1,050 | 51,308 | ||||||
|
| |||||||
154,183 | ||||||||
|
| |||||||
Energy — 25.4% | ||||||||
ARC Resources Ltd. | 1,100 | 22,035 | ||||||
Athabasca Oil Corp.* | 1,200 | 12,420 | ||||||
Baytex Energy Corp. | 400 | 17,540 |
Number | Value | |||||||
Energy (Continued) | ||||||||
Bonavista Energy Corp. | 500 | $ | 8,573 | |||||
Canadian Natural Resources Ltd. | 4,260 | 122,333 | ||||||
Canadian Oil Sands Ltd. | 1,850 | 35,984 | ||||||
Cenovus Energy, Inc. | 2,875 | 90,605 | ||||||
Crescent Point Energy Corp. | 1,100 | 42,313 | ||||||
Enbridge, Inc. | 2,900 | 114,585 | ||||||
EnCana Corp. | 2,850 | 56,953 | ||||||
Enerplus Corp. | 700 | 9,712 | ||||||
Husky Energy, Inc. | 1,300 | 29,339 | ||||||
Imperial Oil Ltd. | 1,150 | 46,218 | ||||||
MEG Energy Corp.* | 500 | 16,677 | ||||||
Nexen, Inc. | 2,000 | 31,370 | ||||||
Pacific Rubiales Energy Corp. | 1,100 | 28,851 | ||||||
Pembina Pipeline Corp. | 1,100 | 29,639 | ||||||
Pengrowth Energy Corp. | 1,400 | 9,976 | ||||||
Penn West Petroleum Ltd. | 1,850 | 24,682 | ||||||
Precision Drilling Corp.* | 800 | 6,243 | ||||||
Progress Energy Resources Corp. | 700 | 7,584 | ||||||
Suncor Energy, Inc. | 6,010 | 163,102 | ||||||
Talisman Energy, Inc. | 3,900 | 41,158 | ||||||
Tourmaline Oil Corp.* | 450 | 10,348 | ||||||
TransCanada Corp. | 2,650 | 108,607 | ||||||
Vermilion Energy, Inc. | 300 | 12,629 | ||||||
|
| |||||||
1,099,476 | ||||||||
|
| |||||||
Financial — 32.1% | ||||||||
Bank of Montreal | 2,460 | 131,545 | ||||||
Bank of Nova Scotia | 4,180 | 214,372 | ||||||
Brookfield Asset Management, Inc., Class A | 2,150 | 68,777 | ||||||
Brookfield Office Properties, Inc. (United States) | 1,100 | 18,393 | ||||||
Canadian Imperial Bank of Commerce | 1,550 | 108,156 | ||||||
CI Financial Corp. | 600 | 12,710 | ||||||
Fairfax Financial Holdings Ltd. | 75 | 29,554 | ||||||
Great-West Lifeco, Inc. | 1,050 | 21,278 | ||||||
H&R Real Estate Investment Trust REIT | 300 | 6,971 | ||||||
IGM Financial, Inc. | 400 | 15,395 | ||||||
Industrial Alliance Insurance & Financial Services, Inc. | 300 | 7,334 | ||||||
Intact Financial Corp. | 500 | 30,518 | ||||||
Manulife Financial Corp. | 6,900 | 74,354 | ||||||
National Bank of Canada | 590 | 42,077 | ||||||
Onex Corp. | 300 | 11,072 | ||||||
Power Corp. of Canada | 1,400 | 31,067 | ||||||
Power Financial Corp. | 900 | 22,046 | ||||||
RioCan Real Estate Investment Trust REIT | 500 | 12,925 | ||||||
Royal Bank of Canada | 5,520 | 275,505 | ||||||
Sun Life Financial, Inc. | 2,250 | 46,444 | ||||||
Toronto-Dominion Bank (The)(a) | 2,740 | 209,761 | ||||||
|
| |||||||
1,390,254 | ||||||||
|
| |||||||
Industrial — 6.1% | ||||||||
Bombardier, Inc., Class B | 5,500 | 20,129 | ||||||
CAE, Inc. | 1,000 | 9,730 | ||||||
Canadian National Railway Co. | 1,700 | 139,016 | ||||||
Canadian Pacific Railway Ltd. | 600 | 44,196 | ||||||
Finning International, Inc. | 600 | 14,070 | ||||||
SNC-Lavalin Group, Inc. | 550 | 20,310 | ||||||
Viterra, Inc. | 1,200 | 18,589 | ||||||
|
| |||||||
266,040 | ||||||||
|
|
See Notes to Financial Statements. | 17 |
DBX ETF Trust
SCHEDULE OF INVESTMENTS
db-X MSCI Canada Currency-Hedged Equity Fund (Continued)
May 31, 2012
Number | Value | |||||||
Technology — 1.1% | ||||||||
CGI Group, Inc., Class A* | 850 | $ | 19,710 | |||||
Open Text Corp.* | 200 | 9,672 | ||||||
Research In Motion Ltd.* | 1,800 | 18,647 | ||||||
|
| |||||||
48,029 | ||||||||
|
| |||||||
Utilities — 1.1% | ||||||||
Canadian Utilities Ltd., Class A | 200 | 12,976 | ||||||
Fortis, Inc. | 700 | 22,298 | ||||||
TransAlta Corp. | 800 | 13,051 | ||||||
|
| |||||||
48,325 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS | 4,198,075 | |||||||
|
| |||||||
TOTAL INVESTMENTS — 96.9% | $ | 4,198,075 | ||||||
Other assets less liabilities — 3.1% | 133,143 | |||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 4,331,218 | ||||||
|
|
As of May 31, 2012, the Fund had the following futures contracts open:
Contract Description | Number of Contracts | Contract Value | Expiration Date | Unrealized Depreciation | ||||||||||||
S&P/TSX 60 IX Futures | 1 | $ | 126,950 | 6/14/2012 | $ | (10,141 | ) |
As of May 31, 2012, the Fund had the following forward foreign currency contracts outstanding:
Counterparty | Settlement Date | Currency to Deliver | Currency to Receive | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||
HSBC | 6/5/2012 | CAD | 2,173,000 | USD | 2,197,813 | $ | 94,170 | |||||||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | CAD | 2,173,000 | USD | 2,197,884 | 94,242 | ||||||||||||||||||
HSBC | 6/5/2012 | CAD | 7,000 | USD | 7,080 | 303 | ||||||||||||||||||
HSBC | 6/5/2012 | USD | 2,204,893 | CAD | 2,284,027 | 6,233 | ||||||||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | USD | 2,197,884 | CAD | 2,276,780 | 6,226 | ||||||||||||||||||
HSBC | 7/5/2012 | CAD | 2,132,500 | USD | 2,057,246 | (5,772 | ) | |||||||||||||||||
JPMorgan Chase & Co. | 7/5/2012 | CAD | 2,132,500 | USD | 2,057,288 | (5,730 | ) | |||||||||||||||||
|
| |||||||||||||||||||||||
$ | 189,672 | |||||||||||||||||||||||
|
|
Currency Abbrevations
CAD – Canadian Dollar
USD – U.S. Dollar
* Non-Income producing securities.
(a) Affiliated company. The Sub-Advisor is a subsidiary of The Toronto-Dominion Bank. Therefore, The Toronto-Dominion Bank is considered to be affiliated with the Fund.
REIT – Real Estate Investment Trust.
See Notes to Financial Statements. | 18 |
DBX ETF Trust
db-X MSCI EAFE Currency-Hedged Equity Fund
May 31, 2012
Number | Value | |||||||
COMMON STOCKS — 97.5% | ||||||||
Australia — 8.3% | ||||||||
AGL Energy Ltd. | 1,104 | $ | 16,335 | |||||
Alumina Ltd. | 9,017 | 8,652 | ||||||
AMP Ltd. | 13,070 | 49,398 | ||||||
Apa Group | 1,864 | 9,115 | ||||||
Asciano Ltd. | 2,300 | 10,172 | ||||||
ASX Ltd. | 532 | 15,267 | ||||||
Australia & New Zealand Banking Group Ltd. | 8,458 | 172,194 | ||||||
Bendigo and Adelaide Bank Ltd. | 2,140 | 15,197 | ||||||
BHP Billiton Ltd. | 11,920 | 371,213 | ||||||
Boral Ltd. | 2,283 | 7,850 | ||||||
Brambles Ltd. | 3,129 | 20,299 | ||||||
Caltex Australia Ltd. | 1,400 | 18,615 | ||||||
Campbell Brothers Ltd. | 157 | 8,893 | ||||||
Centro Retail Australia REIT* | 4,700 | 8,699 | ||||||
Cochlear Ltd. | 149 | 9,103 | ||||||
Commonwealth Bank of Australia | 5,527 | 265,961 | ||||||
Computershare Ltd. | 1,313 | 9,963 | ||||||
Crown Ltd. | 2,094 | 17,297 | ||||||
CSL Ltd. | 1,947 | 71,406 | ||||||
Dexus Property Group REIT | 9,071 | 8,306 | ||||||
Fairfax Media Ltd. | 21,160 | 13,707 | ||||||
Fortescue Metals Group Ltd. | 1,767 | 7,952 | ||||||
Goodman Group REIT | 4,026 | 13,255 | ||||||
GPT Group REIT | 3,168 | 9,998 | ||||||
Harvey Norman Holdings Ltd. | 3,082 | 5,914 | ||||||
Iluka Resources Ltd. | 1,400 | 18,274 | ||||||
Incitec Pivot Ltd. | 3,572 | 9,882 | ||||||
Leighton Holdings Ltd. | 2,071 | 35,647 | ||||||
Lend Lease Group | 1,299 | 9,288 | ||||||
Lynas Corp. Ltd.* | 4,819 | 4,858 | ||||||
Macquarie Group Ltd. | 1,996 | 52,438 | ||||||
Metcash Ltd. | 4,188 | 15,584 | ||||||
Mirvac Group, Class REIT | 9,918 | 11,883 | ||||||
National Australia Bank Ltd. | 7,778 | 170,321 | ||||||
Newcrest Mining Ltd. | 2,679 | 65,031 | ||||||
Orica Ltd. | 1,099 | 26,506 | ||||||
Origin Energy Ltd. | 4,083 | 51,227 | ||||||
Oz Minerals Ltd. | 798 | 6,778 | ||||||
QBE Insurance Group Ltd. | 4,071 | 49,094 | ||||||
Ramsay Health Care Ltd. | 372 | 7,816 | ||||||
Rio Tinto Ltd. | 1,747 | 96,762 | ||||||
Santos Ltd. | 4,629 | 54,064 | ||||||
Sims Metal Management Ltd. | 435 | 4,648 | ||||||
Sonic Healthcare Ltd. | 1,024 | 12,169 | ||||||
SP AusNet | 19,644 | 19,327 | ||||||
Stockland REIT | 5,011 | 15,571 | ||||||
Suncorp Group Ltd. | 2,172 | 16,418 | ||||||
Sydney Airport | 4,888 | 13,808 | ||||||
Telstra Corp. Ltd. | 21,552 | 74,528 | ||||||
Wesfarmers Ltd. | 3,362 | 95,628 | ||||||
Westfield Group REIT | 7,445 | 65,923 | ||||||
Westfield Retail Trust REIT | 3,552 | 9,411 | ||||||
Westpac Banking Corp. | 11,020 | 217,804 | ||||||
Woodside Petroleum Ltd. | 1,885 | 59,070 | ||||||
Woolworths Ltd. | 4,164 | 107,244 | ||||||
Worleyparsons Ltd. | 588 | 14,720 | ||||||
|
| |||||||
2,576,483 | ||||||||
|
|
Number | Value | |||||||
Austria — 0.3% | ||||||||
Erste Group Bank AG* | 1,019 | $ | 17,609 | |||||
OMV AG | 322 | 8,771 | ||||||
Raiffeisen Bank International AG | 700 | 19,202 | ||||||
Verbund AG, Class A | 700 | 16,182 | ||||||
Vienna Insurance Group AG Wiener Versicherung Gruppe | 700 | 24,538 | ||||||
Voestalpine AG | 700 | 17,484 | ||||||
|
| |||||||
103,786 | ||||||||
|
| |||||||
Belgium — 0.9% | ||||||||
Anheuser-Busch InBev NV | 2,520 | 170,600 | ||||||
Colruyt SA | 700 | 28,113 | ||||||
Groupe Bruxelles Lambert SA | 99 | 6,193 | ||||||
Solvay SA | 200 | 20,957 | ||||||
UCB SA | 700 | 32,818 | ||||||
Umicore SA | 399 | 18,935 | ||||||
|
| |||||||
277,616 | ||||||||
|
| |||||||
Denmark — 1.3% | ||||||||
AP Moller — Maersk A/S, Class A | 7 | 41,351 | ||||||
AP Moller — Maersk A/S, Class B | 7 | 43,423 | ||||||
Carlsberg A/S, Class B | 609 | 45,379 | ||||||
Danske Bank A/S* | 3,361 | 44,490 | ||||||
DSV A/S | 700 | 13,593 | ||||||
Novo Nordisk A/S, Class B | 1,330 | 176,940 | ||||||
Novozymes A/S, Class B | 700 | 18,765 | ||||||
TDC A/S | 1,400 | 8,832 | ||||||
|
| |||||||
392,773 | ||||||||
|
| |||||||
Finland — 0.6% | ||||||||
Fortum OYJ | 2,122 | 38,518 | ||||||
Kone OYJ, Class B | 476 | 26,562 | ||||||
Metso OYJ | 331 | 10,797 | ||||||
Neste Oil OYJ | 700 | 6,431 | ||||||
Nokia OYJ | 14,541 | 38,190 | ||||||
Nokian Renkaat OYJ | 700 | 26,226 | ||||||
Sampo OYJ, Class A | 2,122 | 48,910 | ||||||
Wartsila OYJ Abp | 56 | 1,835 | ||||||
|
| |||||||
197,469 | ||||||||
|
| |||||||
France — 8.8% | ||||||||
Aeroports de Paris | 700 | 50,687 | ||||||
Air Liquide SA | 934 | 101,019 | ||||||
Alcatel-Lucent* | 8,580 | 13,346 | ||||||
Alstom SA | 1,134 | 32,945 | ||||||
Arkema SA | 200 | 13,082 | ||||||
AXA SA | 5,105 | 57,323 | ||||||
BNP Paribas SA | 2,912 | 92,628 | ||||||
Bouygues SA | 600 | 14,475 | ||||||
Bureau Veritas SA | 700 | 60,243 | ||||||
Carrefour SA | 1,701 | 29,330 | ||||||
Christian Dior SA | 112 | 14,631 | ||||||
Cie de St-Gobain | 1,169 | 41,370 | ||||||
Cie Generale de Geophysique — Veritas* | 700 | 15,173 | ||||||
Cie Generale des Etablissements Michelin, Class B | 770 | 44,987 | ||||||
Cie Generale d’Optique Essilor International SA | 861 | 73,545 | ||||||
CNP Assurances* | 2,794 | 30,230 |
See Notes to Financial Statements. | 19 |
DBX ETF Trust
SCHEDULE OF INVESTMENTS
db-X MSCI EAFE Currency-Hedged Equity Fund (Continued)
May 31, 2012
Number | Value | |||||||
France (Continued) | ||||||||
Credit Agricole SA* | 4,305 | $ | 15,395 | |||||
Danone SA | 1,907 | 122,358 | ||||||
Dassault Systemes SA | 700 | 63,653 | ||||||
EDF SA | 799 | 15,378 | ||||||
Eutelsat Communications SA | 700 | 18,333 | ||||||
France Telecom SA | 5,731 | 71,998 | ||||||
GDF Suez | 4,128 | 81,541 | ||||||
Gecina SA REIT | 700 | 59,377 | ||||||
Iliad SA | 758 | 97,710 | ||||||
JCDecaux SA | 700 | 14,628 | ||||||
Klepierre REIT | 700 | 21,682 | ||||||
Lafarge SA | 962 | 35,376 | ||||||
Lagardere SCA | 700 | 16,575 | ||||||
Legrand SA | 525 | 15,794 | ||||||
L’Oreal SA | 772 | 86,791 | ||||||
LVMH Moet Hennessy Louis Vuitton SA | 849 | 125,346 | ||||||
Natixis | 9,734 | 22,760 | ||||||
Pernod-Ricard SA | 700 | 68,379 | ||||||
PPR | 413 | 58,728 | ||||||
Renault SA | 600 | 25,139 | ||||||
Sanofi | 3,840 | 261,150 | ||||||
Schneider Electric SA | 1,566 | 83,399 | ||||||
SCOR SE | 700 | 15,190 | ||||||
Societe BIC SA | 700 | 68,379 | ||||||
Societe Generale SA* | 2,308 | 45,833 | ||||||
Sodexo | 287 | 20,831 | ||||||
Suez Environnement Co | 2,794 | 30,347 | ||||||
Technip SA | 301 | 27,434 | ||||||
Total SA | 6,236 | 268,068 | ||||||
Unibail-Rodamco SE REIT | 315 | 52,037 | ||||||
Vallourec SA | 329 | 12,286 | ||||||
Vinci SA | 1,309 | 52,288 | ||||||
Vivendi SA | 4,065 | 65,645 | ||||||
|
| |||||||
2,724,842 | ||||||||
|
| |||||||
Germany — 7.7% | ||||||||
Adidas AG | 945 | 70,332 | ||||||
Allianz SE | 1,428 | 129,092 | ||||||
BASF SE | 2,797 | 194,991 | ||||||
Bayer AG | 2,908 | 183,888 | ||||||
Bayerische Motoren Werke AG | 1,062 | 80,235 | ||||||
Beiersdorf AG | 308 | 19,415 | ||||||
Celesio AG | 700 | 9,647 | ||||||
Commerzbank AG* | 10,136 | 16,719 | ||||||
Continental AG | 277 | 23,068 | ||||||
Daimler AG | 3,271 | 151,390 | ||||||
Deutsche Bank AG (a) | 2,914 | 104,799 | ||||||
Deutsche Boerse AG | 896 | 42,671 | ||||||
Deutsche Lufthansa AG | 2,365 | 24,804 | ||||||
Deutsche Post AG | 3,775 | 62,175 | ||||||
Deutsche Telekom AG | 8,289 | 81,729 | ||||||
E.ON AG | 5,668 | 103,586 | ||||||
Fraport AG Frankfurt Airport Services Worldwide | 700 | 35,393 | ||||||
Fresenius Medical Care AG & Co. KGaA | 966 | 64,130 | ||||||
Fresenius SE & Co. KGaA | 665 | 62,822 | ||||||
GEA Group AG | 499 | 12,698 | ||||||
Hannover Rueckversicherung AG | 700 | 37,440 |
Number | Value | |||||||
Germany (Continued) | ||||||||
Heidelbergcement AG | 371 | $ | 16,093 | |||||
Hochtief AG* | 482 | 21,808 | ||||||
Infineon Technologies AG | 3,471 | 27,417 | ||||||
K+S AG | 882 | 35,172 | ||||||
Kabel Deutschland Holding AG* | 700 | 39,712 | ||||||
Lanxess AG | 300 | 19,879 | ||||||
Linde AG | 542 | 83,170 | ||||||
MAN SE | 504 | 48,223 | ||||||
Merck KGaA | 140 | 12,950 | ||||||
Muenchener Rueckversicherungs AG | 553 | 68,550 | ||||||
RWE AG | 1,545 | 56,424 | ||||||
SAP AG | 3,125 | 179,293 | ||||||
Siemens AG | 2,363 | 194,333 | ||||||
Suedzucker AG | 700 | 21,284 | ||||||
ThyssenKrupp AG | 1,256 | 20,725 | ||||||
Volkswagen AG | 88 | 13,242 | ||||||
Wacker Chemie AG | 214 | 14,615 | ||||||
|
| |||||||
2,383,914 | ||||||||
|
| |||||||
Greece — 0.1% | ||||||||
Coca-Cola Hellenic Bottling Co. SA* | 2,094 | 36,508 | ||||||
|
| |||||||
Hong Kong — 2.9% | ||||||||
AIA Group Ltd. | 27,600 | 89,967 | ||||||
Cathay Pacific Airways Ltd. | 27,000 | 41,675 | ||||||
Cheung Kong Holdings Ltd. | 5,000 | 57,656 | ||||||
CLP Holdings Ltd. | 11,500 | 93,641 | ||||||
Galaxy Entertainment Group Ltd.* | 13,100 | 31,798 | ||||||
Hang Lung Properties Ltd. | 10,600 | 33,801 | ||||||
Hong Kong Exchanges & Clearing Ltd. | 3,000 | 42,363 | ||||||
Hutchison Whampoa Ltd. | 5,000 | 41,132 | ||||||
Kerry Properties Ltd. | 14,000 | 55,736 | ||||||
Li & Fung Ltd. | 26,400 | 48,436 | ||||||
Link REIT (The) | 7,100 | 27,260 | ||||||
MTR Corp. | 21,000 | 67,776 | ||||||
New World Development Co. Ltd. | 12,000 | 12,925 | ||||||
Power Assets Holdings Ltd. | 4,400 | 30,754 | ||||||
Sands China Ltd. | 8,200 | 27,997 | ||||||
Shangri-La Asia Ltd. | 12,900 | 25,363 | ||||||
Sino Land Co. Ltd. | 14,740 | 20,358 | ||||||
Sun Hung KAI Properties Ltd. | 5,000 | 56,625 | ||||||
Swire Pacific Ltd., Class A | 2,300 | 24,803 | ||||||
Wheelock & Co. Ltd. | 21,000 | 62,636 | ||||||
Wynn Macau Ltd. | 7,900 | 19,380 | ||||||
|
| |||||||
912,082 | ||||||||
|
| |||||||
Ireland — 1.0% | ||||||||
CRH PLC | 3,732 | 62,759 | ||||||
Elan Corp. PLC* | 1,204 | 17,240 | ||||||
Experian PLC | 5,945 | 82,920 | ||||||
Kerry Group PLC, Class A | 283 | 12,214 | ||||||
Shire PLC | 2,255 | 63,530 | ||||||
WPP PLC | 5,935 | 70,797 | ||||||
|
| |||||||
309,460 | ||||||||
|
| |||||||
Israel — 0.5% | ||||||||
Bank Hapoalim BM | 3,221 | 10,281 | ||||||
Israel Chemicals Ltd. | 1,400 | 14,503 | ||||||
Teva Pharmaceutical Industries Ltd. | 2,989 | 119,675 | ||||||
|
| |||||||
144,459 | ||||||||
|
|
See Notes to Financial Statements. | 20 |
DBX ETF Trust
SCHEDULE OF INVESTMENTS
db-X MSCI EAFE Currency-Hedged Equity Fund (Continued)
May 31, 2012
Number | Value | |||||||
Italy — 1.6% | ||||||||
Assicurazioni Generali SpA | 3,431 | $ | 34,852 | |||||
Autogrill SpA | 1,400 | 12,040 | ||||||
Banca Monte dei Paschi di Siena SpA* | 26,503 | 6,603 | ||||||
Banco Popolare SC* | 5,794 | 6,430 | ||||||
Enel Green Power SpA | 6,282 | 8,327 | ||||||
Enel SpA | 19,304 | 54,948 | ||||||
ENI SpA | 7,091 | 136,781 | ||||||
Fiat Industrial SpA | 1,384 | 13,913 | ||||||
Intesa Sanpaolo SpA* | 32,249 | 39,997 | ||||||
Luxottica Group SpA | 700 | 22,634 | ||||||
Mediaset SpA | 3,494 | 5,426 | ||||||
Mediobanca SpA | 1,916 | 6,676 | ||||||
Pirelli & C SpA | 1,400 | 13,875 | ||||||
Prysmian SpA | 700 | 9,885 | ||||||
Saipem SpA | 1,294 | 50,241 | ||||||
Telecom Italia SpA | 49,856 | 41,150 | ||||||
Unicredit SpA* | 5,513 | 16,892 | ||||||
Unione di Banche Italiane SCPA | 3,009 | 8,334 | ||||||
|
| |||||||
489,004 | ||||||||
|
| |||||||
Japan — 21.4% | ||||||||
Aisin Seiki Co. Ltd. | 700 | 21,931 | ||||||
Asahi Kasei Corp. | 800 | 4,329 | ||||||
Asics Corp. | 400 | 4,267 | ||||||
Astellas Pharma, Inc. | 2,300 | 90,403 | ||||||
Bank of Yokohama Ltd. (The) | 7,000 | 31,445 | ||||||
Bridgestone Corp. | 3,900 | 83,464 | ||||||
Canon, Inc. | 3,500 | 140,697 | ||||||
Central Japan Railway Co. | 7 | 56,993 | ||||||
Chubu Electric Power Co., Inc. | 2,100 | 32,106 | ||||||
Chugai Pharmaceutical Co. Ltd. | 700 | 12,640 | ||||||
Chugoku Electric Power Co., Inc. (The) | 1,400 | 22,101 | ||||||
Credit Saison Co. Ltd. | 2,100 | 40,172 | ||||||
Dai Nippon Printing Co. Ltd. | 2,000 | 15,135 | ||||||
Dai-ichi Life Insurance Co. Ltd. (The) | 28 | 28,086 | ||||||
Daiichi Sankyo Co. Ltd. | 1,400 | 22,529 | ||||||
Daikin Industries Ltd. | 700 | 18,054 | ||||||
Daito Trust Construction Co. Ltd. | 100 | 8,806 | ||||||
Daiwa Securities Group, Inc. | 7,000 | 22,154 | ||||||
Denki Kagaku Kogyo KK | 2,000 | 6,713 | ||||||
Denso Corp. | 2,100 | 63,488 | ||||||
Dentsu, Inc. | 700 | 19,635 | ||||||
East Japan Railway Co. | 1,600 | 95,253 | ||||||
Eisai Co. Ltd. | 700 | 28,541 | ||||||
Electric Power Development Co. Ltd. | 700 | 18,134 | ||||||
FamilyMart Co. Ltd. | 700 | 31,802 | ||||||
Fanuc Corp. | 900 | 155,283 | ||||||
Fast Retailing Co. Ltd. | 100 | 22,320 | ||||||
FUJIFILM Holdings Corp. | 1,600 | 29,995 | ||||||
Fujitsu Ltd. | 3,000 | 13,132 | ||||||
Hitachi Chemical Co. Ltd. | 700 | 11,086 | ||||||
Hitachi Ltd. | 16,000 | 91,680 | ||||||
Hokkaido Electric Power Co., Inc. | 1,400 | 17,580 | ||||||
Hokuriku Electric Power Co. | 1,400 | 21,761 | ||||||
Honda Motor Co. Ltd. | 4,800 | 153,875 | ||||||
Hoya Corp. | 1,400 | 30,033 | ||||||
Ibiden Co. Ltd. | 500 | 8,831 |
Number | Value | |||||||
Japan (Continued) | ||||||||
Inpex Corp. | 7 | $ | 40,467 | |||||
Isetan Mitsukoshi Holdings Ltd. | 2,100 | 21,145 | ||||||
Isuzu Motors Ltd. | 23,000 | 122,984 | ||||||
ITOCHU Corp. | 7,000 | 76,736 | ||||||
Japan Tobacco, Inc. | 24 | 133,844 | ||||||
JFE Holdings, Inc. | 900 | 14,609 | ||||||
JGC Corp. | 700 | 19,224 | ||||||
JSR Corp. | 700 | 12,104 | ||||||
Jupiter Telecommunications Co. Ltd. | 7 | 7,173 | ||||||
JX Holdings, Inc. | 11,200 | 56,886 | ||||||
Kaneka Corp. | 1,000 | 5,513 | ||||||
Kansai Electric Power Co., Inc. (The) | 2,600 | 37,626 | ||||||
Kao Corp. | 1,700 | 43,975 | ||||||
Kawasaki Kisen Kaisha Ltd.* | 6,000 | 11,103 | ||||||
KDDI Corp. | 14 | 86,562 | ||||||
Keikyu Corp. | 1,500 | 13,113 | ||||||
Keio Corp. | 1,800 | 12,381 | ||||||
Keyence Corp. | 110 | 24,903 | ||||||
Kobe Steel Ltd. | 37,000 | 44,385 | ||||||
Komatsu Ltd. | 2,800 | 67,106 | ||||||
Konica Minolta Holdings, Inc. | 800 | 5,738 | ||||||
Kubota Corp. | 4,000 | 34,303 | ||||||
Kuraray Co. Ltd. | 3,500 | 44,576 | ||||||
Kyocera Corp. | 700 | 57,976 | ||||||
Kyushu Electric Power Co., Inc. | 1,400 | 17,044 | ||||||
Lawson, Inc. | 700 | 49,043 | ||||||
Makita Corp. | 700 | 23,825 | ||||||
Mazda Motor Corp.* | 15,000 | 19,142 | ||||||
McDonald’s Holdings Co. Japan Ltd. | 700 | 20,430 | ||||||
Miraca Holdings, Inc. | 200 | 7,642 | ||||||
Mitsubishi Chemical Holdings Corp. | 4,300 | 18,987 | ||||||
Mitsubishi Corp. | 4,600 | 90,109 | ||||||
Mitsubishi Electric Corp. | 7,000 | 55,117 | ||||||
Mitsubishi Estate Co. Ltd. | 8,000 | 124,451 | ||||||
Mitsubishi Gas Chemical Co., Inc. | 1,000 | 5,819 | ||||||
Mitsubishi Heavy Industries Ltd. | 14,200 | 57,445 | ||||||
Mitsubishi Materials Corp. | 27,000 | 73,737 | ||||||
Mitsubishi Tanabe Pharma Corp. | 2,100 | 27,657 | ||||||
Mitsubishi UFJ Financial Group, Inc. | 40,100 | 173,991 | ||||||
Mitsui & Co. Ltd. | 6,000 | 84,533 | ||||||
Mitsui Fudosan Co. Ltd. | 500 | 8,346 | ||||||
Mizuho Financial Group, Inc. | 78,000 | 114,472 | ||||||
MS&AD Insurance Group Holdings | 1,400 | 21,511 | ||||||
Murata Manufacturing Co. Ltd. | 700 | 36,358 | ||||||
NEC Corp.* | 12,000 | 17,305 | ||||||
Nidec Corp. | 400 | 32,670 | ||||||
Nikon Corp. | 1,100 | 30,659 | ||||||
Nintendo Co. Ltd. | 700 | 81,560 | ||||||
Nippon Electric Glass Co. Ltd. | 7,000 | 43,772 | ||||||
Nippon Paper Group, Inc. | 400 | 6,161 | ||||||
Nippon Steel Corp. | 28,000 | 62,889 | ||||||
Nippon Telegraph & Telephone Corp. | 2,600 | 112,149 | ||||||
Nishi-Nippon City Bank Ltd. (The) | 8,000 | 18,173 | ||||||
Nissan Motor Co. Ltd. | 7,700 | 74,484 | ||||||
Nisshin Steel Co. Ltd. | 6,000 | 7,427 | ||||||
Nissin Foods Holdings Co. Ltd. | 700 | 25,567 | ||||||
Nitori Holdings Co. Ltd. | 700 | 63,247 |
See Notes to Financial Statements. | 21 |
DBX ETF Trust
SCHEDULE OF INVESTMENTS
db-X MSCI EAFE Currency-Hedged Equity Fund (Continued)
May 31, 2012
Number | Value | |||||||
Japan (Continued) | ||||||||
Nitto Denko Corp. | 500 | $ | 20,291 | |||||
Nomura Holdings, Inc. | 14,700 | 48,587 | ||||||
NTT Data Corp. | 7 | 20,126 | ||||||
NTT DoCoMo, Inc. | 49 | 78,227 | ||||||
Odakyu Electric Railway Co. Ltd. | 3,000 | 27,221 | ||||||
OJI Paper Co. Ltd. | 1,600 | 6,044 | ||||||
Olympus Corp.* | 600 | 9,625 | ||||||
Omron Corp. | 600 | 11,891 | ||||||
Oriental Land Co. Ltd. | 700 | 76,378 | ||||||
ORIX Corp. | 350 | 30,283 | ||||||
Otsuka Holdings Co. Ltd. | 2,800 | 88,116 | ||||||
Panasonic Corp. | 7,400 | 49,107 | ||||||
Rakuten, Inc. | 21 | 22,458 | ||||||
Resona Holdings, Inc. | 5,600 | 21,082 | ||||||
Ricoh Co. Ltd. | 2,000 | 14,548 | ||||||
Rinnai Corp. | 700 | 45,291 | ||||||
Rohm Co. Ltd. | 300 | 10,896 | ||||||
Sankyo Co. Ltd. | 700 | 33,766 | ||||||
Secom Co. Ltd. | 700 | 30,954 | ||||||
Sega Sammy Holdings, Inc. | 700 | 12,444 | ||||||
Seiko Epson Corp. | 600 | 6,103 | ||||||
Sekisui Chemical Co. Ltd. | 1,000 | 8,538 | ||||||
Sekisui House Ltd. | 1,800 | 15,230 | ||||||
Seven & I Holdings Co. Ltd. | 2,800 | 84,293 | ||||||
Sharp Corp. | 2,000 | 10,490 | ||||||
Shikoku Electric Power Co., Inc. | 700 | 16,437 | ||||||
Shimamura Co. Ltd. | 700 | 79,415 | ||||||
Shin-Etsu Chemical Co. Ltd. | 1,400 | 72,001 | ||||||
Shiseido Co. Ltd. | 1,100 | 17,309 | ||||||
Shizuoka Bank Ltd. (The) | 7,000 | 68,338 | ||||||
SMC Corp. | 100 | 16,437 | ||||||
Softbank Corp. | 2,900 | 90,672 | ||||||
Sony Corp. | 4,200 | 56,278 | ||||||
Sony Financial Holdings, Inc. | 700 | 10,041 | ||||||
Stanley Electric Co. Ltd. | 400 | 5,544 | ||||||
Sumco Corp.* | 700 | 5,905 | ||||||
Sumitomo Corp. | 5,600 | 75,253 | ||||||
Sumitomo Mitsui Financial Group, Inc. | 4,400 | 128,530 | ||||||
Sumitomo Mitsui Trust Holdings, Inc. | 10,000 | 25,268 | ||||||
Sumitomo Realty & Development Co. Ltd. | 1,100 | 23,134 | ||||||
Suzuki Motor Corp. | 700 | 14,579 | ||||||
T&D Holdings, Inc. | 2,100 | 20,046 | ||||||
Taisho Pharmaceutical Holdings Co. Ltd. | 834 | 62,263 | ||||||
Takeda Pharmaceutical Co. Ltd. | 2,600 | 108,666 | ||||||
TDK Corp. | 400 | 17,330 | ||||||
Terumo Corp. | 500 | 17,987 | ||||||
Tobu Railway Co. Ltd. | 3,200 | 15,681 | ||||||
Toho Gas Co. Ltd. | 1,000 | 5,666 | ||||||
Tohoku Electric Power Co., Inc.* | 1,400 | 12,864 | ||||||
Tokio Marine Holdings, Inc. | 2,800 | 60,995 | ||||||
Tokyo Electric Power Co., Inc.* (The) | 6,800 | 13,711 | ||||||
Tokyo Electron Ltd. | 700 | 31,623 | ||||||
Tokyo Gas Co. Ltd. | 1,000 | 4,747 | ||||||
Tokyu Corp. | 1,600 | 7,106 | ||||||
Toppan Printing Co. Ltd. | 2,000 | 12,200 | ||||||
Toray Industries, Inc. | 4,200 | 28,086 | ||||||
Toshiba Corp. | 26,000 | 97,881 |
Number | Value | |||||||
Japan (Continued) | ||||||||
Tosoh Corp. | 4,000 | $ | 10,158 | |||||
Toyo Seikan Kaisha Ltd. | 1,700 | 19,265 | ||||||
Toyota Industries Corp. | 700 | 18,545 | ||||||
Toyota Motor Corp. | 8,500 | 329,761 | ||||||
Toyota Tsusho Corp. | 700 | 12,926 | ||||||
Trend Micro, Inc. | 200 | 5,482 | ||||||
Unicharm Corp. | 700 | 37,832 | ||||||
West Japan Railway Co. | 500 | 19,621 | ||||||
Yahoo Japan Corp. | 42 | 12,226 | ||||||
Yakult Honsha Co. Ltd. | 700 | 24,405 | ||||||
Yamaguchi Financial Group, Inc. | 2,000 | 16,029 | ||||||
Yamaha Corp. | 900 | 7,707 | ||||||
Yamaha Motor Co. Ltd. | 900 | 8,947 | ||||||
Yamato Holdings Co. Ltd. | 1,300 | 20,240 | ||||||
|
| |||||||
6,621,734 | ||||||||
|
| |||||||
Luxembourg — 0.0% (b) | ||||||||
Millicom International Cellular SA | 91 | 7,785 | ||||||
|
| |||||||
7,785 | ||||||||
|
| |||||||
Netherlands — 5.0% | ||||||||
Aegon NV | 3,352 | 14,117 | ||||||
Akzo Nobel NV | 980 | 44,763 | ||||||
ASML Holding NV | 1,994 | 91,474 | ||||||
European Aeronautic Defence & Space Co. NV | 2,518 | 84,283 | ||||||
Fugro NV | 700 | 40,249 | ||||||
Heineken Holding NV | 1,050 | 42,507 | ||||||
Heineken NV | 1,155 | 55,049 | ||||||
ING Groep NV* | 12,852 | 74,230 | ||||||
Koninklijke Ahold NV | 4,909 | 57,671 | ||||||
Koninklijke DSM NV | 499 | 23,740 | ||||||
Koninklijke KPN NV | 4,769 | 45,082 | ||||||
Koninklijke Philips Electronics NV | 2,892 | 51,136 | ||||||
Randstad Holding NV | 700 | 18,960 | ||||||
Royal Dutch Shell PLC, Class A | 13,157 | 407,779 | ||||||
Royal Dutch Shell PLC, Class B | 9,888 | 316,748 | ||||||
SBM Offshore NV* | 700 | 9,140 | ||||||
Tenaris SA | 573 | 9,126 | ||||||
TNT Express NV | 1,400 | 15,580 | ||||||
Unilever NV | 4,948 | 155,678 | ||||||
|
| |||||||
1,557,312 | ||||||||
|
| |||||||
New Zealand — 0.1% | ||||||||
Contact Energy Ltd.* | 3,529 | 12,979 | ||||||
Fletcher Building Ltd. | 1,353 | 6,413 | ||||||
|
| |||||||
19,392 | ||||||||
|
| |||||||
Norway — 0.9% | ||||||||
Aker Solutions ASA | 700 | 9,204 | ||||||
Arcelormittal | 2,521 | 34,835 | ||||||
DNB ASA | 4,678 | 42,152 | ||||||
Seadrill Ltd. | 1,000 | 32,985 | ||||||
Statoil ASA | 3,572 | 80,554 | ||||||
Telenor ASA | 4,202 | 61,399 | ||||||
Yara International ASA | 546 | 20,546 | ||||||
|
| |||||||
281,675 | ||||||||
|
|
See Notes to Financial Statements. | 22 |
DBX ETF Trust
SCHEDULE OF INVESTMENTS
db-X MSCI EAFE Currency-Hedged Equity Fund (Continued)
May 31, 2012
Number | Value | |||||||
Portugal — 0.2% | ||||||||
Galp Energia SGPS SA, Class B | 2,094 | $ | 24,924 | |||||
Jeronimo Martins SGPS SA | 1,400 | 24,867 | ||||||
|
| |||||||
49,791 | ||||||||
|
| |||||||
Singapore — 2.6% | ||||||||
Capitaland Ltd. | 7,100 | 13,995 | ||||||
City Developments Ltd. | 1,000 | 7,722 | ||||||
DBS Group Holdings Ltd. | 7,000 | 71,814 | ||||||
Global Logistic Properties Ltd.* | 49,000 | 79,093 | ||||||
Golden Agri-Resources Ltd. | 17,000 | 8,575 | ||||||
Hutchison Port Holdings Trust, Class U | 83,729 | 59,866 | ||||||
Jardine Cycle & Carriage Ltd. | 300 | 9,806 | ||||||
Olam International Ltd. | 9,000 | 11,629 | ||||||
Oversea-Chinese Banking Corp. Ltd. | 17,000 | 110,290 | ||||||
SembCorp Industries Ltd. | 23,000 | 86,210 | ||||||
SembCorp Marine Ltd. | 23,000 | 79,784 | ||||||
Singapore Exchange Ltd. | 3,000 | 14,411 | ||||||
Singapore Technologies Engineering Ltd. | 39,000 | 89,586 | ||||||
Singapore Telecommunications Ltd. | 14,000 | 33,680 | ||||||
United Overseas Bank Ltd. | 9,000 | 123,553 | ||||||
|
| |||||||
800,014 | ||||||||
|
| |||||||
Spain — 2.2% | ||||||||
Acciona SA | 700 | 36,743 | ||||||
Amadeus It Holding SA, Class A | 700 | 12,823 | ||||||
Banco Popular Espanol SA | 9,918 | 19,990 | ||||||
Banco Santander SA | 34,708 | 184,326 | ||||||
Bankia SA* | 9,894 | 12,760 | ||||||
Distribuidora Internacional de Alimentacion SA* | 1,701 | 7,448 | ||||||
Enagas SA | 909 | 14,196 | ||||||
Ferrovial SA | 1,623 | 15,352 | ||||||
Gas Natural SDG SA | 980 | 10,637 | ||||||
Grifols SA* | 700 | 15,879 | ||||||
Iberdrola SA | 14,459 | 54,977 | ||||||
Inditex SA | 784 | 64,777 | ||||||
Mapfre SA | 13,259 | 25,674 | ||||||
Red Electrica Corp. SA | 493 | 18,242 | ||||||
Repsol YPF SA | 2,325 | 34,729 | ||||||
Telefonica SA | 13,185 | 145,703 | ||||||
Zardoya Otis SA | 700 | 7,721 | ||||||
|
| |||||||
681,977 | ||||||||
|
| |||||||
Sweden — 2.8% | ||||||||
ASSA Abloy AB, Class B | 236 | 6,111 | ||||||
Atlas Copco AB, Class A | 2,717 | 54,718 | ||||||
Atlas Copco AB, Class B | 511 | 9,166 | ||||||
Boliden AB | 700 | 8,932 | ||||||
Electrolux AB | 318 | 6,028 | ||||||
Hennes & Mauritz AB, Class B | 3,514 | 104,387 | ||||||
Hexagon AB, Class B | 1,027 | 18,166 | ||||||
Husqvarna AB, Class B | 2,094 | 9,708 | ||||||
Investment AB Kinnevik, Class B | 679 | 11,917 | ||||||
Investor AB, Class B | 397 | 6,930 | ||||||
Lundin Petroleum AB* | 702 | 12,369 | ||||||
Modern Times Group AB, Class B | 700 | 28,195 | ||||||
Nordea Bank AB | 7,704 | 56,949 | ||||||
Sandvik AB | 4,038 | 50,305 |
Number | Value | |||||||
Sweden (Continued) | ||||||||
Scania AB, Class B | 526 | $ | 8,349 | |||||
Securitas AB, Class B | 761 | 5,552 | ||||||
Skandinaviska Enskilda Banken AB, Class A | 7,984 | 44,182 | ||||||
Skanska AB, Class B | 783 | 10,390 | ||||||
SKF AB, Class B | 1,236 | 24,381 | ||||||
Svenska Handelsbanken AB, Class A | 2,115 | 59,102 | ||||||
Swedbank AB, Class A | 3,922 | 55,716 | ||||||
Swedish Match AB | 930 | 35,205 | ||||||
Telefonaktiebolaget LM Ericsson, Class B | 13,689 | 116,266 | ||||||
Teliasonera AB | 9,141 | 55,718 | ||||||
Volvo AB, Class B | 5,147 | 57,779 | ||||||
|
| |||||||
856,521 | ||||||||
|
| |||||||
Switzerland — 9.2% | ||||||||
ABB Ltd.* | 6,712 | 105,101 | ||||||
Adecco SA* | 252 | 9,781 | ||||||
Aryzta AG* | 219 | 9,875 | ||||||
Baloise Holding AG | 700 | 43,167 | ||||||
Cie Financiere Richemont SA | 1,692 | 96,414 | ||||||
Credit Suisse Group AG | 3,974 | 75,319 | ||||||
Geberit AG* | 112 | 21,677 | ||||||
Givaudan SA* | 24 | 22,249 | ||||||
Glencore International PLC | 6,282 | 32,966 | ||||||
Holcim Ltd.* | 903 | 47,969 | ||||||
Julius Baer Group Ltd.* | 630 | 19,756 | ||||||
Kuehne + Nagel International AG | 168 | 17,849 | ||||||
Lonza Group AG* | 154 | 5,473 | ||||||
Nestle SA | 10,551 | 597,965 | ||||||
Novartis AG | 6,610 | 343,311 | ||||||
Pargesa Holding SA | 700 | 38,230 | ||||||
Roche Holding AG | 2,386 | 372,387 | ||||||
Schindler Holding AG | 700 | 77,974 | ||||||
Schindler Holding AG Participation Certificates | 147 | 16,253 | ||||||
SGS SA | 14 | 25,237 | ||||||
Sika AG | 7 | 12,647 | ||||||
Sonova Holding AG* | 707 | 66,235 | ||||||
Sulzer AG | 756 | 90,127 | ||||||
Swatch Group AG (The) | 147 | 56,524 | ||||||
Swiss Life Holding AG* | 439 | 35,184 | ||||||
Swiss Re AG* | 1,232 | 71,027 | ||||||
Swisscom AG | 70 | 25,424 | ||||||
Syngenta AG | 303 | 97,013 | ||||||
Transocean Ltd. | 1,053 | 42,202 | ||||||
UBS AG* | 12,046 | 135,794 | ||||||
Wolseley PLC | 625 | 21,268 | ||||||
Xstrata PLC | 8,132 | 115,617 | ||||||
Zurich Financial Services AG* | 481 | 98,344 | ||||||
|
| |||||||
2,846,359 | ||||||||
|
| |||||||
United Kingdom — 19.1% | ||||||||
3i Group PLC | 3,366 | 9,063 | ||||||
Admiral Group PLC | 710 | 11,369 | ||||||
Aggreko PLC | 397 | 13,448 | ||||||
Anglo American PLC | 5,040 | 153,099 | ||||||
Antofagasta PLC | 463 | 7,150 | ||||||
ARM Holdings PLC | 5,117 | 39,944 | ||||||
Associated British Foods PLC | 481 | 8,807 | ||||||
AstraZeneca PLC | 5,084 | 205,131 | ||||||
Aviva PLC | 11,245 | 45,320 |
See Notes to Financial Statements. | 23 |
DBX ETF Trust
SCHEDULE OF INVESTMENTS
db-X MSCI EAFE Currency-Hedged Equity Fund (Continued)
May 31, 2012
Number | Value | |||||||
United Kingdom (Continued) | ||||||||
Babcock International Group PLC | 528 | $ | 6,917 | |||||
BAE Systems PLC | 13,174 | 55,388 | ||||||
Barclays PLC | 42,839 | 116,398 | ||||||
BG Group PLC | 12,176 | 233,161 | ||||||
BHP Billiton PLC | 7,961 | 207,905 | ||||||
BP PLC | 64,494 | 392,521 | ||||||
British American Tobacco PLC | 6,197 | 292,109 | ||||||
British Land Co. PLC REIT | 3,137 | 23,352 | ||||||
British Sky Broadcasting Group PLC | 5,119 | 54,279 | ||||||
BT Group PLC, Class A | 22,763 | 72,374 | ||||||
Burberry Group PLC | 632 | 13,315 | ||||||
Capita PLC | 1,111 | 10,582 | ||||||
Carnival PLC | 357 | 11,477 | ||||||
Centrica PLC | 15,115 | 72,075 | ||||||
Cobham PLC | 1,370 | 4,719 | ||||||
Compass Group PLC | 7,248 | 71,045 | ||||||
Diageo PLC | 7,442 | 177,433 | ||||||
Eurasian Natural Resources Corp. PLC | 1,400 | 9,116 | ||||||
Fresnillo PLC | 700 | 14,543 | ||||||
G4s PLC | 1,428 | 6,079 | ||||||
GKN PLC | 4,900 | 13,820 | ||||||
GlaxoSmithKline PLC | 19,864 | 440,231 | ||||||
Hammerson PLC REIT | 1,563 | 10,040 | ||||||
HSBC Holdings PLC | 65,319 | 512,908 | ||||||
IMI PLC | 500 | 6,820 | ||||||
Imperial Tobacco Group PLC | 4,035 | 145,642 | ||||||
Intercontinental Hotels Group PLC | 486 | 11,430 | ||||||
International Power PLC | 1,820 | 11,613 | ||||||
Intertek Group PLC | 189 | 7,704 | ||||||
Invensys PLC | 2,795 | 9,447 | ||||||
Investec PLC | 1,987 | 10,222 | ||||||
ITV PLC | 5,523 | 6,205 | ||||||
J Sainsbury PLC | 1,483 | 6,585 | ||||||
Johnson Matthey PLC | 700 | 23,432 | ||||||
Kazakhmys PLC | 700 | 7,174 | ||||||
Kingfisher PLC | 5,620 | 24,425 | ||||||
Land Securities Group PLC REIT | 3,096 | 33,829 | ||||||
Legal & General Group PLC | 11,098 | 18,883 | ||||||
Lloyds Banking Group PLC* | 139,876 | 54,713 | ||||||
Marks & Spencer Group PLC | 3,583 | 18,300 | ||||||
Meggitt PLC | 879 | 5,114 | ||||||
National Grid PLC | 11,620 | 116,406 | ||||||
Next PLC | 374 | 17,459 | ||||||
Old Mutual PLC | 9,919 | 21,646 | ||||||
Pearson PLC | 3,746 | 65,643 | ||||||
Prudential PLC | 8,677 | 90,669 | ||||||
Randgold Resources Ltd. | 210 | 16,814 | ||||||
Reckitt Benckiser Group PLC | 2,054 | 109,023 | ||||||
Reed Elsevier PLC | 2,111 | 15,551 | ||||||
Resolution Ltd. | 2,874 | 8,544 | ||||||
Rexam PLC | 2,794 | 17,362 | ||||||
Rio Tinto PLC | 5,024 | 215,254 | ||||||
Rolls-Royce Holdings PLC* | 7,409 | 93,862 | ||||||
Rolls-Royce Holdings PLC, Class C* | 785,354 | 1,210 | ||||||
Royal Bank of Scotland Group PLC* | 78,705 | 24,236 | ||||||
SABMiller PLC | 3,133 | 115,644 | ||||||
Sage Group PLC (The) | 2,580 | 10,199 |
Number | Value | |||||||
United Kingdom (Continued) | ||||||||
Segro PLC REIT | 1,419 | $ | 4,663 | |||||
Serco Group PLC | 568 | 4,596 | ||||||
Severn Trent PLC | 700 | 18,567 | ||||||
Smith & Nephew PLC | 623 | 5,819 | ||||||
Smiths Group PLC | 799 | 12,314 | ||||||
SSE PLC | 3,123 | 63,678 | ||||||
Standard Chartered PLC | 7,569 | 152,698 | ||||||
Standard Life PLC | 3,471 | 10,950 | ||||||
Subsea 7 SA* | 900 | 17,706 | ||||||
Tate & Lyle PLC | 1,788 | 18,518 | ||||||
Tesco PLC | 33,264 | 155,105 | ||||||
TUI Travel PLC | 4,888 | 12,377 | ||||||
Tullow Oil PLC | 3,644 | 79,861 | ||||||
Unilever PLC | 4,888 | 153,755 | ||||||
Vedanta Resources PLC | 700 | 10,022 | ||||||
Vodafone Group PLC | 182,754 | 487,269 | ||||||
Weir Group PLC (The) | 750 | 17,846 | ||||||
Whitbread PLC | 700 | 20,099 | ||||||
WM Morrison Supermarkets PLC | 4,385 | 18,666 | ||||||
|
| |||||||
5,920,687 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS | 30,191,643 | |||||||
|
| |||||||
PREFERRED STOCKS — 0.6% | ||||||||
Germany — 0.6% | ||||||||
Henkel AG & Co. KGaA | 987 | 64,305 | ||||||
Porsche Automobil Holding SE | 418 | 21,429 | ||||||
RWE AG — Non Vote | 700 | 23,318 | ||||||
Volkswagen AG | 437 | 69,759 | ||||||
|
| |||||||
178,811 | ||||||||
|
| |||||||
TOTAL PREFERRED STOCKS | 178,811 | |||||||
|
| |||||||
RIGHTS — 0.0% (b) | ||||||||
Australia — 0.0% (b) | ||||||||
AGL Energy Ltd., expires 6/19/19* | 106 | 363 | ||||||
SP Ausnet, expires 6/15/15* | 2,513 | 24 | ||||||
|
| |||||||
387 | ||||||||
|
| |||||||
France — 0.0% (b) | ||||||||
Air Liquide SA, expires 6/8/12* | 934 | 10,102 | ||||||
Vivendi SA, expires 5/31/31* | 4 | 2 | ||||||
|
| |||||||
10,104 | ||||||||
|
| |||||||
Spain — 0.0% (b) | ||||||||
Gas Natural SDG SA, expires 6/20/20* | 980 | 565 | ||||||
Telefonica SA, expires 6/11/11* | 12,668 | 3,681 | ||||||
|
| |||||||
4,246 | ||||||||
|
| |||||||
TOTAL RIGHTS | 14,737 | |||||||
|
| |||||||
TOTAL INVESTMENTS — 98.1% (Cost $32,923,235) | $ | 30,385,191 | ||||||
Other assets less liabilities — 1.9% | 593,826 | |||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 30,979,017 | ||||||
|
|
See Notes to Financial Statements. | 24 |
DBX ETF Trust
SCHEDULE OF INVESTMENTS
db-X MSCI EAFE Currency-Hedged Equity Fund (Continued)
May 31, 2012
INDUSTRY BREAKDOWN AS OF MAY 31, 2012
Value | % of Net Assets | |||||||
Consumer, Non-cyclical | $ | 6,699,495 | 21.6 | % | ||||
Financial | 6,473,759 | 20.9 | ||||||
Industrial | 3,747,663 | 12.1 | ||||||
Consumer, Cyclical | 3,635,935 | 11.8 | ||||||
Basic Materials | 2,861,901 | 9.2 | ||||||
Energy | 2,484,372 | 8.0 | ||||||
Communications | 2,331,145 | 7.5 | ||||||
Utilities | 1,245,623 | 4.0 | ||||||
Technology | 695,126 | 2.3 | ||||||
Diversified | 210,172 | 0.7 | ||||||
|
|
|
| |||||
TOTAL INVESTMENTS | 30,385,191 | 98.1 | ||||||
Other assets less liabilities | 593,826 | 1.9 | ||||||
|
|
|
| |||||
NET ASSETS | $ | 30,979,017 | 100.0 | % | ||||
|
|
|
|
As of May 31, 2012, the Fund had the following futures contracts open:
Contract Description | Number of Contracts | Contract Value | Expiration Date | Unrealized Depreciation | ||||||||||||
E-mini MSCI Emerging Markets Index Futures | 5 | $ | 333,625 | 6/15/2012 | $ | (51,460 | ) |
As of May 31, 2012, the Fund had the following forward foreign currency contracts outstanding:
Counterparty | Settlement Date | Currency To Deliver | Currency To Receive | Unrealized Appreciation (Depreciation) | ||||||||||||||||
HSBC | 6/5/2012 | AUD | 1,171,500 | USD | 1,215,314 | $ | 74,702 | |||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | AUD | 1,171,500 | USD | 1,215,185 | 74,574 | ||||||||||||||
The Bank of New York Mellon | 6/5/2012 | AUD | 31,000 | USD | 32,167 | 1,984 | ||||||||||||||
The Bank of New York Mellon | 6/5/2012 | AUD | 4,000 | USD | 3,879 | (15 | ) | |||||||||||||
HSBC | 6/5/2012 | CHF | 1,395,500 | USD | 1,538,012 | 101,226 | ||||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | CHF | 1,395,500 | USD | 1,537,995 | 101,209 | ||||||||||||||
The Bank of New York Mellon | 6/5/2012 | CHF | 28,000 | USD | 28,814 | (14 | ) | |||||||||||||
The Bank of New York Mellon | 6/5/2012 | CHF | 22,000 | USD | 24,237 | 1,586 | ||||||||||||||
HSBC | 6/5/2012 | EUR | 3,661,500 | USD | 4,846,764 | 319,193 | ||||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | EUR | 3,661,500 | USD | 4,846,731 | 319,160 | ||||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | EUR | 1,436,091 | USD | 1,395,500 | 695 | ||||||||||||||
The Bank of New York Mellon | 6/5/2012 | EUR | 36,000 | USD | 44,512 | (3 | ) | |||||||||||||
The Bank of New York Mellon | 6/5/2012 | EUR | 24,000 | USD | 31,758 | 2,082 | ||||||||||||||
HSBC | 6/5/2012 | EUR | 13,000 | USD | 17,103 | 1,028 | ||||||||||||||
The Bank of New York Mellon | 6/5/2012 | GBP | 79,439 | USD | 60,000 | (5,246 | ) | |||||||||||||
HSBC | 6/5/2012 | HKD | 4,932,000 | USD | 635,816 | 367 | ||||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | HKD | 4,932,000 | USD | 635,812 | 362 | ||||||||||||||
HSBC | 6/5/2012 | ILS | 314,000 | USD | 83,108 | 2,689 | ||||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | ILS | 314,000 | USD | 83,114 | 2,695 | ||||||||||||||
HSBC | 6/5/2012 | JPY | 286,424,500 | USD | 3,588,110 | (67,316 | ) | |||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | JPY | 286,424,500 | USD | 3,588,155 | (67,271 | ) | |||||||||||||
HSBC | 6/5/2012 | JPY | 1,942,500 | USD | 24,318 | (472 | ) | |||||||||||||
HSBC | 6/5/2012 | JPY | 1,000,000 | USD | 12,473 | (289 | ) | |||||||||||||
The Bank of New York Mellon | 6/5/2012 | JPY | 658,000 | USD | 8,247 | (151 | ) | |||||||||||||
HSBC | 6/5/2012 | NOK | 938,500 | USD | 163,625 | 10,177 | ||||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | NOK | 938,500 | USD | 163,624 | 10,177 | ||||||||||||||
HSBC | 6/5/2012 | NZD | 9,000 | USD | 7,347 | 567 | ||||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | NZD | 9,000 | USD | 7,347 | 566 | ||||||||||||||
HSBC | 6/5/2012 | SEK | 2,981,000 | USD | 442,785 | 32,516 | ||||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | SEK | 2,981,000 | USD | 442,783 | 32,513 |
See Notes to Financial Statements. | 25 |
DBX ETF Trust
SCHEDULE OF INVESTMENTS
db-X MSCI EAFE Currency-Hedged Equity Fund (Continued)
May 31, 2012
Counterparty | Settlement Date | Currency To Deliver | Currency To Receive | Unrealized Appreciation (Depreciation) | ||||||||||||||||
The Bank of New York Mellon | 6/5/2012 | SEK | 80,000 | USD | 11,003 | $ | (8 | ) | ||||||||||||
HSBC | 6/5/2012 | SGD | 700,000 | USD | 565,753 | 22,524 | ||||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | SGD | 700,000 | USD | 565,756 | 22,528 | ||||||||||||||
HSBC | 6/5/2012 | USD | 1,136,296 | AUD | 1,171,500 | 4,315 | ||||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | USD | 1,136,179 | AUD | 1,171,500 | 4,432 | ||||||||||||||
The Bank of New York Mellon | 6/5/2012 | USD | 36,062 | AUD | 35,000 | (1,985 | ) | |||||||||||||
HSBC | 6/5/2012 | USD | 1,436,069 | CHF | 1,395,500 | 717 | ||||||||||||||
The Bank of New York Mellon | 6/5/2012 | USD | 55,105 | CHF | 50,000 | (3,626 | ) | |||||||||||||
HSBC | 6/5/2012 | USD | 4,543,336 | EUR | 3,674,500 | 311 | ||||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | USD | 4,527,276 | EUR | 3,661,500 | 295 | ||||||||||||||
HSBC | 6/5/2012 | USD | 635,497 | HKD | 4,932,000 | (48 | ) | |||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | USD | 635,500 | HKD | 4,932,000 | (50 | ) | |||||||||||||
HSBC | 6/5/2012 | USD | 80,487 | ILS | 314,000 | (68 | ) | |||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | USD | 80,484 | ILS | 314,000 | (65 | ) | |||||||||||||
HSBC | 6/5/2012 | USD | 3,690,200 | JPY | 289,367,000 | 2,780 | ||||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | USD | 3,652,726 | JPY | 286,424,500 | 2,701 | ||||||||||||||
The Bank of New York Mellon | 6/5/2012 | USD | 8,391 | JPY | 658,000 | 6 | ||||||||||||||
HSBC | 6/5/2012 | USD | 153,549 | NOK | 938,500 | (102 | ) | |||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | USD | 153,545 | NOK | 938,500 | (98 | ) | |||||||||||||
HSBC | 6/5/2012 | USD | 6,763 | NZD | 9,000 | 18 | ||||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | USD | 6,763 | NZD | 9,000 | 18 | ||||||||||||||
HSBC | 6/5/2012 | USD | 409,996 | SEK | 2,981,000 | 273 | ||||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | USD | 409,984 | SEK | 2,981,000 | 285 | ||||||||||||||
The Bank of New York Mellon | 6/5/2012 | USD | 11,898 | SEK | 80,000 | (888 | ) | |||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | USD | 543,165 | SGD | 700,000 | 64 | ||||||||||||||
HSBC | 6/5/2012 | USD | 497,769 | SGD | 641,500 | 61 | ||||||||||||||
HSBC | 6/5/2012 | USD | 28,228 | SGD | 35,000 | (1,067 | ) | |||||||||||||
HSBC | 6/5/2012 | USD | 18,796 | SGD | 23,500 | (559 | ) | |||||||||||||
HSBC | 6/6/2012 | DKK | 1,275,500 | USD | 226,976 | 14,712 | ||||||||||||||
JPMorgan Chase & Co. | 6/6/2012 | DKK | 1,275,500 | USD | 226,975 | 14,711 | ||||||||||||||
HSBC | 6/6/2012 | EUR | 212,244 | USD | 1,275,500 | 21 | ||||||||||||||
HSBC | 6/6/2012 | GBP | 2,136,000 | USD | 3,467,839 | 175,952 | ||||||||||||||
JPMorgan Chase & Co. | 6/6/2012 | GBP | 2,136,000 | USD | 3,467,790 | 175,903 | ||||||||||||||
JPMorgan Chase & Co. | 6/6/2012 | GBP | 212,247 | USD | 1,275,500 | 17 | ||||||||||||||
The Bank of New York Mellon | 6/6/2012 | GBP | 50,000 | USD | 81,143 | 4,085 | ||||||||||||||
HSBC | 6/6/2012 | GBP | 20,992 | USD | 33,583 | 1,231 | ||||||||||||||
The Bank of New York Mellon | 6/6/2012 | GBP | 20,000 | USD | 30,783 | (40 | ) | |||||||||||||
HSBC | 6/6/2012 | GBP | 14,000 | USD | 22,520 | 944 | ||||||||||||||
HSBC | 6/6/2012 | USD | 3,341,482 | GBP | 2,170,992 | 4,332 | ||||||||||||||
JPMorgan Chase & Co. | 6/6/2012 | USD | 3,287,624 | GBP | 2,136,000 | 4,262 | ||||||||||||||
The Bank of New York Mellon | 6/6/2012 | USD | 113,553 | GBP | 70,000 | (5,672 | ) | |||||||||||||
HSBC | 7/5/2012 | AUD | 1,356,500 | USD | 1,312,075 | (4,913 | ) | |||||||||||||
JPMorgan Chase & Co. | 7/5/2012 | AUD | 1,356,500 | USD | 1,311,932 | (5,055 | ) | |||||||||||||
HSBC | 7/5/2012 | CHF | 1,336,000 | USD | 1,375,504 | (777 | ) | |||||||||||||
JPMorgan Chase & Co. | 7/5/2012 | CHF | 1,336,000 | USD | 1,375,405 | (876 | ) | |||||||||||||
HSBC | 7/5/2012 | DKK | 1,206,500 | USD | 200,852 | (31 | ) | |||||||||||||
JPMorgan Chase & Co. | 7/5/2012 | DKK | 1,206,500 | USD | 200,849 | (33 | ) | |||||||||||||
HSBC | 7/5/2012 | EUR | 3,342,000 | USD | 4,132,724 | (439 | ) | |||||||||||||
JPMorgan Chase & Co. | 7/5/2012 | EUR | 3,342,000 | USD | 4,132,727 | (436 | ) | |||||||||||||
HSBC | 7/5/2012 | EUR | 8,258 | USD | 8,000 | (17 | ) | |||||||||||||
HSBC | 7/5/2012 | GBP | 2,307,500 | USD | 3,551,035 | (4,682 | ) | |||||||||||||
JPMorgan Chase & Co. | 7/5/2012 | GBP | 2,307,500 | USD | 3,551,028 | (4,689 | ) | |||||||||||||
HSBC | 7/5/2012 | HKD | 3,666,000 | USD | 472,408 | 31 | ||||||||||||||
JPMorgan Chase & Co. | 7/5/2012 | HKD | 3,666,000 | USD | 472,407 | 30 | ||||||||||||||
HSBC | 7/5/2012 | HKD | 1,638,000 | USD | 211,058 | (4 | ) | |||||||||||||
HSBC | 7/5/2012 | ILS | 273,000 | USD | 69,886 | 52 | ||||||||||||||
JPMorgan Chase & Co. | 7/5/2012 | ILS | 273,000 | USD | 69,885 | 51 |
See Notes to Financial Statements. | 26 |
DBX ETF Trust
SCHEDULE OF INVESTMENTS
db-X MSCI EAFE Currency-Hedged Equity Fund (Continued)
May 31, 2012
Counterparty | Settlement Date | Currency To Deliver | Currency To Receive | Unrealized Appreciation (Depreciation) | ||||||||||||||||
HSBC | 7/5/2012 | JPY | 265,961,000 | USD | 3,392,663 | $ | (2,696 | ) | ||||||||||||
JPMorgan Chase & Co. | 7/5/2012 | JPY | 265,961,000 | USD | 3,392,659 | (2,700 | ) | |||||||||||||
HSBC | 7/5/2012 | NOK | 834,000 | USD | 136,293 | 95 | ||||||||||||||
JPMorgan Chase & Co. | 7/5/2012 | NOK | 834,000 | USD | 136,286 | 87 | ||||||||||||||
HSBC | 7/5/2012 | NZD | 13,000 | USD | 9,749 | (25 | ) | |||||||||||||
JPMorgan Chase & Co. | 7/5/2012 | NZD | 13,000 | USD | 9,748 | (26 | ) | |||||||||||||
HSBC | 7/5/2012 | SEK | 3,237,000 | USD | 444,676 | (292 | ) | |||||||||||||
JPMorgan Chase & Co. | 7/5/2012 | SEK | 3,237,000 | USD | 444,658 | (310 | ) | |||||||||||||
HSBC | 7/5/2012 | SGD | 517,500 | USD | 401,566 | (54 | ) | |||||||||||||
JPMorgan Chase & Co. | 7/5/2012 | SGD | 517,500 | USD | 401,564 | (56 | ) | |||||||||||||
HSBC | 7/5/2012 | SGD | 267,000 | USD | 207,547 | 334 | ||||||||||||||
HSBC | 7/5/2012 | USD | 494,595 | AUD | 509,000 | (422 | ) | |||||||||||||
HSBC | 7/5/2012 | USD | 2,477 | EUR | 2,000 | (3 | ) | |||||||||||||
HSBC | 7/5/2012 | USD | 1,031,464 | GBP | 669,000 | (576 | ) | |||||||||||||
HSBC | 7/5/2012 | USD | 155,500 | JPY | 12,178,000 | (31 | ) | |||||||||||||
HSBC | 7/5/2012 | USD | 6,788 | NZD | 9,000 | (21 | ) | |||||||||||||
HSBC | 7/5/2012 | USD | 125,362 | SEK | 910,000 | (270 | ) | |||||||||||||
|
| |||||||||||||||||||
$ | 1,363,759 | |||||||||||||||||||
|
|
Currency Abbrevations
AUD – Australian Dollar
CHF – Swiss Franc
DKK – Danish Krone
EUR – Euro
GBP – Pound Sterling
HKD – Hong Kong Dollar
ILS – Israeli New Shekel
JPY – Japanese Yen
NOK – Norwegian Krone
NZD – New Zealand Dollar
SEK – Swedish Krona
SGD – Singapore Dollar
USD – U.S. Dollar
* Non-income producing securities.
(a) Affiliated Company. The Advisor is a subsidiary of Deutsche Bank AG. Therefore, Deutsche Bank AG is considered to be affiliated with the Fund.
(b) Less than 0.1%
REIT – Real Estate Investment Trust.
See Notes to Financial Statements. | 27 |
DBX ETF Trust
SCHEDULE OF INVESTMENTS
db-X MSCI Emerging Markets Currency-Hedged Equity Fund
May 31, 2012
Number | Value | |||||||
COMMON STOCKS — 90.8% | ||||||||
Brazil — 7.2% | ||||||||
Banco do Brasil SA | 700 | $ | 6,942 | |||||
Banco Santander Brasil SA | 1,000 | 8,081 | ||||||
BM&FBovespa SA | 2,300 | 10,891 | ||||||
BR Malls Participacoes SA | 900 | 9,907 | ||||||
BRF — Brasil Foods SA | 800 | 12,451 | ||||||
CCR SA | 1,600 | 12,455 | ||||||
Centrais Eletricas Brasileiras SA | 800 | 5,263 | ||||||
Cia Siderurgica Nacional SA | 900 | 5,797 | ||||||
Cielo SA | 480 | 12,971 | ||||||
Cosan SA Industria e Comercio | 200 | 2,971 | ||||||
CPFL Energia SA | 400 | 4,895 | ||||||
Duratex SA | 400 | 1,916 | ||||||
Ecorodovias Infraestrutura e Logistica SA | 400 | 3,201 | ||||||
EDP — Energias do Brasil SA | 300 | 1,919 | ||||||
Embraer SA | 1,300 | 9,250 | ||||||
HRT Participacoes em Petroleo SA* | 16,900 | 56,562 | ||||||
JBS SA* | 900 | 2,432 | ||||||
Localiza Rent a Car SA | 200 | 3,173 | ||||||
Lojas Renner SA | 200 | 5,766 | ||||||
Multiplan Empreendimentos Imobiliarios SA | 100 | 2,375 | ||||||
Natura Cosmeticos SA | 400 | 8,588 | ||||||
OGX Petroleo e Gas Participacoes SA* | 1,500 | 7,660 | ||||||
Oi SA | 39 | 184 | ||||||
PDG Realty SA Empreendimentos e Participacoes | 1,700 | 2,832 | ||||||
Petroleo Brasileiro SA | 4,100 | 40,251 | ||||||
Redecard SA | 700 | 10,759 | ||||||
Souza Cruz SA | 300 | 4,016 | ||||||
Tim Participacoes SA | 1,000 | 4,834 | ||||||
Totvs SA | 200 | 3,620 | ||||||
Tractebel Energia SA | 200 | 3,317 | ||||||
Ultrapar Participacoes SA | 600 | 12,343 | ||||||
Vale SA | 1,600 | 29,820 | ||||||
|
| |||||||
307,442 | ||||||||
|
| |||||||
Chile — 1.8% | ||||||||
AES Gener SA | 5,200 | 2,865 | ||||||
Banco de Credito e Inversiones | 101 | 6,038 | ||||||
Banco Santander Chile | 60,375 | 4,319 | ||||||
Capital SA | 100 | 3,559 | ||||||
Cencosud SA | 1,355 | 7,348 | ||||||
Colbun SA* | 10,500 | 2,803 | ||||||
Corpbanca | 190,700 | 2,306 | ||||||
E.CL SA | 1,100 | 2,547 | ||||||
Empresa Nacional de Electricidad SA | 5,337 | 8,436 | ||||||
Empresas CMPC SA | 1,950 | 7,243 | ||||||
Empresas COPEC SA | 543 | 7,248 | ||||||
Enersis SA | 22,969 | 7,954 | ||||||
ENTEL Chile SA | 200 | 3,559 | ||||||
Lan Airlines SA | 174 | 4,443 | ||||||
SACI Falabella | 460 | 4,138 | ||||||
|
| |||||||
74,806 | ||||||||
|
| |||||||
China — 18.0% | ||||||||
Agile Property Holdings Ltd. | 1,800 | 2,090 | ||||||
Agricultural Bank of China Ltd., Class H | 20,000 | 8,091 |
Number | Value | |||||||
China (Continued) | ||||||||
Air China Ltd., Class H* | 3,100 | $ | 1,893 | |||||
Alibaba.com Ltd.* | 3,000 | 5,187 | ||||||
Angang Steel Co. Ltd., Class H* | 2,900 | 1,663 | ||||||
Anhui Conch Cement Co. Ltd., Class H* | 2,500 | 7,698 | ||||||
Anta Sports Products Ltd. | 6,000 | 4,917 | ||||||
Bank of China Ltd., Class H* | 100,000 | 38,523 | ||||||
Bank of Communications Co. Ltd., Class H | 11,000 | 7,143 | ||||||
Beijing Enterprises Holdings Ltd. | 900 | 5,166 | ||||||
Belle International Holdings Ltd., Class A | 5,000 | 8,027 | ||||||
Brilliance China Automotive Holdings Ltd.* | 3,400 | 3,334 | ||||||
Byd Co. Ltd., Class H* | 3,500 | 7,116 | ||||||
China Citic Bank Corp. Ltd., Class H | 10,000 | 5,179 | ||||||
China Coal Energy Co. Ltd., Class H | 8,000 | 7,411 | ||||||
China Communications Construction Co. Ltd., Class H* | 6,000 | 5,643 | ||||||
China Construction Bank Corp., Class H | 93,000 | 64,464 | ||||||
China Life Insurance Co. Ltd., Class H | 9,000 | 21,128 | ||||||
China Longyuan Power Group Corp., Class H | 10,000 | 6,120 | ||||||
China Mengniu Dairy Co. Ltd.* | 2,000 | 5,476 | ||||||
China Merchants Bank Co. Ltd., Class H | 4,500 | 8,685 | ||||||
China Minsheng Banking Corp. Ltd., Class H* | 8,500 | 8,115 | ||||||
China Mobile Ltd. | 7,500 | 75,855 | ||||||
China National Building Material Co. Ltd., Class H | 6,000 | 7,282 | ||||||
China Overseas Land & Investment Ltd. | 6,000 | 12,538 | ||||||
China Pacific Insurance Group Co. Ltd., Class H | 2,400 | 7,143 | ||||||
China Petroleum & Chemical Corp., Class H | 20,000 | 17,806 | ||||||
China Resources Cement Holdings Ltd. | 3,300 | 2,415 | ||||||
China Resources Enterprise Ltd. | 2,000 | 6,326 | ||||||
China Resources Power Holdings Co. Ltd. | 2,900 | 5,246 | ||||||
China Rongsheng Heavy Industries Group Holdings Ltd. | 17,000 | 4,665 | ||||||
China Shanshui Cement Group Ltd. | 10,000 | 7,975 | ||||||
China Shenhua Energy Co. Ltd., Class H | 4,000 | 14,095 | ||||||
China State Construction International Holdings Ltd. | 2,900 | 2,649 | ||||||
China Telecom Corp. Ltd., Class H | 18,000 | 8,256 | ||||||
China Unicom Hong Kong Ltd. | 8,000 | 10,988 | ||||||
China Yurun Food Group Ltd. | 3,000 | 3,069 | ||||||
China Zhongwang Holdings Ltd.* | 7,100 | 2,772 | ||||||
CNOOC Ltd. | 24,000 | 43,413 | ||||||
Country Garden Holdings Co. Ltd.* | 24,129 | 9,047 | ||||||
Dongfeng Motor Group Co. Ltd., Class H* | 6,000 | 10,204 | ||||||
ENN Energy Holdings Ltd.* | 900 | 3,479 | ||||||
Fosun International Ltd. | 12,500 | 6,845 | ||||||
GOME Electrical Appliances Holding Ltd. | 13,000 | 2,043 | ||||||
Guangdong Investment Ltd. | 6,100 | 4,040 | ||||||
Hengan International Group Co. Ltd. | 500 | 4,783 | ||||||
Industrial & Commercial Bank of China, Class H | 84,000 | 51,083 | ||||||
Intime Department Store Group Co. Ltd. | 1,700 | 1,768 | ||||||
Kunlun Energy Co. Ltd. | 4,000 | 6,834 | ||||||
Lee & Man Paper Manufacturing Ltd. | 17,000 | 7,469 | ||||||
Lenovo Group Ltd. | 8,000 | 6,803 | ||||||
Longfor Properties Co. Ltd. | 3,200 | 4,964 | ||||||
Minmetals Resources Ltd.* | 4,000 | 1,716 | ||||||
Nine Dragons Paper Holdings Ltd. | 11,000 | 6,902 |
See Notes to Financial Statements. | 28 |
DBX ETF Trust
SCHEDULE OF INVESTMENTS
db-X MSCI Emerging Markets Currency-Hedged Equity Fund (Continued)
May 31, 2012
Number | Value | |||||||
China (Continued) | ||||||||
Parkson Retail Group Ltd. | 7,000 | $ | 6,962 | |||||
PetroChina Co. Ltd., Class H | 24,000 | 30,365 | ||||||
PICC Property & Casualty Co. Ltd., Class H | 6,000 | 6,671 | ||||||
Ping An Insurance Group Co., Class H | 2,000 | 14,726 | ||||||
Poly Hong Kong Investments Ltd.* | 15,000 | 7,286 | ||||||
Sany Heavy Equipment International Holdings Co. Ltd. | 2,800 | 1,703 | ||||||
Shanghai Industrial Holdings Ltd. | 3,000 | 8,387 | ||||||
Shougang Fushan Resources Group Ltd. | 4,900 | 1,622 | ||||||
Sinopharm Group Co. Ltd., Class H* | 900 | 2,039 | ||||||
Soho China Ltd. | 12,000 | 8,132 | ||||||
Tencent Holdings Ltd. | 1,300 | 35,743 | ||||||
Tingyi Cayman Islands Holding Corp.* | 4,000 | 9,493 | ||||||
Tsingtao Brewery Co. Ltd., Class H* | 800 | 5,014 | ||||||
Uni-President China Holdings Ltd. | 5,900 | 5,199 | ||||||
Want Want China Holdings Ltd. | 11,000 | 12,599 | ||||||
Wumart Stores, Inc., Class H* | 2,300 | 5,067 | ||||||
Yanzhou Coal Mining Co. Ltd., Class H* | 4,000 | 6,731 | ||||||
Zhongsheng Group Holdings Ltd. | 3,100 | 4,993 | ||||||
|
| |||||||
766,274 | ||||||||
|
| |||||||
Colombia — 1.3% | ||||||||
Almacenes Exito SA | 200 | 3,225 | ||||||
BanColombia SA, ADR* | 200 | 11,842 | ||||||
Cementos Argos SA | 500 | 3,063 | ||||||
Ecopetrol SA, ADR | 300 | 17,869 | ||||||
Grupo de Inversiones Suramericana SA | 450 | 7,749 | ||||||
Interconexion Electrica SA Esp | 800 | 4,998 | ||||||
Isagen SA Esp | 3,800 | 5,301 | ||||||
|
| |||||||
54,047 | ||||||||
|
| |||||||
Czech Republic — 0.2% | ||||||||
CEZ AS* | 200 | 7,069 | ||||||
Telefonica Czech Republic AS | 100 | 1,827 | ||||||
|
| |||||||
8,896 | ||||||||
|
| |||||||
Egypt — 0.2% | ||||||||
Orascom Construction Industries | 222 | 9,477 | ||||||
|
| |||||||
Hungary — 0.1% | ||||||||
MOL Hungarian Oil & Gas PLC* | 78 | 4,813 | ||||||
|
| |||||||
India — 6.0% | ||||||||
Axis Bank Ltd. GDR | 1,300 | 22,347 | ||||||
Dr Reddy’s Laboratories Ltd., ADR | 1,100 | 32,373 | ||||||
HDFC Bank Ltd., ADR* | 1,600 | 44,736 | ||||||
ICICI Bank Ltd., ADR | 800 | 22,520 | ||||||
Infosys Ltd., ADR | 500 | 21,050 | ||||||
Larsen & Toubro Ltd. GDR | 1,200 | 24,288 | ||||||
Reliance Industries Ltd. GDR 144A | 1,600 | 38,752 | ||||||
Sterlite Industries India Ltd., ADR | 2,200 | 14,674 | ||||||
Tata Motors Ltd., ADR | 600 | 12,474 | ||||||
Wipro Ltd., ADR | 2,400 | 20,640 | ||||||
|
| |||||||
253,854 | ||||||||
|
| |||||||
Indonesia — 3.2% | ||||||||
Adaro Energy TBK PT | 29,500 | 4,613 | ||||||
Astra Agro Lestari Tbk PT | 4,000 | 8,702 | ||||||
Astra International Tbk PT | 2,500 | 17,101 |
Number | Value | |||||||
Indonesia (Continued) | ||||||||
Bank Central Asia Tbk PT | 14,500 | $ | 10,797 | |||||
Bank Danamon Indonesia Tbk PT | 14,000 | 7,894 | ||||||
Bank Mandiri Tbk PT | 12,500 | 9,176 | ||||||
Bank Negara Indonesia Persero Tbk PT | 9,500 | 3,739 | ||||||
Bank Rakyat Indonesia Persero Tbk PT | 13,500 | 8,114 | ||||||
Bumi Resources Tbk PT | 20,000 | 3,021 | ||||||
Charoen Pokphand Indonesia Tbk PT | 17,900 | 4,999 | ||||||
Gudang Garam TBK PT | 1,000 | 5,755 | ||||||
Indo Tambangraya Megah PT | 2,000 | 7,192 | ||||||
Indosat Tbk PT | 16,500 | 6,846 | ||||||
Perusahaan Gas Negara PT | 21,500 | 8,463 | ||||||
Semen Gresik Persero TBK PT | 4,000 | 4,660 | ||||||
Telekomunikasi Indonesia Tbk PT | 12,000 | 9,957 | ||||||
Unilever Indonesia TBK PT | 2,000 | 4,372 | ||||||
United Tractors Tbk PT | 4,000 | 9,830 | ||||||
XL Axiata Tbk PT | 4,400 | 2,762 | ||||||
|
| |||||||
137,993 | ||||||||
|
| |||||||
Malaysia — 3.6% | ||||||||
AirAsia Bhd | 3,100 | 3,440 | ||||||
AMMB Holdings Bhd | 2,200 | 4,307 | ||||||
Axiata Group Bhd | 3,300 | 5,587 | ||||||
British American Tobacco Malaysia Bhd | 200 | 3,433 | ||||||
CIMB Group Holdings Bhd | 5,800 | 13,715 | ||||||
DiGi.Com Bhd | 4,000 | 5,045 | ||||||
Genting Bhd | 6,600 | 13,249 | ||||||
Hong Leong Bank Bhd | 700 | 2,710 | ||||||
IOI Corp. Bhd | 5,700 | 9,435 | ||||||
Kuala Lumpur Kepong Bhd | 700 | 4,935 | ||||||
Lafarge Malayan Cement Bhd | 1,300 | 2,881 | ||||||
Malayan Banking Bhd | 3,900 | 10,759 | ||||||
Malaysia Marine & Heavy Engineering Holdings Bhd | 1,200 | 1,884 | ||||||
Maxis Bhd | 2,900 | 5,659 | ||||||
MMC Corp. Bhd | 3,300 | 2,809 | ||||||
Petronas Chemicals Group Bhd | 4,300 | 9,083 | ||||||
Petronas Dagangan Bhd | 600 | 3,916 | ||||||
Petronas Gas Bhd | 1,000 | 5,423 | ||||||
Public Bank Bhd | 2,300 | 9,993 | ||||||
RHB Capital Bhd | 900 | 2,108 | ||||||
Sime Darby Bhd | 3,300 | 10,072 | ||||||
Telekom Malaysia Bhd | 2,400 | 4,079 | ||||||
Tenaga Nasional Bhd | 4,400 | 9,253 | ||||||
UMW Holdings Bhd | 1,300 | 3,275 | ||||||
YTL Corp. Bhd | 5,900 | 3,423 | ||||||
YTL Power International Bhd | 4,300 | 2,250 | ||||||
|
| |||||||
152,723 | ||||||||
|
| |||||||
Mexico — 4.4% | ||||||||
Alfa SAB de CV, Class A | 400 | 4,989 | ||||||
America Movil SAB de CV | 51,500 | 60,291 | ||||||
Arca Continental SAB de CV | 1,000 | 4,953 | ||||||
Cemex SAB de CV | 12,688 | 7,118 | ||||||
Coca-Cola Femsa SAB de CV | 400 | 4,634 | ||||||
Fomento Economico Mexicano SAB de CV | 2,300 | 18,078 | ||||||
Grupo Bimbo SAB de CV | 2,200 | 4,823 | ||||||
Grupo Carso SAB de CV | 900 | 2,510 |
See Notes to Financial Statements. | 29 |
DBX ETF Trust
SCHEDULE OF INVESTMENTS
db-X MSCI Emerging Markets Currency-Hedged Equity Fund (Continued)
May 31, 2012
Number | Value | |||||||
Mexico (Continued) | ||||||||
Grupo Financiero Banorte SAB de CV, Class O | 2,200 | $ | 9,829 | |||||
Grupo Financiero Inbursa SA, Class O | 4,200 | 8,666 | ||||||
Grupo Mexico SAB de CV | 4,611 | 12,175 | ||||||
Grupo Modelo SAB de CV | 900 | 6,256 | ||||||
Grupo Televisa SAB de CV | 2,800 | 10,646 | ||||||
Industrias Penoles SAB de CV | 270 | 10,311 | ||||||
Minera Frisco SAB de CV* | 800 | 3,130 | ||||||
Wal-Mart de Mexico SAB de CV | 7,500 | 17,979 | ||||||
|
| |||||||
186,388 | ||||||||
|
| |||||||
Peru — 0.6% | ||||||||
Cia de Minas Buenaventura SA, Class B, ADR | 300 | 11,742 | ||||||
Credicorp Ltd. | 100 | 12,477 | ||||||
Southern Copper Corp. | 104 | 2,959 | ||||||
|
| |||||||
27,178 | ||||||||
|
| |||||||
Philippines — 0.9% | ||||||||
Aboitiz Power Corp. | 4,600 | 3,738 | ||||||
Ayala Land, Inc. | 8,700 | 3,928 | ||||||
Bank of the Philippine Islands | 2,300 | 3,542 | ||||||
BDO Unibank, Inc. | 2,369 | 3,839 | ||||||
Energy Development Corp. | 20,200 | 2,786 | ||||||
Manila Electric Co. | 500 | 2,586 | ||||||
Metropolitan Bank & Trust | 1,900 | 3,925 | ||||||
Philippine Long Distance Telephone Co. | 100 | 5,379 | ||||||
San Miguel Corp. | 1,900 | 5,110 | ||||||
SM Investments Corp. | 200 | 3,236 | ||||||
|
| |||||||
38,069 | ||||||||
|
| |||||||
Poland — 1.2% | ||||||||
Bank Pekao SA* | 163 | 6,481 | ||||||
Enea SA | 400 | 1,805 | ||||||
Grupa Lotos SA* | 200 | 1,314 | ||||||
Kernel Holding SA* | 100 | 1,579 | ||||||
KGHM Polska Miedz SA | 167 | 6,028 | ||||||
PGE SA | 1,094 | 5,707 | ||||||
Polski Koncern Naftowy Orlen SA* | 521 | 4,885 | ||||||
Powszechna Kasa Oszczednosci Bank Polski SA | 746 | 6,733 | ||||||
Powszechny Zaklad Ubezpieczen SA | 70 | 5,843 | ||||||
Synthos SA | 1,600 | 2,414 | ||||||
Tauron Polska Energia SA | 1,300 | 1,573 | ||||||
Telekomunikacja Polska SA | 1,489 | 6,739 | ||||||
|
| |||||||
51,101 | ||||||||
|
| |||||||
Russia — 5.6% | ||||||||
Gazprom OAO, ADR* | 2,800 | 24,542 | ||||||
LSR Group GDR | 5,267 | 21,595 | ||||||
Lukoil OAO, ADR* | 700 | 36,329 | ||||||
Magnit OJSC GDR* | 173 | 4,256 | ||||||
Mechel, ADR* | 100 | 531 | ||||||
MMC Norilsk Nickel OJSC, ADR* | 1,892 | 28,229 | ||||||
Mobile Telesystems OJSC, ADR* | 400 | 6,656 | ||||||
NovaTek OAO GDR | 286 | 27,170 | ||||||
Novolipetsk Steel OJSC GDR | 194 | 3,061 | ||||||
Rosneft Oil Co. GDR* | 5,600 | 34,440 | ||||||
Severstal OAO GDR | 300 | 3,279 | ||||||
Sistema JSFC GDR | 336 | 5,739 | ||||||
Surgutneftegas OJSC, ADR* | 1,700 | 12,776 | ||||||
Tatneft, ADR* | 400 | 12,188 |
Number | Value | |||||||
Russia (Continued) | ||||||||
TMK OAO GDR | 189 | $ | 2,342 | |||||
VTB Bank OJSC GDR* | 5,000 | 15,700 | ||||||
|
| |||||||
238,833 | ||||||||
|
| |||||||
South Africa — 7.8% | ||||||||
AngloGold Ashanti Ltd., ADR* | 2,100 | 75,726 | ||||||
Gold Fields Ltd., ADR | 4,900 | 64,925 | ||||||
Harmony Gold Mining Co. Ltd., ADR | 3,700 | 36,482 | ||||||
Impala Platinum Holdings Ltd., ADR | 2,100 | 32,235 | ||||||
Sappi Ltd., ADR* | 8,000 | 25,600 | ||||||
Sasol Ltd., ADR | 2,300 | 97,704 | ||||||
|
| |||||||
332,672 | ||||||||
|
| |||||||
South Korea — 14.1% | ||||||||
Amorepacific Corp. | 5 | 4,592 | ||||||
Celltrion, Inc. | 289 | 8,215 | ||||||
Cheil Industries, Inc. | 81 | 6,678 | ||||||
Daewoo Engineering & Construction Co. Ltd.* | 300 | 2,168 | ||||||
Daewoo International Corp. | 100 | 2,457 | ||||||
DGB Financial Group, Inc. | 200 | 2,483 | ||||||
Doosan Corp. | 26 | 2,754 | ||||||
Doosan Heavy Industries & Construction Co. Ltd. | 100 | 4,575 | ||||||
Doosan Infracore Co. Ltd.* | 100 | 1,648 | ||||||
E-Mart Co. Ltd. | 27 | 6,039 | ||||||
GS Engineering & Construction Corp. | 46 | 3,137 | ||||||
Hana Financial Group, Inc. | 280 | 8,825 | ||||||
Hankook Tire Co. Ltd. | 100 | 4,025 | ||||||
Hanwha Corp. | 100 | 2,385 | ||||||
Honam Petrochemical Corp. | 28 | 5,931 | ||||||
Hynix Semiconductor, Inc. | 600 | 11,743 | ||||||
Hyundai Department Store Co. Ltd. | 18 | 2,211 | ||||||
Hyundai Engineering & Construction Co. Ltd. | 129 | 7,269 | ||||||
Hyundai Heavy Industries Co. Ltd. | 50 | 11,311 | ||||||
Hyundai Merchant Marine Co. Ltd.* | 100 | 2,122 | ||||||
Hyundai Mipo Dockyard | 18 | 1,800 | ||||||
Hyundai Mobis | 81 | 19,010 | ||||||
Hyundai Motor Co. | 220 | 45,483 | ||||||
Hyundai Steel Co. | 92 | 6,602 | ||||||
Hyundai Wia Corp. | 23 | 3,401 | ||||||
Kangwon Land, Inc. | 100 | 2,135 | ||||||
KB Financial Group, Inc. | 392 | 12,256 | ||||||
KIA Motors Corp. | 285 | 19,366 | ||||||
Korea Electric Power Corp.* | 380 | 7,244 | ||||||
Korea Exchange Bank | 400 | 2,782 | ||||||
Korea Gas Corp. | 100 | 3,504 | ||||||
Korea Kumho Petrochemical | 14 | 1,394 | ||||||
Korea Life Insurance Co. Ltd.* | 400 | 2,064 | ||||||
Korean Air Lines Co. Ltd.* | 100 | 3,830 | ||||||
KT&G Corp. | 165 | 10,988 | ||||||
LG Chem Ltd. | 55 | 13,560 | ||||||
LG Corp. | 133 | 6,197 | ||||||
LG Display Co. Ltd.* | 320 | 5,667 | ||||||
LG Electronics, Inc. | 117 | 6,552 | ||||||
LG Household & Health Care Ltd. | 13 | 6,433 | ||||||
LG Uplus Corp. | 600 | 2,760 | ||||||
Lotte Shopping Co. Ltd. | 22 | 5,881 |
See Notes to Financial Statements. | 30 |
DBX ETF Trust
SCHEDULE OF INVESTMENTS
db-X MSCI Emerging Markets Currency-Hedged Equity Fund (Continued)
May 31, 2012
Number | Value | |||||||
South Korea (Continued) | ||||||||
LS Corp. | 100 | $ | 6,888 | |||||
NCSoft Corp. | 20 | 4,067 | ||||||
NHN Corp. | 57 | 11,712 | ||||||
OCI Co. Ltd. | 26 | 4,483 | ||||||
POSCO | 78 | 23,924 | ||||||
Samsung C&T Corp. | 149 | 8,585 | ||||||
Samsung Card Co. | 100 | 2,813 | ||||||
Samsung Electro-Mechanics Co. Ltd. | 117 | 10,111 | ||||||
Samsung Electronics Co. Ltd. | 143 | 146,727 | ||||||
Samsung Engineering Co. Ltd. | 44 | 7,009 | ||||||
Samsung Fire & Marine Insurance Co. Ltd. | 49 | 8,739 | ||||||
Samsung Heavy Industries Co. Ltd. | 240 | 7,432 | ||||||
Samsung Life Insurance Co. Ltd. | 117 | 9,675 | ||||||
Samsung SDI Co. Ltd. | 66 | 8,556 | ||||||
Shinhan Financial Group Co. Ltd. | 510 | 16,399 | ||||||
SK C&C Co. Ltd. | 25 | 1,987 | ||||||
SK Holdings Co. Ltd. | 53 | 5,501 | ||||||
SK Innovation Co. Ltd. | 56 | 6,643 | ||||||
SK Networks Co. Ltd. | 300 | 2,145 | ||||||
SK Telecom Co. Ltd., ADR | 200 | 2,228 | ||||||
S-Oil Corp. | 74 | 5,812 | ||||||
Woongjin Coway Co. Ltd. | 100 | 2,991 | ||||||
Woori Finance Holdings Co. Ltd. | 790 | 7,363 | ||||||
|
| |||||||
601,267 | ||||||||
|
| |||||||
Taiwan — 11.0% | ||||||||
Advanced Semiconductor Engineering, Inc., ADR | 13,203 | 61,130 | ||||||
AU Optronics Corp., ADR* | 10,800 | 43,092 | ||||||
Chunghwa Telecom Co. Ltd., ADR | 2,300 | 68,632 | ||||||
Hon Hai Precision Industry Co. Ltd. GDR | 19,950 | 115,810 | ||||||
Siliconware Precision Industries Co., ADR | 8,700 | 45,414 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 6,900 | 94,737 | ||||||
United Microelectronics Corp., ADR | 19,700 | 41,567 | ||||||
|
| |||||||
470,382 | ||||||||
|
| |||||||
Thailand — 2.2% | ||||||||
Bangkok Bank PCL, NVDR | 3,700 | 21,405 | ||||||
Bank of Ayudhya PCL, NVDR | 3,400 | 3,019 | ||||||
Indorama Ventures PCL, NVDR | 2,200 | 1,936 | ||||||
IRPC PCL, NVDR | 16,900 | 1,944 | ||||||
Kasikornbank PCL, NVDR | 4,900 | 24,034 | ||||||
Krung Thai Bank PCL, NVDR | 5,200 | 2,452 | ||||||
PTT Exploration & Production PCL, NVDR | 1,800 | 8,883 | ||||||
PTT Global Chemical PCL, NVDR | 2,441 | 4,163 | ||||||
PTT PCL, NVDR | 1,000 | 9,838 | ||||||
Siam Commercial Bank PCL, NVDR | 2,900 | 12,807 | ||||||
Thai Oil PCL, NVDR | 1,300 | 2,309 | ||||||
|
| |||||||
92,790 | ||||||||
|
| |||||||
Turkey — 1.4% | ||||||||
Akbank TAS | 2,182 | 6,669 | ||||||
Arcelik AS | 600 | 2,516 | ||||||
Bim Birlesik Magazalar AS | 198 | 8,017 | ||||||
Emlak Konut Gayrimenkul Yatirim Ortakligi AS REIT | 1,700 | 1,869 |
Number | Value | |||||||
Turkey (Continued) | ||||||||
Enka Insaat ve Sanayi AS | 1,120 | $ | 2,414 | |||||
Eregli Demir ve Celik Fabrikalari TAS | 1,725 | 1,988 | ||||||
Haci Omer Sabanci Holding AS | 700 | 2,763 | ||||||
Turk Hava Yollari* | 1,320 | 1,784 | ||||||
Turk Telekomunikasyon AS | 600 | 2,053 | ||||||
Turkcell Iletisim Hizmetleri AS* | 1,768 | 7,718 | ||||||
Turkiye Garanti Bankasi AS | 2,508 | 8,042 | ||||||
Turkiye Halk Bankasi AS | 400 | 2,456 | ||||||
Turkiye Is Bankasi, Class C | 3,168 | 6,388 | ||||||
Turkiye Vakiflar Bankasi Tao, Class D | 1,300 | 2,071 | ||||||
Yapi ve Kredi Bankasi AS* | 1,200 | 1,873 | ||||||
|
| |||||||
58,621 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS | 3,867,626 | |||||||
|
| |||||||
PREFERRED STOCKS — 7.3% | ||||||||
Brazil — 6.8% | ||||||||
AES Tiete SA | 200 | 2,697 | ||||||
Banco Bradesco SA | 2,300 | 33,756 | ||||||
Bradespar SA | 500 | 7,824 | ||||||
Braskem SA | 200 | 1,116 | ||||||
Cia Brasileira de Distribuicao Grupo Pao de Acucar | 200 | 7,576 | ||||||
Cia de Bebidas das Americas | 900 | 34,405 | ||||||
Cia de Transmissao de Energia Electrica Paulista | 100 | 2,955 | ||||||
Cia Energetica de Minas Gerais | 750 | 13,082 | ||||||
Eletropaulo Metropolitana Eletricidade de Sao Paulo SA | 100 | 1,190 | ||||||
Gerdau SA | 1,000 | 7,864 | ||||||
Itau Unibanco Holding SA | 3,100 | 45,036 | ||||||
Itausa — Investimentos Itau SA | 3,080 | 13,454 | ||||||
Klabin SA | 900 | 3,793 | ||||||
Metalurgica Gerdau SA, Class A | 500 | 4,946 | ||||||
Oi SA | 400 | 1,587 | ||||||
Petroleo Brasileiro SA | 5,400 | 51,219 | ||||||
Telefonica Brasil SA | 500 | 11,899 | ||||||
Vale SA | 2,400 | 43,696 | ||||||
|
| |||||||
288,095 | ||||||||
|
| |||||||
Chile — 0.2% | ||||||||
Sociedad Quimica y Minera de Chile SA, Class B | 165 | 8,587 | ||||||
|
| |||||||
South Korea — 0.3% | ||||||||
Samsung Electronics Co. Ltd. | 25 | 15,060 | ||||||
|
| |||||||
TOTAL PREFERRED STOCKS | 311,742 | |||||||
|
| |||||||
RIGHTS — 0.0% (a) | ||||||||
Chile — 0.0% (a) | ||||||||
Corpbanca, expires 6/15/15* | 32,753 | 8 | ||||||
|
| |||||||
Philippines — 0.0% (a) | ||||||||
Ayala Land, Inc., expires 6/22/22* | 8,700 | — | ||||||
|
| |||||||
Poland — 0.0% (a) | ||||||||
Global Trade Centre SA, expires 6/29/29* | 400 | 68 | ||||||
|
| |||||||
TOTAL RIGHTS | 76 | |||||||
|
|
See Notes to Financial Statements. | 31 |
DBX ETF Trust
SCHEDULE OF INVESTMENTS
db-X MSCI Emerging Markets Currency-Hedged Equity Fund (Continued)
May 31, 2012
Value | ||||
TOTAL INVESTMENTS — 98.1% (Cost $5,026,101) | $ | 4,179,444 | ||
Other assets less liabilities — 1.9% | 81,363 | |||
|
| |||
NET ASSETS — 100.0% | $ | 4,260,807 | ||
|
|
INDUSTRY BREAKDOWN AS OF MAY 31, 2012
Value | % of Net Assets | |||||||
Financial | $ | 892,954 | 21.0 | % | ||||
Basic Materials | 651,333 | 15.3 | ||||||
Energy | 564,778 | 13.3 | ||||||
Technology | 470,476 | 11.0 | ||||||
Communications | 394,473 | 9.2 | ||||||
Industrial | 372,781 | 8.7 | ||||||
Consumer, Non-cyclical | 326,848 | 7.7 | ||||||
Consumer, Cyclical | 296,983 | 7.0 | ||||||
Utilities | 149,552 | 3.5 | ||||||
Diversified | 59,266 | 1.4 | ||||||
|
|
|
| |||||
TOTAL INVESTMENTS | 4,179,444 | 98.1 | ||||||
Other assets less liabilities | 81,363 | 1.9 | ||||||
|
|
|
| |||||
NET ASSETS | $ | 4,260,807 | 100.0 | % | ||||
|
|
|
|
As of May 31, 2012, the Fund had the following futures contracts open:
Contract Description | Number of Contracts | Contract Value | Expiration Date | Unrealized Depreciation | ||||||||||||
E-mini MSCI Emerging Markets Index Futures | 1 | $ | 45,375 | 6/15/2012 | $ | (8,140 | ) |
As of May 31, 2012, the Fund had the following forward foreign currency contracts outstanding:
Counterparty | Settlement Date | Currency To Deliver | Currency To Receive | Unrealized Appreciation (Depreciation) | ||||||||||||||||||
HSBC | 6/5/2012 | BRL | 613,000 | USD | 323,253 | $ | 19,651 | |||||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | BRL | 563,024 | USD | 296,578 | 17,729 | ||||||||||||||||
The Bank of New York Mellon | 6/5/2012 | BRL | 45,543 | USD | 24,256 | 1,700 | ||||||||||||||||
HSBC | 6/5/2012 | BRL | 6,000 | USD | 3,104 | 133 | ||||||||||||||||
The Bank of New York Mellon | 6/5/2012 | CLP | 46,095,000 | USD | 95,022 | 5,904 | ||||||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | COP | 83,453,000 | USD | 47,202 | 1,580 | ||||||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | COP | 657,000 | USD | 370 | 11 | ||||||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | EGP | 55,000 | USD | 9,101 | 38 | ||||||||||||||||
HSBC | 6/5/2012 | HKD | 6,114,000 | USD | 788,195 | 454 | ||||||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | HUF | 2,607,000 | USD | 11,996 | 1,280 | ||||||||||||||||
HSBC | 6/5/2012 | IDR | 1,550,370,000 | USD | 168,336 | 3,499 | ||||||||||||||||
HSBC | 6/5/2012 | INR | 16,181,741 | USD | 305,777 | 17,921 | ||||||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | KRW | 390,617,500 | USD | 344,566 | 13,724 | ||||||||||||||||
HSBC | 6/5/2012 | KRW | 383,617,500 | USD | 338,406 | 13,493 | ||||||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | MAD | 2,000 | USD | 236 | 12 | ||||||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | MXN | 2,775,000 | USD | 212,664 | 19,399 | ||||||||||||||||
HSBC | 6/5/2012 | MYR | 487,000 | USD | 160,445 | 6,954 | ||||||||||||||||
HSBC | 6/5/2012 | PHP | 1,523,000 | USD | 35,988 | 994 | ||||||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | PLN | 200,000 | USD | 63,192 | 6,827 | ||||||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | RUB | 7,094,958 | USD | 241,013 | 28,638 | ||||||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | RUB | 506,000 | USD | 17,157 | 2,011 |
See Notes to Financial Statements. | 32 |
DBX ETF Trust
SCHEDULE OF INVESTMENTS
db-X MSCI Emerging Markets Currency-Hedged Equity Fund (Continued)
May 31, 2012
Counterparty | Settlement Date | Currency To Deliver | Currency To Receive | Unrealized Appreciation (Depreciation) | ||||||||||||||||
HSBC | 6/5/2012 | THB | 3,289,000 | USD | 106,786 | $ | 3,436 | |||||||||||||
HSBC | 6/5/2012 | TRY | 106,000 | USD | 59,825 | 3,053 | ||||||||||||||
HSBC | 6/5/2012 | TWD | 16,025,146 | USD | 550,125 | 13,209 | ||||||||||||||
HSBC | 6/5/2012 | USD | 291,552 | BRL | 590,000 | 658 | ||||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | USD | 263,891 | BRL | 534,024 | 595 | ||||||||||||||
The Bank of New York Mellon | 6/5/2012 | USD | 19,540 | BRL | 39,543 | 44 | ||||||||||||||
HSBC | 6/5/2012 | USD | 15,214 | BRL | 29,000 | (851 | ) | |||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | USD | 15,214 | BRL | 29,000 | (851 | ) | |||||||||||||
The Bank of New York Mellon | 6/5/2012 | USD | 3,128 | BRL | 6,000 | (157 | ) | |||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | USD | 86,204 | CLP | 44,826,000 | 461 | ||||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | USD | 2,608 | CLP | 1,269,000 | (154 | ) | |||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | USD | 45,837 | COP | 84,110,000 | 144 | ||||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | USD | 8,775 | EGP | 53,000 | (41 | ) | |||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | USD | 324 | EGP | 2,000 | 6 | ||||||||||||||
HSBC | 6/5/2012 | USD | 787,800 | HKD | 6,114,000 | (59 | ) | |||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | USD | 10,655 | HUF | 2,607,000 | 61 | ||||||||||||||
HSBC | 6/5/2012 | USD | 160,307 | IDR | 1,542,154,000 | 3,656 | ||||||||||||||
HSBC | 6/5/2012 | USD | 893 | IDR | 8,216,000 | (20 | ) | |||||||||||||
HSBC | 6/5/2012 | USD | 284,356 | INR | 16,054,741 | 1,241 | ||||||||||||||
HSBC | 6/5/2012 | USD | 2,395 | INR | 127,000 | (136 | ) | |||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | USD | 327,530 | KRW | 388,122,500 | 1,200 | ||||||||||||||
HSBC | 6/5/2012 | USD | 321,351 | KRW | 381,122,500 | 1,449 | ||||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | USD | 2,205 | KRW | 2,495,000 | (92 | ) | |||||||||||||
HSBC | 6/5/2012 | USD | 2,204 | KRW | 2,495,000 | (91 | ) | |||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | USD | 237 | MAD | 2,000 | (13 | ) | |||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | USD | 193,679 | MXN | 2,775,000 | (414 | ) | |||||||||||||
HSBC | 6/5/2012 | USD | 147,372 | MYR | 471,000 | 1,077 | ||||||||||||||
HSBC | 6/5/2012 | USD | 5,281 | MYR | 16,000 | (238 | ) | |||||||||||||
HSBC | 6/5/2012 | USD | 34,411 | PHP | 1,501,000 | 77 | ||||||||||||||
HSBC | 6/5/2012 | USD | 521 | PHP | 22,000 | (16 | ) | |||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | USD | 56,142 | PLN | 200,000 | 222 | ||||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | USD | 227,052 | RUB | 7,600,958 | 469 | ||||||||||||||
HSBC | 6/5/2012 | USD | 94,415 | THB | 3,009,000 | 136 | ||||||||||||||
HSBC | 6/5/2012 | USD | 9,098 | THB | 280,000 | (299 | ) | |||||||||||||
HSBC | 6/5/2012 | USD | 56,878 | TRY | 106,000 | (106 | ) | |||||||||||||
HSBC | 6/5/2012 | USD | 501,175 | TWD | 14,985,146 | 896 | ||||||||||||||
HSBC | 6/5/2012 | USD | 13,746 | TWD | 400,000 | (344 | ) | |||||||||||||
HSBC | 6/5/2012 | USD | 13,666 | TWD | 400,000 | (264 | ) | |||||||||||||
HSBC | 6/5/2012 | USD | 8,265 | TWD | 240,000 | (224 | ) | |||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | USD | 309,838 | ZAR | 2,653,000 | 2,405 | ||||||||||||||
JPMorgan Chase & Co. | 6/5/2012 | ZAR | 2,653,000 | USD | 340,661 | 28,419 | ||||||||||||||
JPMorgan Chase & Co. | 6/6/2012 | CZK | 193,000 | USD | 10,240 | 961 | ||||||||||||||
JPMorgan Chase & Co. | 6/6/2012 | USD | 9,245 | CZK | 193,000 | 35 | ||||||||||||||
HSBC | 6/7/2012 | USD | 16,962 | GBP | 11,000 | (9 | ) | |||||||||||||
HSBC | 7/5/2012 | BRL | 550,500 | USD | 270,456 | (429 | ) | |||||||||||||
JPMorgan Chase & Co. | 7/5/2012 | BRL | 550,500 | USD | 270,403 | (482 | ) | |||||||||||||
JPMorgan Chase & Co. | 7/5/2012 | EGP | 55,000 | USD | 9,103 | 287 | ||||||||||||||
HSBC | 7/5/2012 | HKD | 6,098,000 | USD | 785,800 | 51 | ||||||||||||||
JPMorgan Chase & Co. | 7/5/2012 | HUF | 1,218,000 | USD | 4,955 | (28 | ) | |||||||||||||
HSBC | 7/5/2012 | HUF | 1,052,000 | USD | 4,305 | 1 | ||||||||||||||
HSBC | 7/5/2012 | IDR | 1,374,677,000 | USD | 141,866 | (3,783 | ) | |||||||||||||
HSBC | 7/5/2012 | INR | 15,359,000 | USD | 269,930 | (1,630 | ) | |||||||||||||
HSBC | 7/5/2012 | KRW | 374,107,500 | USD | 314,773 | (1,410 | ) | |||||||||||||
JPMorgan Chase & Co. | 7/5/2012 | KRW | 374,107,500 | USD | 315,038 | (1,145 | ) | |||||||||||||
JPMorgan Chase & Co. | 7/5/2012 | MXN | 2,765,000 | USD | 192,328 | 416 | ||||||||||||||
HSBC | 7/5/2012 | MYR | 504,000 | USD | 157,599 | (942 | ) | |||||||||||||
HSBC | 7/5/2012 | PHP | 1,682,000 | USD | 38,472 | (85 | ) |
See Notes to Financial Statements. | 33 |
DBX ETF Trust
SCHEDULE OF INVESTMENTS
db-X MSCI Emerging Markets Currency-Hedged Equity Fund (Continued)
May 31, 2012
Counterparty | Settlement Date | Currency To Deliver | Currency To Receive | Unrealized Appreciation (Depreciation) | ||||||||||||||||
JPMorgan Chase & Co. | 7/5/2012 | PLN | 185,000 | USD | 51,742 | $ | (202 | ) | ||||||||||||
HSBC | 7/5/2012 | PLN | 2,000 | USD | 562 | 1 | ||||||||||||||
JPMorgan Chase & Co. | 7/5/2012 | RUB | 7,098,000 | USD | 210,821 | (410 | ) | |||||||||||||
HSBC | 7/5/2012 | THB | 2,858,000 | USD | 89,508 | (145 | ) | |||||||||||||
HSBC | 7/5/2012 | TRY | 114,000 | USD | 60,698 | 102 | ||||||||||||||
HSBC | 7/5/2012 | TWD | 14,687,000 | USD | 490,958 | (1,289 | ) | |||||||||||||
The Bank of New York Mellon | 7/5/2012 | USD | 72,208 | BRL | 145,000 | (858 | ) | |||||||||||||
JPMorgan Chase & Co. | 7/5/2012 | USD | 62,750 | HKD | 487,000 | 1 | ||||||||||||||
HSBC | 7/5/2012 | USD | 1,049 | MXN | 15,000 | (8 | ) | |||||||||||||
HSBC | 7/5/2012 | USD | 8,004 | TRY | 15,000 | (31 | ) | |||||||||||||
JPMorgan Chase & Co. | 7/5/2012 | ZAR | 2,895,000 | USD | 336,589 | (2,567 | ) | |||||||||||||
JPMorgan Chase & Co. | 7/6/2012 | CLP | 43,909,000 | USD | 84,052 | (503 | ) | |||||||||||||
JPMorgan Chase & Co. | 7/6/2012 | COP | 98,480,000 | USD | 53,391 | (216 | ) | |||||||||||||
JPMorgan Chase & Co. | 7/9/2012 | CZK | 193,000 | USD | 9,242 | (36 | ) | |||||||||||||
|
| |||||||||||||||||||
$ | 206,143 | |||||||||||||||||||
|
|
Currency Abbrevations
BRL – Brazilian Real
CLP – Chilean Peso
COP – Colombian Peso
CZK – Czech Kronua
EGP – Egyptian Pound
GBP – Pound Sterling
HKD – Hong Kong Dollar
HUF – Hungarian Forint
IDR – Indonesian Rupiah
INR – Indian Rupee
KRW – South Korean Won
MAD – Moroccan Dirham
MXN – Mexican Peso
MYR – Malaysian Ringgit
PHP – Philippine Peso
PLN – Polish Zloty
RUB – Russian Ruble
THB – Thai Baht
TRY – Turkish New Lira
TWD – New Taiwan Dollar
USD – U.S. Dollar
ZAR – South African Rand
* Non-income producing securities.
(a) Less than 0.1%
144A — Security is exempt from registration under Rule 144A of the securities Act of 1933. This security is considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At May 31, 2012 the aggregate market value of this security amounted to $38,752 or 0.9% of net assets.
ADR – American Depositary Receipt.
GDR – Global Depositary Receipt.
NVDR – Non Voting Depositary Receipt.
REIT – Real Estate Investment Trust.
See Notes to Financial Statements. | 34 |
DBX ETF Trust
SCHEDULE OF INVESTMENTS
db-X MSCI Japan Currency-Hedged Equity Fund
May 31, 2012
Number | Value | |||||||
COMMON STOCKS — 97.7% | ||||||||
Basic Materials — 6.0% | ||||||||
Asahi Kasei Corp. | 3,000 | $ | 16,233 | |||||
Daido Steel Co. Ltd. | 1,000 | 6,023 | ||||||
Denki Kagaku Kogyo KK | 2,000 | 6,713 | ||||||
Hitachi Chemical Co. Ltd. | 300 | 4,751 | ||||||
JFE Holdings, Inc. | 1,000 | 16,233 | ||||||
JSR Corp. | 600 | 10,375 | ||||||
Kobe Steel Ltd. | 5,000 | 5,998 | ||||||
Kuraray Co. Ltd. | 600 | 7,642 | ||||||
Mitsubishi Chemical Holdings Corp. | 3,000 | 13,247 | ||||||
Mitsubishi Materials Corp. | 4,000 | 10,924 | ||||||
Nippon Steel Corp. | 11,000 | 24,707 | ||||||
Nitto Denko Corp. | 400 | 16,233 | ||||||
OJI Paper Co. Ltd. | 3,000 | 11,332 | ||||||
Shin-Etsu Chemical Co. Ltd. | 1,000 | 51,429 | ||||||
Showa Denko KK | 6,000 | 11,945 | ||||||
Sumitomo Chemical Co. Ltd. | 3,000 | 9,456 | ||||||
Sumitomo Metal Industries Ltd. | 7,000 | 11,345 | ||||||
Sumitomo Metal Mining Co. Ltd. | 1,000 | 11,294 | ||||||
Taiyo Nippon Sanso Corp. | 1,000 | 6,049 | ||||||
Ube Industries Ltd. | 4,000 | 9,188 | ||||||
|
| |||||||
261,117 | ||||||||
|
| |||||||
Communications — 5.4% | ||||||||
Dena Co. Ltd. | 213 | 4,447 | ||||||
Dentsu, Inc. | 400 | 11,220 | ||||||
Gree, Inc. | 200 | 3,203 | ||||||
Jupiter Telecommunications Co. Ltd. | 5 | 5,124 | ||||||
KDDI Corp. | 6 | 37,098 | ||||||
Nippon Telegraph & Telephone Corp. | 900 | 38,821 | ||||||
NTT DoCoMo, Inc. | 30 | 47,894 | ||||||
Rakuten, Inc. | 16 | 17,111 | ||||||
Softbank Corp. | 2,000 | 62,532 | ||||||
Yahoo Japan Corp. | 32 | 9,315 | ||||||
|
| |||||||
236,765 | ||||||||
|
| |||||||
Consumer, Cyclical — 27.2% | ||||||||
ABC-Mart, Inc. | 100 | 3,774 | ||||||
Aeon Co. Ltd. | 1,300 | 15,761 | ||||||
Aisin Seiki Co. Ltd. | 400 | 12,532 | ||||||
Asics Corp. | 600 | 6,401 | ||||||
Bridgestone Corp. | 1,500 | 32,102 | ||||||
Daiwa House Industry Co. Ltd. | 1,000 | 12,762 | ||||||
Denso Corp. | 1,200 | 36,278 | ||||||
FamilyMart Co. Ltd. | 100 | 4,543 | ||||||
Fast Retailing Co. Ltd. | 100 | 22,320 | ||||||
Fuji Heavy Industries Ltd. | 2,000 | 15,416 | ||||||
Hino Motors Ltd. | 1,000 | 6,649 | ||||||
Hitachi High-Technologies Corp. | 300 | 6,673 | ||||||
Honda Motor Co. Ltd. | 3,000 | 96,171 | ||||||
Isetan Mitsukoshi Holdings Ltd. | 1,200 | 12,083 | ||||||
Isuzu Motors Ltd. | 3,000 | 16,041 | ||||||
ITOCHU Corp. | 3,500 | 38,368 | ||||||
JTEKT Corp. | 800 | 7,800 | ||||||
Lawson, Inc. | 200 | 14,012 | ||||||
Marubeni Corp. | 4,000 | 25,625 | ||||||
Mazda Motor Corp.* | 5,000 | 6,381 |
Number | Value | |||||||
Consumer, Cyclical (Continued) | ||||||||
McDonald’s Holdings Co. Japan Ltd. | 200 | $ | 5,837 | |||||
Mitsubishi Corp. | 2,700 | 52,891 | ||||||
Mitsubishi Motors Corp.* | 9,000 | 8,844 | ||||||
Mitsui & Co. Ltd. | 3,000 | 42,266 | ||||||
NGK Insulators Ltd. | 1,000 | 10,413 | ||||||
NGK Spark Plug Co. Ltd. | 1,000 | 12,838 | ||||||
Nintendo Co. Ltd. | 200 | 23,303 | ||||||
Nissan Motor Co. Ltd. | 5,600 | 54,171 | ||||||
Nitori Holdings Co. Ltd. | 150 | 13,553 | ||||||
Oriental Land Co. Ltd. | 100 | 10,911 | ||||||
Panasonic Corp. | 4,500 | 29,863 | ||||||
Sankyo Co. Ltd. | 200 | 9,648 | ||||||
Sega Sammy Holdings, Inc. | 500 | 8,888 | ||||||
Sekisui House Ltd. | 2,000 | 16,922 | ||||||
Seven & I Holdings Co. Ltd. | 1,700 | 51,178 | ||||||
Sharp Corp. | 2,000 | 10,490 | ||||||
Shimamura Co. Ltd. | 100 | 11,345 | ||||||
Shimano, Inc. | 200 | 12,162 | ||||||
Sony Corp. | 1,900 | 25,459 | ||||||
Stanley Electric Co. Ltd. | 300 | 4,158 | ||||||
Sumitomo Corp. | 2,600 | 34,939 | ||||||
Sumitomo Electric Industries Ltd. | 1,600 | 18,581 | ||||||
Sumitomo Rubber Industries Ltd. | 500 | 6,062 | ||||||
Suzuki Motor Corp. | 700 | 14,579 | ||||||
Teijin Ltd. | 3,000 | 8,920 | ||||||
Toho Co. Ltd. | 300 | 4,782 | ||||||
Toray Industries, Inc. | 3,000 | 20,061 | ||||||
Toyota Industries Corp. | 400 | 10,597 | ||||||
Toyota Motor Corp. | 6,100 | 236,650 | ||||||
Toyota Tsusho Corp. | 700 | 12,926 | ||||||
Yamada Denki Co. Ltd. | 180 | 9,039 | ||||||
Yamaha Motor Co. Ltd. | 600 | 5,965 | ||||||
|
| |||||||
1,189,933 | ||||||||
|
| |||||||
Consumer, Non-cyclical — 11.7% | ||||||||
Ajinomoto Co., Inc. | 1,000 | 13,502 | ||||||
Asahi Group Holdings Ltd. | 800 | 17,101 | ||||||
Astellas Pharma, Inc. | 1,100 | 43,236 | ||||||
Chugai Pharmaceutical Co. Ltd. | 700 | 12,640 | ||||||
Dai Nippon Printing Co. Ltd. | 1,000 | 7,568 | ||||||
Daiichi Sankyo Co. Ltd. | 1,500 | 24,139 | ||||||
Dainippon Sumitomo Pharma Co. Ltd. | 600 | 5,743 | ||||||
Eisai Co. Ltd. | 500 | 20,387 | ||||||
Japan Tobacco, Inc. | 11 | 61,345 | ||||||
Kao Corp. | 1,000 | 25,868 | ||||||
Kirin Holdings Co. Ltd. | 2,000 | 22,996 | ||||||
Miraca Holdings, Inc. | 200 | 7,642 | ||||||
Mitsubishi Tanabe Pharma Corp. | 600 | 7,902 | ||||||
Nippon Meat Packers, Inc. | 1,000 | 11,945 | ||||||
Nisshin Seifun Group, Inc. | 500 | 5,577 | ||||||
Nissin Foods Holdings Co. Ltd. | 100 | 3,652 | ||||||
Ono Pharmaceutical Co. Ltd. | 200 | 11,294 | ||||||
Otsuka Holdings Co. Ltd. | 500 | 15,735 | ||||||
Santen Pharmaceutical Co. Ltd. | 300 | 10,869 | ||||||
Secom Co. Ltd. | 500 | 22,109 | ||||||
Shionogi & Co. Ltd. | 700 | 8,826 | ||||||
Shiseido Co. Ltd. | 800 | 12,588 |
See Notes to Financial Statements. | 35 |
DBX ETF Trust
SCHEDULE OF INVESTMENTS
db-X MSCI Japan Currency-Hedged Equity Fund (Continued)
May 31, 2012
Number | Value | |||||||
Consumer, Non-cyclical (Continued) | ||||||||
Sysmex Corp. | 300 | $ | 12,328 | |||||
Takeda Pharmaceutical Co. Ltd. | 1,600 | 66,870 | ||||||
Terumo Corp. | 400 | 14,389 | ||||||
Toppan Printing Co. Ltd. | 2,000 | 12,200 | ||||||
Tsumura & Co. | 200 | 4,403 | ||||||
Unicharm Corp. | 300 | 16,214 | ||||||
Yakult Honsha Co. Ltd. | 400 | 13,946 | ||||||
|
| |||||||
513,014 | ||||||||
|
| |||||||
Energy — 1.5% | ||||||||
Idemitsu Kosan Co. Ltd. | 100 | 9,061 | ||||||
Inpex Corp. | 4 | 23,124 | ||||||
Japan Petroleum Exploration Co. | 100 | 3,873 | ||||||
JX Holdings, Inc. | 4,100 | 20,824 | ||||||
TonenGeneral Sekiyu KK | 1,000 | 9,112 | ||||||
|
| |||||||
65,994 | ||||||||
|
| |||||||
Financial — 16.5% | ||||||||
Aozora Bank Ltd. | 1,000 | 2,118 | ||||||
Bank of Kyoto Ltd. (The) | 1,000 | 7,300 | ||||||
Bank of Yokohama Ltd. (The) | 3,000 | 13,476 | ||||||
Chiba Bank Ltd. (The) | 2,000 | 11,281 | ||||||
Credit Saison Co. Ltd. | 400 | 7,652 | ||||||
Dai-ichi Life Insurance Co. Ltd. (The) | 20 | 20,061 | ||||||
Daito Trust Construction Co. Ltd. | 200 | 17,611 | ||||||
Daiwa Securities Group, Inc. | 4,000 | 12,660 | ||||||
Fukuoka Financial Group, Inc. | 3,000 | 11,064 | ||||||
Hachijuni Bank Ltd. (The) | 1,000 | 4,786 | ||||||
Iyo Bank Ltd. (The) | 1,000 | 7,529 | ||||||
Japan Real Estate Investment Corp., REIT | 1 | 8,831 | ||||||
Joyo Bank Ltd. (The) | 2,000 | 8,270 | ||||||
Mitsubishi Estate Co. Ltd. | 4,000 | 62,225 | ||||||
Mitsubishi UFJ Financial Group, Inc. | 28,200 | 122,359 | ||||||
Mitsubishi UFJ Lease & Finance Co. Ltd. | 80 | 3,002 | ||||||
Mitsui Fudosan Co. Ltd. | 3,000 | 50,077 | ||||||
Mizuho Financial Group, Inc. | 52,540 | 77,107 | ||||||
MS&AD Insurance Group Holdings | 1,200 | 18,438 | ||||||
NKSJ Holdings, Inc. | 750 | 13,802 | ||||||
Nomura Holdings, Inc. | 8,100 | 26,772 | ||||||
ORIX Corp. | 230 | 19,900 | ||||||
Resona Holdings, Inc. | 2,400 | 9,035 | ||||||
Shinsei Bank Ltd. | 2,000 | 2,118 | ||||||
Shizuoka Bank Ltd. (The) | 1,000 | 9,763 | ||||||
Sony Financial Holdings, Inc. | 500 | 7,172 | ||||||
Sumitomo Mitsui Financial Group, Inc. | 3,000 | 87,634 | ||||||
Sumitomo Mitsui Trust Holdings, Inc. | 7,000 | 17,688 | ||||||
Sumitomo Realty & Development Co. Ltd. | 1,000 | 21,031 | ||||||
T&D Holdings, Inc. | 1,300 | 12,409 | ||||||
Tokio Marine Holdings, Inc. | 1,300 | 28,320 | ||||||
|
| |||||||
721,491 | ||||||||
|
| |||||||
Industrial — 21.0% | ||||||||
Advantest Corp. | 500 | 6,789 | ||||||
Asahi Glass Co. Ltd. | 2,000 | 13,476 | ||||||
Brother Industries Ltd. | 800 | 8,770 | ||||||
Central Japan Railway Co. | 3 | 24,426 | ||||||
Daikin Industries Ltd. | 500 | 12,896 | ||||||
East Japan Railway Co. | 800 | 47,626 |
Number | Value | |||||||
Industrial (Continued) | ||||||||
Fanuc Corp. | 400 | $ | 69,014 | |||||
FUJIFILM Holdings Corp. | 1,000 | 18,747 | ||||||
GS Yuasa Corp. | 2,000 | 8,550 | ||||||
Hamamatsu Photonics KK | 200 | 6,993 | ||||||
Hirose Electric Co. Ltd. | 100 | 9,176 | ||||||
Hitachi Ltd. | 11,000 | 63,029 | ||||||
Hoya Corp. | 900 | 19,307 | ||||||
Ibiden Co. Ltd. | 400 | 7,065 | ||||||
JGC Corp. | 1,000 | 27,463 | ||||||
JS Group Corp. | 600 | 10,995 | ||||||
Kajima Corp. | 3,000 | 7,848 | ||||||
Kamigumi Co. Ltd. | 1,000 | 7,772 | ||||||
Kawasaki Heavy Industries Ltd. | 3,000 | 7,963 | ||||||
Kawasaki Kisen Kaisha Ltd. * | 1,000 | 1,850 | ||||||
Keikyu Corp. | 1,000 | 8,742 | ||||||
Keio Corp. | 2,000 | 13,757 | ||||||
Keyence Corp. | 110 | 24,903 | ||||||
Kintetsu Corp. | 4,000 | 13,936 | ||||||
Komatsu Ltd. | 2,100 | 50,329 | ||||||
Konica Minolta Holdings, Inc. | 1,000 | 7,172 | ||||||
Kubota Corp. | 3,000 | 25,727 | ||||||
Kurita Water Industries Ltd. | 400 | 8,775 | ||||||
Kyocera Corp. | 300 | 24,847 | ||||||
Makita Corp. | 300 | 10,211 | ||||||
Mitsubishi Electric Corp. | 5,000 | 39,370 | ||||||
Mitsubishi Heavy Industries Ltd. | 6,000 | 24,273 | ||||||
Mitsui OSK Lines Ltd. | 2,000 | 7,070 | ||||||
Murata Manufacturing Co. Ltd. | 400 | 20,776 | ||||||
NEC Corp.* | 6,000 | 8,652 | ||||||
Nidec Corp. | 200 | 16,335 | ||||||
Nikon Corp. | 700 | 19,510 | ||||||
Nippon Electric Glass Co. Ltd. | 1,000 | 6,253 | ||||||
Nippon Express Co. Ltd. | 3,000 | 11,753 | ||||||
Nippon Yusen KK | 3,000 | 8,040 | ||||||
NTN Corp. | 2,000 | 6,508 | ||||||
Odakyu Electric Railway Co. Ltd. | 2,000 | 18,147 | ||||||
Olympus Corp.* | 500 | 8,021 | ||||||
Omron Corp. | 400 | 7,928 | ||||||
Rinnai Corp. | 100 | 6,470 | ||||||
SMC Corp. | 100 | 16,437 | ||||||
Sumitomo Heavy Industries Ltd. | 2,000 | 8,857 | ||||||
THK Co. Ltd. | 500 | 9,476 | ||||||
Tobu Railway Co. Ltd. | 3,000 | 14,701 | ||||||
Tokyu Corp. | 3,000 | 13,323 | ||||||
Toshiba Corp. | 9,000 | 33,883 | ||||||
Toyo Seikan Kaisha Ltd. | 400 | 4,533 | ||||||
Ushio, Inc. | 300 | 3,346 | ||||||
West Japan Railway Co. | 400 | 15,697 | ||||||
Yamato Holdings Co. Ltd. | 900 | 14,012 | ||||||
Yaskawa Electric Corp. | 1,000 | 7,504 | ||||||
|
| |||||||
919,029 | ||||||||
|
| |||||||
Technology — 4.6% | ||||||||
Canon, Inc. | 2,500 | 100,498 | ||||||
Fujitsu Ltd. | 4,000 | 17,509 | ||||||
Itochu Techno-Solutions Corp. | 200 | 9,265 | ||||||
Konami Corp. | 200 | 4,229 | ||||||
Nomura Research Institute Ltd. | 300 | 6,489 |
See Notes to Financial Statements. | 36 |
DBX ETF Trust
SCHEDULE OF INVESTMENTS
db-X MSCI Japan Currency-Hedged Equity Fund (Continued)
May 31, 2012
Number | Value | |||||||
Technology (Continued) | ||||||||
NTT Data Corp. | 4 | $ | 11,501 | |||||
Oracle Corp. | 100 | 3,647 | ||||||
Ricoh Co. Ltd. | 1,000 | 7,274 | ||||||
Rohm Co. Ltd. | 200 | 7,264 | ||||||
Seiko Epson Corp. | 300 | 3,051 | ||||||
Sumco Corp.* | 300 | 2,531 | ||||||
TDK Corp. | 200 | 8,665 | ||||||
Tokyo Electron Ltd. | 400 | 18,070 | ||||||
|
| |||||||
199,993 | ||||||||
|
| |||||||
Utilities — 3.8% | ||||||||
Chubu Electric Power Co., Inc. | 1,500 | 22,933 | ||||||
Chugoku Electric Power Co., (The), Inc. | 800 | 12,629 | ||||||
Electric Power Development Co. Ltd. | 500 | 12,953 | ||||||
Hokuriku Electric Power Co. | 700 | 10,881 | ||||||
Kansai Electric Power Co., (The), Inc. | 1,600 | 23,154 | ||||||
Kyushu Electric Power Co., Inc. | 900 | 10,957 | ||||||
Osaka Gas Co. Ltd. | 4,000 | 15,671 | ||||||
Shikoku Electric Power Co., Inc. | 600 | 14,089 | ||||||
Tohoku Electric Power Co., Inc.* | 1,000 | 9,188 | ||||||
Tokyo Electric Power Co., (The), Inc.* | 3,100 | 6,251 | ||||||
Tokyo Gas Co. Ltd. | 6,000 | 28,484 | ||||||
|
| |||||||
167,190 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS | 4,274,526 | |||||||
|
| |||||||
TOTAL INVESTMENTS — 97.7% (Cost $4,789,898) | $ | 4,274,526 | ||||||
Other assets less liabilities — 2.3% | 101,215 | |||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 4,375,741 | ||||||
|
|
As of May 31, 2012, the Fund had the following futures contracts open:
Contract Description | Number of Contracts | Contract Value | Expiration Date | Unrealized Depreciation | ||||||||||||
TOPIX Index Futures | 1 | $ | 91,501 | 6/7/2012 | $ | (13,463 | ) |
As of May 31, 2012, the Fund had the following forward foreign currency contracts outstanding:
Counterparty | Settlement Date | Currency To Deliver | Currency To Receive | Unrealized Appreciation (Depreciation) | ||||||||||||||||
HSBC | 6/5/2012 | JPY | 192,748,500 | USD | 2,414,608 | $ | (45,300 | ) | ||||||||||||
JP Morgan & Chase Co. | 6/5/2012 | JPY | 192,748,500 | USD | 2,414,638 | (45,270 | ) | |||||||||||||
HSBC | 6/5/2012 | JPY | 600,000 | USD | 7,484 | (173 | ) | |||||||||||||
HSBC | 6/5/2012 | USD | 2,422,092 | JPY | 189,928,346 | 1,825 | ||||||||||||||
JP Morgan & Chase Co. | 6/5/2012 | USD | 2,414,638 | JPY | 189,341,204 | 1,785 | ||||||||||||||
HSBC | 7/5/2012 | JPY | 170,463,000 | USD | 2,174,467 | (1,728 | ) | |||||||||||||
JP Morgan & Chase Co. | 7/5/2012 | JPY | 170,463,000 | USD | 2,174,464 | (1,731 | ) | |||||||||||||
|
| |||||||||||||||||||
$ | (90,592 | ) | ||||||||||||||||||
|
|
Currency Abbrevations
JPY – Japanese Yen
USD – U.S. Dollar
* Non-income producing securities.
REIT – Real Estate Investment Trust.
See Notes to Financial Statements. | 37 |
DBX ETF Trust
STATEMENTS OF ASSETS AND LIABILITIES
May 31, 2012
db-X MSCI Brazil Currency-Hedged Equity Fund | db-X MSCI Canada Currency-Hedged Equity Fund | db-X MSCI EAFE Currency-Hedged Equity Fund | ||||||||||
Assets | ||||||||||||
Investments at fair value | $ | 4,167,188 | $ | 3,988,314 | $ | 30,280,392 | ||||||
Investment in Affiliates at fair value (See Note 5) | — | 209,761 | 104,799 | |||||||||
Cash | 2,922 | 126,773 | 226,091 | |||||||||
Foreign currency at value | 25,192 | 32,758 | 305,965 | |||||||||
Unrealized appreciation on forward foreign currency contracts | 293,073 | 201,174 | 1,548,246 | |||||||||
Receivables: | ||||||||||||
Dividends | 13,755 | 6,771 | 147,433 | |||||||||
Investment securities sold | 52,165 | 15,507 | 933,950 | |||||||||
Foreign tax reclaim | — | — | 26,648 | |||||||||
Prepaid expenses | 535 | 503 | — | |||||||||
|
|
|
|
|
| |||||||
Total Assets | 4,554,830 | 4,581,561 | 33,573,524 | |||||||||
|
|
|
|
|
| |||||||
Liabilities | ||||||||||||
Unrealized depreciation on futures contracts | — | 10,141 | 51,460 | |||||||||
Unrealized depreciation on forward foreign currency contracts | 19,011 | 11,502 | 184,487 | |||||||||
Payables: | ||||||||||||
Investment advisory fees | 2,179 | 1,862 | 9,500 | |||||||||
Investment securities purchased | 368,304 | 226,838 | 2,348,485 | |||||||||
Accrued expenses and other liabilities | — | — | 575 | |||||||||
|
|
|
|
|
| |||||||
Total Liabilities | 389,494 | 250,343 | 2,594,507 | |||||||||
|
|
|
|
|
| |||||||
Net Assets | $ | 4,165,336 | $ | 4,331,218 | $ | 30,979,017 | ||||||
|
|
|
|
|
| |||||||
Net Assets Consist of | ||||||||||||
Paid-in capital | $ | 5,030,749 | $ | 5,020,806 | $ | 31,570,764 | ||||||
Undistributed net investment income | 62,875 | 23,473 | 544,965 | |||||||||
Accumulated net realized gain (loss) on investments, futures and foreign currency transactions | (78,193 | ) | (122,013 | ) | 94,305 | |||||||
Net unrealized appreciation (depreciation) on investments, futures and foreign currency translations | (850,095 | ) | (591,048 | ) | (1,231,017 | ) | ||||||
|
|
|
|
|
| |||||||
Net Assets | $ | 4,165,336 | $ | 4,331,218 | $ | 30,979,017 | ||||||
|
|
|
|
|
| |||||||
Number of Common Shares outstanding | 200,800 | 200,800 | 1,400,800 | |||||||||
|
|
|
|
|
| |||||||
Net Asset Value | $ | 20.74 | $ | 21.57 | $ | 22.12 | ||||||
|
|
|
|
|
| |||||||
Investments at cost | $ | 5,290,184 | $ | 4,747,396 | $ | 32,806,997 | ||||||
|
|
|
|
|
| |||||||
Investments in Affiliates at cost | $ | — | $ | 221,193 | $ | 116,238 | ||||||
|
|
|
|
|
| |||||||
Foreign currency at cost | $ | 19,974 | $ | 32,738 | $ | 311,146 | ||||||
|
|
|
|
|
|
See Notes to Financial Statements. | 38 |
DBX ETF Trust
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
May 31, 2012
db-X MSCI Emerging Markets Currency-Hedged Equity Fund | db-X MSCI Japan Currency-Hedged Equity Fund | |||||||
Assets | ||||||||
Investments at fair value | $ | 4,179,444 | $ | 4,274,526 | ||||
Investment in Affiliates at fair value (See Note 5) | — | — | ||||||
Cash | 42,356 | 84,863 | ||||||
Foreign currency at value | 23,004 | 28,277 | ||||||
Unrealized appreciation on forward foreign currency contracts | 226,721 | 3,610 | ||||||
Receivables: | ||||||||
Dividends | 13,054 | 49,318 | ||||||
Investment securities sold | 161,450 | 44,233 | ||||||
Foreign tax reclaim | — | — | ||||||
Prepaid expenses | 507 | 519 | ||||||
|
|
|
| |||||
Total Assets | 4,646,536 | 4,485,346 | ||||||
|
|
|
| |||||
Liabilities | ||||||||
Unrealized depreciation on futures contracts | 8,140 | 13,463 | ||||||
Unrealized depreciation on forward foreign currency contracts | 20,578 | 94,202 | ||||||
Payables: | ||||||||
Investment advisory fees | 2,401 | 1,940 | ||||||
Investment securities purchased | 354,610 | — | ||||||
Accrued expenses and other liabilities | — | — | ||||||
|
|
|
| |||||
Total Liabilities | 385,729 | 109,605 | ||||||
|
|
|
| |||||
Net Assets | $ | 4,260,807 | $ | 4,375,741 | ||||
|
|
|
| |||||
Net Assets Consist of | ||||||||
Paid-in capital | $ | 5,040,490 | $ | 5,022,636 | ||||
Undistributed net investment income | 31,138 | 32,289 | ||||||
Accumulated net realized gain (loss) on investments, futures and foreign currency transactions | (161,783 | ) | (62,981 | ) | ||||
Net unrealized appreciation (depreciation) on investments, futures and foreign currency translations | (649,038 | ) | (616,203 | ) | ||||
|
|
|
| |||||
Net Assets | $ | 4,260,807 | $ | 4,375,741 | ||||
|
|
|
| |||||
Number of Common Shares outstanding | 200,800 | 200,800 | ||||||
|
|
|
| |||||
Net Asset Value | $ | 21.22 | $ | 21.79 | ||||
|
|
|
| |||||
Investments at cost | $ | 5,026,101 | $ | 4,789,898 | ||||
|
|
|
| |||||
Investments in Affiliates at cost | $ | — | $ | — | ||||
|
|
|
| |||||
Foreign currency at cost | $ | 23,181 | $ | 27,680 | ||||
|
|
|
|
See Notes to Financial Statements. | 39 |
DBX ETF Trust
For the Period June 9, 20111 to May 31, 2012
db-X MSCI Brazil Currency-Hedged Equity Fund | db-X MSCI Canada Currency-Hedged Equity Fund | db-X MSCI EAFE Currency-Hedged Equity Fund | ||||||||||
Investment Income | ||||||||||||
Dividend income* | $ | 178,800 | $ | 101,433 | $ | 765,158 | ||||||
|
|
|
|
|
| |||||||
Total Investment Income | 178,800 | 101,433 | 765,158 | |||||||||
|
|
|
|
|
| |||||||
Expenses | ||||||||||||
Trustees fees | 23,740 | 24,261 | 46,734 | |||||||||
Advisory fees | 26,660 | 22,653 | 74,217 | |||||||||
|
|
|
|
|
| |||||||
Total Expenses | 50,400 | 46,914 | 120,951 | |||||||||
|
|
|
|
|
| |||||||
Net Investment Income | 128,400 | 54,519 | 644,207 | |||||||||
|
|
|
|
|
| |||||||
Realized and Unrealized Gain (Loss) | ||||||||||||
Net realized gain (loss) from: | ||||||||||||
Investments | (226,897 | ) | (79,484 | ) | (408,998 | ) | ||||||
In-kind redemptions | — | — | (130,203 | ) | ||||||||
Futures contracts | — | (5,575 | ) | 24,300 | ||||||||
Foreign currency transactions | 227,623 | 12,087 | 505,063 | |||||||||
|
|
|
|
|
| |||||||
Net realized gain (loss) | 726 | (72,972 | ) | (9,838 | ) | |||||||
|
|
|
|
|
| |||||||
Net unrealized appreciation (depreciation) on: | ||||||||||||
Investments | (1,122,996 | ) | (770,514 | ) | (2,538,044 | ) | ||||||
Futures contracts | — | (10,141 | ) | (51,460 | ) | |||||||
Foreign currency translations | 272,901 | 189,607 | 1,358,487 | |||||||||
|
|
|
|
|
| |||||||
Net unrealized appreciation (depreciation) | (850,095 | ) | (591,048 | ) | (1,231,017 | ) | ||||||
|
|
|
|
|
| |||||||
Net realized and unrealized gain (loss) on investments, futures and foreign currency transactions | (849,369 | ) | (664,020 | ) | (1,240,855 | ) | ||||||
|
|
|
|
|
| |||||||
Net Decrease in Net Assets from Operations | $ | (720,969 | ) | $ | (609,501 | ) | $ | (596,648 | ) | |||
|
|
|
|
|
| |||||||
* Foreign taxes withheld | $ | 15,118 | $ | 17,924 | $ | 74,277 |
(1) | Commencement of operations. |
See Notes to Financial Statements. | 40 |
DBX ETF Trust
STATEMENTS OF OPERATIONS (Continued)
For the Period June 9, 20111 to May 31, 2012
db-X MSCI Emerging Markets Currency-Hedged Equity Fund | db-X MSCI Japan Currency-Hedged Equity Fund | |||||||
Investment Income | ||||||||
Dividend income* | $ | 95,817 | $ | 100,927 | ||||
|
|
|
| |||||
Total Investment Income | 95,817 | 100,927 | ||||||
|
|
|
| |||||
Expenses | ||||||||
Trustees fees | 23,923 | 24,454 | ||||||
Advisory fees | 28,822 | 23,220 | ||||||
|
|
|
| |||||
Total Expenses | 52,745 | 47,674 | ||||||
|
|
|
| |||||
Net Investment Income | 43,072 | 53,253 | ||||||
|
|
|
| |||||
Realized and Unrealized Gain (Loss) | ||||||||
Net realized gain (loss) from: | ||||||||
Investments | (148,383 | ) | (13,196 | ) | ||||
In-kind redemptions | — | — | ||||||
Futures contracts | (33,260 | ) | 9,711 | |||||
Foreign currency transactions | 137,622 | (46,114 | ) | |||||
|
|
|
| |||||
Net realized gain (loss) | (44,021 | ) | (49,599 | ) | ||||
|
|
|
| |||||
Net unrealized appreciation (depreciation) on: | ||||||||
Investments | (846,657 | ) | (515,372 | ) | ||||
Futures contracts | (8,140 | ) | (13,463 | ) | ||||
Foreign currency translations | 205,759 | (87,368 | ) | |||||
|
|
|
| |||||
Net unrealized appreciation (depreciation) | (649,038 | ) | (616,203 | ) | ||||
|
|
|
| |||||
Net realized and unrealized gain (loss) on investments, futures and foreign currency transactions | (693,059 | ) | (665,802 | ) | ||||
|
|
|
| |||||
Net Decrease in Net Assets from Operations | $ | (649,987 | ) | $ | (612,549 | ) | ||
|
|
|
| |||||
* Foreign taxes withheld | $ | 9,205 | $ | 7,606 |
(1) | Commencement of operations. |
See Notes to Financial Statements. | 41 |
DBX ETF Trust
STATEMENTS OF CHANGES IN NET ASSETS
For the Period June 9, 20111 to May 31, 2012
db-X MSCI Brazil Currency-Hedged Equity Fund | db-X MSCI Canada Currency-Hedged Equity Fund | db-X MSCI EAFE Currency-Hedged Equity Fund | ||||||||||
Increase (Decrease) in Net Assets from Operations | ||||||||||||
Net investment income | $ | 128,400 | $ | 54,519 | $ | 644,207 | ||||||
Net realized gain (loss) on investments, futures and foreign currency related transactions | 726 | (72,972 | ) | (9,838 | ) | |||||||
Net unrealized appreciation (depreciation) on investments, futures and foreign currency translations | (850,095 | ) | (591,048 | ) | (1,231,017 | ) | ||||||
|
|
|
|
|
| |||||||
Net decrease in net assets from operations | (720,969 | ) | (609,501 | ) | (596,648 | ) | ||||||
|
|
|
|
|
| |||||||
Distributions to Shareholders from | ||||||||||||
Net investment income | (57,834 | ) | (23,076 | ) | (133,281 | ) | ||||||
Net realized gains on investments, futures and foreign currency transactions | (86,687 | ) | (57,011 | ) | — | |||||||
|
|
|
|
|
| |||||||
Total distributions | (144,521 | ) | (80,087 | ) | (133,281 | ) | ||||||
|
|
|
|
|
| |||||||
Fund Shares Transactions | ||||||||||||
Proceeds from shares sold | 5,010,826 | 5,000,806 | 36,042,169 | |||||||||
Value of shares redeemed | — | — | (4,353,223 | ) | ||||||||
|
|
|
|
|
| |||||||
Net increase in net assets resulting from fund share transactions | 5,010,826 | 5,000,806 | 31,688,946 | |||||||||
|
|
|
|
|
| |||||||
Total Increase in Net Assets | 4,145,336 | 4,311,218 | 30,959,017 | |||||||||
Net Assets | ||||||||||||
Beginning of period | 20,000 | 20,000 | 20,000 | |||||||||
|
|
|
|
|
| |||||||
End of period | $ | 4,165,336 | $ | 4,331,218 | $ | 30,979,017 | ||||||
|
|
|
|
|
| |||||||
Undistributed net investment income | $ | 62,875 | $ | 23,473 | $ | 544,965 | ||||||
|
|
|
|
|
| |||||||
Changes in Shares Outstanding | ||||||||||||
Shares outstanding, beginning of period | 800 | 800 | 800 | |||||||||
Shares sold | 200,000 | 200,000 | 1,600,000 | |||||||||
Shares redeemed | — | — | (200,000 | ) | ||||||||
|
|
|
|
|
| |||||||
Shares outstanding, end of period | 200,800 | 200,800 | 1,400,800 | |||||||||
|
|
|
|
|
|
(1) | Commencement of operations. |
See Notes to Financial Statements. | 42 |
DBX ETF Trust
STATEMENTS OF CHANGES IN NET ASSETS (Continued)
For the Period June 9, 20111 to May 31, 2012
db-X MSCI Emerging Markets Currency-Hedged Equity Fund | db-X MSCI Japan Currency-Hedged Equity Fund | |||||||
Increase (Decrease) in Net Assets from Operations | ||||||||
Net investment income | $ | 43,072 | $ | 53,253 | ||||
Net realized gain (loss) on investments, futures and foreign currency related transactions | (44,021 | ) | (49,599 | ) | ||||
Net unrealized appreciation (depreciation) on investments, futures and foreign currency translations | (649,038 | ) | (616,203 | ) | ||||
|
|
|
| |||||
Net decrease in net assets from operations | (649,987 | ) | (612,549 | ) | ||||
|
|
|
| |||||
Distributions to Shareholders from | ||||||||
Net investment income | (11,326 | ) | (34,346 | ) | ||||
Net realized gains on investments, futures and foreign currency transactions | (118,447 | ) | — | |||||
|
|
|
| |||||
Total distributions | (129,773 | ) | (34,346 | ) | ||||
|
|
|
| |||||
Fund Shares Transactions | ||||||||
Proceeds from shares sold | 5,020,567 | 5,002,636 | ||||||
Value of shares redeemed | — | — | ||||||
|
|
|
| |||||
Net increase in net assets resulting from fund share transactions | 5,020,567 | 5,002,636 | ||||||
|
|
|
| |||||
Total Increase in Net Assets | 4,240,807 | 4,355,741 | ||||||
Net Assets | ||||||||
Beginning of period | 20,000 | 20,000 | ||||||
|
|
|
| |||||
End of period | $ | 4,260,807 | $ | 4,375,741 | ||||
|
|
|
| |||||
Undistributed net investment income | $ | 31,138 | $ | 32,289 | ||||
|
|
|
| |||||
Changes in Shares Outstanding | ||||||||
Shares outstanding, beginning of period | 800 | 800 | ||||||
Shares sold | 200,000 | 200,000 | ||||||
Shares redeemed | — | — | ||||||
|
|
|
| |||||
Shares outstanding, end of period | 200,800 | 200,800 | ||||||
|
|
|
|
(1) Commencement of operations.
See Notes to Financial Statements. | 43 |
DBX ETF Trust
For a Share outstanding throughout the period
db-X MSCI Brazil Currency-Hedged Equity Fund | For the Period June 9, 2011* to May 31, 2012 | |||
Net Asset Value, beginning of period | $ | 25.00 | ||
|
| |||
Income from Investment Operations: | ||||
Net investment income** | 0.64 | |||
Net realized and unrealized gain (loss) on investments and foreign currency transactions** | (4.18 | ) | ||
|
| |||
Net increase (decrease) in net asset value from operations | (3.54 | ) | ||
|
| |||
Distributions paid to shareholders from: | ||||
Net investment income | (0.29 | ) | ||
Net realized capital gains | (0.43 | ) | ||
|
| |||
Total distributions | (0.72 | ) | ||
|
| |||
Net Asset Value, end of period | $ | 20.74 | ||
|
| |||
Total Return*** | (14.28 | )% | ||
Ratios/Supplemental Data | ||||
Net Assets, end of period (000’s omitted) | $ | 4,165 | ||
Ratios to average net assets: | ||||
Expenses | 1.13 | %† | ||
Net investment income | 2.89 | %† | ||
Portfolio turnover rate†† | 34 | % | ||
db-X MSCI Canada Currency-Hedged Equity Fund | For the Period June 9, 2011* to May 31, 2012 | |||
Net Asset Value, beginning of period | $ | 25.00 | ||
|
| |||
Income from Investment Operations: | ||||
Net investment income** | 0.27 | |||
Net realized and unrealized gain (loss) on investments, futures and foreign currency transactions** | (3.30 | ) | ||
|
| |||
Net increase (decrease) in net asset value from operations | (3.03 | ) | ||
|
| |||
Distributions paid to shareholders from: | ||||
Net investment income | (0.12 | ) | ||
Net realized capital gains | (0.28 | ) | ||
|
| |||
Total distributions | (0.40 | ) | ||
|
| |||
Net Asset Value, end of period | $ | 21.57 | ||
|
| |||
Total Return*** | (12.14 | )% | ||
Ratios/Supplemental Data | ||||
Net Assets, end of period (000’s omitted) | $ | 4,331 | ||
Ratios to average net assets: | ||||
Expenses | 1.04 | %† | ||
Net investment income | 1.20 | %† | ||
Portfolio turnover rate†† | 17 | % |
* | Commencement of operations. |
** | Based on average shares outstanding. |
*** | Total Return is calculated assuming an initial investment made at the Net Asset Value at the beginning of the period, reinvestment of all dividend distributions at Net Asset Value during the period, and redemption at Net Asset Value on the last day of the period. Total Return calculated for a period of less than one year is not annualized. |
† | Annualized. |
†† | Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions. |
See Notes to Financial Statements. | 44 |
DBX ETF Trust
FINANCIAL HIGHLIGHTS (Continued)
For a Share outstanding throughout the period | ||||
db-X MSCI EAFE Currency-Hedged Equity Fund | For the Period June 9, 2011* to May 31, 2012 | |||
Net Asset Value, beginning of period | $ | 25.00 | ||
|
| |||
Income from Investment Operations: | ||||
Net investment income** | 0.70 | |||
Net realized and unrealized gain (loss) on investments, futures and foreign currency transactions** | (3.48 | ) | ||
|
| |||
Net increase (decrease) in net asset value from operations | (2.78 | ) | ||
|
| |||
Distributions paid to shareholders from: | ||||
Net investment income | (0.10 | ) | ||
Net realized capital gains | — | |||
|
| |||
Total distributions | (0.10 | ) | ||
|
| |||
Net Asset Value, end of period | $ | 22.12 | ||
|
| |||
Total Return*** | (11.14 | )% | ||
Ratios/Supplemental Data | ||||
Net Assets, end of period (000’s omitted) | $ | 30,979 | ||
Ratios to average net assets: | ||||
Expenses | 0.57 | %† | ||
Net investment income | 3.04 | %† | ||
Portfolio turnover rate†† | 14 | % | ||
db-X MSCI Emerging Markets Currency-Hedged Equity Fund | For the Period June 9, 2011* to May 31, 2012 | |||
Net Asset Value, beginning of period | $ | 25.00 | ||
|
| |||
Income from Investment Operations: | ||||
Net investment income** | 0.21 | |||
Net realized and unrealized gain (loss) on investments, futures and foreign currency transactions** | (3.34 | ) | ||
|
| |||
Net increase (decrease) in net asset value from operations | (3.13 | ) | ||
|
| |||
Distributions paid to shareholders from: | ||||
Net investment income | (0.06 | ) | ||
Net realized capital gains | (0.59 | ) | ||
|
| |||
Total distributions | (0.65 | ) | ||
|
| |||
Net Asset Value, end of period | $ | 21.22 | ||
|
| |||
Total Return*** | (12.52 | )% | ||
Ratios/Supplemental Data | ||||
Net Assets, end of period (000’s omitted) | $ | 4,261 | ||
Ratios to average net assets: | ||||
Expenses | 1.19 | %† | ||
Net investment income | 0.97 | %† | ||
Portfolio turnover rate†† | 19 | % |
* | Commencement of operations. |
** | Based on average shares outstanding. |
*** | Total Return is calculated assuming an initial investment made at the Net Asset Value at the beginning of the period, reinvestment of all dividend distributions at Net Asset Value during the period, and redemption at Net Asset Value on the last day of the period. Total Return calculated for a period of less than one year is not annualized. |
† | Annualized. |
†† | Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions. |
See Notes to Financial Statements. | 45 |
DBX ETF Trust
FINANCIAL HIGHLIGHTS (Continued)
For a Share outstanding throughout the period
db-X MSCI Japan Currency-Hedged Equity Fund | For the Period June 9, 2011* to May 31, 2012 | |||
Net Asset Value, beginning of period | $ | 25.00 | ||
|
| |||
Income from Investment Operations: | ||||
Net investment income** | 0.27 | |||
Net realized and unrealized gain (loss) on investments, futures and foreign currency transactions** | (3.31 | ) | ||
|
| |||
Net increase (decrease) in net asset value from operations | (3.04 | ) | ||
|
| |||
Distributions paid to shareholders from: | ||||
Net investment income | (0.17 | ) | ||
Net realized capital gains | — | |||
|
| |||
Total distributions | (0.17 | ) | ||
|
| |||
Net Asset Value, end of period | $ | 21.79 | ||
|
| |||
Total Return*** | (12.16 | )% | ||
Ratios/Supplemental Data | ||||
Net Assets, end of period (000’s omitted) | $ | 4,376 | ||
Ratios to average net assets: | ||||
Expenses | 1.03 | %† | ||
Net investment income | 1.15 | %† | ||
Portfolio turnover rate†† | 16 | % |
* | Commencement of operations. |
** | Based on average shares outstanding. |
*** | Total Return is calculated assuming an initial investment made at the Net Asset Value at the beginning of the period, reinvestment of all dividend distributions at Net Asset Value during the period, and redemption at Net Asset Value on the last day of the period. Total Return calculated for a period of less than one year is not annualized. |
† | Annualized. |
†† | Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions. |
See Notes to Financial Statements. | 46 |
DBX ETF Trust
1. Organization
DBX ETF Trust (the “Trust”) was organized as a Delaware statutory trust on October 7, 2010 and commenced operations on June 9, 2011, and is registered under the Investment Company Act of 1940, as amended (the “Act”).
As of May 31, 2012, there were five (5) series of exchange-traded funds (“ETF”) (each, a “Fund,” and collectively, the “Funds,” or “db-X MSCI Funds”) in operation and trading:
db-X MSCI Brazil Currency-Hedged Equity Fund | “db-X MSCI Brazil Fund” | |
db-X MSCI Canada Currency-Hedged Equity Fund | “db-X MSCI Canada Fund” | |
db-X MSCI EAFE Currency-Hedged Equity Fund | “db-X MSCI EAFE Fund” | |
db-X MSCI Emerging Markets Currency-Hedged Equity Fund | “db-X MSCI Emerging Markets Fund” | |
db-X MSCI Japan Currency-Hedged Equity Fund | “db-X MSCI Japan Fund” |
DBX Advisors LLC (“DBX” or the “Advisor”) 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.
Each Fund offers shares, known as db-X MSCI 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, only in large specified lots consisting of 200,000 shares, each called a “Creation Unit.” Except when aggregated in Creation Units, shares are not individually redeemable securities of the Funds.
The investment objective of each Fund is to track the performance, before fees and expenses, of a particular index (the “Underlying Index”). MSCI is the creator of each Underlying Index. Each Underlying Index is comprised of securities listed in countries in the MSCI Global Index Series. All listed equity securities and listed securities that exhibit characteristics of equity securities, except mutual funds, exchange traded funds, equity derivatives, limited partnerships and most investment trusts, are eligible for inclusion in the equity universe. REITs in some countries and certain income trusts in Canada are also eligible for inclusion. Each company and its securities (i.e., share classes) are classified in only one country, which allows for a distinctive sorting of each company by its respective country.
The underlying indices for the db-X MSCI Funds are:
Fund | Underlying Index | |
db-X MSCI Brazil Fund | MSCI Brazil US Dollar Hedged Index | |
db-X MSCI Canada Fund | MSCI Canada US Dollar Hedged Index | |
db-X MSCI EAFE Fund | MSCI EAFE US Dollar Hedged Index | |
db-X MSCI Emerging Markets Fund | MSCI EM US Dollar Hedged Index | |
db-X MSCI Japan Fund | MSCI Japan US Dollar Hedged Index |
The MSCI Hedged 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 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 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 MSCI and DBX. There is no charge to the Funds in connection with these licensing agreements.
Each Fund is non-diversified and will generally hold securities of fewer issuers than diversified funds and may be more susceptible to the risks associated with these particular issuers, or to a single economic, political or regulatory occurrence affecting these issuers.
Each Fund may invest in securities of non-U.S. issuers that may trade in non-U.S. Markets. This may involve certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: generally less liquid and less efficient securities markets; generally greater price volatility; exchange rate fluctuations and exchange controls; imposition of restrictions on the expatriation of funds or other assets of the Fund; less publicly available information about issuers; the imposition of withholding or other taxes; higher transaction and custody costs; settlement delays and risk of loss attendant in settlement procedures; difficulties in enforcing contractual obligations; less regulation of securities markets; different accounting, disclosure and reporting requirements; more substantial governmental involvement
47
DBX ETF Trust
NOTES TO FINANCIAL STATEMENTS (Continued)
in the economy; higher inflation rates; greater social, economic and political uncertainties; the risk of nationalization or expropriation of assets and the risk of war.
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. The following is a summary of significant accounting policies followed by the Funds.
Investment Valuation The Net Asset Value (“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. Any assets or securities for which market quotations are not readily available are valued at fair-value in accordance with procedures adopted by the Board of Trustees. The Board of Trustees has delegated to the Advisor the responsibility to exercise oversight in the administration of these procedures.
Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the New York Stock Exchange (“NYSE”). If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Funds may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economical upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
In general, the market value of securities which are readily available and deemed reliable are determined as follows: securities listed on a national securities exchange (other than securities listed on the NASDAQ Stock Market, Inc. (“NASDAQ”)) or on a foreign securities exchange are valued at the last sale price at the close of the exchange or foreign securities exchange. If there has been no sale on such day, the securities are valued at the last traded price from the previous day. Securities listed on more than one exchange are valued by reference to the principal exchange on which the securities are traded; securities listed only on NASDAQ are valued in accordance with the NASDAQ Official Closing Price.
Fair Value Measurement The Funds are subject to fair value accounting standards that define fair value, establish the framework for measuring fair value and provide a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, for example, the risk inherent in a particular valuation technique used to measure fair value. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are as follows:
• | Level 1 — quoted prices in active markets for identical securities |
48
DBX ETF Trust
NOTES TO FINANCIAL STATEMENTS (Continued)
• | Level 2 — inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means |
• | Level 3 — significant unobservable inputs (including a Fund’s own assumption in determining the fair value of investments) |
The level of a value determined for a financial instrument within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety. However, the determination of what constitutes an
“observable” input may require significant judgment by the Funds. The Funds consider observable inputs to be market data that is readily available, regularly distributed or updated, reliable and verifiable, and provided by independent sources that are actively involved in the relevant market. The categorization of a value determined for a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does not necessarily correspond to the Funds’ perceived risk of that instrument.
Level 1 investments consist of active listed equities.
Level 2 investments generally include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information. Forward currency contracts and rights are included in Level 2.
Level 3 investments may include unlisted securities related to corporate actions, securities whose trading have been suspended or which have been de-listed from their primary trading exchange and less liquid corporate debt securities. When observable prices are not available for these securities, the Funds use one or more valuation techniques (e.g., the market approach or the income approach) for which sufficient and reliable data is available. Within Level 3 of the fair value hierarchy, the use of the market approach generally consists of using comparable market transactions, while the use of the income approach generally consists of the net present value of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.
The inputs used by the Funds in estimating the value of investments classified as Level 3 may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 securities may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the Funds in the absence of market information. The fair value measurement of Level 3 securities does not include transaction costs that may have been capitalized as part of the security’s cost basis. Assumptions used by the Funds due to the lack of observable inputs may significantly impact the resulting fair value and therefore the Funds’ results of operations. There are no securities classified as Level 3 at May 31, 2012.
Fair value pricing could result in a difference between the prices used to calculate a Fund’s net asset value 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.
49
DBX ETF Trust
NOTES TO FINANCIAL STATEMENTS (Continued)
The following table summarizes the valuation of each Fund’s investments by the above fair value hierarchy levels as of May 31, 2012:
Investment in Securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value at 5/31/12 | |||||||||||||
db-X MSCI Brazil Currency-Hedged Equity Fund | ||||||||||||||||
Investments in Securities* | ||||||||||||||||
Common Stocks | $ | 1,956,513 | $ | — | $ | — | $ | 1,956,513 | ||||||||
Preferred Stocks | 2,210,675 | — | — | 2,210,675 | ||||||||||||
Other Financial Instruments | ||||||||||||||||
Unrealized Appreciation on Forward Foreign Currency Contracts | — | 293,073 | — | 293,073 | ||||||||||||
Unrealized Depreciation on Forward Foreign Currency Contracts | — | (19,011 | ) | — | (19,011 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 4,167,188 | $ | 274,062 | $ | — | $ | 4,441,250 | ||||||||
|
|
|
|
|
|
|
| |||||||||
db-X MSCI Canada Currency-Hedged Equity Fund | ||||||||||||||||
Investments in Securities* | ||||||||||||||||
Common Stocks | $ | 4,198,075 | $ | — | $ | — | $ | 4,198,075 | ||||||||
Other Financial Instruments | ||||||||||||||||
Unrealized Appreciation on Forward Foreign Currency Contracts | — | 201,174 | — | 201,174 | ||||||||||||
Unrealized Depreciation on Forward Foreign Currency Contracts | — | (11,502 | ) | — | (11,502 | ) | ||||||||||
Futures Contracts | (10,141 | ) | — | — | (10,141 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 4,187,934 | $ | 189,672 | $ | — | $ | 4,377,606 | ||||||||
|
|
|
|
|
|
|
| |||||||||
db-X MSCI EAFE Currency-Hedged Equity Fund | ||||||||||||||||
Investments in Securities* | ||||||||||||||||
Common Stocks | $ | 30,191,643 | $ | — | $ | — | $ | 30,191,643 | ||||||||
Preferred Stocks | 178,811 | — | — | 178,811 | ||||||||||||
Rights | — | 14,737 | — | 14,737 | ||||||||||||
Other Financial Instruments | ||||||||||||||||
Unrealized Appreciation on Forward Foreign Currency Contracts | — | 1,548,246 | — | 1,548,246 | ||||||||||||
Unrealized Depreciation on Forward Foreign Currency Contracts | — | (184,487 | ) | — | (184,487 | ) | ||||||||||
Futures Contracts | (51,460 | ) | — | — | (51,460 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 30,318,994 | $ | 1,378,496 | $ | — | $ | 31,697,490 | ||||||||
|
|
|
|
|
|
|
| |||||||||
db-X MSCI Emerging Markets Currency-Hedged Equity Fund | ||||||||||||||||
Investments in Securities* | ||||||||||||||||
Common Stocks | $ | 3,867,626 | $ | — | $ | — | $ | 3,867,626 | ||||||||
Preferred Stocks | 311,742 | — | — | 311,742 | ||||||||||||
Rights | — | 76 | — | 76 | ||||||||||||
Other Financial Instruments | ||||||||||||||||
Unrealized Appreciation on Forward Foreign Currency Contracts | — | 226,721 | — | 226,721 | ||||||||||||
Unrealized Depreciation on Forward Foreign Currency Contracts | — | (20,578 | ) | — | (20,578 | ) | ||||||||||
Futures Contracts | (8,140 | ) | — | — | (8,140 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 4,171,228 | $ | 206,219 | $ | — | $ | 4,377,447 | ||||||||
|
|
|
|
|
|
|
|
50
DBX ETF Trust
NOTES TO FINANCIAL STATEMENTS (Continued)
Investment in Securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value at 5/31/12 | |||||||||||||
db-X MSCI Japan Currency-Hedged Equity Fund | ||||||||||||||||
Investments in Securities* | ||||||||||||||||
Common Stocks | $ | 4,274,526 | $ | — | $ | — | $ | 4,274,526 | ||||||||
Other Financial Instruments | ||||||||||||||||
Unrealized Appreciation on Forward Foreign Currency Contracts | — | 3,610 | — | 3,610 | ||||||||||||
Unrealized Depreciation on Foreign Forward Currency Contracts | — | (94,202 | ) | — | (94,202 | ) | ||||||||||
Futures Contracts | (13,463 | ) | — | — | (13,463 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 4,261,063 | $ | (90,592 | ) | $ | — | $ | 4,170,471 | |||||||
|
|
|
|
|
|
|
|
* | See Schedule of Investments for Industry or Country Classification. |
In May 2011, the FASB issued ASU No. 2011-04 Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. ASU 2011-04 includes common requirements for measurement of and disclosure about fair value between U.S. GAAP and IFRS. ASU 2011-04 will require reporting entities to disclose the following information for fair value measurements categorized within Level 3 of the fair value hierarchy: quantitative information about the unobservable inputs used in the fair value measurement, the valuation processes used by the reporting entity and a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs and the interrelationships between those unobservable inputs. In addition, ASU 2011-04 will require reporting entities to make disclosures about amounts and reasons for transfers in and out of Level 1 and Level 2 fair value measurements. The new and revised disclosures are effective for interim and annual reporting periods beginning after December 15, 2011. The Advisor is currently evaluating the implications of ASU No. 2011-04 and its impact on the financial statements.
In December 2011, FASB issued ASU No. 2011-11 related to Disclosures about Offsetting Assets and Liabilities. The amendments in this ASU require an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. The ASU is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The guidance requires retrospective application for all comparative periods presented. The Advisor is currently evaluating the impact ASU 2011-11 will have on the financial statement disclosures.
Forward Currency Contracts Each Fund may enter into forward currency contracts designed to offset a Fund’s exposure to non-U.S. currencies. In addition, the Funds may enter into foreign currency forward and foreign currency futures contracts to facilitate local securities settlements or to protect against currency exposure in connection with distributions to Shareholders.
The db-X MSCI Brazil Fund, db-X MSCI Canada Fund and db-X MSCI Japan Fund each invest in forward foreign currency exchange contracts to hedge against changes in the value of the U.S. dollar against the Brazilian real, Canadian dollar and the Japanese yen, respectively. Similarly, the db-X MSCI EAFE Fund and db-X MSCI Emerging Markets Fund invest in forward foreign currency exchange contracts to hedge against changes in the value of the U.S. dollar against specified non-U.S. currencies.
A forward currency exchange contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. 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 foreign currency transactions. 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.
Forward contracts are valued daily and the Fund’s net equity therein, represents unrealized appreciation or depreciation on the contracts as measured by the difference between the contracted price or rate and the forward price or rate at the reporting date which is included in the statement of assets and liabilities. Generally, the key inputs for most forward contracts include notional, maturity, forward rate, and spot rate.
51
DBX ETF Trust
NOTES TO FINANCIAL STATEMENTS (Continued)
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. Each Fund may enter into futures contracts to purchase securities indexes when the Advisor and/or Sub-Advisor anticipate purchasing the underlying securities and believe prices will rise before the purchase will be made. To the extent required by law, liquid assets committed to futures contracts will be maintained.
Open futures contracts are valued using the closing settlement price or, in the absence of such a price, the most recent quoted bid price. If there are no quotations available for the day of valuation, the last available closing settlement price is used.
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 effected. 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.
Cash Cash consists of cash held at banks.
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. 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, if any, to investors semi-annually sufficient to relieve it from all, or substantially all, Federal income and excise taxes. 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. Each Fund pays out dividends from its net investment income to investors semi-annually. Each Fund distributes any net capital gains annually.
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.
52
DBX ETF Trust
NOTES TO FINANCIAL STATEMENTS (Continued)
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 foreign taxes on other corporate events are reflected in “Other foreign taxes.” Foreign taxes payable as of May 31, 2012, if any, are disclosed in the Funds’ Statements of Assets and Liabilities.
Expenses Expenses that are directly related to a specific Fund are charged to that respective Fund. Expenses which are not readily identifiable to a specific Fund are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense and the relative net assets of each Fund.
Foreign Currency Translation The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars using an exchange rate deemed appropriate by the investment advisor. The effects of changes in foreign currency exchange rates on investments in securities are not segregated in the Statements of Operations from the
effects of changes in market prices of those securities, but are included with the net realized and unrealized gain or loss on investments in securities. Unrealized gains and losses on assets and liabilities, other than investments in securities, which result from changes in foreign currency exchange rates have been included in “Net change in unrealized appreciation (depreciation) on foreign currency translations” on the Statements of Operations. The portion of foreign currency gains and losses related to fluctuations in exchange rates between the initial purchase trade date and subsequent sale trade date is included in “Net realized gain (loss) from foreign currency related transactions” on the Statements of Operations. Certain foreign exchange gains and losses included in realized and unrealized gains or losses are included in or are a reduction of ordinary income in accordance with U.S. Federal income tax regulations.
53
DBX ETF Trust
NOTES TO FINANCIAL STATEMENTS (Continued)
Derivatives The fair value of derivative instruments as of May 31, 2012 by risk category:
The fair value of derivative instruments as of May 31, 2012 by risk category:
Asset Derivatives | Liability Derivatives | |||||||||||||
Derivative Type | Statement of Asset and | Fair Value | Statement of Asset and | Fair Value | ||||||||||
db-X MSCI Brazil Fund | ||||||||||||||
Equity contracts | Unrealized appreciation on futures contracts | $ | — | Unrealized depreciation on futures contracts | $ | — | ||||||||
Foreign exchange contracts | Unrealized appreciation on forward foreign currency contracts | 293,073 | Unrealized depreciation on forward currency contracts | 19,011 | ||||||||||
|
|
|
| |||||||||||
Total | $ | 293,073 | $ | 19,011 | ||||||||||
|
|
|
| |||||||||||
db-X MSCI Canada Fund | ||||||||||||||
Equity contracts | Unrealized appreciation on futures contracts | $ | — | Unrealized depreciation on futures contracts | $ | 10,141 | ||||||||
Foreign exchange contracts | Unrealized appreciation on forward foreign currency contracts | 201,174 | Unrealized depreciation on forward currency contracts | 11,502 | ||||||||||
|
|
|
| |||||||||||
Total | $ | 201,174 | $ | 21,643 | ||||||||||
|
|
|
| |||||||||||
db-X MSCI EAFE Fund | ||||||||||||||
Equity contracts | Unrealized appreciation on futures contracts | $ | — | Unrealized depreciation on futures contracts | $ | 51,460 | ||||||||
Foreign exchange contracts | Unrealized appreciation on forward foreign currency contracts | 1,548,246 | Unrealized depreciation on forward currency contracts | 184,487 | ||||||||||
|
|
|
| |||||||||||
Total | $ | 1,548,246 | $ | 235,947 | ||||||||||
|
|
|
| |||||||||||
db-X MSCI Emerging Markets Fund | ||||||||||||||
Equity contracts | Unrealized appreciation on futures contracts | $ | — | Unrealized depreciation on futures contracts | $ | 8,140 | ||||||||
Foreign exchange contracts | Unrealized appreciation on forward foreign currency contracts | 226,721 | Unrealized depreciation on forward currency contracts | 20,578 | ||||||||||
|
|
|
| |||||||||||
Total | $ | 226,721 | $ | 28,718 | ||||||||||
|
|
|
| |||||||||||
db-X MSCI Japan Fund | ||||||||||||||
Equity contracts | Unrealized appreciation on futures contracts | $ | — | Unrealized depreciation on futures contracts | $ | 13,463 | ||||||||
Foreign exchange contracts | Unrealized appreciation on forward foreign currency contracts | 3,610 | Unrealized depreciation on forward currency contracts | 94,202 | ||||||||||
|
|
|
| |||||||||||
Total | $ | 3,610 | $ | 107,665 | ||||||||||
|
|
|
|
54
DBX ETF Trust
NOTES TO FINANCIAL STATEMENTS (Continued)
The effects of derivative instruments on the Statements of Operations for the period June 9, 2011 to May 31, 2012 are as follows:
Amount of Net Realized Gain or (Loss) on Derivatives Recognized in Income | ||||||||||||
Equity Futures Contracts | Forward Foreign Currency Contracts | Total | ||||||||||
db-X MSCI Brazil Fund | $ | — | $ | 235,178 | $ | 235,178 | ||||||
db-X MSCI Canada Fund | (5,575 | ) | 29,341 | 23,766 | ||||||||
db-X MSCI EAFE Fund | 24,300 | 492,581 | 516,881 | |||||||||
db-X MSCI Emerging Markets Fund | (33,260 | ) | 135,394 | 102,134 | ||||||||
db-X MSCI Japan Fund | 9,711 | (62,817 | ) | (53,106 | ) | |||||||
Net Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income | ||||||||||||
Equity Futures Contracts | Forward Foreign Currency Contracts | Total | ||||||||||
db-X MSCI Brazil Fund | $ | — | $ | 274,062 | $ | 274,062 | ||||||
db-X MSCI Canada Fund | (10,141 | ) | 189,672 | 179,531 | ||||||||
db-X MSCI EAFE Fund | (51,460 | ) | 1,363,759 | 1,312,299 | ||||||||
db-X MSCI Emerging Markets Fund | (8,140 | ) | 206,143 | 198,003 | ||||||||
db-X MSCI Japan Fund | (13,463 | ) | (90,592 | ) | (104,055 | ) |
For the period June 9, 2011 to May 31, 2012 the average monthly volume of derivatives was as follows:
Futures Contracts (Contract Value) | Forward Foreign Currency Contracts (Market Value) | |||||||
db-X MSCI Brazil Fund | $ | — | $ | 4,435,172 | ||||
db-X MSCI Canada Fund | 199,090 | 4,118,925 | ||||||
db-X MSCI EAFE Fund | 733,841 | 22,376,482 | ||||||
db-X MSCI Emerging Markets Fund | 164,577 | 4,416,198 | ||||||
db-X MSCI Japan Fund | 200,584 | 4,970,679 |
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 Fund’s 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. The Advisor is also responsible for employing any sampling strategy for the Funds.
TDAM USA Inc. (“TDAM”) acts as investment sub-advisor to the Funds (“Sub-Advisor”). TDAM is a direct, wholly-owned subsidiary of The Toronto-Dominion Bank. The Sub-Advisor is responsible for the day-to-day management of the Funds, subject to the supervision of the Advisor and the Funds’ Board of Trustees. In this regard, the Sub-Advisor is responsible for implementing the replication strategy for each Fund with regard to its underlying index and for general administration, compliance and management services as may be agreed between the Advisor and Sub Advisor from time to time.
For its investment advisory services to each Fund, the Advisor is entitled to receive a unitary management fee from each Fund at an annual rate equal to 0.65% (with respect to db-X MSCI Emerging Markets Fund), 0.35% (with respect to db-X MSCI EAFE Fund), 0.60% (with respect to db-X MSCI Brazil Fund), 0.50% (with respect to db-X MSCI Canada Fund) and 0.50% (with respect db-X MSCI Japan Fund) of its average daily net assets. Out of the unitary management fee, the Advisor pays substantially all expenses of each Fund, including the payments to the Sub-Advisor, the cost of transfer agency, custody, fund administration, legal, audit and other services. Each Fund is responsible for the payment of, interest expense, taxes, brokerage expenses, expenses of the Disinterested Trustees and extraordinary expenses.
55
DBX ETF Trust
NOTES TO FINANCIAL STATEMENTS (Continued)
The Advisor pays TDAM, out of its own resources, a fee based on a percentage of the average daily net assets of each Fund as set forth below:
db-X MSCI Brazil Fund
• | 20 basis points (0.20%) of the first $100 million in daily net assets; and |
• | 12 basis points (0.12%) of the next $400 million in daily net assets; and |
• | 6 basis points (0.06%) of the daily net assets in excess of $500 million. |
db-X MSCI Canada Fund
• | 15 basis points (0.15%) of the first $100 million in daily net assets; and |
• | 7 basis points (0.07%) of the next $400 million in daily net assets; and |
• | 4 basis points (0.04%) of the daily net assets in excess of $500 million. |
db-X MSCI EAFE Fund
• | 12 basis points (0.12%) of the first $100 million in daily net assets; and |
• | 8 basis points (0.08%) of the next $400 million in daily net assets; and |
• | 4 basis points (0.04%) of the daily net assets in excess of $500 million. |
db-X MSCI Emerging Markets Fund
• | 20 basis points (0.20%) of the first $100 million in daily net assets; and |
• | 15 basis points (0.15%) of the next $400 million in daily net assets; and |
• | 6 basis points (0.06%) of the daily net assets in excess of $500 million. |
db-X MSCI Japan Fund
• | 15 basis points (0.15%) of the first $100 million in daily net assets; and |
• | 7 basis points (0.07%) of the next $400 million in daily net assets; and |
• | 4 basis points (0.04%) of the daily net assets in excess of $500 million. |
The total aggregate fees paid by the Advisor to the Sub-Advisor will be at least $300,000 per year.
The Bank of New York Mellon, a wholly-owned subsidiary of The Bank of New York Mellon Corporation, serves as Administrator, Custodian, Accounting Agent and Transfer Agent for each Fund.
ALPS Distributors, Inc. 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 four Trustees, of whom three are Independent Trustees. The Trust pays each Independent Trustee an annual fee of $25,000, plus a fee of $2,500 per meeting attended in-person or $1,500 per meeting attended telephonically. Each Independent Trustee also receives $1,500 per Audit Committee meeting. The Audit Committee Chairman receives $2,000 as an annual retainer fee. The Trust reimburses each Trustee for their costs and expenses associated with the performance of their duties hereunder, including the cost and expenses associated with attendance at meetings of the Board. Trustees’ fees and expenses are allocated among the Funds based on each Fund’s relative average daily net assets.
56
DBX ETF Trust
NOTES TO FINANCIAL STATEMENTS (Continued)
4. Federal Income Taxes
As of May 31, 2012, the components of accumulated earnings (losses) were as follows:
Undistributed Net Investment Income | Undistributed Long-Term Capital Gains | Net Accumulated Capital and Other Gains (Losses) | Unrealized Appreciation (Depreciation) | Total Accumulated Earnings (Losses) | ||||||||||||||||
db-X MSCI Brazil Fund | $ | 70,463 | $ | 254,690 | $ | — | $ | (1,190,566 | ) | $ | (865,413 | ) | ||||||||
db-X MSCI Canada Fund | 23,473 | 85,500 | (2,583 | ) | (795,978 | ) | (689,588 | ) | ||||||||||||
db-X MSCI EAFE Fund | 936,106 | 1,053,575 | — | (2,581,428 | ) | (591,747 | ) | |||||||||||||
db-X MSCI Emerging Markets Fund | 31,138 | 50,049 | (44,818 | ) | (816,052 | ) | (779,683 | ) | ||||||||||||
db-X MSCI Japan Fund | 32,289 | — | (142,863 | ) | (536,321 | ) | (646,895 | ) |
The tax character of dividends and distributions declared during the period June 9, 2011 to May 31, 2012 were as follows:
Ordinary Income | Long-Term | |||||||
db-X MSCI Brazil Fund | $ | 93,513 | $ | 51,008 | ||||
db-X MSCI Canada Fund | 38,447 | 41,640 | ||||||
db-X MSCI EAFE Fund | 133,281 | — | ||||||
db-X MSCI Emerging Markets Fund | 52,035 | 77,738 | ||||||
db-X MSCI Japan Fund | 34,346 | — |
At May 31, 2012, 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. 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.
Post-effective-no expiration ST | Post-effective-no expiration LT | Total Amount | ||||||||||
db-X MSCI Brazil Fund | $ | — | $ | — | $ | — | ||||||
db-X MSCI Canada Fund | — | — | — | |||||||||
db-X MSCI EAFE Fund | — | — | — | |||||||||
db-X MSCI Emerging Markets Fund | — | — | — | |||||||||
db-X MSCI Japan Fund | 52,666 | 80,951 | 133,617 |
Under the recently enacted Regulated Investment Company Modernization Act of 2010 (the “Act”), the Funds will be permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period.
Capital losses incurred after October 31 (“post-October losses”) within the taxable year are deemed to arise on the first business day of each Fund’s next taxable year.
During the period June 9, 2011 to May 31, 2012, the Funds incurred and elected to defer net capital losses as follows:
Post-October Losses on Capital | ||||
db-X MSCI Brazil Fund | $ | — | ||
db-X MSCI Canada Fund | 2,583 | |||
db-X MSCI EAFE Fund | — | |||
db-X MSCI Emerging Markets Fund | 44,818 | |||
db-X MSCI Japan Fund | 9,246 |
57
DBX ETF Trust
NOTES TO FINANCIAL STATEMENTS (Continued)
In order to present paid-in capital and accumulated net realized gains or losses on the Statements of Assets and Liabilities that more closely represent their tax character, certain adjustments have been made to additional paid-in capital, undistributed net investment income or loss and accumulated net realized gains or losses on investments. These differences are primarily due to currency gain/(loss) and redemptions-in-kind. For the period June 9, 2011 to May 31, 2012, the adjustments were as follows:
Undistributed Net Investment Income (Loss) | Undistributed Capital Gains (Accumulated Losses) | Paid-in Capital | ||||||||||
db-X MSCI Brazil Fund | $ | (7,691 | ) | $ | 7,768 | $ | (77 | ) | ||||
db-X MSCI Canada Fund | (7,970 | ) | 7,970 | — | ||||||||
db-X MSCI EAFE Fund | 34,039 | 104,143 | (138,182 | ) | ||||||||
db-X MSCI Emerging Markets Fund | (608 | ) | 685 | (77 | ) | |||||||
db-X MSCI Japan Fund | 13,382 | (13,382 | ) | — |
As of May 31, 2012, the cost of investments for Federal income tax purposes and the aggregated gross unrealized appreciation/depreciation on investments was as follows:
Cost | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation (Depreciation) | |||||||||||||
db-X MSCI Brazil Fund | $ | 5,356,593 | $ | 83,395 | $ | (1,272,800 | ) | $ | (1,189,405 | ) | ||||||
db-X MSCI Canada Fund | 4,983,847 | 79,684 | (865,456 | ) | (785,772 | ) | ||||||||||
db-X MSCI EAFE Fund | 33,035,204 | 573,346 | (3,223,359 | ) | (2,650,013 | ) | ||||||||||
db-X MSCI Emerging Markets Fund | 5,045,229 | 106,799 | (972,584 | ) | (865,785 | ) | ||||||||||
db-X MSCI Japan Fund | 4,800,608 | 116,174 | (642,256 | ) | (526,082 | ) |
5. Investments in Affiliates
The Advisor is a wholly-owned subsidiary of Deutsche Bank AG. Therefore, Deutsche Bank AG is considered to be affiliated with the Funds. The table below shows the transactions in and earnings from investments in Deutsche Bank AG Securities for the period June 9, 2011 to May 31, 2012.
Fair Value 6/9/2011 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation/ (Depreciation) | Realized Gain (Loss) | Fair Value 5/31/2012 | |||||||||||||||||||
db-X MSCI EAFE | ||||||||||||||||||||||||
Deutsche Bank AG (Common Stock) | $ | — | $ | 137,129 | $ | (18,631 | ) | $ | (11,439 | ) | $ | (2,260 | ) | $ | 104,799 |
The Sub-Advisor is a wholly-owned subsidiary of The Toronto-Dominion Bank. Therefore, The Toronto-Dominion Bank is considered to be affiliated with the Funds. The table below shows the transactions in and earnings from investments in The Toronto-Dominion Bank Securities for the period June 9, 2011 to May 31, 2012.
Fair Value 6/9/2011 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation/ (Depreciation) | Realized Gain (Loss) | Fair Value 5/31/2012 | |||||||||||||||||||
db-X MSCI Canada | ||||||||||||||||||||||||
Toronto-Dominion Bank (The) (Common Stock) | $ | — | $ | 287,777 | $ | (67,826 | ) | $ | (11,432 | ) | $ | 1,242 | $ | 209,761 |
6. Investment Portfolio Transactions
For the period June 9, 2011 to May 31, 2012, the cost of investments purchased and proceeds from sale of investments (excluding in-kind transactions and short-term investments) were as follows:
Purchases | Sales | |||||||
db-X MSCI Brazil Fund | $ | 7,040,390 | $ | 1,523,219 | ||||
db-X MSCI Canada Fund | 5,823,292 | 775,219 | ||||||
db-X MSCI EAFE Fund | 10,666,476 | 3,133,854 | ||||||
db-X MSCI Emerging Markets Fund | 5,996,352 | 821,369 | ||||||
db-X MSCI Japan Fund | 5,517,293 | 714,199 |
58
DBX ETF Trust
NOTES TO FINANCIAL STATEMENTS (Continued)
For the period June 9, 2011 to May 31, 2012, the cost of in-kind purchases and proceeds from in-kind sales were as follows:
Purchases | Sales | |||||||
db-X MSCI EAFE Fund | $ | 30,057,946 | $ | 4,128,132 |
7. Fund Share Transactions
As of May 31, 2012, there were unlimited Fund shares of $0.0001 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. 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.
8. Subsequent Events
The Trust evaluated the need for disclosure and/or adjustment resulting from subsequent events through the date the financial statements were available to be issued. This evaluation did not result in any subsequent events that necessitated disclosure and/or adjustment.
59
DBX ETF Trust
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To Board of Trustees and Shareholders of
DBX ETF Trust:
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of DBX ETF Trust (the “Trust”), consisting of: db-X MSCI Brazil Currency-Hedged Equity Fund, db-X MSCI Canada Currency-Hedged Equity Fund, db-X MSCI EAFE Currency-Hedged Equity Fund, db-X MSCI Emerging Markets Currency-Hedged Equity Fund, and db-X MSCI Japan Currency-Hedged Equity Fund, as of May 31, 2012, and the related statements of operations, changes in net assets and the financial highlights for the period June 9, 2011 (commencement of operations) to May 31, 2012. These financial statements and financial highlights are the responsibility of the Trust’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Trust’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, 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. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and the financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of May 31, 2012, by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of db-X MSCI Brazil Currency-Hedged Equity Fund, db-X MSCI Canada Currency-Hedged Equity Fund, db-X MSCI EAFE Currency-Hedged Equity Fund, db-X MSCI Emerging Markets Currency-Hedged Equity Fund, and db-X MSCI Japan Currency-Hedged Equity Fund of DBX ETF Trust at May 31, 2012, the results of their operations, the changes in their net assets and the financial highlights for the period June 9, 2011 (commencement of operations) to May 31, 2012, in conformity with U.S. generally accepted accounting principles.
New York, New York
July 23, 2012
60
DBX ETF Trust
FREQUENCY DISTRIBUTION OF DISCOUNTS & PREMIUMS
The tables that follow present information about the differences between the daily market price on secondary markets for shares of a Fund and that Fund’s net asset value (“NAV”). NAV is the price per share at which each Fund issues and redeems shares. It is calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market returns (“Market Price”) of each Fund generally is determined using the midpoint between the highest bid and the lower offer on the national securities exchange on which the shares of such Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Each Fund’s Market Price may be at, above or below its NAV. The NAV of each Fund will fluctuate with changes in the market value of its portfolio holdings. The Market Price of each Fund will fluctuate in accordance with changes in its NAV, as well as market supply and demand. Shareholders may pay more than NAV when they buy Fund shares and receive less than NAV when they sell those shares, because shares are bought and sold at current market prices.
Premiums or discounts are the differences (expressed as a percentage) between the NAV and Market Price of a Fund on a given day, generally at the time NAV is calculated. A premium is the amount that a Fund is trading above the reported NAV, expressed as a percentage of the NAV. A discount is the amount that a Fund is trading below the reported NAV, expressed as a percentage of the NAV.
The following information shows the frequency distributions of premiums and discounts for each Fund included in this report. The information shown for each Fund is for each full calendar quarter completed after the inception date of such Fund, June 9, 2011, through the fiscal year ended May 31, 2012.
Each line in the table shows the number of trading days in which a Fund trades within the premium/discount range indicated. The number of trading days in each premium/discount range is also shown as a percentage of the total number of trading days in the period covered by each table. All data presented here represents past performance, which cannot be used to predict future results.
MARKET PRICE ABOVE OR EQUAL TO NAV | MARKET PRICE BELOW NAV | |||||||||||
Basis point Differential* | Number of Days | Percentage of Total Days | Number of Days | Percentage of Total Days | ||||||||
db-X MSCI Brazil Fund June 9, 2011 – May 31, 2012 | 0 - <.25% | 3 | 1.21% | 8 | 3.24% | |||||||
.25% - <.50% | 7 | 2.83% | 4 | 1.62% | ||||||||
.50% - <.75% | 8 | 3.24% | 1 | 0.40% | ||||||||
.75% - <1.00% | 8 | 3.24% | 3 | 1.21% | ||||||||
>= 1.00% | 200 | 80.97% | 5 | 2.02% | ||||||||
Total: | 226 | 91.50% | 21 | 8.50% | ||||||||
db-X MSCI Canada Fund June 9, 2011 – May 31, 2012 | 0 - <.25% | 47 | 19.03% | 11 | 4.45% | |||||||
.25% - <.50% | 63 | 25.51% | 3 | 1.21% | ||||||||
.50% - <.75% | 65 | 26.32% | 4 | 1.62% | ||||||||
.75% - <1.00% | 25 | 10.12% | 0 | 0.00% | ||||||||
>= 1.00% | 26 | 10.53% | 3 | 1.21% | ||||||||
Total: | 226 | 91.50% | 21 | 8.50% | ||||||||
db-X MSCI EAFE Fund June 9, 2011 – May 31, 2012 | 0 - <.25% | 19 | 7.69% | 17 | 6.88% | |||||||
.25% - <.50% | 18 | 7.29% | 21 | 8.50% | ||||||||
.50% - <.75% | 17 | 6.88% | 10 | 4.05% | ||||||||
.75% - <1.00% | 17 | 6.88% | 8 | 3.24% | ||||||||
>= 1.00% | 101 | 40.89% | 19 | 7.69% | ||||||||
Total: | 172 | 69.64% | 75 | 30.36% |
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DBX ETF Trust
FREQUENCY DISTRIBUTION OF DISCOUNTS & PREMIUMS (Continued)
MARKET PRICE ABOVE OR EQUAL TO NAV | MARKET PRICE BELOW NAV | |||||||||||
Basis point Differential* | Number of Days | Percentage of Total Days | Number of Days | Percentage of Total Days | ||||||||
db-X MSCI Emerging Markets Fund June 9, 2011 – May 31, 2012 | 0 - <.25% | 14 | 5.67% | 11 | 4.45% | |||||||
.25% - <.50% | 15 | 6.07% | 6 | 2.43% | ||||||||
.50% - <.75% | 31 | 12.55% | 7 | 2.83% | ||||||||
.75% - <1.00% | 27 | 10.93% | 2 | 0.81% | ||||||||
>= 1.00% | 126 | 51.01% | 8 | 3.24% | ||||||||
Total: | 213 | 86.23% | 34 | 13.77% | ||||||||
db-X MSCI Japan Fund June 9, 2011 – May 31, 2012 | 0 - <.25% | 39 | 15.79% | 20 | 8.10% | |||||||
.25% - <.50% | 42 | 17.00% | 22 | 8.91% | ||||||||
.50% - <.75% | 28 | 11.34% | 12 | 4.86% | ||||||||
.75% - <1.00% | 13 | 5.26% | 10 | 4.05% | ||||||||
>= 1.00% | 55 | 22.27% | 6 | 2.43% | ||||||||
Total: | 177 | 71.66% | 70 | 28.34% |
* A basis point equals one-hundredth of one percent (0.01%).
62
DBX ETF Trust
Name, Address, and Age | Position(s) Held with Fund | Term of Office and Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee | Other Directorships held by Trustee | |||||
Independent Trustees: | ||||||||||
J. David Officer Age 63, 60 Wall Street New York, NY 10005 | Trustee, Member of the Audit and Nominating Committee | Since 2011 | Consultant, Pershing LLC (2010-Present); Executive Vice President, The Bank of New York Mellon (2008-Present); Chief Executive Officer and Chairman, Laurel Capital Advisors (2005- Present). Formerly, Vice President, The Dreyfus Family of Funds, Inc. (2010), President, Dreyfus Funds, Inc. (2009); Vice President, BNY Mellon Funds Trust (2009-2010); President and Chairman, Dreyfus Founders Funds, Inc. (2007-2009); President, Chairman and Chief Executive Officer, Founders Asset Management (2007-2009); Consultant, The Dreyfus Corporation (2006-2009); Chief Operating Officer, The Dreyfus Corporation (2006-2009); President, MBSC Securities Corporation (2007- 2009); President, The Dreyfus Family of Funds (2007-2009); Vice President, Dreyfus Service Organization, Inc. (2004-2009); Vice Chairman, The Dreyfus Corporation (1998-2009); President, Dreyfus Service Corporation (2000-2007); President, MBSC, LLC (2002-2007); Executive Vice President, Mellon Bank, N.A. (1994-2008). | 5 | GLG Investment Series Trust; The Dreyfus Corporation; MBSC Securities Corporation; Dreyfus Services Corporation; MBSC, LLC; Dreyfus Transfer, Inc.; Dreyfus Service Organization, Inc.; Seven-Six Seven Agency, Inc.; Mellon-Residential Funding Corp.; Mellon-United National Bank; Laurel Capital Advisors; Mellon United National Bank; Dreyfus Founders Funds, Inc.; Founders Asset Management; Bessemer Trust Company, N.A. |
63
DBX ETF Trust
OFFICERS AND TRUSTEES (Continued)
Name, Address, and Age | Position(s) Held with Fund | Term of Office and Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee | Other Directorships held by Trustee | |||||
Stephen R. Byers Age 58, 60 Wall Street New York, NY 10005 | Trustee, Member and Chairman of the Audit and Nominating Committees | Since 2011 | Retired. Previously, Chief Investment Officer, The Dreyfus Corporation (2000- 2006). | 5 | The Dreyfus Corporation Sierra Income Corporation | |||||
George O. Elston Age 47, 60 Wall Street New York, NY 10005 | Trustee, Member of the Audit and Nominating Committees | Since 2011 | M&A Advisor, Chief Financial, Operating and Business Officer, Optherion, Inc. (2008-2010); and Vice President, Finance and Government Affairs Secretary and Treasurer, Elusys Therapeutics, Inc. (2000-2007). | 5 | Celldex Therapeutics. |
64
DBX ETF Trust
OFFICERS AND TRUSTEES (Continued)
Name, Address, and Age | Position(s) Held with Fund | Term of Office and Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee | Other Directorships held by Trustee | |||||
Interested Trustee/Officers:* | ||||||||||
Alex Depetris Age 32 60 Wall Street New York, New York 10005 | Trustee, Chairman of the Board, President, Chief Executive Officer and Secretary | Since 2010 | Director in the DBX Group at Deutsche Bank AG 2008; Associate, Arnold & Porter 2006 until 2008; Associate, Sullivan & Worcester 2005 until 2006. | 10 | Director, Chairman of the Board, db-X Exchange-Traded Funds, Inc. | |||||
Martin Kremenstein Age 35 60 Wall Street New York, New York 10005 | Chief Operating Officer | Since 2010 | Director in the DBX Group at Deutsche Bank AG with responsibility for providing investor solutions to the DB sales force in North America since 2006; Vice President, Market Risk Management JP Morgan Chase until 2006. | N/A | N/A | |||||
Michael Gilligan Age 45 60 Wall Street New York, New York 10005 | Treasurer, Chief Financial Officer and Controller | Since 2010 | Director in the Finance Group at Deutsche Bank AG with CFO responsibility for DBX Strategic Advisors LLC, DBX Advisors LLC and DB Commodity Services LLC since 2008; Chief Operating Officer, Americas Credit Trading, Credit Suisse 2007 to 2008; Director in the Finance Group, Credit Suisse 1998 to 2007. | N/A | N/A |
65
DBX ETF Trust
OFFICERS AND TRUSTEES (Continued)
Name, Address, and Age | Position(s) Held with Fund | Term of Office and Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Trustee | Other Directorships held by Trustee | |||||
Frank Gecsedi Age 44 60 Wall Street New York, New York 10005 | Chief Compliance Officer | Since 2010 | Vice President in Deutsche Bank’s Global Markets Legal, Risk and Capital Division Since 2010; Vice President and Compliance Manager at Bank of America Merill Lynch (Formerly Merrill Lynch) (2000-2010) | N/A | N/A |
* Officers/Trustee of the Company are “interested persons” as defined in the 1940 Act.
The Funds’ SAI includes additional information about the Funds’ Directors and is available by calling 855-329-3837, or on the Company’s website at www.dbxetf.com.
66
DBX ETF Trust
BOARD CONSIDERATIONS IN APPROVAL OF INVESTMENT ADVISORY AND SUB-ADVISORY CONTRACTS
At its meeting on February 13, 2012, the Board of Trustees, including the Independent Trustees (those not affiliated with the Trust or its service providers), unanimously approved the continuance of the Investment Advisory Agreement and Sub-Advisory Agreements (together, the “Agreements”), on behalf of each of the Trust’s five (5) underlying portfolios (each, a “Fund”, and together, the “Funds”).
In reaching this decision with respect to the Investment Advisory Agreement (the “Advisory Agreement”), the Board considered all factors it believed relevant, including (1) the nature, extent and quality of the services to be provided to the Funds and their shareholders; (2) the Adviser’s financial resources and its resulting ability to perform its obligations under the Advisory Agreement; (3) the competitiveness of the advisory fee; (4) the total cost of the services to be provided by and the profits that could be realized by the Adviser from its relationship with the Funds; and (5) the extent to which economies of scale would be realized as the Funds grow, and if the fund shareholders would benefit from those economies.
In reaching this decision with respect to the Sub-Advisory Agreement, the Board considered all factors it believed relevant, including (1) the nature, extent and quality of the services to be provided to the Funds and their shareholders (including the investment performance of TDAM’s index fund clients); (2) the performance of TDAM with respect to its management of index funds generally, as well as TDAM’s financial resources and its resulting ability to perform its obligations under the Sub-Advisory Agreement; (3) the competitiveness of the sub-advisory fee; (4) the total cost of the services to be provided by and the profits that could be realized by TDAM from its relationship with the Funds; and (5) the extent to which economies of scale would be realized as the Funds grow, and if the fund shareholders would benefit from those economies.
The Board reached a determination, with the assistance of Trust counsel and through the exercise of its business judgment, that approval of the Agreements and the compensation to be received thereunder is consistent with the Board’s duties under state and federal law. The Board reached this conclusion based on multiple factors.
The Board considered and reviewed materials distributed in advance of the meeting that provided a range of information on a variety of factors, including, among other things: (i) information about the duties and responsibilities of the board in connection with its review and consideration of the Agreements; and (ii) and performance and expense ratio information in comparison to peer registered investment companies (collectively, the “15(c) materials”). This information formed the primary, but not exclusive, basis for the Board’s determinations.
The Board considered the following in determining whether to approve the Advisory Agreement:
(i) | Nature, Extent and Quality of Services. |
In considering the nature, extent and quality of services that the Adviser provides to the Funds, the Board reviewed in detail the nature, extent and quality of services provided by the Adviser under the Advisory Agreement. The Board noted 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 and qualifications of the senior management and key professional personnel of the Adviser, including those individuals responsible for portfolio management. The Board considered that the Adviser 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 Adviser pays for the compensation of officers of the Trust who are also officers or employees of the Adviser, except as may otherwise be determined by the Board. The Board also considered that the Adviser arranges for the provision of transfer agency, custody, fund administration and accounting, and other non-distribution services necessary for the Funds’ operation.
The Board evaluated these factors in consultation with Fund counsel. Based on its review, the Board concluded that the nature, extent, and quality of services provided by the Adviser under the Advisory Agreement were reasonable and appropriate in relation to the fees to be paid to the Adviser, 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 Adviser, including the training, qualifications and experience of investment personnel in managing index funds. The Board also considered the expertise of the Adviser in supervising third party service providers to the Fund, such as the administrator and custodian. The Board further considered the compliance program of the Adviser which supports the Fund’s compliance program.
67
DBX ETF Trust
BOARD CONSIDERATIONS IN APPROVAL OF INVESTMENT ADVISORY AND SUB-ADVISORY CONTRACTS (Continued)
(ii) | Adviser’s Financial Resources. |
In connection with the assessment of the ability of the Adviser to perform its duties under the Advisory Agreement, the Board considered the Adviser’s financial condition and whether it had the resources necessary to carry out its functions. The Board concluded that the Adviser had the financial resources necessary to perform its obligations under the Advisory Agreement.
(iii) | Competitiveness of Advisory Fee. |
The Board considered the competitiveness of the Funds’ fees to other exchange-traded funds (ETFs), and noted that each Fund’s fees were equal to or lower than a peer ETF offered by iShares Trust. The Board noted that the proposed fee for each Fund was a unitary fee pursuant to which the Adviser pays all of each Fund’s costs. The Board also noted that, in contrast to other ETFs comparable to the Funds, the Funds offered a currency hedging component. Based on its review, the Board concluded that the advisory fees were reasonable in light of the services provided.
(iv) | Costs of Services and Profitability. |
The Board considered the expenses of the Adviser in developing and rendering services to the Funds, and the likelihood and level of profits in the early years of the Funds’ operations. The Board considered the asset levels at which the Adviser expected to “break-even” with respect to its operation of the Funds, and noted that since the fee paid by the Adviser to the Sub-Adviser under the Sub-Advisory Agreement contained breakpoints, the Adviser could experience increased profitability as each Fund’s assets increased. The Board considered that there were no material fall-out benefits likely to accrue to the Adviser related to the operation of the Funds, and no affiliates of the Adviser had a contractual relationship with the Trust. The Board noted that the Adviser was taking on considerable entrepreneurial risk.
Given the costs of the services provided by and the profits that could be realized by the Adviser in connection with the management of the Funds, the Board determined that the amount of potential profit was fair.
(v) | Economies of Scale. |
The Board noted that since each Fund’s fee was a unitary fee, the Funds would not experience economies of scale as a result of asset growth.
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 Sub-Advisory Agreement:
(i) | Nature, Extent and Quality of Services. |
In considering the nature, extent and quality of services that TDAM proposes to provide to the Funds, the Board reviewed in detail the nature, extent and quality of services to be provided by TDAM under the Advisory Agreement. The Board noted 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 TDAM’s operational capabilities and resources, and its experience in serving as investment sub-adviser to other funds (including certain other index-based ETFs advised by the Adviser). The Board considered the professional experience and qualifications of TDAM’s senior management and key professional personnel, as well as TDAM’s depth and breadth of experience in managing investment portfolios consisting of U.S. and non-U.S. equity securities. The Board gave special consideration to TDAM’s experience and capabilities in implementing currency hedging strategies, and their techniques for implementing such strategies while minimizing index tracking error. In addition, the Board considered TDAM’s operational capabilities and resources, and TDAM’s experience in managing index funds covering various asset classes. The Board noted that TDAM 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, TDAM 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 TDAM’s processes to minimize the cost of trading.
68
DBX ETF Trust
BOARD CONSIDERATIONS IN APPROVAL OF INVESTMENT ADVISORY AND SUB-ADVISORY CONTRACTS (Continued)
The Board evaluated these factors in consultation with Fund counsel. Based on its review, the Board concluded that the nature, extent, and quality of services to be provided by TDAM under the Sub-Advisory Agreement were reasonable and appropriate in relation to the fees to be paid to TDAM, taking special consideration of the fact that the fees to be paid to TDAM were payable by the Adviser and not the Funds.
(ii) | Performance of TDAM; TDAM’s Financial Resources. |
The Board noted that the Funds had recently yet commenced operations and thus had a limited performance history, but the Board considered TDAM’s performance in managing other index-based portfolios and its record at minimizing tracking error for such portfolios. The Board concluded that TDAM had generally been able to keep any such tracking error, as well as the Funds’ tracking error, within acceptable ranges.
The Board also considered TDAM’s financial condition and whether it had the resources necessary to carry out its functions. The Board concluded that TDAM had the financial resources necessary to perform its obligations under the Sub-Advisory Agreement.
(iii) | Competitiveness of Sub-Advisory Fee. |
The Board noted that the fee to be paid to TDAM in respect of each Fund would be paid by the Adviser and not the Fund. The Board further noted that the proposed fee for each Fund was a unitary fee pursuant to which the Adviser would pay all of each Fund’s costs, and thus was not directly affected by the amount of the sub-advisory fee paid to TDAM. Based on its review, the Board concluded that the sub-advisory fees were reasonable in light of the services provided.
(iv) | Costs of Services and Profitability. |
The Board considered the asset levels at which TDAM expected to “break-even” with respect to its operation of the Funds, and further noted that the fee paid by the Adviser to the TDAM under the Sub-Advisory Agreement contained breakpoints.
The Board also considered whether TDAM would benefit in other ways from its relationship with the Funds. The Board discussed TDAM’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 TDAM. The Board discussed the potential benefits TDAM derives from the Funds’ soft dollar arrangements, whereby brokers provide brokerage services to the Funds or TDAM in return for allocating fund brokerage.
Given the costs of the services provided by and the profits that could be realized by TDAM in connection with the management of the Funds, the Board determined that the amount of potential profit was fair.
(v) | Economies of Scale. |
The Board noted that since each Fund’s fee was a unitary fee, the Funds would not experience economies of scale as a result of asset growth.
Given all the information available to it and considering all material factors, the Board concluded that the Sub-Advisory Agreement was fair and reasonable and it was unanimously approved.
69
DBX ETF Trust
Proxy Voting Policies and Procedures
A description of the policies and procedures that the Company uses to determine how to vote proxies related to each Fund’s portfolio securities, (and information on how the Funds voted proxies during the period ended June 30, 2011 on Form N-PX) is available without charge, upon request, (i) by calling 855-329-3837; (ii) on the Company’s website at www.dbxetf.com; and (iii) on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.
Quarterly Portfolio Disclosure
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-Q. 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 Company at 855-329-3837. You can also obtain copies of Form N-Q by (i) visiting the SEC’s Public Reference Room in Washington, DC (information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330); (ii) sending your request and a duplicating fee to the SEC’s Public Reference Room, Washington, DC 20549-0102; or (iii) sending your request electronically to publicinfo@sec.gov.
Information about each Fund’s portfolio holdings is available daily at www.dbxetf.com.
Tax Information
Form 1099-DIV, Form 1042-S 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 following distribution information is being provided as required by the Internal Revenue Code.
Each Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended May 31, 2012.
Federal and State Income Tax
Qualified Dividend Income* | Dividends Received Deduction* | |||||||
db-X MSCI Brazil Fund | 18% | 0% | ||||||
db-X MSCI Canada Fund | 100% | 0% | ||||||
db-X MSCI EAFE Fund | 70% | 0% | ||||||
db-X MSCI Emerging Markets Fund | 79% | 0% | ||||||
db-X MSCI Japan Fund | 100% | 0% |
* The above percentage is based on ordinary income dividends paid to shareholders during each Fund’s fiscal year.
70
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 adviser, 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.
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.dbxetf.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.
71
DBX ETF Trust
This report is intended for the shareholders of the db-X ETF Trust. It may not be distributed to prospective Investors unless it is preceded or accompanied by the current prospectus.
An Investor should consider the fund’s investment objective, risks, charges and expenses carefully before investing. For this and more complete information about the fund call 855-329-3837 or visit the website www.dbxetf.com. Please read the prospectus carefully before investing.
There are risks involved with investing in exchange-traded funds including possible loss of money. db-X ETF Trust Funds are not actively managed and are subject to risks similar to stocks, including those related to short selling and margin maintenance. Losses from short sales may be unlimited, and losses from purchases on margin may exceed original investment.
Investing involves risk, including possible loss of principal. Investing in funds that invest in specific countries or geographic regions may be more volatile than investing in broadly diversified funds. Securities focusing on a single country may be subject to higher volatility.
In addition to the normal risks associated with investing, international investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations.
Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume.
Investments in currency involve additional special risks, such as credit risk, interest rate fluctuations, derivative investment risk which can be volatile and may be less liquid than other securities and the effect of varied economic conditions.
The prospectus is not an offer to buy or sell the portfolio shares, nor is the fund soliciting an offer to buy its shares in any jurisdiction where the offer or sale is not permitted.
db-X ETF Trust Funds are distributed by ALPS Distributors, Inc., member of FINRA, which is neither affiliated with db-X ETF Trust or any other affiliate, nor is it affiliated with The Bank of New York Mellon, or TDAM USA Inc.
MSCI and MSCI Index are servicemarks of MSCI Inc. and have been licensed for use by Deutsche Bank AG. db-X Funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc. Nor does this company make any representation regarding the advisability of investing in db-X Funds. Index data source: MSCI Inc.
DBX ETF Trust
INVESTMENT ADVISOR
DBX Advisors LLC
60 Wall Street
New York, NY 10005
INVESTMENT SUB-ADVISOR
TDAM USA Inc.
161 Bay Street, 35th Floor
TD Canada Trust Tower
Toronto, Ontario Canada M5J 2T2
ADMINISTRATOR, CUSTODIAN, FUND ACCOUNTANT & TRANSFER AGENT
The Bank of New York Mellon
101 Barclay Street
New York, NY 10286
DISTRIBUTOR
ALPS Distributors, Inc.
1290 Broadway
Suite 1100
Denver, CO 80203
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
5 Times Square
New York, NY 10036
LEGAL COUNSEL
Dechert LLP
1095 Avenue of the Americas
New York, NY 10036
Item 2. Code of Ethics.
(a) The Fund has adopted a code of ethics (the “Code of Ethics”) that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. This Code is filed as an exhibit to this report on Form N-CSR under item (a)(1).
Item 3. Audit Committee Financial Expert.
Stephen Byers is the designated financial expert on the Audit Committee of DBX ETF Trust with respect to DBX ETF Trust, Stephen Byers is not an “interested person” 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.
(a) Audit Fees. Fees for audit services for the Registrant’s fiscal year ended May 31, 2012, for professional services rendered by Ernst & Young LLP (“principal accountant”) for the audit of the Registrant’s annual financial statements were $90,000, respectively.
(b) Audit-Related Fees. The aggregate fees billed for the Registrant’s fiscal year ended May 31, 2012, for professional services rendered by the principal accountant 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 above in Item 4(a) was $0.
(c) Tax Fees. Fees for tax services billed to the Registrant during the fiscal year ended May 31, 2012, for professional services rendered by the principal accountant for tax compliance, tax advice and tax planning was $15,000.
(d) All Other Fees. All other aggregate fees billed for the Registrant’s fiscal year ended May 31, 2012 were $0.
(e) Audit Committee Pre-Approval Policies and Procedures. 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. 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) Not applicable.
(h) The Registrant’s Audit Committee has considered whether the provision of non-audit services that were rendered to the Registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Registrant which were not pre-approved (not requiring pre-approval) is compatible with maintaining the principal accountant’s independence.
Items 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, J. David Officer and George O. Elston.
Item 6. Schedule of Investments.
(a) The schedule is included as a part of the report to shareholders filed under Item 1 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 have been no material changes to the procedures by which the shareholders may recommend nominees to the Registrant’s Board of Trustees that would require disclosure herein.
Item 11. Controls and Procedures.
a) | Based on their evaluation of the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3-(c) under the Investment Company Act of 1940) as of a date within 90 days of the filing date of this report, the Registrant’s Chief Executive Officer (principal executive officer) and Chief Financial Officer (principal financial officer) have concluded that such disclosure controls and procedures are reasonably designed and are operating effectively to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to them by others within those entities, particularly during the period in which this report is being prepared, and that the information required in filings on Form N-CSR is recorded, processed, summarized and reported on a timely basis. |
b) | There were no significant changes in the Registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
Item 12. Exhibits.
(a)(1) Code of Ethics.
(a)(2) Certifications of the Registrant’s Chief Executive Officer and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are attached as Exhibit 302CERT.
(b) Certifications of the Registrant’s Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are attached as Exhibit 906CERT.
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: | /s/ Alex Depetris | |
Name: | Alex Depetris | |
Title: | President and Chief Executive Officer | |
Date: | August 3, 2012 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By: | /s/ Alex Depetris | |
Name: | Alex Depetris | |
Title: | President and Chief Executive Officer | |
Date: | August 3, 2012 |
By: | /s/ Michael Gilligan | |
Name: | Michael Gilligan | |
Title: | Treasurer, Chief Financial Officer and Controller | |
Date: | August 3, 2012 |