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Global Equity Index

& ETF Research ETF Research


North America United States

12 May 2011
US ETF Market Weekly Review Data in this report is as of Fri, May 6th
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Contributors
Market sell-off and outflows from risky assets removed $35bn from ETP
AUM Shan Lan
Head of Global Equity Index and ETF Research
Disappointing US Economic data, concerns about the slowdown of the Chinese (+1) 212 250-2776
economy, a strengthening US dollar, and the burst of the Silver bubble pushed the shan.lan@db.com
Equity (-1.72%) and the Commodity (-10.4%) markets deep into negative territory.
Christos Costandinides
Last week, Total US ETP flows from all products registered $4.1bn of outflows vs ETF Strategist
$7.8bn inflows the previous week, setting the YTD weekly flows average at (+44) 20 754-71975
+$2.4bn. US ETP AUM shrank by $35bn, ending at $1.084 trillion or 8.9% up YTD. christos.costandinides@db.com

Following strong prices and a weekly inflow of $7.8bn, last week the markets Sebastian Mercado
Research Analyst
experienced a correction not only on prices, but also on flows, with long-only ETPs
(+1) 212 250-8690
experiencing outflows of $4.3bn. As we suggested on our last weekly report, part sebastian.mercado@db.com
of the $7.8bn inflows experienced on the previous week was deemed to be
related to rebalancing activity in the NASDAQ-100 and Russell 2000 indices; Bo Huang
therefore soon after the effective date of the rebalancings, we saw significant Research Analyst
money ($3.8bn) flowing out of the respective ETFs tracking those indices. (+1) 212 250-0569
bo-a.huang@db.com
Long-only equity ETPs experienced $4.3bn of outflows last week vs $7.8bn of
inflows the previous week. From a geographic allocation perspective, most of the
outflows came from US-focused ETPs (-$4.8bn), while DM ex US, EM, and Global Research Contacts
ETPs recorded flows of +$693m, -$47m, and -$153m, respectively.
Aram Flores
Head of Index Research, Americas
Long-only Fixed Income ETPs recorded strong inflows of $2.0bn last week. (+1) 212 250-0630
Sovereign had $1.2bn inflows, followed by Corporates with $519mm. Commodity aram.flores@db.com
ETPs had their worst week so far this year, recording outflows of $2.5bn, with all
sectors experiencing outflows, and Precious Metals leading the way with $2.1bn. Daniel J Arnold
Gold and Silver ETPs experienced the largest outflows at a sub sector level with Head of Index Research, Europe
$1.1bn and $877m, respectively. (+44) 20 754-74849
daniel.j.arnold@db.com
New Launch Calendar: New flavors, new returns
There were 6 new ETPs listed on NYSE Arca during the previous week. These new
ETFs offer new equity exposure to food-related niches, volatility-related strategies,
and international small cap companies (Figure 22).
Turnover Review: Silver bubble bursts on record turnover ($55bn)
Total weekly turnover increased by 46.7% to $453bn vs. $309bn in the previous
week. Equity ETPs recorded the largest absolute increase of $119bn and
accounted for 77% of all ETP weekly turnover with $347bn. Commodity ETPs
accounted for 20% of all ETP weekly turnover with $90bn; more than half of it
came from Silver ETPs with $54.5bn total turnover or 27 times the weekly average
turnover during 2010. Finally, Fixed Income products turnover totaled $11.6bn at
the end of last Friday.
Assets Under Management (AUM) Review: AUM fall by $35bn
A sell-off across risky assets, mainly equities and commodities, shaved $35bn
from ETP AUM pulling assets down to $1.084 trillion or 3.1% down from the
previous week. ETP AUM as of last Friday had climbed $89bn or 8.9% YTD.

Deutsche Bank Securities Inc.


Deutsche Bank does and seeks to do business with companies covered in its research reports. Thus, investors should be aware
that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as
only a single factor in making their investment decision. DISCLOSURES AND ANALYST CERTIFICATIONS ARE LOCATED IN
APPENDIX 1. MICA(P) 146/04/2011
12 May 2011 US ETF Market Weekly Review

Table of Contents

Weekly Commentary ......................................................................... 3


Market Review.......................................................................................................................... 3
Flows Trends ............................................................................................................................ 3
New Products ........................................................................................................................... 5
Flows in Focus .......................................................................................................................... 7

ETP – Market Overview..................................................................... 9


Current Week............................................................................................................................ 9
ETN Data Snapshot ................................................................................................................. 11
Issuer Rankings....................................................................................................................... 12

ETP – Net Cash Flows...................................................................... 15


Investment Focus ................................................................................................................... 15
Sub Segment .......................................................................................................................... 16
Issuer ...................................................................................................................................... 18
Index Provider ......................................................................................................................... 19
Underlying Index/Security ....................................................................................................... 20
Top ETPs................................................................................................................................. 21

ETP – Weekly Turnover ................................................................... 22


Investment Focus ................................................................................................................... 22
Sub Segment .......................................................................................................................... 23
Issuer ...................................................................................................................................... 25
Index Provider ......................................................................................................................... 26
Underlying Index/Security ....................................................................................................... 26
Top ETPs................................................................................................................................. 27

ETP – Assets Under Management .................................................. 28


Investment Focus ................................................................................................................... 28
Sub Segment .......................................................................................................................... 29
Issuer ...................................................................................................................................... 31
Index Provider ......................................................................................................................... 32
Underlying Index/Security ....................................................................................................... 32
Top ETPs................................................................................................................................. 33

Appendix A: How we define ETPs.................................................. 35

Page 2 Deutsche Bank Securities Inc.


12 May 2011 US ETF Market Weekly Review

Weekly Commentary 1

Market Review
Last week was marked by a flight away from risky assets. Disappointing US Economic data,
concerns about the slowdown of the Chinese economy, a strengthening US dollar, and the
burst of the Silver bubble dragged the Equity markets and the Commodity markets deep
down into negative territory, in spite of the relief provided by the better-than-expected
payrolls data released on Friday. Equity markets in the US (S&P 500) were down by 1.72%.
Other developed and emerging markets outside the US did alike, with the MSCI EAFE (in
USD) and the MSCI EM (in USD) losing 2.08% and 3.26% during the week, respectively.
Outside equities, Commodities experienced a sell-off across the board, mainly driven by
Silver and Crude oil. The DB Liquid Commodity Index declined by 10.4% last week, while
Gold and Silver dropped by 4.36% and 25.62%, respectively. WTI Crude Oil lost 14.70%,
while the DB Diversified Agriculture Index experienced a setback of 4.92%. On the other
hand, Fixed Income was the hot asset class for the week with most of its benchmarks
recording green numbers, and the Barclays Capital 20+ Year Treasury Bond index leading the
ranking table with a 1.69% increase for the week. On the FX side the USD recorded its
second best week of the year; the greenback appreciated against most of the Majors,
including a strengthening of 3.32% against the EUR. Finally, Volatility rose as risky asset
prices plunged during last week, with the VIX index up by 24.75% at the end of this period.

Last week, Total US ETP flows from all products registered $4.1bn of outflows vs $7.8bn
inflows the previous week, setting the YTD weekly flows average at +$2.4bn. US ETP AUM
declined by $35bn, retreating to $1.084 trillion or 8.9% up YTD.

Flows Trends
Following strong prices and a weekly inflow of $7.8bn, last week the markets experienced a
correction not only on prices, but also on flows, with long-only ETPs experiencing outflows of
$4.3bn. As we suggested on our last weekly report, part of the $7.8bn inflows experienced
on the previous week was deemed to be related to rebalancing activity in the NASDAQ-100
and Russell 2000 indices; therefore soon after the effective date of the rebalancings, we saw
significant money ($3.8bn) flowing out of the respective ETFs tracking those indices. The rest
of the outflow was mainly driven by the sell-off in the commodities market (especially in the
Precious Metals sector) and the pull back of the equity markets (Figure 1). On the other hand,
the $2.0bn inflows into Fixed Income, helped to soften the flight of cash from ETPs.

Figure 1: ETP daily cash flows by major contributing sector/index – two weeks
5,000
4,000 Gold
3,000
2,000 Silver
M illions

1,000
0 S&P 500
(1,000)
(2,000) Nasdaq
(3,000) 100
(4,000) Russell
2000
Other

Source: Deutsche Bank, Bloomberg Finance LP.

1
The Weekly Commentary section focuses on long- only ETP Flows. Short and Long-Short ETP Flows are excluded.

Deutsche Bank Securities Inc. Page 3


12 May 2011 US ETF Market Weekly Review

Equity ETP Flows: Regional broad benchmarked ETPs lead the QTD flows
„ Long-only equity ETPs recorded $4.3bn of outflows last week vs $7.8bn of inflows the
previous week. From a geographic allocation perspective, most of the outflows came
from US-focused ETPs (-$4.8bn), while DM ex US, EM, and Global ETPs recorded flows of
+$693m, -$47m, and -$153m, respectively.
„ Emerging Markets/Developed Markets ex US: This quarter, new allocations have
favored broad benchmarked ETPs when it comes to new investments in the EM and DM
outside the US. As of last Friday, EM and DM ex US broad benchmarked ETPs had
received $2.8bn and $2.2bn of inflows on a QTD basis, respectively; while EM and DM ex
US country-linked products had gathered $822m and $1.4bn in the same period,
respectively. This suggests that, overall, investors’ views on the global equity markets
remain positive. At a country level, Germany is the only country which stands out this
quarter, with $1.1bn of inflows QTD (Figure 2)
„ US Sectors (long-only ETPs): US sector investing was almost flat with flows netting out
slightly towards the positive side (+$70m) during last week. Flows activity was
concentrated around the Healthcare (+$763m), Consumer Staples (+$580m), and Energy
(-$944m) sectors. In terms of sector rotations during Q2-11, we have seen money rotating
out from Energy ETPs ($4.5bn inflows in Q1 vs $1.8bn outflows QTD) and moving into
Healthcare ($204m inflows in Q1 vs $1.2bn inflows QTD) and Consumer Staples ($209m
inflows in Q1 vs $1.0bn inflows QTD) ETPs (Figure 3).

Figure 2: Country and Broad benchmark new cash Figure 3: US sector rotations as suggested by ETP flow
allocations for EM & DM ex US ETPs – QTD (long only) trends – QTD (long-only)
4,000 1,500

3,500 1,000
$822
3,000 $1,074
500

2,500 0
$ Million

$367
$ Million

2,000 (500)

1,500
$2,791 (1,000)

1,000 $2,166
(1,500)

500
(2,000)

0
Emerging Developed
Markets Markets ex US
Healthcare Consumer Staples Energy
Broad Country Germany
Source: Deutsche Bank, Bloomberg Finance LP, Reuters Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Fixed Income ETP flows: Long Term Sovereign ETPs shine attracting $1.2bn in inflows
„ Long-only Fixed Income ETP flows recorded strong inflows of $2.0bn last week vs.
$110m in inflows in the previous week. Sovereign ETPs received the largest inflows with
$1.2bn, followed by Corporates products with $519m at the end of last week. Corporates
and Sub-Sovereign ETPs maintain a healthy inflows trend so far this quarter; while
Sovereign ETPs resumed the steady upward trend following the peak and trough
experienced at the end of the previous week (Figure 4). From a credit quality perspective,
Investment Grade ETPs received $1.5bn of inflows, while High Yield ETPs recorded
inflows of $85m. In addition, we saw money running into the long end of the Treasury
yield curve (+$936m).

Page 4 Deutsche Bank Securities Inc.


12 May 2011 US ETF Market Weekly Review

Figure 4: Long-only Fixed Income Flows by Sector - QTD


2,500

2,000

1,500

$ M illion
1,000

500

(500)

Corporates Sovereign Sub-Sovereign Other FI


Source: Deutsche Bank, Bloomberg Finance LP.

Commodity ETP flows: Worst week year to date. Commodity plunge pulls $2.5bn away
„ Last week long-only commodity ETPs experienced $2.5bn of outflows vs. $513m of
outflows on the previous week. All commodity sectors experienced outflows, with
Precious Metals leading the league table with $2.1bn making their way out of the shinning
metals.
„ At a sub-sector level Gold and Silver ETPs lead the outflows with $1.1bn and $877m,
respectively. However what we saw last week in Silver (and the month before) was a
good example of a bubble which quickly pumped up just to burst even faster. The rise in
the margin requirements for Silver Futures imposed by the CME and the unwinding of
speculative positions triggered a sell-off in the metal. The price of Silver advanced 27.2%
in April reaching all-time highs, just to fall 25.6% on the first week of May. Last week’s
turnover on Silver ETPs was $54.5bn vs. $46.4bn the previous week which is 27 and 24
times larger than the previous year’s weekly average, respectively. AUM for Silver ETPs
declined by $6.6bn at the end of last week, just after crossing the $20bn mark on the
previous week (72% growth from last year closing as compare with a 12% for the ETP
industry and a 6% for Gold ETPs at the end of the same week). In addition, a look at the
ETP flows suggests that Silver’s April rally ran with no inflows ($86m outflows in April)
which is inconsistent with a fundamental trend; while the plunge experienced last week
was accompanied with corresponding outflows (-$877m).

New Products
New Launch Calendar: New flavors, new returns
„ There were 6 new ETPs listed on NYSE Arca during the previous week. These new ETFs
offer new equity exposure to food-related niches, volatility-related strategies, and
international small cap companies (Figure 22).
„ Global X Funds with 3 new ETPs lead the launching activity during last week. The ETFs
keep focusing in specific themes, as it has been the tone of most of the firm’s ETFs.
„ The Global X Food ETF (EATX) is a new way to benefit from the rise in food prices. The
underlying index tracks 50 companies involved in the Agribusiness industry, the food
products industry (be it by manufacturing, sales, or distribution), and the development
of new food technologies. This new product comes to market at a TER of 0.65% and
expands the current offering of ETPs in this area, such as Market Vector’s MOO (TER:
0.56%) and Index IQ’s CROP (TER: 0.75%). All of these products have global exposure
with the US being the largest country exposure in each case. However, the differences

Deutsche Bank Securities Inc. Page 5


12 May 2011 US ETF Market Weekly Review

stem from the industry and company size allocations in each of them. Both MOO and
CROP focus in the Agribusiness industry only and track a similar number of companies
(around 50), with the distinction that MOO focuses mainly in large and mid cap
companies while CROP focuses on small cap firms.
„ The Global X Fishing Industry ETF (FISN) comes to market at a TER of 0.69% and
offers exposure to the fishing industry (mainly salmon). The index tracked by the fund
includes 20 companies headquartered worldwide, with the three largest country
exposures being Norway (36%), Japan (23%), and Chile (13%). The companies in the
index are engaged in one or more of the following activities: commercial fishing, fish
farming, fish processing or the marketing and sale of fish and fish products.
„ The Global X Mexico Small Cap ETF (MEXS) comes to market at a TER of 0.69% and
expands the current offering available through ETFs by adding access to the small cap
segment of the Mexican equity markets. In general large companies could generate a
significant portion of their revenue from global operations, while smaller companies
derive their revenues mostly from the domestic market. According to the issuer,
MEXS is designed to give investors exposure to Mexico’s domestic growth story, with
an emerging middle class and positive developments in manufacturing and industry.
MEXS will compete partially with iShares’ EWW (TER: 0.53%) which is focused in the
broad market.
„ Index IQ launched the IQ Global Oil Small Cap ETF (IOIL) which offers global exposure to
the small cap segment of the Oil sector. IOIL charges a TER of 0.75% and its underlying
index tracks a portfolio of 61 companies, with the major three country allocations being
the United States (45%), Canada (12%), and Thailand (7%). Another product with global
exposure to the Oil sector is iShares’ IXC (TER: 0.48%) which tracks a portfolio of 88
companies; however IXC focuses mostly on big Integrated Oil company names with its
major three country allocations being the United States (49%), United Kingdom (16%),
and Canada (11%). Therefore IXC and IOIL could be seen more as a complement to each
other rather than competitors.
„ PowerShares launched two new equity ETPs. These are the first ETFs employing risk-
weighted methodologies. One of them takes into account the market risk as measured by
beta, while the other one considers the total risk as measured by volatility.
„ The PowerShares S&P 500 High Beta Portfolio (SPHB) comes to market at a TER of
0.25% and seeks to deliver exposure to the 100 stocks from among the S&P 500
which have the highest beta over the past 12 months. Or put in another way, the fund
intends to leverage its market exposure by selecting those companies with the highest
sensitivity to the market movements (i.e. an aggressive approach).
„ The PowerShares S&P 500 Low Volatility Portfolio (SPLV) comes to market at a TER of
0.25% and seeks to deliver exposure to the 100 stocks from among the S&P 500
which have the lowest realized volatility over the past 12 months with the intent of
lessening the total risk of the portfolio (i.e. a conservative approach).

Page 6 Deutsche Bank Securities Inc.


12 May 2011 US ETF Market Weekly Review

Flows in Focus2
Equity ETPs by Geographic Focus

Figure 5: Daily Flows – 2 Weeks Figure 6: Weekly Aggregated Flows – 2 Weeks


4,000

3,000

2,000

1,000
$ Million

(1,000)

(2,000)

(3,000)

(6,000) (4,000) (2,000) - 2,000 4,000 6,000 8,000 10,000


$ Million
US EM DM ex US Global US EM DM ex US Global

Equity ETPs by Market Capitalization Focus

Figure 7: Daily Flows – 2 Weeks Figure 8: Weekly Aggregated Flows – 2 Weeks


4,000

3,000

2,000

1,000
$ Million

(1,000)

(2,000)

(3,000)

(6,000) (4,000) (2,000) - 2,000 4,000 6,000 8,000 10,000


$ Million
Large Cap Mid Cap Small Cap Broad Large Cap Mid Cap Small Cap Broad

Equity ETPs by Style Focus (excluding Blend Products)

Figure 9: Daily Flows – 2 Weeks Figure 10: Weekly Aggregated Flows – 2 Weeks
250

200

150

100
$ Million

50

(50)

(100)

(200) - 200 400 600 800


$ Million
Growth Value Dividend Growth Value Dividend
Source: Deutsche Bank, Bloomberg Finance LP, Reuters

2
The Flows in Focus sub section considers only Long and Short ETP Flows. Long-Short ETP Flows are excluded.

Deutsche Bank Securities Inc. Page 7


12 May 2011 US ETF Market Weekly Review

Equity ETPs by US Sector Focus

Figure 11: Weekly Aggregated Flows – 2 Weeks

Healthcare
Consumer Staples
Consumer Discretionary
Financials
Telecommunication Services
Information Technology
Utilities
Industrials
Materials
Energy

(1,500) (1,000) (500) - 500 1,000


Current Week Previous Week N et C ash Flows ( $ Million)
Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Fixed Income ETPs by Maturity Focus (excluding Broad Products)

Figure 12: Daily Flows – 2 Weeks Figure 13: Weekly Aggregated Flows – 2 Weeks
1,000

500

-
$ Million

(500)

(1,000)

(1,500)

(1,000) (500) - 500 1,000 1,500 2,000


$ Million
Money Market Short Duration Medium Duration Long Duration Money Market Short Duration Medium Duration Long Duration

Equity ETPs by Credit Quality Focus (excluding Mixed Products)

Figure 14: Daily Flows – 2 Weeks Figure 15: Weekly Aggregated Flows – 2 Weeks
1,500

1,000

500

-
$ Million

(500)

(1,000)

(1,500)

(2,000)

(500) - 500 1,000 1,500 2,000


$ Million
Investment Grade High Yield Investment Grade High Yield
Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Page 8 Deutsche Bank Securities Inc.


12 May 2011 US ETF Market Weekly Review

ETP – Market Overview


Current Week
Figure 16: ETP+ETN distribution by AUM Figure 17: ETP+ETN Asset Class distribution by AUM ($ Billion)
1,000
2%
10% 800

600

400
ETF
200
ETV
-
Fixed
ETN Equity
income
Commodity Currency Multi Asset Alternative

ETN 4.15 0.34 9.29 0.24 0.04 2.64


ETV 5.10 - 100.91 5.52 - 0.21
88%
ETF 807.60 160.82 - 1.67 1.49 0.95

Source: Deutsche Bank, Bloomberg Finance LP, Reuters Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Figure 18: Number of ETPs by Asset Class


Current Week Prev. Week WoW Change End of 2010 YTD Change
# of Mkt # of # of % # of # of # of % # of
Asset Class
ETPs Share % ETPs ETPs ETPs ETPs ETPs ETPs
Equity 808 76.4% 802 6 0.7% 749 59 7.9%
Fixed income 144 13.6% 144 0 0.0% 124 20 16.1%
Commodity 40 3.8% 40 0 0.0% 37 3 8.1%
Currency 25 2.4% 25 0 0.0% 25 0 0.0%
Multi Asset 24 2.3% 24 0 0.0% 24 0 0.0%
Alternative 17 1.6% 17 0 0.0% 8 9 112.5%
Total 1,058 100% 1052 6 0.57% 967 91 9.41%

Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Figure 19: ETP Net Cash flows ($ Million) by Asset Class


Current Week Prev. Week YTD
Net % of Net % of Net % of
Asset Class
Cashflow AUM Cashflow AUM Cashflow AUM
Equity (4,204) -0.5% 7,810 0.9% 29,207 3.9%
Fixed income 2,043 1.3% 82 0.1% 13,087 9.0%
Commodity (2,325) -2.3% (308) -0.3% (604) -0.6%
Currency 380 5.3% 155 2.3% 1,289 22.1%
Multi Asset 8 0.5% 4 0.3% 292 25.8%
Alternative 23 2.0% 10 0.9% 427 61.2%
Total (4,075) -0.4% 7,753 0.7% 43,699 4.4%

Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Deutsche Bank Securities Inc. Page 9


12 May 2011 US ETF Market Weekly Review

Figure 20: ETP Turnover ($ Million) by Asset Class


Current Week Prev. Week WoW Change Year 2010 Change from 2010
Mkt % %
Asset Class Turnover Turnover Turnover Turnover Turnover
Share % Turnover Turnover
Equity 346,538 76.6% 227,616 118,922 52.2% 307,205 39,334 12.8%
Fixed income 11,643 2.6% 10,339 1,304 12.6% 11,379 264 2.3%
Commodity 90,087 19.9% 67,797 22,291 32.9% 15,376 74,711 485.9%
Currency 4,206 0.9% 2,758 1,449 52.5% 2,243 1,963 87.5%
Alternative 172 0.0% 107 65 60.5% 28 144 523.0%
Multi Asset 43 0.0% 59 (16) -27.8% 40 2 5.7%
Total 452,690 100% 308,675 144,015 46.7% 336,271 116,418 34.6%

Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Figure 21: ETP AUM ($ Million) by Asset Class


Current Week Prev. Week WoW Change End of 2010 YTD Change
Mkt
Asset Class AUM AUM AUM % AUM AUM AUM % AUM
Share %
Equity 812,699 75.0% 837,234 (24,535) -2.9% 745,592 67,107 9.0%
Fixed income 160,820 14.8% 158,945 1,875 1.2% 145,610 15,210 10.4%
Commodity 100,913 9.3% 113,450 (12,537) -11.1% 96,378 4,535 4.7%
Currency 7,187 0.7% 6,841 347 5.1% 5,837 1,350 23.1%
Multi Asset 1,487 0.1% 1,501 (14) -0.9% 1,132 355 31.4%
Alternative 1,156 0.1% 1,155 1 0.0% 699 457 65.4%
Total 1,084,262 100% 1,119,126 (34,864) -3.1% 995,247 89,015 8.9%

Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Figure 22: New Listings ETPs+ETNs


Asset Class Bloom- Reuters
ETP Name Issuer Exchange TER
& Structure berg Code
Global X Food ETF Global X Management Co LLC Equity ETF NYSE Arca 0.65% EATX US EATX.K
Global X Fishing Industry ETF Global X Management Co LLC Equity ETF NYSE Arca 0.69% FISN US FISN.K
PowerShares S&P 500® Low Volatility Portfolio PowerShares Equity ETF NYSE Arca 0.25% SPLV US SPLV.K
PowerShares S&P 500® High Beta Portfolio PowerShares Equity ETF NYSE Arca 0.25% SPHB US SPHB.K
IQ Global Oil Small Cap ETF IndexIQ Advisors LLC Equity ETF NYSE Arca 0.75% IOIL US IOIL.K
Global X Mexico Small-Cap ETF Global X Management Co LLC Equity ETF NYSE Arca 0.69% MEXS US MEXS.K

Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Page 10 Deutsche Bank Securities Inc.


12 May 2011 US ETF Market Weekly Review

ETN Data Snapshot


Figure 23: ETN Summary by Asset Class
AUM ($ MM) Cash Flow ($ MM) Turnover ($ MM) Products Market Share %
Current End of Current Prev. Current Prev. Current End of Cash
Asset Class %Chg YTD %Chg %Chg AUM Turnover Products
Week 2010 Week Week Week Week Week 2010 Flow*
Equity 4,157 3,978 4.5% (8) (5) 220 472 217 117.4% 33 32 3.1% 25% 6% 7% 20%
Fixed income 342 183 87.2% 0 17 168 54 40 33.9% 18 12 50.0% 2% 92% 1% 11%
Commodity 9,286 7,584 22.4% (101) (18) 1,909 2,294 1,508 52.1% 79 59 33.9% 56% 25% 34% 49%
Currency 236 184 27.9% (1) 2 64 17 18 -4.3% 11 11 0.0% 1% 35% 0% 7%
Multi Asset 43 27 56.8% 2 1 17 3 2 38.7% 3 3 0.0% 0% 64% 0% 2%
Alternative 2,638 2,338 12.8% 14 197 994 3,932 2,373 65.7% 18 15 20.0% 16% 43% 58% 11%
Total 16,701 14,294 16.8% (93) 193 3,373 6,771 4,159 62.8% 162 132 22.7% 100% 24% 100% 100%

Source: Deutsche Bank, Bloomberg Finance LP, Reuters


*Cash Flow Market Share corresponds to YTD Cash Flow / End of 2010 AUM

Figure 24: ETN Summary by Issuer


AUM ($ MM) Cash Flow ($ MM) Turnover ($ MM) Products Market Share %
Current End of Current Prev. Current Prev. Current End of Cash
Issuer %Chg YTD %Chg %Chg AUM Turnover Products
Week 2010 Week Week Week Week Week 2010 Flow*
iPath 8,859 8,222 7.7% (57) 118 1,669 4,777 2,896 64.9% 30 30 0.0% 53% 20% 71% 19%
JPMorgan Chase & Co 2,743 2,286 20.0% 0 - 389 305 125 143.4% 4 4 0.0% 16% 17% 5% 2%
Swedish Export CC 1,772 1,331 33.1% 3 10 460 139 123 12.2% 7 7 0.0% 11% 35% 2% 4%
Deutsche Bank AG 1,168 985 18.6% (52) 25 164 928 598 55.2% 31 25 24.0% 7% 17% 14% 19%
UBS Securities 740 634 16.7% 2 12 108 47 34 38.2% 19 18 5.6% 4% 17% 1% 12%
Barclays Capital 599 308 94.4% 13 10 300 160 117 35.9% 48 29 65.5% 4% 97% 2% 30%
Credit Suisse AG 437 239 82.9% (3) 16 177 385 224 71.7% 11 10 10.0% 3% 74% 6% 7%
Van Eck Funds 156 121 28.5% - 2 48 12 11 9.7% 4 4 0.0% 1% 40% 0% 2%
Goldman Sachs 76 72 4.8% - - - 6 9 -28.8% 1 1 0.0% 0% 0% 0% 1%
RBS 70 4 1589.7% - - 64 3 2 35.0% 3 1 200.0% 0% 1545% 0% 2%
HSBC USA Inc 44 73 -39.1% - - (34) 4 1 169.1% 1 1 0.0% 0% -47% 0% 1%
Morgan Stanley 21 - n.a. - - 20 6 16 -65.3% 1 0 n.a. 0% n.a. 0% 1%
Citigroup 12 14 -16.4% - - 8 1 1 14.1% 1 1 0.0% 0% 58% 0% 1%
Guggenheim Funds Distrib 4 4 2.2% - - - 0 0 -42.6% 1 1 0.0% 0% 0% 0% 1%
Total 16,701 14,294 16.8% (93) 193 3,373 6,771 4,159 62.8% 162 132 22.7% 100% 24% 100% 100%
Source: Deutsche Bank, Bloomberg Finance LP, Reuters
*Cash Flow Market Share corresponds to YTD Cash Flow / End of 2010 AUM

Deutsche Bank Securities Inc. Page 11


12 May 2011 US ETF Market Weekly Review

Issuer Rankings
Net Cash Flows
Figure 25: ETP Net Cash flows ($ Million) ranking by Issuer
Current Week Net Cashflows ($ Million)
Fixed Commo-
Issuer Equity Other Total
Income dity
Vanguard 590 132 - - 723
WisdomTree AM 101 31 - 103 235
Rydex Invest. 53 - - 50 103
Charles Schwab Investment Mgmt 64 - - - 64
First Trust Ad. 48 - - - 48
ALPS Fund Services Inc 35 - - - 35
PIMCO - 34 - - 34
ProShares (177) (27) 180 43 20
Teucrium Trading LLC - - 18 - 18
GreenHaven Commodity Sers. - - 11 - 11
AdvisorShares Trust - - - 4 4
Revenue Shares - - - - -
Grail Advisors LLC - - - - -
Fidelity Invest. - - - - -
Javelin Invesment Management LLC - - - - -
FaithShares Advisors LLC - - - - -
PAX World Management LLC - - - - -
Sprott Asset Management LP/Canada - - - - -
US One Inc - - - - -
FocusShares - - - - -
FactorShares - - - - -
Emerging Global Shares (1) - - - (1)
IndexIQ Advisors LLC (1) - - - (1)
Global X Management Co LLC (4) - - - (4)
Merrill Lynch (23) - - - (23)
Guggenheim Funds Distributors, Inc. (82) 6 - - (76)
Deutsche Bank AG - - (298) 205 (92)
Van Eck Funds (100) 5 - - (95)
United States Commodity Funds LLC - - (164) - (164)
Direxionshares (204) 35 - - (169)
ETF Securities Ltd - - (172) - (172)
Bank of New York (472) - - - (472)
PowerShares (983) 35 - 3 (945)
BlackRock (2,250) 1,644 (715) 2 (1,319)
State Street GA (798) 147 (1,185) - (1,836)

Total (4,204) 2,043 (2,325) 410 (4,075)


Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Page 12 Deutsche Bank Securities Inc.


12 May 2011 US ETF Market Weekly Review

Weekly Turnover
Figure 26: ETP Turnover ($ Million) by Issuer
Current Week Turnover ($ Million)
Fixed Commo- Mkt
Issuer Equity Other Total
Income dity Share %
State Street GA 170,765 907 23,312 - 194,984 43.1%
BlackRock 90,844 7,602 41,208 20 139,674 30.9%
ProShares 18,090 1,723 15,105 426 35,344 7.8%
PowerShares 17,342 209 - 26 17,577 3.9%
Direxionshares 15,628 248 - - 15,876 3.5%
Vanguard 10,908 626 - - 11,534 2.5%
Merrill Lynch 9,503 - - - 9,503 2.1%
Van Eck Funds 8,212 58 - - 8,270 1.8%
United States Commodity Funds LLC - - 7,328 - 7,328 1.6%
Deutsche Bank AG - - 2,019 1,319 3,338 0.7%
Rydex Invest. 290 - - 2,450 2,740 0.6%
Bank of New York 2,424 - - - 2,424 0.5%
WisdomTree AM 960 93 - 128 1,181 0.3%
ETF Securities Ltd - - 993 - 993 0.2%
First Trust Ad. 474 - - - 474 0.1%
Global X Management Co LLC 352 - - - 352 0.1%
Guggenheim Funds Distributors, Inc. 286 18 - 10 314 0.1%
Charles Schwab Investment Mgmt 253 19 - - 272 0.1%
PIMCO - 138 - - 138 0.0%
ALPS Fund Services Inc 94 - - - 94 0.0%
GreenHaven Commodity Sers. - - 62 - 62 0.0%
Teucrium Trading LLC - - 59 - 59 0.0%
IndexIQ Advisors LLC 37 - - 7 44 0.0%
Emerging Global Shares 35 - - - 35 0.0%
AdvisorShares Trust 1 3 - 21 25 0.0%
Revenue Shares 24 - - - 24 0.0%
FactorShares - - - 13 13 0.0%
FocusShares 9 - - - 9 0.0%
Fidelity Invest. 7 - - - 7 0.0%
Javelin Invesment Management LLC 1 - - - 1 0.0%
PAX World Management LLC 1 - - - 1 0.0%
US One Inc 0 - - - 0 0.0%
Grail Advisors LLC 0 - - - 0 0.0%
FaithShares Advisors LLC 0 - - - 0 0.0%
Total 346,538 11,643 90,087 4,421 452,690 100%
Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Deutsche Bank Securities Inc. Page 13


12 May 2011 US ETF Market Weekly Review

AUM
Figure 27: ETP AUM ($ Million) ranking by Issuer
Current Week AUM ($ Million)
Fixed Commo- Mkt
Issuer Equity Other Total
Income dity Share %
BlackRock 357,768 103,458 19,854 540 481,620 44.4%
State Street GA 175,156 16,075 57,583 - 248,814 22.9%
Vanguard 148,378 20,558 - - 168,936 15.6%
PowerShares 39,841 6,934 - 748 47,523 4.4%
ProShares 15,034 7,474 2,477 947 25,931 2.4%
Van Eck Funds 20,370 975 - - 21,345 2.0%
Deutsche Bank AG - - 12,036 1,724 13,760 1.3%
WisdomTree AM 9,174 1,217 - 1,773 12,163 1.1%
Bank of New York 11,323 - - - 11,323 1.0%
Rydex Invest. 5,561 - - 3,180 8,742 0.8%
First Trust Ad. 7,805 - - - 7,805 0.7%
Direxionshares 5,470 645 - - 6,115 0.6%
Merrill Lynch 5,101 - - - 5,101 0.5%
Charles Schwab Investment Mgmt 3,901 308 - - 4,209 0.4%
United States Commodity Funds LLC - - 4,184 - 4,184 0.4%
ETF Securities Ltd - - 3,841 - 3,841 0.4%
Guggenheim Funds Distributors, Inc. 2,948 388 - 483 3,820 0.4%
PIMCO - 2,741 - - 2,741 0.3%
Global X Management Co LLC 1,675 - - - 1,675 0.2%
ALPS Fund Services Inc 1,381 - - - 1,381 0.1%
GreenHaven Commodity Sers. - - 811 - 811 0.1%
Revenue Shares 619 - - - 619 0.1%
Emerging Global Shares 531 - - - 531 0.0%
IndexIQ Advisors LLC 304 - - 193 497 0.0%
AdvisorShares Trust 28 37 - 220 284 0.0%
Fidelity Invest. 190 - - - 190 0.0%
Teucrium Trading LLC - - 128 - 128 0.0%
FocusShares 77 - - - 77 0.0%
Grail Advisors LLC 20 10 - - 30 0.0%
FactorShares - - - 22 22 0.0%
Javelin Invesment Management LLC 15 - - - 15 0.0%
US One Inc 14 - - - 14 0.0%
FaithShares Advisors LLC 11 - - - 11 0.0%
PAX World Management LLC 5 - - - 5 0.0%

Total 812,699 160,820 100,913 9,830 1,084,262 100%


Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Page 14 Deutsche Bank Securities Inc.


12 May 2011 US ETF Market Weekly Review

ETP – Net Cash Flows


Investment Focus
Figure 28: ETP Net Cash flows ($ Million) by Investment Focus - Equity
Current Week Prev. Week YTD
Net % of Net % of Net % of
Investment Focus - Equity
Cashflow AUM Cashflow AUM Cashflow AUM
Country (57) -0.1% 167 0.2% 10,202 11.6%
Regional 416 0.2% 511 0.3% (1,341) -0.8%
Sector 194 0.2% 1,220 1.0% 8,991 9.0%
Size (5,177) -2.1% 6,019 2.4% 254 0.1%
Style 744 0.6% 247 0.2% 6,790 6.4%
Strategy (222) -0.7% (660) -2.0% 857 2.7%
Thematic (101) -0.4% 306 1.2% 3,455 16.2%
Total (4,204) -0.5% 7,810 0.9% 29,207 3.9%
Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Figure 29: Net Cash flows ($ Million) by Investment Focus – Fixed Income
Current Week Prev. Week YTD
Net % of Net % of Net % of
Investment Focus - Fixed Income
Cashflow AUM Cashflow AUM Cashflow AUM
Overall 74 0.3% (45) -0.2% 265 1.2%
Corporates 519 0.9% 501 0.9% 6,740 13.5%
Sovereign 1,233 2.3% (690) -1.3% 3,249 6.4%
Sovereign & Corporates 57 0.6% 40 0.4% 573 6.7%
Sub-Sovereign 150 1.0% 228 1.5% 1,807 13.8%
Structured Products 11 0.4% 47 1.7% 452 19.7%
Total 2,043 1.3% 82 0.1% 13,087 9.0%
Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Figure 30: ETP Net Cash flows ($ Million) by Investment Focus – Commodity
Current Week Prev. Week YTD
Net % of Net % of Net % of
Investment Focus - Commodity
Cashflow AUM Cashflow AUM Cashflow AUM
Overall (144) -1.6% 83 0.8% 1,301 17.2%
Agriculture (160) -4.5% (125) -3.2% 820 29.7%
Energy (95) -1.9% (287) -5.0% (1,081) -18.1%
Industrial Metals (5) -0.8% - 0.0% 112 21.8%
Precious Metals (1,921) -2.3% 21 0.0% (1,756) -2.2%
Total (2,325) -2.3% (308) -0.3% (604) -0.6%

Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Deutsche Bank Securities Inc. Page 15


12 May 2011 US ETF Market Weekly Review

Sub Segment
Figure 31: ETP Net Cashflows ($ Million) by Investment Focus Sub Segment - Equity
Current Week Prev. Week YTD
Investment Focus Net % of Net % of Net % of
Sub Segment - Equity Cashflow AUM Cashflow AUM Cashflow AUM
Country
US Broad 14 0.1% (10) 0.0% 680 2.8%
Developed non-US 60 0.2% 136 0.5% 6,836 31.3%
Emerging Country (132) -0.3% 41 0.1% 2,686 6.5%

Regional
Asia Pacific (100) -1.1% (0) 0.0% (839) -8.8%
Emerging Markets 8 0.0% 309 0.3% (6,210) -6.1%
Europe 9 0.1% 127 2.0% 780 15.8%
Global 19 0.3% 0 0.0% 974 21.5%
Global ex-US 480 0.8% 75 0.1% 3,954 7.5%

Sector
Global 39 0.7% 18 0.3% 227 4.5%
Global ex-US 86 2.6% 76 2.3% 723 29.4%
Other Sector (43) -4.3% 8 0.7% 170 20.7%
US 112 0.1% 1,118 1.0% 7,871 8.6%

Size
Large Cap (2,039) -1.2% 3,833 2.1% 2,340 1.4%
Mid Cap (521) -1.5% 35 0.1% (80) -0.3%
Small Cap (2,617) -8.4% 2,151 6.1% (2,006) -6.4%

Style
Growth 318 0.6% 163 0.3% 2,418 5.6%
Value 117 0.3% (56) -0.1% 1,512 4.0%
Dividend 309 1.1% 140 0.5% 2,860 11.6%

Strategy
Short 20 0.7% (81) -3.1% 173 6.3%
Leveraged (469) -4.3% (721) -6.0% (1,589) -14.4%
Leveraged Short 69 1.0% 90 1.4% 1,017 13.9%
Quantitative 113 1.6% 78 1.1% 1,041 18.6%
Fundamental 45 1.0% (25) -0.5% 202 4.6%
Active - 0.0% (1) -1.1% 13 12.5%

Thematic
Sustainability (17) -0.4% (10) -0.2% 183 4.9%
Commodities (123) -0.8% 277 1.6% 2,291 15.4%
Other Theme 39 1.0% 39 1.0% 980 37.7%
Total (4,204) -0.5% 7,810 0.9% 29,207 3.9%
Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Page 16 Deutsche Bank Securities Inc.


12 May 2011 US ETF Market Weekly Review

Figure 32: ETP Net Cashflows ($ Million) by Investment Focus Sub Segment – Fixed Income
Current Week Prev. Week YTD
Investment Focus Net % of Net % of Net % of
Sub Segment - Fixed Income Cashflow AUM Cashflow AUM Cashflow AUM
Overall
Overall 74 0.3% (45) -0.2% 265 1.2%

Corporates
Overall 517 0.9% 500 0.9% 6,705 13.9%
Financials 2 0.1% 1 0.0% 35 2.0%

Sovereign
Overall 1,233 2.3% (690) -1.3% 3,249 6.4%

Sovereign & Corporates


Overall 57 0.6% 40 0.4% 573 6.7%

Sub-Sovereign
Agency - 0.0% - 0.0% 11 3.1%
Foreign Sovereigns 138 1.9% 187 2.6% 1,847 35.7%
Local Governments 12 0.2% 41 0.5% (51) -0.7%

Structured Products
MBS 11 0.4% 47 1.7% 452 19.7%
Total 2,043 1.3% 82 0.1% 13,087 9.0%
Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Figure 33: ETP Net Cash flows ($ Million) by Investment Focus Sub Segment – Commodity
Current Week Prev. Week YTD
Investment Focus Net % of Net % of Net % of
Sub Segment - Commodity Cashflow AUM Cashflow AUM Cashflow AUM
Overall
Overall (144) -1.6% 83 0.8% 1,301 17.2%

Agriculture
Overall (178) -5.2% (143) -3.8% 745 27.5%
Corn 18 15.0% 18 16.4% 75 174.5%

Energy
Overall 33 13.4% - 0.0% 72 44.8%
Crude Oil 25 0.9% (192) -6.3% (531) -17.8%
Gasoline - 0.0% 6 2.9% 85 126.8%
Heating Oil - 0.0% - 0.0% (3) -27.2%
Natural Gas (153) -8.1% (101) -4.5% (704) -25.5%

Industrial Metals
Overall (5) -0.8% - 0.0% 112 21.8%

Precious Metals
Overall (12) -1.4% 225 22.6% 231 38.0%
Gold (1,133) -1.7% 29 0.0% (2,334) -3.6%
Palladium (19) -2.5% 23 2.8% (42) -4.8%
Platinum (18) -2.2% 27 3.3% 13 1.7%
Silver (739) -5.2% (284) -1.4% 377 3.1%
Total (2,325) -2.3% (308) -0.3% (604) -0.6%
Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Deutsche Bank Securities Inc. Page 17


12 May 2011 US ETF Market Weekly Review

Issuer
Figure 34: ETP Net Cash flows ($ Million) by Issuer
Current Week Prev. Week YTD
Net % of Net % of Net % of
Issuer
Cashflow AUM Cashflow AUM Cashflow AUM
Vanguard 723 0.4% 743 0.4% 13,946 9.4%
WisdomTree AM 235 1.9% 127 1.0% 1,975 20.0%
Rydex Invest. 103 1.2% 84 1.0% 732 9.8%
Charles Schwab Investment Mgmt 64 1.5% 79 1.9% 1,289 47.3%
First Trust Ad. 48 0.6% 155 1.9% 1,959 36.1%
ALPS Fund Services Inc 35 2.5% 43 3.0% 538 64.0%
PIMCO 34 1.3% (111) -4.1% 530 24.4%
ProShares 20 0.1% (19) -0.1% 2,781 11.8%
Teucrium Trading LLC 18 14.2% 18 15.3% 83 192.7%
GreenHaven Commodity Sers. 11 1.3% 7 0.8% 273 51.1%
AdvisorShares Trust 4 1.4% 11 3.9% 136 88.3%
Revenue Shares - 0.0% 2 0.3% 37 6.8%
Grail Advisors LLC - 0.0% - 0.0% 8 40.9%
Fidelity Invest. - 0.0% - 0.0% 22 13.9%
Javelin Invesment Management LLC - 0.0% - 0.0% 2 17.9%
PAX World Management LLC - 0.0% - 0.0% - 0.0%
FaithShares Advisors LLC - 0.0% - 0.0% (2) -13.9%
US One Inc - 0.0% - 0.0% 2 18.1%
FocusShares - 0.0% - 0.0% 76 n.a
FactorShares - 0.0% - 0.0% 22 100.9%
Emerging Global Shares (1) -0.2% 4 0.6% 109 25.6%
IndexIQ Advisors LLC (1) -0.3% 10 2.0% 196 64.8%
Global X Management Co LLC (4) -0.2% 19 1.2% 575 44.4%
Merrill Lynch (23) -0.5% (49) -0.9% 133 2.8%
Guggenheim Funds Distributors, Inc. (76) -2.0% (14) -0.3% 181 5.1%
Deutsche Bank AG (92) -0.7% 128 0.8% 1,939 0.0%
Van Eck Funds (95) -0.4% 299 1.3% 2,424 12.2%
United States Commodity Funds LLC (164) -3.9% (203) -4.1% (724) -14.6%
Direxionshares (169) -2.8% (493) -7.6% (494) -7.5%
ETF Securities Ltd (172) -4.5% 61 1.4% 239 6.8%
Bank of New York (472) -4.2% 21 0.2% (1,888) -15.5%
PowerShares (945) -2.0% 2,243 4.6% 3,683 8.9%
BlackRock (1,319) -0.3% 2,012 0.4% 12,535 2.8%
State Street GA (1,836) -0.7% 2,576 1.0% 381 0.2%

Total (4,075) -1.15% 7,753 2.1% 43,699 14.0%


Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Page 18 Deutsche Bank Securities Inc.


12 May 2011 US ETF Market Weekly Review

Index Provider
Figure 35: ETP Net Cash flows ($ Million) by Index Provider – Equity

Dow Jones
MSCI
Wilshire
Morningstar
Deutsche Borse
Other
NYSE
S-Network
BNY Mellon
Credit Suisse
IndexIQ
HOLDR
Market Vector
FTSE
Nasdaq OMX
S&P
Russell

(3,000) (2,500) (2,000) (1,500) (1,000) (500) - 500 1,000 1,500

Net Cashflow ($ Million)


Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Figure 36: ETP Net Cash flows ($ Million) by Index Provider - Fixed Income

Barclays
Markit iBoxx
Other
Deutsche Bank
S&P
NYSE
BofA Merrill Lynch
Active

- 500 1,000 1,500 2,000


Net Cashflow ($ Million)
Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Figure 37: ETP Net Cash flows ($ Million) by Index Provider – Commodity

Dow Jones

Other

S&P

Deutsche Bank

Commodity

(2,500) (2,000) (1,500) (1,000) (500) - 500


Net Cashflow ($ Million)
Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Deutsche Bank Securities Inc. Page 19


12 May 2011 US ETF Market Weekly Review

Underlying Index/Security
Figure 38: ETP inflows ($ Million) by Underlying Index – Figure 39: ETP outflows ($ Million) by Underlying Index
Equity (Top 10) – Equity (Top 10)

DJIA Russell 2000

Health Care Select Sector S&P 500

Consumer Staples Select … Nasdaq 100

MSCI EAFE Energy Select Sector

Consumer Discretionary… S&P MidCap 400 Index

MSCI Europe MSCI EMU

Russell 1000 Growth Industrial Select Sector

MSCI Germany Materials Select Sector

Dow Jones US Real Estate MSCI Canada

S&P/Citigroup Emerging… Utilities Select Sector

0 200 400 600 800 1,000 1,200 (3,000) (2,500) (2,000) (1,500) (1,000) (500) -

Inflow ($ Million) Outflow ($ Million)

Figure 40: ETP inflows ($ Million) by Underlying Index – Figure 41: ETP outflows ($ Million) by Underlying Index
Fixed Income (Top 10) – Fixed Income

Barclays Capital 20+ Year Treasury Bond


Barclays Capital 3-7 Year US Treasury
Barclays Capital 1-3 Year US Credit

Barclays Capital 7-10 Year Treasury Bond


Treasury Bill
iBoxx $ Liquid Investment Grade

DB Global Government ex-US Inflation…


Barclays Capital Municipal Pre-Refunded–
Barclays Capital Aggregate Bond Treasury-Escrowed Index

Barclays Capital 1-3 Year Treasury Bond


Barclays Capital US Treasury 2Y/10Y Yield Curve
Barclays Capital 1-5 Year Government/Credit Index

Barclays Capital High Yield Very Liquid Bond


Barclays Capital 2Y US Treasury Future Targeted
Barclays Capital US Treasury Inflation Notes Exposure Index

0 200 400 600 800 1,000 (40) (35) (30) (25) (20) (15) (10) (5) -

Inflow ($ Million) Outflow ($ Million)

Figure 42: ETP inflows ($ Million) by Underlying Figure 43: ETP outflows ($ Million) by Underlying
Index/Security – Commodity Index/Security – Commodity

Deutsche Bank Liquid Commodity Index - Opt … Commodity - Gold

Deutsche Bank Liquid Comm Index - Opt Yield … Silver Price

Teucrium Corn Fund Benchmark Index Deutsche Bank Liquid Commodity Index Div …

West Texas Intermediate Light Natural Gas futures contract

Rogers International Commodity TR Deutsche Bank Liquid Commodity

Continuous Commodity Total Return London Silver Market

Rogers International Commodity Metals TR Deutsche Bank Liquid Commodity Index - Opt…

Rogers International Commodity Energy TR GSCI Total Return

Deutsche Bank Liquid Commodity Index-… Deutsche Bank Liquid Commodity Index -…

MLCX Biofuels S&P GSCI Crude Oil Total Return

0 10 20 30 40 (1,200) (1,000) (800) (600) (400) (200) -

Inflow ($ Million) Outflow ($ Million)

Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Page 20 Deutsche Bank Securities Inc.


12 May 2011 US ETF Market Weekly Review

Top ETPs
Figure 44: Top 20 ETPs by inflow ($ Million) (Includes ETNs also)

Asset Class Net Flow


ETP Name Issuer BBG Ticker TER
& Structure $ MM

DJIA Diamonds ("Diamond") State Street GA Equity ETF DIA US 0.17% 1,080
iShares Barclays 20+ Year Treasury Bond Fund BlackRock Fixed Income ETF TLT US 0.15% 918
SPDR Health Care State Street GA Equity ETF XLV US 0.20% 703
SPDR Consumer Staples State Street GA Equity ETF XLP US 0.20% 554
iShares MSCI EAFE BlackRock Equity ETF EFA US 0.34% 384
SPDR Consumer Discretionary State Street GA Equity ETF XLY US 0.20% 243
iShares Barclays 1-3 Year Credit Bond Fund BlackRock Fixed Income ETF CSJ US 0.20% 230
PowerShares DB US Dollar Index Bullish Fund Deutsche Bank AG Currency ETV UUP US 0.50% 215
Vanguard European ETF Vanguard Equity ETF VGK US 0.14% 203
iShares Russell 1000 Growth BlackRock Equity ETF IWF US 0.20% 200
iShares Barclays 7-10 Year Treasury bond Fund BlackRock Fixed Income ETF IEF US 0.15% 198
ProShares UltraShort Silver ProShares Commodity ETV ZSL US 0.95% 138
iShares MSCI Germany BlackRock Equity ETF EWG US 0.53% 110
iShares DJ US Real Estate BlackRock Equity ETF IYR US 0.48% 110
iShares iBoxx $ Investment Grade Corporate Bond Fund BlackRock Fixed Income ETF LQD US 0.15% 99
Vanguard Europe Pacific ETF Vanguard Equity ETF VEA US 0.12% 95
iShares S&P 500 BlackRock Equity ETF IVV US 0.09% 95
SPDR S&P Emerging Markets Small Cap ETF State Street GA Equity ETF EWX US 0.65% 89
WisdomTree Emerging Markets Equity Income Fund WisdomTree AM Equity ETF DEM US 0.63% 75
iShares S&P 100 Index Fund BlackRock Equity ETF OEF US 0.20% 75
Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Figure 45: Top 20 ETPs by outflow ($ Million) (Includes ETNs also)

Asset Class Net Flow


ETP Name Issuer BBG Ticker TER
& Structure $ MM

iShares Russell 2000 BlackRock Equity ETF IWM US 0.20% (2,477)


S&P 500 SPDR ("Spider") State Street GA Equity ETF SPY US 0.10% (2,128)
SPDR Gold Trust State Street GA Commodity ETV GLD US 0.40% (1,185)
PowerShares QQQ Nasdaq 100 PowerShares Equity ETF QQQ US 0.20% (1,145)
SPDR Energy State Street GA Equity ETF XLE US 0.20% (737)
iShares Silver Trust BlackRock Commodity ETV SLV US 0.50% (717)
S&P 400 MidCap Bank of New York Equity ETF MDY US 0.25% (472)
iShares MSCI EMU BlackRock Equity ETF EZU US 0.54% (238)
SPDR Industrial State Street GA Equity ETF XLI US 0.20% (213)
SPDR Materials State Street GA Equity ETF XLB US 0.20% (205)
PowerShares DB Agriculture Fund Deutsche Bank AG Commodity ETV DBA US 0.75% (178)
iShares MSCI Canada BlackRock Equity ETF EWC US 0.53% (155)
United States Natural Gas Fund LP United States Commodity Funds LLC Commodity ETV UNG US 1.11% (153)
SPDR Utilities State Street GA Equity ETF XLU US 0.20% (153)
iShares FTSE/Xinhua China 25 BlackRock Equity ETF FXI US 0.74% (141)
SPDR Metals & Mining ETF State Street GA Equity ETF XME US 0.35% (119)
Ultra S&P500 ProShares ProShares Equity ETF SSO US 0.95% (110)
SPDR Oil & Gas Exploration & Production ETF State Street GA Equity ETF XOP US 0.35% (109)
Ultra QQQ ProShares ProShares Equity ETF QLD US 0.95% (105)
PowerShares DB Commodity Index Tracking Fund Deutsche Bank AG Commodity ETV DBC US 0.75% (103)
Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Deutsche Bank Securities Inc. Page 21


12 May 2011 US ETF Market Weekly Review

ETP – Weekly Turnover


Weekly Turnover Information
Weekly Turnover Definition The Weekly Turnover numbers make reference to the total dollar value ($) traded over a 1 week span. For example, if this report
is being published on Tuesday Feb 1st, the “this week” figure makes reference to the total dollar value traded from Monday, Jan
17th to Friday, Jan 21st, while the “Previous Week” figure makes reference to the total dollar value traded from Monday, Jan 10th
to Friday, Jan 14th, and finally, the Year 2010 figure makes reference to the weekly average turnover throughout the year 2010.
Turnover Calculation Turnover is calculated by multiplying the daily traded volume in shares by the end of day price of the ETP, for any given day. Then
the weekly turnover figure is the aggregation of all turnover figures within a given week.

Investment Focus
Figure 46: ETP Weekly Turnover ($ Million) by Investment Focus - Equity
Current Week Prev. Week WoW Change Year 2010 Change from 2010
Mkt % %
Investment Focus - Equity Turnover Turnover Turnover Turnover Turnover
Share % Turnover Turnover
Size 179,660 51.8% 123,109 56,551 45.9% 167,461 12,199 7.3%
Strategy 34,907 10.1% 20,733 14,174 68.4% 44,388 (9,481) -21.4%
Sector 59,282 17.1% 36,013 23,269 64.6% 42,286 16,996 40.2%
Regional 35,792 10.3% 21,556 14,236 66.0% 25,335 10,457 41.3%
Country 22,702 6.6% 17,001 5,701 33.5% 19,037 3,665 19.3%
Style 6,720 1.9% 4,466 2,254 50.5% 5,048 1,672 33.1%
Thematic 7,475 2.2% 4,738 2,736 57.8% 3,650 3,825 104.8%
Total 346,538 100% 227,616 118,922 52.2% 307,205 39,334 12.8%
Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Figure 47: Weekly Turnover ($ Million) by Investment Focus – Fixed Income


Current Week Prev. Week WoW Change Year 2010 Change from 2010
Mkt % %
Investment Focus - Fixed Income Turnover Turnover Turnover Turnover Turnover
Share % Turnover Turnover
Sovereign 7,507 64.5% 6,724 783 11.6% 7,517 (10) -0.1%
Corporates 2,508 21.5% 2,107 401 19.0% 2,203 305 13.8%
Overall 739 6.4% 627 112 17.9% 744 (4) -0.6%
Sub-Sovereign 581 5.0% 598 (17) -2.8% 531 50 9.4%
Sovereign & Corporates 234 2.0% 221 13 6.0% 306 (72) -23.6%
Structured Products 74 0.6% 62 12 18.7% 78 (4) -5.1%
Total 11,643 100% 10,339 1,304 12.6% 11,379 264 2.3%
Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Figure 48: ETP Weekly Turnover ($ Million) by Investment Focus – Commodity


Current Week Prev. Week WoW Change Year 2010 Change from 2010
Mkt % %
Investment Focus - Commodity Turnover Turnover Turnover Turnover Turnover
Share % Turnover Turnover
Precious Metals 79,536 88.3% 62,973 16,563 26.3% 11,499 68,037 591.7%
Energy 8,861 9.8% 3,458 5,403 156.2% 3,308 5,553 167.9%
Overall 930 1.0% 573 357 62.3% 310 620 200.1%
Agriculture 709 0.8% 764 (55) -7.2% 221 488 220.6%
Industrial Metals 51 0.1% 28 23 83.6% 38 13 34.6%
Total 90,087 100% 67,797 22,291 32.9% 15,376 74,711 485.9%

Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Page 22 Deutsche Bank Securities Inc.


12 May 2011 US ETF Market Weekly Review

Sub Segment
Figure 49: ETP Weekly Turnover ($ Million) by Investment Focus Sub Segment - Equity
Current Week Prev. Week WoW Change Year 2010 Change from 2010
Investment Focus Mkt % %
Turnover Turnover Turnover Turnover Turnover
Sub Segment - Equity Share % Turnover Turnover
Country
US Broad 725 0.2% 745 (20) -2.7% 891 (165) -18.6%
Developed non-US 5,112 1.5% 4,428 684 15.5% 3,368 1,744 51.8%
Emerging Country 16,865 4.9% 11,828 5,037 42.6% 14,778 2,086 14.1%

Regional
Asia Pacific 672 0.2% 339 333 98.1% 517 155 30.0%
Emerging Markets 26,691 7.7% 15,025 11,666 77.6% 18,083 8,609 47.6%
Europe 1,198 0.3% 590 608 103.0% 427 771 180.6%
Global 167 0.0% 244 (77) -31.6% 162 5 3.4%
Global ex-US 7,063 2.0% 5,357 1,706 31.9% 6,146 917 14.9%

Sector
Global 200 0.1% 188 12 6.3% 186 14 7.3%
Global ex-US 138 0.0% 200 (62) -31.1% 68 69 101.7%
Other Sector 106 0.0% 59 47 79.9% 50 56 111.7%
US 58,839 17.0% 35,567 23,272 65.4% 41,981 16,857 40.2%

Size
Large Cap 146,940 42.4% 101,983 44,956 44.1% 142,934 4,006 2.8%
Mid Cap 3,333 1.0% 2,928 405 13.8% 3,248 85 2.6%
Small Cap 29,388 8.5% 18,199 11,189 61.5% 21,280 8,108 38.1%

Style
Growth 2,994 0.9% 2,078 916 44.1% 2,346 649 27.6%
Value 2,698 0.8% 1,633 1,065 65.2% 2,017 681 33.8%
Dividend 1,028 0.3% 755 273 36.2% 686 342 49.8%

Strategy
Short 807 0.2% 644 163 25.4% 1,210 (403) -33.3%
Leveraged 20,145 5.8% 12,510 7,635 61.0% 22,737 (2,592) -11.4%
Leveraged Short 12,789 3.7% 6,839 5,949 87.0% 19,925 (7,137) -35.8%
Quantitative 463 0.1% 368 96 26.0% 214 250 116.7%
Fundamental 698 0.2% 368 330 89.7% 297 401 135.3%
Active 5 0.0% 3 2 45.0% 5 0 5.6%

Thematic
Sustainability 130 0.0% 142 (12) -8.5% 116 13 11.4%
Commodities 7,149 2.1% 4,462 2,687 60.2% 3,439 3,710 107.9%
Other Theme 196 0.1% 134 62 45.8% 94 102 108.6%
Total 346,538 100% 227,616 118,922 52.2% 307,205 39,334 12.8%
Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Deutsche Bank Securities Inc. Page 23


12 May 2011 US ETF Market Weekly Review

Figure 50: ETP Weekly Turnover ($ Million) by Investment Focus Sub Segment – Fixed Income
Current Week Prev. Week WoW Change Year 2010 Change from 2010
Investment Focus Mkt % %
Turnover Turnover Turnover Turnover Turnover
Sub Segment - Fixed Income Share % Turnover Turnover
Overall
Overall 739 6.4% 627 112 17.9% 744 (4) -0.6%

Corporates
Overall 2,467 21.2% 2,072 396 19.1% 2,145 322 15.0%
Financials 40 0.3% 35 5 15.3% 58 (18) -30.5%

Sovereign
Overall 7,507 64.5% 6,724 783 11.6% 7,517 (10) -0.1%

Sovereign & Corporates


Overall 234 2.0% 221 13 6.0% 306 (72) -23.6%

Sub-Sovereign
Agency 16 0.1% 12 5 38.8% 11 5 44.1%
Foreign Sovereigns 366 3.1% 395 (29) -7.3% 231 135 58.4%
Local Governments 198 1.7% 191 7 3.8% 288 (90) -31.3%

Structured Products
MBS 74 0.6% 62 12 18.7% 78 (4) -5.1%
Total 11,643 100% 10,339 1,304 12.6% 11,379 264 2.3%
Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Figure 51: ETP Weekly Turnover ($ Million) by Investment Focus Sub Segment – Commodity
Current Week Prev. Week WoW Change Year 2010 Change from 2010
Investment Focus Mkt % %
Turnover Turnover Turnover Turnover Turnover
Sub Segment - Commodity Share % Turnover Turnover
Overall
Overall 930 1.0% 573 357 62.3% 310 620 200.1%

Agriculture
Overall 652 0.7% 690 (38) -5.5% 217 435 200.2%
Corn 57 0.1% 75 (18) -23.8% 4 53 1372.3%

Energy
Overall 86 0.1% 8 77 924.5% 10 76 788.8%
Crude Oil 7,502 8.3% 2,586 4,916 190.1% 2,361 5,141 217.7%
Gasoline 74 0.1% 24 50 202.3% 10 64 672.1%
Heating Oil 3 0.0% 1 2 383.4% 1 2 236.0%
Natural Gas 1,196 1.3% 839 358 42.6% 926 270 29.1%

Industrial Metals
Overall 51 0.1% 28 23 83.6% 38 13 34.6%

Precious Metals
Overall 186 0.2% 342 (156) -45.7% 22 164 750.7%
Gold 24,766 27.5% 16,167 8,598 53.2% 9,501 15,264 160.7%
Palladium 38 0.0% 19 19 98.7% 16 21 130.2%
Platinum 34 0.0% 18 16 88.6% 21 12 58.1%
Silver 54,513 60.5% 46,427 8,086 17.4% 1,938 52,575 2712.3%
Total 90,087 100% 67,797 22,291 32.9% 15,376 74,711 485.9%
Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Page 24 Deutsche Bank Securities Inc.


12 May 2011 US ETF Market Weekly Review

Issuer
Figure 52: ETP Weekly Turnover ($ Million) by Issuer
Current Week Prev. Week WoW Change Year 2010 Change from 2010
Mkt % %
Issuer Turnover Turnover Turnover Turnover Turnover
Share % Turnover Turnover
State Street GA 194,984 43.1% 126,971 68,013 53.6% 159,203 35,781 22.5%
BlackRock 139,674 30.9% 103,006 36,668 35.6% 82,410 57,264 69.5%
ProShares 35,344 7.8% 24,099 11,245 46.7% 27,250 8,094 29.7%
PowerShares 17,577 3.9% 13,899 3,678 26.5% 20,271 (2,694) -13.3%
Direxionshares 15,876 3.5% 9,768 6,107 62.5% 19,842 (3,966) -20.0%
Vanguard 11,534 2.5% 7,754 3,779 48.7% 6,912 4,621 66.9%
Merrill Lynch 9,503 2.1% 5,778 3,725 64.5% 6,544 2,959 45.2%
Van Eck Funds 8,270 1.8% 5,086 3,183 62.6% 4,116 4,154 100.9%
United States Commodity Funds LLC 7,328 1.6% 2,886 4,443 154.0% 2,831 4,498 158.9%
Deutsche Bank AG 3,338 0.7% 2,234 1,104 49.4% 1,154 2,183 189.1%
Rydex Invest. 2,740 0.6% 2,075 665 32.0% 1,771 969 54.7%
Bank of New York 2,424 0.5% 2,201 223 10.1% 2,456 (32) -1.3%
WisdomTree AM 1,181 0.3% 787 394 50.1% 534 647 121.2%
ETF Securities Ltd 993 0.2% 602 391 65.1% 91 902 994.9%
First Trust Ad. 474 0.1% 431 42 9.8% 254 219 86.3%
Global X Management Co LLC 352 0.1% 327 24 7.4% 79 272 344.1%
Guggenheim Funds Distributors, Inc. 314 0.1% 217 97 44.7% 217 97 44.9%
Charles Schwab Investment Mgmt 272 0.1% 210 62 29.3% 144 129 89.6%
PIMCO 138 0.0% 97 40 41.3% 81 57 69.9%
ALPS Fund Services Inc 94 0.0% 22 72 333.8% 24 70 285.8%
GreenHaven Commodity Sers. 62 0.0% 39 23 57.8% 15 47 314.0%
Teucrium Trading LLC 59 0.0% 75 (17) -22.2% 4 55 1417.1%
IndexIQ Advisors LLC 44 0.0% 27 17 61.2% 14 31 225.3%
Emerging Global Shares 35 0.0% 21 14 69.7% 18 17 92.2%
AdvisorShares Trust 25 0.0% 23 2 7.8% 6 19 328.2%
Revenue Shares 24 0.0% 14 10 69.2% 20 4 22.7%
FocusShares 9 0.0% 7 2 24.0% - 9 n.a.
Fidelity Invest. 7 0.0% 4 3 90.3% 9 (2) -24.6%
Javelin Invesment Management LLC 1 0.0% 2 (1) -28.5% 0 1 217.7%
PAX World Management LLC 1 0.0% 0 0 27.3% 0 0 454.7%
US One Inc 0 0.0% 0 0 96.9% 1 (0) -16.0%
Grail Advisors LLC 0 0.0% 0 (0) -13.9% 1 (0) -43.3%
FaithShares Advisors LLC 0 0.0% 0 (0) -56.1% 0 (0) -71.6%

Total 452,690 100% 308,675 144,015 46.7% 336,271 116,418 34.6%


Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Deutsche Bank Securities Inc. Page 25


12 May 2011 US ETF Market Weekly Review

Index Provider Underlying Index/Security


Figure 53: ETP Weekly Turnover ($ Million) by Index Figure 54: ETP Weekly Turnover ($ Million) by
Provider – Equity (Top 10) Underlying Index – Equity (Top 10)

S&P S&P 500

MSCI Russell 2000

Russell MSCI Emerging Markets

Nasdaq OMX Nasdaq 100

Dow Jones Energy Select Sector

HOLDR DJIA

Other MSCI EAFE

MSCI Brazil
FTSE
Oil Services HOLDR
Deutsche Borse
Financial Select Sector
Market Vector
- 20,000 40,000 60,000 80,000 100,000 120,000 140,000
0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000
Turnover ($ Million) Turnover ($ Million)

Figure 55: ETP Weekly Turnover ($ Million) by Index Figure 56: ETP Weekly Turnover ($ Million) by
Provider – Fixed Income Underlying Index – Fixed Income (Top 10)

Barclays Barclays Capital 20+ Year Treasury Bond

Markit iBoxx Treasury Bill

iBoxx $ Liquid Investment Grade


Other
Barclays Capital 7-10 Year Treasury Bond
S&P
Barclays Capital High Yield Very Liquid Bond
NYSE
iBoxx $ Liquid High Yield
Active
Barclays Capital 1-3 Year Treasury Bond
Deutsche Bank Barclays Capital US Treasury Inflation Notes

BofA Merrill Lynch Barclays Capital US Aggregate

Market Vector Barclays Capital 1-3 Year US Credit

0 2,000 4,000 6,000 8,000 10,000 - 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000
Turnover ($ Million) Turnover ($ Million)

Figure 57: ETP Weekly Turnover ($ Million) by Index Figure 58: ETP Weekly Turnover ($ Million) by
Provider – Commodity Underlying Index/Security – Commodity (Top 10)

Silver Price

Commodity Commodity - Gold

West Texas Intermediate Light

Natural Gas futures contract

London Silver Market


Deutsche Bank
Deutsche Bank Liquid Commodity Index Div …

Deutsche Bank Liquid Commodity

Deutsche Bank Liquid Commodity Index-…

Dow Jones Deutsche Bank Liquid Commodity Index -…

S&P GSCI Crude Oil Total Return

- 10,000 20,000 30,000 40,000


0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000
Turnover ($ Million) Turnover ($ Million)

Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Page 26 Deutsche Bank Securities Inc.


12 May 2011 US ETF Market Weekly Review

Top ETPs
Figure 59: Top 20 ETPs by Weekly Turnover ($ Million) (Includes ETNs also)

Asset Class Turnover


ETP Name Issuer BBG Ticker TER
& Structure $ MM

S&P 500 SPDR ("Spider") State Street GA Equity ETF SPY US 0.10% 120,905
iShares Silver Trust BlackRock Commodity ETV SLV US 0.50% 40,329
iShares Russell 2000 BlackRock Equity ETF IWM US 0.20% 28,280
SPDR Gold Trust State Street GA Commodity ETV GLD US 0.40% 23,312
iShares MSCI Emerging Markets BlackRock Equity ETF EEM US 0.69% 18,903
PowerShares QQQ Nasdaq 100 PowerShares Equity ETF QQQ US 0.20% 16,635
SPDR Energy State Street GA Equity ETF XLE US 0.20% 11,847
ProShares Ultra Silver ProShares Commodity ETV AGQ US 0.95% 7,548
Vanguard Emerging Markets ETF Vanguard Equity ETF VWO US 0.22% 7,003
iShares MSCI Brazil BlackRock Equity ETF EWZ US 0.61% 6,602
iShares MSCI EAFE BlackRock Equity ETF EFA US 0.34% 6,346
Oil Services HOLDR Merrill Lynch Equity ETV OIH US n.a. 6,282
DJIA Diamonds ("Diamond") State Street GA Equity ETF DIA US 0.17% 6,057
SPDR Financial State Street GA Equity ETF XLF US 0.20% 5,984
United States Oil Fund LP United States Commodity Funds LLC Commodity ETV USO US 0.45% 5,910
ProShares UltraShort Silver ProShares Commodity ETV ZSL US 0.95% 5,680
Market Vectors Gold Miners ETF Van Eck Funds Equity ETF GDX US 0.53% 4,816
SPDR Industrial State Street GA Equity ETF XLI US 0.20% 4,645
Ultra S&P500 ProShares ProShares Equity ETF SSO US 0.95% 4,477
Direxionshares Small Cap Bull 3X Shares Direxionshares Equity ETF TNA US 0.95% 4,144
Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Figure 60: Top 20 ETPs by Weekly Turnover Change ($ Million) (Includes ETNs also)

Turnover
Asset Class
ETP Name Issuer BBG Ticker TER Change
& Structure
$ MM

S&P 500 SPDR ("Spider") State Street GA Equity ETF SPY US 0.10% 40,236
iShares Russell 2000 BlackRock Equity ETF IWM US 0.20% 10,657
SPDR Gold Trust State Street GA Commodity ETV GLD US 0.40% 8,054
iShares MSCI Emerging Markets BlackRock Equity ETF EEM US 0.69% 7,996
SPDR Energy State Street GA Equity ETF XLE US 0.20% 7,088
iShares Silver Trust BlackRock Commodity ETV SLV US 0.50% 5,256
United States Oil Fund LP United States Commodity Funds LLC Commodity ETV USO US 0.45% 3,980
ProShares UltraShort Silver ProShares Commodity ETV ZSL US 0.95% 3,539
PowerShares QQQ Nasdaq 100 PowerShares Equity ETF QQQ US 0.20% 3,406
Vanguard Emerging Markets ETF Vanguard Equity ETF VWO US 0.22% 3,364
Oil Services HOLDR Merrill Lynch Equity ETV OIH US n.a. 3,113
SPDR Financial State Street GA Equity ETF XLF US 0.20% 2,641
Ultra S&P500 ProShares ProShares Equity ETF SSO US 0.95% 2,114
iShares MSCI Brazil BlackRock Equity ETF EWZ US 0.61% 2,013
SPDR Industrial State Street GA Equity ETF XLI US 0.20% 1,819
Market Vectors Gold Miners ETF Van Eck Funds Equity ETF GDX US 0.53% 1,749
iShares MSCI EAFE BlackRock Equity ETF EFA US 0.34% 1,514
iPath S&P 500 VIX Short-Term Futures ETN iPath Alternative ETN VXX US 0.89% 1,421
Direxionshares Small Cap Bull 3X Shares Direxionshares Equity ETF TNA US 0.95% 1,413
Direxionshares Small Cap Bear 3X Shares Direxionshares Equity ETF TZA US 0.95% 1,394
Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Deutsche Bank Securities Inc. Page 27


12 May 2011 US ETF Market Weekly Review

ETP – Assets Under Management


Investment Focus
Figure 61: ETP AUM ($ Million) by Investment Focus - Equity
Current Week Prev. Week WoW Change End of 2010 YTD Change
Mkt
Investment Focus - Equity AUM AUM AUM % AUM AUM AUM % AUM
Share %
Size 242,375 29.8% 252,285 (9,909) -3.9% 226,050 16,326 7.2%
Regional 177,763 21.9% 183,047 (5,284) -2.9% 173,806 3,957 2.3%
Style 119,734 14.7% 120,560 (827) -0.7% 105,281 14,453 13.7%
Sector 115,699 14.2% 118,774 (3,076) -2.6% 100,067 15,631 15.6%
Country 100,841 12.4% 103,591 (2,750) -2.7% 87,951 12,890 14.7%
Strategy 32,406 4.0% 33,221 (816) -2.5% 31,177 1,229 3.9%
Thematic 23,882 2.9% 25,756 (1,874) -7.3% 21,261 2,621 12.3%
Total 812,699 100% 837,234 (24,535) -2.93% 745,592 67,107 9.00%
Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Figure 62: AUM ($ Million) by Investment Focus – Fixed Income


Current Week Prev. Week WoW Change End of 2010 YTD Change
Mkt
Investment Focus - Fixed Income AUM AUM AUM % AUM AUM AUM % AUM
Share %
Sovereign 54,034 33.6% 53,084 949 1.8% 50,480 3,554 7.0%
Corporates 57,757 35.9% 57,221 536 0.9% 49,831 7,926 15.9%
Overall 21,781 13.5% 21,648 133 0.6% 21,303 478 2.2%
Sub-Sovereign 15,265 9.5% 15,097 168 1.1% 13,125 2,140 16.3%
Sovereign & Corporates 9,218 5.7% 9,144 74 0.8% 8,580 638 7.4%
Structured Products 2,766 1.7% 2,751 15 0.5% 2,292 474 20.7%
Total 160,820 100% 158,945 1,875 1.2% 145,610 15,210 10.4%
Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Figure 63: ETP AUM ($ Million) by Investment Focus – Commodity


Current Week Prev. Week WoW Change End of 2010 YTD Change
Mkt
Investment Focus - Commodity AUM AUM AUM % AUM AUM AUM % AUM
Share %
Precious Metals 82,688 81.9% 92,906 (10,218) -11.0% 79,568 3,120 3.9%
Overall 9,053 9.0% 10,253 (1,200) -11.7% 7,563 1,490 19.7%
Energy 5,029 5.0% 5,758 (729) -12.7% 5,979 (950) -15.9%
Agriculture 3,552 3.5% 3,904 (351) -9.0% 2,756 797 28.9%
Industrial Metals 590 0.6% 629 (39) -6.1% 512 79 15.4%
Total 100,913 100% 113,450 (12,537) -11.1% 96,378 4,535 4.7%

Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Page 28 Deutsche Bank Securities Inc.


12 May 2011 US ETF Market Weekly Review

Sub Segment
Figure 64: ETP AUM ($ Million) by Investment Focus Sub Segment - Equity
Current Week Prev. Week WoW Change End of 2010 YTD Change
Investment Focus Mkt
AUM AUM AUM % AUM AUM AUM % AUM
Sub Segment - Equity Share %
Country
US Broad 26,937 3.3% 27,454 (517) -1.9% 24,537 2,400 9.8%
Developed non-US 29,700 3.7% 30,265 (565) -1.9% 21,822 7,878 36.1%
Emerging Country 44,205 5.4% 45,872 (1,668) -3.6% 41,592 2,612 6.3%

Regional
Asia Pacific 8,874 1.1% 9,195 (321) -3.5% 9,556 (683) -7.1%
Emerging Markets 96,196 11.8% 99,814 (3,618) -3.6% 101,857 (5,661) -5.6%
Europe 6,284 0.8% 6,512 (228) -3.5% 4,931 1,354 27.5%
Global 5,822 0.7% 5,932 (110) -1.9% 4,525 1,297 28.7%
Global ex-US 60,587 7.5% 61,594 (1,007) -1.6% 52,936 7,651 14.5%

Sector
Global 5,687 0.7% 5,818 (130) -2.2% 5,097 590 11.6%
Global ex-US 3,317 0.4% 3,278 39 1.2% 2,456 861 35.1%
Other Sector 1,006 0.1% 1,086 (80) -7.4% 820 185 22.6%
US 105,688 13.0% 108,592 (2,904) -2.7% 91,694 13,995 15.3%

Size
Large Cap 177,151 21.8% 181,987 (4,835) -2.7% 163,338 13,813 8.5%
Mid Cap 33,956 4.2% 35,298 (1,342) -3.8% 31,280 2,676 8.6%
Small Cap 31,269 3.8% 35,000 (3,732) -10.7% 31,432 (163) -0.5%

Style
Growth 49,218 6.1% 49,494 (277) -0.6% 43,363 5,855 13.5%
Value 41,389 5.1% 41,835 (447) -1.1% 37,339 4,050 10.8%
Dividend 29,127 3.6% 29,231 (103) -0.4% 24,579 4,548 18.5%

Strategy
Short 2,698 0.3% 2,625 73 2.8% 2,751 (53) -1.9%
Leveraged 10,871 1.3% 12,006 (1,135) -9.5% 11,049 (178) -1.6%
Leveraged Short 7,057 0.9% 6,640 417 6.3% 7,303 (245) -3.4%
Quantitative 7,077 0.9% 7,146 (69) -1.0% 5,592 1,484 26.5%
Fundamental 4,574 0.6% 4,674 (99) -2.1% 4,375 199 4.6%
Active 128 0.0% 131 (3) -1.9% 107 21 20.2%

Thematic
Sustainability 4,009 0.5% 4,169 (161) -3.9% 3,738 270 7.2%
Commodities 16,178 2.0% 17,818 (1,640) -9.2% 14,923 1,255 8.4%
Other Theme 3,696 0.5% 3,769 (73) -1.9% 2,600 1,095 42.1%
Total 812,699 100% 837,234 (24,535) -2.9% 745,592 67,107 9.0%
Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Deutsche Bank Securities Inc. Page 29


12 May 2011 US ETF Market Weekly Review

Figure 65: ETP AUM ($ Million) by Investment Focus Sub Segment – Fixed Income
Current Week Prev. Week WoW Change End of 2010 YTD Change
Investment Focus Mkt
AUM AUM AUM % AUM AUM AUM % AUM
Sub Segment - Fixed Income Share %
Overall
Overall 21,781 13.5% 21,648 133 0.6% 21,303 478 2.2%

Corporates
Overall 55,914 34.8% 55,389 525 0.9% 48,095 7,819 16.3%
Financials 1,843 1.1% 1,832 10 0.6% 1,736 107 6.2%

Sovereign
Overall 54,034 33.6% 53,084 949 1.8% 50,480 3,554 7.0%

Sovereign & Corporates


Overall 9,218 5.7% 9,144 74 0.8% 8,580 638 7.4%

Sub-Sovereign
Agency 375 0.2% 374 1 0.1% 361 13 3.7%
Foreign Sovereigns 7,212 4.5% 7,096 115 1.6% 5,174 2,038 39.4%
Local Governments 7,678 4.8% 7,626 52 0.7% 7,590 89 1.2%

Structured Products
MBS 2,766 1.7% 2,751 15 0.5% 2,292 474 20.7%
Total 160,820 100% 158,945 1,875 1.2% 145,610 15,210 10.4%
Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Figure 66: ETP AUM ($ Million) by Investment Focus Sub Segment – Commodity
Current Week Prev. Week WoW Change End of 2010 YTD Change
Investment Focus Mkt
AUM AUM AUM % AUM AUM AUM % AUM
Sub Segment - Commodity Share %
Overall
Overall 9,053 9.0% 10,253 (1,200) -11.7% 7,563 1,490 19.7%

Agriculture
Overall 3,432 3.4% 3,793 (361) -9.5% 2,713 719 26.5%
Corn 120 0.1% 111 10 8.7% 43 78 180.5%

Energy
Overall 244 0.2% 248 (4) -1.5% 161 83 51.4%
Crude Oil 2,710 2.7% 3,051 (341) -11.2% 2,979 (269) -9.0%
Gasoline 172 0.2% 189 (17) -9.1% 67 105 155.9%
Heating Oil 10 0.0% 11 (1) -13.0% 12 (2) -17.1%
Natural Gas 1,893 1.9% 2,258 (365) -16.2% 2,759 (867) -31.4%

Industrial Metals
Overall 590 0.6% 629 (39) -6.1% 512 79 15.4%

Precious Metals
Overall 851 0.8% 998 (147) -14.7% 609 243 39.9%
Gold 66,075 65.5% 69,411 (3,337) -4.8% 65,195 879 1.3%
Palladium 758 0.8% 836 (78) -9.4% 885 (126) -14.3%
Platinum 799 0.8% 837 (39) -4.6% 766 33 4.3%
Silver 14,205 14.1% 20,823 (6,618) -31.8% 12,114 2,091 17.3%
Total 100,913 100% 113,450 (12,537) -11.1% 96,378 4,535 4.7%
Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Page 30 Deutsche Bank Securities Inc.


12 May 2011 US ETF Market Weekly Review

Issuer
Figure 67: ETP AUM ($ Million) by Issuer
Current Week Prev. Week WoW Change End of 2010 YTD Change
Mkt
Issuer AUM AUM AUM % AUM AUM AUM % AUM
Share %
BlackRock 481,620 44.4% 497,489 (15,869) -3.2% 448,389 33,231 7.4%
State Street GA 248,814 22.9% 255,300 (6,487) -2.5% 234,738 14,076 6.0%
Vanguard 168,936 15.6% 172,534 (3,597) -2.1% 147,926 21,011 14.2%
PowerShares 47,523 4.4% 49,115 (1,592) -3.2% 41,510 6,013 14.5%
ProShares 25,931 2.4% 26,783 (852) -3.2% 23,571 2,360 10.0%
Van Eck Funds 21,345 2.0% 23,121 (1,777) -7.7% 19,878 1,467 7.4%
Deutsche Bank AG 13,760 1.3% 15,153 (1,392) -9.2% 11,674 2,086 17.9%
WisdomTree AM 12,163 1.1% 12,151 12 0.1% 9,891 2,272 23.0%
Bank of New York 11,323 1.0% 12,100 (777) -6.4% 12,196 (873) -7.2%
Rydex Invest. 8,742 0.8% 8,782 (40) -0.5% 7,468 1,274 17.1%
First Trust Ad. 7,805 0.7% 7,999 (194) -2.4% 5,425 2,379 43.9%
Direxionshares 6,115 0.6% 6,496 (382) -5.9% 6,571 (456) -6.9%
Merrill Lynch 5,101 0.5% 5,393 (292) -5.4% 4,733 368 7.8%
Charles Schwab Investment Mgmt 4,209 0.4% 4,236 (28) -0.7% 2,722 1,487 54.7%
United States Commodity Funds LLC 4,184 0.4% 4,901 (717) -14.6% 4,962 (778) -15.7%
ETF Securities Ltd 3,841 0.4% 4,480 (639) -14.3% 3,522 319 9.1%
Guggenheim Funds Distributors, Inc. 3,820 0.4% 3,999 (179) -4.5% 3,549 271 7.6%
PIMCO 2,741 0.3% 2,704 37 1.4% 2,168 573 26.4%
Global X Management Co LLC 1,675 0.2% 1,643 32 1.9% 1,294 381 29.4%
ALPS Fund Services Inc 1,381 0.1% 1,402 (21) -1.5% 841 540 64.2%
GreenHaven Commodity Sers. 811 0.1% 867 (56) -6.4% 534 277 51.8%
Revenue Shares 619 0.1% 634 (15) -2.4% 545 74 13.6%
Emerging Global Shares 531 0.0% 553 (22) -3.9% 427 104 24.4%
IndexIQ Advisors LLC 497 0.0% 514 (17) -3.4% 302 194 64.3%
AdvisorShares Trust 284 0.0% 287 (3) -1.0% 154 130 84.7%
Fidelity Invest. 190 0.0% 193 (3) -1.6% 157 33 20.9%
Teucrium Trading LLC 128 0.0% 119 9 7.3% 43 85 197.0%
FocusShares 77 0.0% 79 (1) -1.8% - 77 n.a.
Grail Advisors LLC 30 0.0% 30 (0) -0.6% 21 10 46.3%
Javelin Invesment Management LLC 15 0.0% 15 (0) -1.9% 12 3 26.1%
US One Inc 14 0.0% 14 (0) -1.1% 10 4 37.8%
FaithShares Advisors LLC 11 0.0% 11 (0) -1.8% 12 (1) -6.6%
PAX World Management LLC 5 0.0% 6 (0) -2.1% 3 3 99.1%

Total 1,084,262 100% 1,119,126 (34,864) -3.1% 995,247 89,015 8.9%


Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Deutsche Bank Securities Inc. Page 31


12 May 2011 US ETF Market Weekly Review

Index Provider Underlying Index/Security


Figure 68: ETP AUM ($ Million) by Index Provider – Figure 69: ETP AUM ($ Million) by Underlying Index –
Equity (Top 10) Equity (Top 10)

MSCI S&P 500


S&P
MSCI Emerging Markets
Russell
MSCI EAFE
Other
Dow Jones Nasdaq 100
Nasdaq OMX MSCI US Broad Market
FTSE
Russell 2000
Deutsche Borse
Russell 1000 Growth
HOLDR
Wilshire MSCI Brazil

Market Vector DJIA


Morningstar S&P 400 MidCap
BLDRS
- 20,000 40,000 60,000 80,000 100,000 120,000 140,000
0 50,000 100,000 150,000 200,000 250,000 300,000
AUM ($ Million) AUM ($ Million)

Figure 70: ETP AUM ($ Million) by Index Provider – Fixed Figure 71: ETP AUM ($ Million) by Underlying Index –
Income Fixed Income

Barclays Barclays Capital US Treasury Inflation Notes

iBoxx $ Liquid Investment Grade


Markit iBoxx
Barclays Capital US Aggregate
S&P
Barclays Capital Aggregate Bond
Other
iBoxx $ Liquid High Yield
Deutsche Bank
Barclays Capital 1-3 Year US Credit
BofA Merrill Lynch
Barclays Capital 1-3 Year Treasury Bond
Active S&P Preferred Stock

NYSE Barclays Capital High Yield Very Liquid Bond

Market Vector Treasury Bill

0 20,000 40,000 60,000 80,000 100,000 120,000


- 5,000 10,000 15,000 20,000 25,000

AUM ($ Million) AUM ($ Million)

Figure 72: ETP AUM ($ Million) by Index Provider – Figure 73: ETP AUM ($ Million) by Underlying
Commodity Index/Security – Commodity

Commodity - Gold
Commodity
Silver Price

Deutsche Bank Liquid Commodity


Deutsche Bank
Deutsche Bank Liquid Commodity Index Div…

Natural Gas futures contract


S&P
GSCI Total Return

West Texas Intermediate Light


Dow Jones
London Gold Market Fixing Price/USD

Commodity - Platinum
Other
Rogers International Commodity TR

0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000
- 10,000 20,000 30,000 40,000 50,000 60,000 70,000

AUM ($ Million) AUM ($ Million)

Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Page 32 Deutsche Bank Securities Inc.


12 May 2011 US ETF Market Weekly Review

Top ETPs
Figure 74: Top 20 ETPs by AUM ($ Million) (Includes ETNs also)
Asset Class AUM
ETP Name Issuer BBG Ticker TER
& Structure $ MM
S&P 500 SPDR ("Spider") State Street GA Equity ETF SPY US 0.10% 91,580
SPDR Gold Trust State Street GA Commodity ETV GLD US 0.40% 57,583
Vanguard Emerging Markets ETF Vanguard Equity ETF VWO US 0.22% 47,467
iShares MSCI EAFE BlackRock Equity ETF EFA US 0.34% 40,957
iShares MSCI Emerging Markets BlackRock Equity ETF EEM US 0.69% 40,236
iShares S&P 500 BlackRock Equity ETF IVV US 0.09% 28,627
PowerShares QQQ Nasdaq 100 PowerShares Equity ETF QQQ US 0.20% 25,836
iShares Barclays TIPS Bond Fund BlackRock Fixed Income ETF TIP US 0.20% 20,425
Vanguard Total Stock Market ETF Vanguard Equity ETF VTI US 0.07% 19,877
iShares Russell 2000 BlackRock Equity ETF IWM US 0.20% 16,007
iShares Russell 1000 Growth BlackRock Equity ETF IWF US 0.20% 13,825
iShares iBoxx $ Investment Grade Corporate Bond Fund BlackRock Fixed Income ETF LQD US 0.15% 13,541
iShares MSCI Brazil BlackRock Equity ETF EWZ US 0.61% 12,519
iShares Russell 1000 Value BlackRock Equity ETF IWD US 0.20% 11,955
iShares S&P MidCap 400 BlackRock Equity ETF IJH US 0.20% 11,652
iShares Silver Trust BlackRock Commodity ETV SLV US 0.50% 11,614
S&P 400 MidCap Bank of New York Equity ETF MDY US 0.25% 11,323
DJIA Diamonds ("Diamond") State Street GA Equity ETF DIA US 0.17% 11,291
iShares Barclays Aggregate Bond Fund BlackRock Fixed Income ETF AGG US 0.24% 11,009
Vanguard Total Bond Market Vanguard Fixed Income ETF BND US 0.12% 9,622
Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Figure 75: Top 20 ETPs by AUM Change ($ Million) (Includes ETNs also)
AUM
Asset Class
ETP Name Issuer BBG Ticker TER Change
& Structure
$ MM
iShares Silver Trust BlackRock Commodity ETV SLV US 0.50% (5,626)
S&P 500 SPDR ("Spider") State Street GA Equity ETF SPY US 0.10% (3,729)
iShares Russell 2000 BlackRock Equity ETF IWM US 0.20% (3,148)
SPDR Gold Trust State Street GA Commodity ETV GLD US 0.40% (3,101)
Vanguard Emerging Markets ETF Vanguard Equity ETF VWO US 0.22% (1,885)
SPDR Energy State Street GA Equity ETF XLE US 0.20% (1,475)
iShares MSCI Emerging Markets BlackRock Equity ETF EEM US 0.69% (1,435)
PowerShares QQQ Nasdaq 100 PowerShares Equity ETF QQQ US 0.20% (1,367)
iShares Barclays 20+ Year Treasury Bond Fund BlackRock Fixed Income ETF TLT US 0.15% 963
DJIA Diamonds ("Diamond") State Street GA Equity ETF DIA US 0.17% 933
ProShares Ultra Silver ProShares Commodity ETV AGQ US 0.95% (909)
PowerShares DB Commodity Index Tracking Fund Deutsche Bank AG Commodity ETV DBC US 0.75% (824)
Market Vectors Gold Miners ETF Van Eck Funds Equity ETF GDX US 0.53% (779)
S&P 400 MidCap Bank of New York Equity ETF MDY US 0.25% (777)
SPDR Health Care State Street GA Equity ETF XLV US 0.20% 723
iShares MSCI Brazil BlackRock Equity ETF EWZ US 0.61% (672)
SPDR Consumer Staples State Street GA Equity ETF XLP US 0.20% 540
ProShares UltraShort Silver ProShares Commodity ETV ZSL US 0.95% 492
iShares MSCI EAFE BlackRock Equity ETF EFA US 0.34% (478)
iShares MSCI Canada BlackRock Equity ETF EWC US 0.53% (418)
Source: Deutsche Bank, Bloomberg Finance LP, Reuters

Deutsche Bank Securities Inc. Page 33


12 May 2011 US ETF Market Weekly Review

The authors of this report wish to acknowledge the contribution made by Catherine
Montecinos, employee of Evalueserve, a third party provider to Deutsche Bank of
offshore research support services.

Page 34 Deutsche Bank Securities Inc.


12 May 2011 US ETF Market Weekly Review

Appendix A: How we define ETPs


Exchange-Traded Products (ETPs)
We define an exchange-traded product (ETP) as a secure (funded or collateralized) open-ended delta-one exchange-traded
equity or debt instrument with no embedded optionality and market-wide appeal to investors. This includes exchange traded
funds, exchange-traded commodities (Europe) and exchange-traded vehicles (US).

Figure 1 gives a summary of our current coverage universe by region and structure type.

The vast majority of instruments are ETFs (90.7%, 2,649 products, $1,400.8 billion) with the remainder being ETCs (1.8%, 280
products, $27.3 billion) in Europe and ETVs (7.5%, 83 products, $115.2 billion) in the US.

Figure 76: ETP Coverage Universe Summary - End of Q1 2011


ETPs ETFs ETCs (Europe), ETVs (US)
Region Products US$ Mil. % Products US$ Mil. % Products US$ Mil. %
US 1,031 1,064,047 68.9% 948 948,851 61.5% 83 115,196 7.5%
Europe 1,414 335,722 21.7% 1,134 308,388 20.0% 280 27,334 1.8%
Asia 311 85,603 5.5% 306 84,937 5.5% 5 666 0.0%
ROW 261 58,632 3.8% 261 58,632 3.8% - - 0.0%
Global 3,017 1,544,004 100.0% 2,649 1,400,808 90.7% 368 143,196 9.3%
Source: Deutsche Bank, Bloomberg Finance LP, Reuters.

Exchange-Traded Funds (ETFs, 91%)


US (61%): Fund structures that issue shares that are traded on an exchange much the same way as equities. ETFs indexed to
equity and fixed income benchmarks are registered under the investment company act of 1940. Only physical index
replication techniques are permissible by this legislation while synthetic replication is not allowed.

Europe (20%): Fund structures that issue units or shares that are traded on an exchange much the same way as equities. The
vast majorities of European ETFs are UCITS III compliant and are primarily domiciled in Dublin and Luxemburg. The
Undertakings for Collective Investment in Transferable Securities (UCITS) are a set of European Union directives that aim to
allow collective investment schemes to operate freely throughout the EU on the basis of a single authorization from one
member state. Both physical and synthetic index replication is permissible by UCITS and funds are allowed to track equity,
fixed income as well as diversified commodity indices.

Asia (6%): Both European and US ETFs are cross sold into the Asian market.

Exchange-Traded Collateralized Instruments (9%)


Exchange-Traded Commodities (ETCs, 2%)
In Europe as UCITS III does not permit the creation of funds tracking non diversified commodity indices (for example wheat or
oil), exchange-traded products that track single commodity profiles are issued under the EU Prospectus Directive in two
structures that have become widely known as exchange-traded commodities (ETCs). ETCs can either be physically backed or
they can be issued through a bankruptcy remote special purpose vehicle (SPV). Both forms utilize offshore domiciles, such as
Jersey, and are classed as debt instruments. Physically-backed ETCs are fully backed with securities that closely resemble the
composition of a product’s benchmark index. SPV structures are collateralized by assets which could bear no resemblance to
those of their respective benchmark index and ensure replication of their index return through a total return swap structure or
by holding other derivative instruments such as future instruments, government bonds and gold. For more information, please
refer to our research report issued on March 11 2010 titled ‘The race for assets in the European Exchange-Traded Products
Market”.

Exchange-traded vehicles (ETVs, 7%)


This terminology typically refers to grantor trusts that exist in the US market. These instruments track primarily commodity
benchmarks. They differ from ETFs in that they are registered under the Securities Act of 1933 and not the investment
Company Act of 1940, hence they are not classed as funds. Vehicles that replicate commodity benchmarks, more often
known as pools, and funds targeting alternative index returns are formed under the Commodities Exchange Act and are listed
under the 33 Securities Act, and report under 34 Corporate Act.

Deutsche Bank Securities Inc. Page 35


12 May 2011 US ETF Market Weekly Review

Appendix 1
Important Disclosures
Additional information available upon request
For disclosures pertaining to recommendations or estimates made on a security mentioned in this report, please see
the most recently published company report or visit our global disclosure look-up page on our website at
http://gm.db.com/ger/disclosure/DisclosureDirectory.eqsr.

Analyst Certification
The views expressed in this report accurately reflect the personal views of the undersigned lead analyst(s). In addition, the
undersigned lead analyst(s) has not and will not receive any compensation for providing a specific recommendation or view in
this report. Shan Lan

Equity rating key Equity rating dispersion and banking relationships

Buy: Based on a current 12- month view of total share-holder


return (TSR = percentage change in share price from current 500 51%
46%
price to projected target price plus pro-jected dividend yield ) 400
, we recommend that investors buy the stock.
300
Sell: Based on a current 12-month view of total share-holder 37%
200 31%
return, we recommend that investors sell the stock
100 3% 31%
Hold: We take a neutral view on the stock 12-months out
and, based on this time horizon, do not recommend either a 0
Buy or Sell.
Buy Hold Sell
Notes:
1. Newly issued research recommendations and target prices
always supersede previously published research. Companies Covered Cos. w/ Banking Relationship

2. Ratings definitions prior to 27 January, 2007 were: North American Universe


Buy: Expected total return (including dividends) of 10% or
more over a 12-month period
Hold: Expected total return (including dividends) between -
10% and 10% over a 12-month period
Sell: Expected total return (including dividends) of -10% or
worse over a 12-month period

Page 36 Deutsche Bank Securities Inc.


12 May 2011 US ETF Market Weekly Review

Regulatory Disclosures
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Aside from within this report, important conflict disclosures can also be found at https://gm.db.com/equities under the
"Disclosures Lookup" and "Legal" tabs. Investors are strongly encouraged to review this information before investing.

2. Short-Term Trade Ideas


Deutsche Bank equity research analysts sometimes have shorter-term trade ideas (known as SOLAR ideas) that are consistent
or inconsistent with Deutsche Bank's existing longer term ratings. These trade ideas can be found at the SOLAR link at
http://gm.db.com.

3. Country-Specific Disclosures
Australia: This research, and any access to it, is intended only for "wholesale clients" within the meaning of the Australian
Corporations Act.
EU countries: Disclosures relating to our obligations under MiFiD can be found at
http://globalmarkets.db.com/riskdisclosures.
Japan: Disclosures under the Financial Instruments and Exchange Law: Company name - Deutsche Securities Inc.
Registration number - Registered as a financial instruments dealer by the Head of the Kanto Local Finance Bureau (Kinsho) No.
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Japan unless “Japan” is specifically designated in the name of the entity.
New Zealand: This research is not intended for, and should not be given to, "members of the public" within the meaning of
the New Zealand Securities Market Act 1988.
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appraisal or evaluation activity requiring a license in the Russian Federation.

Deutsche Bank Securities Inc. Page 37


Deutsche Bank Securities Inc.

North American locations

Deutsche Bank Securities Inc. Deutsche Bank Securities Inc. Deutsche Bank Securities Inc. Deutsche Bank Securities Inc.
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Tel: (212) 250 2500 Boston, MA 02110 Chicago, IL 60606 Denver, CO 80206
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Deutsche Bank Securities Inc. Deutsche Bank Securities Inc. Deutsche Bank Securities Inc.
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Philadelphia, PA 19103 San Francisco, CA 94111 Tel: (832) 239-4600
Tel: (215) 854 1546 Tel: (415) 617 2800

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Deutsche Bank Securities Inc. Deutsche Bank AG London Deutsche Bank AG Deutsche Bank AG
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United States of America United Kingdom Germany Corner of Hunter & Phillip Streets
Tel: (1) 212 250 2500 Tel: (44) 20 7545 8000 Tel: (49) 69 910 00 Sydney, NSW 2000
Australia
Tel: (61) 2 8258 1234
Deutsche Bank AG Deutsche Securities Inc.
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