• Abstract and Figures
• Public Full-text

August 31, 2020 Annual Report DBX ETF Trust Xtrackers High Beta High Yield Bond ETF (HYUP) Xtrackers Low Beta High Yield Bond ETF (HYDW) Xtrackers Short Duration High Yield Bond ETF (SHYL) Xtrackers USD High Yield Corporate Bond ETF (HYLB) DBX ETF Trust Table of Contents Page Shareholder Letter ....................................................................... 1 Management’s Discussion of Fund Performance ............................................. 3 Performance Summary Xtrackers High Beta High Yield Bond ETF ................................................ 5 Xtrackers Low Beta High Yield Bond ETF ................................................ 7 Xtrackers Short Duration High Yield Bond ETF ........................................... 9 Xtrackers USD High Yield Corporate Bond ETF ........................................... 11 Fees and Expenses ....................................................................... 13 Schedule of Investments Xtrackers High Beta High Yield Bond ETF ................................................ 14 Xtrackers Low Beta High Yield Bond ETF ................................................ 20 Xtrackers Short Duration High Yield Bond ETF ........................................... 31 Xtrackers USD High Yield Corporate Bond ETF ........................................... 40 Statements of Assets and Liabilities ........................................................ 59 Statements of Operations ................................................................. 60 Statements of Changes in Net Assets ....................................................... 61 Financial Highlights ...................................................................... 63 Notes to Financial Statements ............................................................. 65 Report of Independent Registered Public Accounting Firm .................................... 74 Board Members and Officers .............................................................. 76 Additional Information .................................................................... 79 Privacy Policy Notice ..................................................................... 80 To our Shareholders: (Unaudited) Dear Shareholder, We are pleased to provide this annual report for our ETFs tracking the fixed income market for the period ended August 31, 2020. The global economy shrank at a record pace during the reporting period owing to COVID-19-driven collapse of economic activity. The pandemic severely affected the U.S. economy, as it was one of the worst hit countries in terms of COVID-19 infections. Consumer and business spending took a hit as nationwide lockdowns brought business activity to a halt. Labor markets also saw considerable weakness as record numbers of Americans filed for unemployment benefits; however, the gradual reopening of the economy led to some recovery. Though economic activity picked up momentum in May, a resurgence of COVID-19 infections hurt sentiments. The Eurozone economy plunged into recession owing to stringent lockdown measures implemented in the region. However, its success in containing infections, along with government stimulus, helped support an initial recovery. Amid the global growth slowdown and containment activities, monetary and fiscal authorities globally offered unprecedented rescue packages on the back of benign inflation numbers. In light of evolving risks from COVID-19, the Federal Reserve Board (FRB) took a dovish stance, maintaining a near-zero policy rate in March 2020. Furthermore, given the proximity of interest rates to zero percent, the FRB reaffirmed that it is prepared to use its full range of tools to achieve its maximum employment and price stability goals. To keep the economy afloat, the US Congress passed the largest stimulus package ever, called the Coronavirus Aid, Relief and Economic Security (CARES) Act, worth USD2.2 trillion. The unusual stimulus packages along with gradual reopening of the economy buoyed U.S. equity markets to reach their all-time highs. The high-yield spreads over U.S. treasuries crossed the 1,000 basis points (1 basis point = 0.01%) mark during the initial panic over the pandemic. However, the FRB’s foray into high yield debt put a lid on the yields and supported the high-yield bond prices at a level that otherwise would be unimaginable in a recession. The improved borrowing conditions led to the issuance in the U.S. high- yield bond markets to reach record levels. To address the unprecedented situation, the European Central Bank announced a Pandemic Emergency Purchase Programme (PEPP) worth 7.3% of Euro area GDP1. PEPP targets to enhance credit to businesses and households, as well as to support production and employment. Second wave of COVID-19 infections, worsening trade relations with China and failure to reach an agreement on the second U.S. stimulus package are some major risks ahead of the U.S. economy. However, willingness of policymakers to provide unprecedented fiscal and monetary support, coupled with gradual reopening of the economy, should support an initial recovery. Given the unprecedented resources devoted to COVID-19 vaccine research by both the public and private sectors, positive surprises certainly appear possible. Our team appreciates your trust and looks forward to serving your investment needs through innovative index-driven strategies. Sincerely, /s/ Freddi Klassen Freddi Klassen President and Chief Executive Officer 1The gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country’s borders in a specific time period. Assumptions, estimates and opinions contained in this document constitute our judgment as of the date of the document and are subject to change without notice. Any projections are based on a number of assumptions as to market conditions and there can be no guarantee that any projected results will be achieved. Past performance is not a guarantee of future results. 1 This Page is Intentionally Left Blank 2 DBX ETF Trust Management’s Discussion of Fund Performance (Unaudited) Xtrackers High Beta High Yield Bond ETF (HYUP) The Xtrackers High Beta High Yield Bond ETF (HYUP) seeks investment results that correspond generally to the performance, before fees and expenses, of the Solactive USD High Yield Corporates Total Market High Beta Index (the HYUP Index). The HYUP Index is designed to track the performance of the segment of the U.S. dollar denominated high yield corporate bond market that exhibits higher overall beta1 to the broader high yield corporate fixed income market. For the 12-month period ended August 31, 2020 HYUP shares returned 2.46%, compared to the HYUP Index return of 1.98%. The majority of sectors contributed positively to performance with the greatest contribution coming from Consumer Non-Cyclical, Consumer Cyclical and Technology. Energy and Transportation were the only negative contributors to performance. Xtrackers Low Beta High Yield Bond ETF (HYDW) The Xtrackers Low Beta High Yield Bond ETF (HYDW) seeks investment results that correspond generally to the performance, before fees and expenses, of the Solactive USD High Yield Corporates Total Market Low Beta Index (the HYDW Index). The HYDW Index is designed to track the performance of the segment of the U.S. dollar denominated high yield corporate bond market that exhibits lower overall beta1 to the broader high yield corporate fixed income market. For the 12-month period ended August 31, 2020 HYDW shares returned 4.42%, compared to the HYDW Index return of 4.06%. The majority of sectors contributed positively to performance with the greatest contribution coming from Communications, Consumer Non-Cyclical and Consumer Cyclical. Transportation was the only sector that detracted slightly from performance. Xtrackers Short Duration High Yield Bond ETF (SHYL) The Xtrackers Short Duration High Yield Bond ETF (SHYL) seeks investment results that correspond generally to the performance, before fees and expenses, of the Solactive USD High Yield Corporates Total Market 0-5 Year Index (the SHYL Index). The SHYL Index is designed to track the performance of high yield rated corporate bonds issued in USD with 0 to 5 years term to maturity. For the 12-month period ended August 31, 2020, SHYL shares returned 0.61%, compared to the SHYL Index return of 0.91%. The majority of sectors contributed positively to performance with the greatest contribution coming from Consumer Cyclical, Consumer Non-Cyclical and Technology. Energy, Transportation and Communications were the only negative contributors to performance. Xtrackers USD High Yield Corporate Bond ETF (HYLB) The Xtrackers USD High Yield Corporate Bond ETF (HYLB) seeks investment results that correspond generally to the performance, before fees and expenses, of the Solactive USD High Yield Corporates Total Market Index (the HYLB Index). The HYLB Index is designed to track the performance of a basket of U.S. dollar denominated high yield liquid corporate bonds. For the 12-month period ended August 31, 2020, HYLB shares returned 2.91%, compared to the HYLB Index return of 3.29%. The majority of sectors contributed positively to performance with the greatest contribution coming from Consumer Non-Cyclical, Consumer Cyclical and Communications. Energy and Transportation were the only negative contributors to performance. 1 Beta is a measure of a security’s price sensitivity (i.e., volatility) it reflects the rate of change in a security’s price that results from overall market movements.

Load more

  88

Copy Link