PowerShares ETFs

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Product Details

The PowerShares DB US Inflation Exchange Traded Notes (Symbol:INFL)(the "Inflation ETNs") and PowerShares DB US Deflation Exchange Traded Notes (Symbol: DEFL) (the "Deflation ETNs," together with the Inflation ETNs the "ETNs") provide investors with direct exposure to US inflation or deflation expectations.

The Inflation ETNs and Deflation ETNs are based on the DBIQ Duration-Adjusted Inflation Index (the "long inflation index") and the DBIQ Duration-Adjusted Deflation Index (the "short inflation index", together with the long inflation index, the "inflation indexes"), respectively, which are intended to capture movements, whether up or down, in US inflation expectations or deflation expectations, as applicable.

The ETNs are senior unsecured obligations issued by Deutsche Bank AG, London Branch that are linked to the month-over-month returns, whether positive or negative, on the DBIQ Duration-Adjusted Inflation Index and the DBIQ Duration-Adjusted Deflation Index.

The inflation indices aim to track changes in the market's expectations of future inflation implied by the difference in yields between Treasury Inflation-Protected Securities (TIPS) and U.S. Treasury bonds with approximately equivalent terms to maturity. A combination of offsetting short and long notional positions in TIPS and Treasury Bond Futures is one way in which this expectation of future inflation may be measured. If the market's expectation of future inflation increases, TIPS are likely to outperform U.S. Treasury bonds with approximately equivalent terms to maturity. If the market's expectation of future inflation decreases, TIPS are likely to underperform U.S. Treasury bonds with approximately equivalent terms to maturity. Therefore, to gain exposure to the market's expectation that future inflation will increase, the Inflation ETNs take a notional long position in TIPS and a notional short position in U.S. Treasury bonds with approximately equivalent terms to maturity. To gain exposure to the market's expectation that future inflation will decrease, the Deflation ETNs take a notional short position in TIPS and a notional long position in U.S. Treasury bonds with approximately equivalent terms to maturity.

If the daily repurchase value of the securities is above $100.00 for three consecutive trading days or is below $25.00 for three consecutive trading days, Deutsche Bank AG, London Branch will automatically effect a 2 for 1 split or a 1 for 2 reverse split of the securities, respectively. Because the index multiplier remains constant at 0.10 per security, a mandatory split or reverse split will have the effect of increasing or decreasing an investor's exposure to the applicable inflation index, respectively.

Investors may redeem the ETNs in blocks of 50,000 securities and multiples of 25,000 securities in excess thereof, subject to the procedures described in the pricing supplement. Redemptions may include a fee of up to $0.075 for each security that is redeemed or a fee of up to $0.50 if an investor offers in excess of 500,000 securities for redemption on any repurchase date.

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Ticker Symbols

  • US Inflation ETNINFL
  • US Deflation ETNDEFL

Intraday Indicative Value Symbols

  • US Inflation ETNINFLIV
  • US Deflation ETNDEFLIV

CUSIP Symbols

  • US Inflation ETN25154W225
  • US Deflation ETN25154W217

Details

  • ETN Price at
    Inception$50.00
    per security
  • Inception Date12/05/2011
  • Maturity Date11/30/2021
  • Yearly Investor Fee0.75%
  • Listing ExchangeNYSE Arca
  • DBIQ Duration-Adjusted
    Inflation IndexDBLNLINF
  • DBIQ Duration-Adjusted
    Deflation IndexDBLNSINF

Issuer

  • Deutsche Bank AG, London Branch
  • Senior Unsecured Obligations

Risks

  • Non-principal protected
  • Subject to an investor fee
  • Limitations on redemption
  • Concentrated exposure
  • Credit risk of the issuer
  • Issuer call right

Benefits

  • Relatively low cost
  • Intraday access
  • Listed