PowerShares ETFs

Inflation/Deflation

INFL | PowerShares DB US Inflation ETN
DEFL | PowerShares DB US Deflation ETN

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.

Financial Details

INFL DEFL
Last Update 11/02/2015
12:00 AM EST
11/02/2015
12:00 AM EST
Price
Indicative Intra-day Value 37.68 56.58
Last End of Day Repurchase Value 38.0388 56.2030
Last Date for End of Day Value 02/19/2015 02/19/2015

Source: Invesco PowerShares, Bloomberg L.P.

as of 09/30/2014

ETN Repurchase Value & Index History(%)

  1 Year 3 Year 5 Year 10 Year ETN Inception
ETN Repurchase Value1
US Inflation ETN -6.95% - - - -5.90%
US Deflation ETN 2.89% - - - 1.86%
ETN Market Price2
US Inflation ETN -8.47% - - - -1.78%
US Deflation ETN 8.34% - - - 0.42%
Index History
PowerShares DB US Inflation ETN -6.14% - - - -5.15%
PowerShares DB US Deflation ETN 3.62% - - - 2.58%
Comparative Indexes3
S&P 500 Index 19.73% - - - 19.85%
Barclays U.S. Aggregate 3.96% - - - 2.52%

1 ETN repurchase value performance figures reflect repurchase value, which would require investors to have a minimum number of shares (found in pricing supplement). Repurchase value is the current principal amount x applicable index factor x fee factor. See the prospectus for more complete information. Investors holding less than the minimum number of shares required to effect a repurchase would have to sell their shares at prevailing market prices, which may be at a discount to the repurchase value. See "ETN Market Price" in this table. Index history is for illustrative purposes only and does not represent actual ETN performance. The publication date of the DBIQ Duration-Adjusted Inflation Index and the DBIQ Duration-Adjusted Deflation Index is 7/25/2011. ETN Performance is based on gain or loss of $0.10 per security for each 1 point increase or decrease, respectively, in the level of the applicable inflation index, plus the income accrued from a notional investment of the value of the securities, as determined on each monthly rebalancing date, in 3-month United States Treasury bills on a rolling basis, as represented by the DB 3-Month T-Bill Index (the "TBill index"), less an investor fee.

Index history does not reflect any transaction costs or expenses. Indexes are unmanaged, and you cannot invest directly in an index. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.

2 Market performance is calculated using the change in the bid/ask midpoint at 4 p.m. ET expressed as a percentage change from the beginning to the end of the specified time period.

3 The S&P 500® Index is an unmanaged index used as a measurement of change in stock market conditions based on the performance of a specified group of common stocks. The Barclays U.S. Aggregate Index is an unmanaged index considered representative of the U.S. investment-grade, fixed-rate bond market. Correlation indicates the degree to which two investments have historically moved in the same direction and magnitude. Volatility is the annualized standard deviation of index returns.

as of 02/24/2015

DEFL Index Weights

Contract Contract Expiry Date Weight
TII 0 1/4 01/15/25 01/15/2025 -41.48%
TII 0 1/8 04/15/19 04/15/2019 -40.13%
TII 0 1/8 07/15/24 07/15/2024 -8.36%
TII 1 3/8 02/15/44 02/15/2044 -10.03%
US 10 Yr Note Future 03/01/2015 34.13%
US 10 Yr Note Future 06/01/2015 22.87%
US 5 Yr Note Future 06/01/2015 13.38%
US 5 Yr Note Future 03/01/2015 19.95%
US Ultra Bond Future 03/01/2015 5.79%
US Ultra Bond Future 06/01/2015 3.88%
as of 02/24/2015

INFL Index Weights

Contract Contract Expiry Date Weight
TII 0 1/4 01/15/25 01/15/2025 41.41%
TII 0 1/8 04/15/19 04/15/2019 40.18%
TII 0 1/8 07/15/24 07/15/2024 8.37%
TII 1 3/8 02/15/44 02/15/2044 10.04%
US 10 Yr Note Future 03/01/2015 -34.13%
US 10 Yr Note Future 06/01/2015 -22.87%
US 5 Yr Note Future 06/01/2015 -13.38%
US 5 Yr Note Future 03/01/2015 -19.95%
US Ultra Bond Future 03/01/2015 -5.79%
US Ultra Bond Future 06/01/2015 -3.88%

Source: Invesco PowerShares, Bloomberg L.P.

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