Generic Risks

The price of an investment in a Xtrackers ETC may go up or down and the investor may not get back the amount invested.

Xtrackers ETCs may be priced in EUR, USD, GBP, CHF or SGD and the value of an investment in currencies other than the investor’s home currency will be affected by exchange rate movements.

Xtrackers ETCs are limited recourse obligations which are payable solely out of the underlying assets which may be precious metal, carbon emission allowances or a crypto assets. Should these prove insufficient any outstanding claims will remain unpaid.

Past performance is not a reliable indicator of future results.

Potential investors must ensure that they fully understand the risks associated with making an investment in a Xtrackers ETC and have sufficient financial resources to sustain any loss that may arise from it.

Investments in Xtrackers ETCs involve numerous risks including, among others, general market risks relating to the relevant underlying assets, exchange rate risks, interest rate risks, inflationary risks, liquidity risks, and legal and regulatory risks.

Capital at Risk

Potential investors should note that Xtrackers ETCs are not capital protected or guaranteed and investors should therefore be prepared and able to sustain losses up to the total capital invested.

Volatility and Liquidity Risk

prices are generally more volatile than other asset classes, making investments riskier than other investments. The value of Xtrackers ETC may be affected by market volatility and the volatility of the underlying Index and the value of any investment may go down as well as up.

Lack of liquidity may also have an impact on bid offer spreads and the liquidity of Xtrackers ETCs may be severely reduced during volatile conditions. At such times, bid offer spreads for Xtrackers ETCs may not be available for prolonged time periods during each trading day. Potential investors should therefore be aware that although Xtrackers ETCs are exchange-traded there is liquidity risk associated with an investment in Xtrackers ETCs during such periods of increased volatility. No market may exist for Xtrackers ETCs and there may be delays in the execution of trades and wider than usual margins may arise during volatile time periods.

Risks specific to the Underlying

Precious metals: Prices of precious metals, industrial metals and other commodities are generally more volatile than prices in other asset classes. The less liquid a commodity or precious metal the more volatile it can be. Metal markets have the potential to suffer from market disruption or volatility caused by shortages of physical metal.

Carbon emission allowances: The performance of carbon emission allowances is dependent upon macroeconomic factors including performance of certain sectors caught under compliance schemes, any new developments in technology which have the potential to reduce greenhouse gas emissions or to sequestrate carbon, and changes in economic and climate policy. The supply of and demand and the market price for carbon emission allowances can be affected by political decisions taken in relation to the European Union Emissions Trading System.

Crypto Assets: Crypto assets are extremely volatile when compared to fiat currencies and most (if not all) traditional asset classes. Price is heavily influenced by supply and demand, sentiment, speculation and dependent on the very volatile cryptocurrency market that has experienced large shock events in the past. The price of a crypto asset can increase or decrease significantly in a matter of hours or even minutes, 24/7, often caused by short term trading. Crypto assets are exposed to novel blockchain-risks, such as hacking.

Market Risk

As ETCs are designed to track market returns, investors in Xtrackers ETCs are exposed to market risk. That means if the underlying price being tracked falls in value then the ETC will equally suffer a loss, while if the underlying price being tracked increases in value then the ETC will experience a gain. Underlying prices react, among other things, to economic factors such as changing supply and demand relationships, investment climate and investor sentiment, inflation, weather conditions and other natural events, security breaches or cyber-attacks, the agricultural, trade, fiscal, monetary, and other policies of governments and other unforeseeable events all of which may affect an investment in Xtrackers ETCs.

ETC investors are fully exposed to underlying market price moves.

Sophistication

Not all Xtrackers ETCs may be suitable for all investors. Potential investors should consult their financial advisor before investing in a Xtrackers ETCs.

Should the Xtrackers ETC issuance company be wound up then Xtrackers ETCs investors through the trustee would have a claim on a proportion of the liquidation proceeds of the actual assets held by a custodian on behalf of the relevant Xtrackers ETC issuance company – the proportion they have a claim on being in line with their Xtrackers ETC holding.

FX Risk/Currency Hedging (where applicable)

The value of any investment involving exposure to foreign currencies can be affected by exchange rate movements.

Currency hedging components of Xtrackers ETC securities: In case the issuer has made a profit on a currency hedging component between relevant observation dates, the issuer and the investors will have an intra-month unsecured credit exposure to the programme counterparty for such a profit.

ETC Fees

Investments in ETC securities will not accrue any interest and performance is subject to the deduction of the annual product fee.

There will be a trading difference between Xtrackers ETC and the relevant underlying asset due to the impact of the annual fees.

An investment in a Xtrackers ETC is dependent on the performance of the underlying asset less costs but an investment is not expected to match that performance precisely. The returns on the Xtrackers ETC may not be directly comparable to the returns achieved by direct investment in the underlying assets of the Xtrackers ETC.

Conflicts

DWS and its related companies may act in several roles in relation to Xtrackers ETCs such as promoter, distributor, arranger and programme administrator which may involve conflicts of interest which are managed in accordance with applicable rules and regulations.

Tax

Tax treatment of the Xtrackers ETCs depends on the individual circumstances of each investor. The levels and bases of, and any applicable relief from, taxation can change. Potential investors should seek independent tax advice in relation to a potential investment in a Xtrackers ETC.

For further information regarding risk factors, please refer to the risk factors section of the prospectus.