Xtrackers Russell 1000 US Quality at a Reasonable Price ETF (QARP) Exchange: NYSE ARCA

The Fund, using a “passive” or indexing investment approach, seeks investment results that correspond generally to the performance, before fees and expenses, of the Underlying Index, which is designed to track the equity market performance of companies in the United States selected on the investment style criteria (“factors”) of quality and value. The companies eligible for the Underlying Index are derived from its starting universe, the Russell 1000 Index, which is comprised of large-cap equity securities from issuers in the United States. The index provider, FTSE International Limited (“Index Provider”), selects companies for the Underlying Index using a proprietary rules-based multi-factor selection and weighting process designed to increase the Underlying Index’s exposure, relative to the starting universe, to companies demonstrating the following factors: Quality. The quality score is calculated from a company’s leverage and profitability (e.g., return on assets, asset turnover and accruals). The Index Provider’s methodology for measuring the quality factor attempts to identify stocks that are characterized by low debt, stable earnings growth, and other “quality” metrics, with the expectation that these will provide the possibility of excess returns. Value. The value score is calculated based on a company’s valuation ratios (e.g., cash-flow yield, earnings yield and country relative sales to price). Value investing generally refers to a strategy that buys stocks whose price is lower than the fundamental value of the stock. The Index Provider’s methodology for measuring the value factor attempts to identify stocks that have low prices relative to their fundamental value and that provide the possibility of excess returns. Companies are weighted based on their relative exposure to both factors with an increased exposure (or, a “tilt”) of 2.0x (i.e., a doubling) applied to the quality factor. In this way, the Fund seeks to provide quality at a reasonable price (“QARP”). Companies that do not display meaningful characteristics of both factors are not eligible for inclusion in the Underlying Index. The Underlying Index is rebalanced annually in June, and thus the Fund rebalances its portfolio in corresponding fashion. The Fund uses a representative sampling indexing strategy in seeking to track the Underlying Index, meaning it generally will invest in a sample of securities in the index whose risk, return and other characteristics resemble the risk, return and other characteristics of the Underlying Index as a whole. The Fund will invest at least 80% of its total assets (but typically far more) in component securities of the Underlying Index. As of October 31, 2018, the Underlying Index consisted of 375 securities, with an average market capitalization of approximately $46.8 billion and a minimum market capitalization of approximately $962.9 million, from issuers in the United States. The Fund will normally invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in securities of issuers from the United States. As of October 31, 2018, the Underlying Index was solely comprised of securities of issuers from the United States. The Fund is classified as non-diversified under the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund will concentrate its investments (i.e., hold 25% or more of its total assets) in a particular industry or group of industries to the extent that its Underlying Index is concentrated. As of October 31, 2018, a significant percentage of the Underlying Index was comprised of issuers in the information technology (19%), and healthcare (15.9%) sectors.