Xtrackers ETC plc Launches 3,300 New Physical Silver ETC Securities in Tranche 162 of Series 3 Programme

Overview of Xtrackers ETC plc and Its Commodity-Linked Securities Structure

Incorporated on 21 May 2018 in Ireland, Xtrackers ETC plc operates as a special purpose vehicle with its registered office at Fourth Floor, 3 George's Dock, IFSC, Dublin 1. The entity exclusively issues asset-backed commodity-linked exchange-traded commodities (ETCs) granting investors access to precious metals exposure. Wilmington Trust SP Services (Dublin) Limited holds the issuer’s ordinary shares in trust for charitable purposes, ensuring governance prioritizes investor interests over profit maximization.

The company functions under stringent regulation, with its Base Prospectus authorized by the UK Financial Conduct Authority on 12 February 2026. This approval facilitates distribution across multiple regulated EU and UK markets. As of 30 September 2025, Xtrackers ETC plc reported total assets of USD 9,444,414,693, up significantly from USD 6,749,076,488 as of 30 September 2024, reflecting growth in ETC securities and underlying precious metal holdings.

Physical Silver Custody and Allocation Methodology Ensuring Investor Security

JPMorgan Chase Bank, N.A., London Branch acts as Secured Account Custodian for the silver backing the newly issued ETC Securities. The metal is primarily held on an "allocated" basis, meaning specific physical silver is segregated and clearly identified for Xtrackers ETC plc, minimizing commingling risks with other clients’ holdings.

Nonetheless, small quantities may be held "unallocated" for operational efficiency, representing contractual rights to delivery rather than specific physical metal. This exposes the issuer to custodian credit risk, mitigated by requiring custodians to maintain minimum Standard & Poor's credit ratings of BBB- / A-3 for long and short-term obligations.

Details of Tranche 162 Issuance and Metal Entitlement per Security

Tranche 162 of Series 3, consisting of 3,300 ETC Securities, was issued on 20 July 2026 at USD 70.511504 each, with the subscription trade date on 16 July 2026. This issuance increased Series 3 securities from 3,203,238 to 3,206,538. Each security entitles holders to 1.430260796 fine troy ounces of silver as of the subscription date, a slight decrease from the initial 1.45 ounces at series launch on 29 April 2020 due to accrued fees.

Estimated net proceeds total USD 232,687 after deducting issuance and trading admission expenses. The securities are bearer global instruments under ISIN DE000A2T0VS9, cleared through Clearstream Frankfurt and CREST Indirect Clearing. No foreign exchange hedging is provided, leaving investors fully exposed to currency fluctuations between the US dollar and other currencies.

Fee Structure and Impact on Metal Entitlements

The ETC Securities incur a daily accruing product fee, currently 0.20% per annum with a maximum cap of 1.00%. Fees are deducted via a daily reduction in the metal entitlement per security rather than cash payments, directly decreasing the silver backing each ETC Security.

JPMorgan Chase Bank, N.A., as Metal Agent, periodically sells metal equivalent to accrued fees, typically weekly. Proceeds are deposited into the Series Cash Account held by J.P. Morgan SE, the Account Bank, and used to pay the Programme Administrator for ETC programme and administrative costs. This fee mechanism links metal value and investor charges transparently.

Redemption Terms and Maturity Set for 30 April 2080

The ETC Securities mature on 30 April 2080, a 54-year term from issuance. At maturity, holders receive a Final Redemption Amount calculated as the greater of (1) the metal entitlement multiplied by the volume-weighted average silver price during a 45-day Final Redemption Disposal Period starting four business days after the 15 March 2080 valuation date, or (2) a minimum floor equal to 10% of the issue price plus specified interest. The specified interest reflects accrued interest on metal sale proceeds, subject to a minimum of zero.

There is no guarantee that the Final Redemption Amount will equal or exceed the initial investment. Due to the limited recourse nature of the securities, investors may receive less than full payment or zero if metal sale proceeds are insufficient.

Early Redemption Triggers and Accelerated Disposal Procedures

Five early redemption events may accelerate maturity before 30 April 2080, including: regulatory or legal changes prompting issuer redemption notice; resignation or termination of an agent without timely replacement; the ETC Security value falling to 20% or less of issue price for two consecutive days; VAT liability events; and an issuer call redemption event. Upon such events, securities become payable at an Early Redemption Amount calculated similarly to the final redemption, with a 45-day disposal period and an early redemption date eight business days after disposal.

Multi-Market Listing and Regulatory Compliance Across Europe

The ETC Securities are admitted to trading on the Frankfurt Stock Exchange, Borsa Italiana, and London Stock Exchange plc, effective on or around 29 April 2020. The Base Prospectus complies with the UK Prospectus Regulation and has been certified by competent authorities in Austria, Belgium, Finland, France, Germany, Italy, Luxembourg, the Netherlands, Portugal, Spain, and Sweden.

Additional listings on other exchanges may occur under separate Final Terms identical except for listing details, enabling broad European market access without altering security terms.

Counterparty Credit Risk Controls and JPMorgan’s Central Role

JPMorgan Chase Bank, N.A., London Branch acts as Metal Agent, handling metal sales and price determination, while J.P. Morgan SE functions as Account Bank managing cash accounts. Minimum counterparty credit ratings of BBB- / A-3 by Standard & Poor’s are required for all critical agents to mitigate default risk.

Concentration risk exists due to JPMorgan’s multiple roles; however, its strong credit standing provides investor protection. Failure to appoint successor agents within 60 days triggers early redemption rights for holders.

Security Interests Under Irish and English Law Safeguarding Investor Claims

Issuer obligations are secured through security deeds governed by Irish and English law, granting security interests over the issuer’s rights and underlying metals. These "Secured Property" interests are ring-fenced per series, preventing cross-claims between different ETC Security series.

Security interests become enforceable if redemption payments are missed at maturity or early redemption dates. The dual-jurisdiction framework aligns with issuer incorporation and agent locations, ensuring enforceability and investor protection in insolvency scenarios.

Series 3 Issuance Capacity and Future Growth Potential

Series 3 has a maximum capacity of 100 billion ETC Securities. After Tranche 162, 3,206,538 securities are outstanding, representing approximately 0.0032% of the authorized limit. This substantial headroom allows for numerous future issuances under the current programme, subject to regulatory compliance and market demand.

Launched on 29 April 2020 with board approval on 23 April 2020, the series offers a multi-decade issuance horizon with early redemption options. The current series size relative to capacity suggests significant potential for ongoing silver ETC issuance.