ETF Spotlight on the iPath US Treasury 10-year Bear ETN (NYSEArca: DTYS), part of an ongoing series.
Assets: $62.8 million.
Objective: The iPath US Treasury 10-year Bear ETN tries to reflect the inverse, or -100%, exposure to the Barclays 10Y US Treasury Futures Targeted Exposure Index, which is designed to decrease in response to an increase in the 10-year Treasury not yields and to increase in response to a decrease in 10-year Treasury note yields.
Holdings: The index is comprised of CBOT 10-YR Treasury futures September 2013 contracts.
What You Should Know:
- Barclays iPath is the sponsoring bank.
- DTYS has a 0.75% expense ratio.
- The ETN is up 21.6% over the past month, up 23.4% over the last three months up 21.1% year-to-date and up 18.0% over the past year.
- “There is no guarantee that the index level will decrease or increase by 1.00 point for every 0.01% change in the level of the underlying U.S. Treasury note or bond yield,” according to iPath.
- “Reasons why this might occur include: market prices for underlying U.S. Treasury note or bond futures contracts may not capture precisely the underlying changes in the U.S. Treasury note or bond yield; the index calculation methodology uses approximation; and the underlying U.S. Treasury note or bond weighting is rebalanced monthly,” according to iPath.
- The fund is an exchange traded note. [ETNs]
- An ETN is essentially an uncollateralized loan to an investment bank and leaves investors open to potential credit risks of the issuing bank – if the bank goes under, there is no guarantee that the ETN investor will receive all of his or her principle back.
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