ETF Trends
ETF Trends

In late April, PowerShares and Deutsche Bank launched a number of exchange traded notes based on European and Japanese sovereign bonds.

PowerShares DB Italian Treasury Bond Futures ETN (NYSE Arca: ITLY), PowerShares DB German Bond Futures ETN (NYSE Arca: BUNL) and PowerShares DB Japanese Govt Bond Futures ETN (NYSE Arca: JGBL) measure the performance of long positions in the respective bond futures contracts.

For those looking to leverage their long exposure to such markets, PowerShares DB 3x Italian Treasury Bond Futures ETN (NYSE Arca: ITLT), PowerShares DB 3x German Bond Futures ETN (NYSE Arca: BUNT) and PowerShares DB 3x Japanese Govt Bond Futures ETN (NYSE Arca: JGBT) were also made available.

Based on the current debt situation in Europe as well as the market volatility this year in Japan following the nuclear disaster a few months back, the release of these products may prove timely for those institutional investors looking for exposure to these markets whom may not have the desire nor acumen to purchase the actual bonds themselves and instead are looking for something in ETN wrapper.

Being newer products to the map, these ETNs do not typically trade a ton of volume on a day to day basis, and the visual liquidity shown on the “screen markets” may be deceptive and should not deter the investor from looking to establish sizable positions.

PowerShares DB Japanese Govt Bond Futures ETN

Chart source: StockCharts.com.

For more information on Street One ETF research and ETF trade execution/liquidity services, contact pweisbruch@streetonefinancial.com.