ETF spotlight on iPath US Treasury Flattener ETN (NYSEArca: FLAT), part of an ongoing series.

Assets: $45.21 million.

Objective: The iPath U.S. Treasury Flattener Exchange Traded Note reflects the daily inverse performance of the Barclays Capital U.S. Treasury 2Y/10Y Yield Curve Index, which implements a sophisticated investment strategy that allows investors to bet on slope of the yield curve – the level of the index increases as the yield curve steepens and decreases as the yield curve flattens. “FLAT employs a strategy that seeks to make money when the two-year versus 10-year yield spread declines,” investment researcher Morningstar explains.

Holdings: To achieve its target objective, the fund holds a weighted “long” position in 2-year Treasury futures contracts and a weighted “short” position in relation to 10-year Treasury futures contracts.

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