What You Should Know:
- Barclays is the fund issuer.
- FLAT has an expense ratio of 0.75%.
- The fund is down 2.60% in the last three months, up 8.38% over the last three months and up 22.50% year-to-date.
- FLAT performs when the the spread between two-year and 10-year yields declines, or “flattens,” by shorting the two-year note and going long the 10-year note.
- “Typically the [Treasury yield] curve is upward sloping because investors usually demand more interest for locking their money up for longer periods,” Morningstar analyst Timothy Strauts writes in a profile of the ETF. “The yield curve is steep. This elevated state can not last in the long term, which may make now an opportune time to buy this fund.”
- The iPath US Treasury Steepener ETN (NYSEArca: STPP) takes the opposite strategy.
iPath US Treasury Flattener ETN
For past stories in this series, visit our ETF Spotlight category.
Max Chen contributed to this article.