Since June 5, the iShares 20+ Year Treasury Bond ETF (NYSEArca: TLT) is down 6.6%. Over that time, STPP has raked in $1.82 million in assets, according to Index Universe data. That may not sound like a lot, but it represents a decent amount of the ETN’s current AUM total of $13.2 million.
Investors that believe the yield will not steepen further and possibly reverse course should consider STPP’s aptly tickered counterpart, the iPath US Treasury Flattener ETN (NYSEArca: FLAT). FLAT and STPP are not a perfect dollar-for-dollar trade, but the former’s recent price action underscores the fact that traders are betting on a steeper yield. However, like TLT, FLAT is down 6.6% since June 5.
iPath US Treasury Steepener ETN
ETF Trends editorial team contributed to this piece. Tom Lydon’s clients own shares of TLT.