TAPRBarclays Inverse U.S. Treasury Composite ETN
TAPR Fund Description
The Barclays Inverse US Treasury Composite ETN tracks an index of equally weighted short positions in front-month futures contracts on 2-year, 5-year, 10-year, long-bond and ultra-long US Treasurys.
TAPR Factset Analytics Insight
TAPR charges 43 bps for a broad 1x inverse exposure to the US Treasury market. The note charges another 32 bps for index roll costs, pushing total headline fees to 75 bps. TAPR’s index uses an equal weighting scheme for short positions in a variety of US Treasury futures contracts: 2-year, 5-year, 10-year, long-bond and ultra-long. The note will appreciate in value if prices of Treasurys fall (rates rise) across the yield curve, also known as the parallel shift of the yield curve. The note can be used as a broad hedge against rising rates, an anticipated effect from the tapering of the asset purchasing program by the Federal Reserve. However, a parallel shift rarely happens in real life, making the notes unsuitable for precise duration hedging. Trade TAPR with care during its early days, as its market is evolving. As an ETN, TAPR does not hold Treasury futures and collateral, but is only backed by the credit of Barclays Bank PLC. The note launched with a larger asset base than typical ($25M), which gives it a hard start toward long-term viability.
TAPR CHARTS AND PERFORMANCE
TAPR Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of TAPR. TAPR is rated a 5 out of 5.