ADZCFDB Agriculture Short ETN
ADZCF Fund Description
The DB Agriculture Short ETN provides monthly inverse exposure to an index that tracks the performance of futures contracts on corn, soybeans, sugar and wheat.
ADZCF Factset Analytics Insight
ADZ is, like most leveraged and inverse products, designed to provide -1x exposure to its index for a fixed period of time—monthly in this case. Investors holding it beyond the next monthly reset will be subject to the effects of compounding—a dynamic that can cause the note’s performance to drift from its promised -1x exposure. The note’s index tracks a single futures contract on four agricultural commodities: corn, wheat, soybeans and sugar. The index tracks the futures contract on each commodity determined to be least influenced by contango. The index measures the changes in price of the futures contracts, the returns from rolling those contracts over, and the cost of borrowing (collateral) as measured by the 3-month Treasury bill. Although its expense ratio is entirely reasonable compared with other inverse products, trading costs are of greater importance, since ADZ is designed for round-trip intraday trading. To that end, it’s nearly untradeable. Median volume is zero, meaning that most days, not a single share changes hands, and spreads are obscenely wide. Investors face substantial premiums or discounts, too, as the note is closed for creations, preventing arbitrageurs from doing their job.
ADZCF CHARTS AND PERFORMANCE
ADZCF Portfolio Data
ADZCF Index Data
ADZCF Fund Structure
ADZCF Tax Exposures
ADZCF Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of ADZCF. ADZCF is rated a 5 out of 5.