AGATFDB Agriculture Double Short ETN
AGATF Fund Description
The DB Agriculture Double Short ETN provides monthly -2x exposure to an index that tracks the performance of futures contracts on corn, soybeans, sugar and wheat.
AGATF Factset Analytics Insight
AGA is, like most leveraged and inverse products, designed to provide -2x exposure to its index for a set period of time—monthly in this case. Investors holding it beyond the next monthly reset date will be subject to the effects of compounding—a dynamic that can cause the note’s performance to drift from its promised -2x exposure. The note’s index tracks a single futures contract on 4 agricultural commodities: corn, wheat, soybeans and sugar. The index tracks the futures contract on each commodity determined to be least influenced by contango. Baked into the index’s performance are 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 75 bp fee is entirely reasonable compared with other inverse products, trading costs are of greater importance, since AGA is designed for round-trip intraday trading. To that end, it’s nearly untradeable. The fund barely trades, and spreads are obscenely wide. What’s more, AGA's market price is untethered to fair value because the note is closed for creations, which can lead to premiums and discounts.
AGATF Charts And Performance
AGATF Summary Data
AGATF Portfolio Data
AGATF Index Data
AGATF Fund Structure
AGATF Tax Exposures
AGATF Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of AGATF. AGATF is rated a 5 out of 5.