BALiPath Series B Bloomberg Cotton Subindex Total Return ETN
BAL Fund Description
BAL tracks a single cotton futures contract with one month to five months to maturity, depending on the time of year.
BAL Factset Analytics Insight
BAL tracks an index of cotton futures contracts anywhere from one to five months from maturity. This particular tenor strategy takes into consideration the lifecycle of the cotton plant — holding longer contracts during incubation and shorter contracts during harvest. It also allows the index to select the most liquid contracts available given the lifecycle constraints. This method differentiates the note from its front-month benchmark, so expect BAL to deviate slightly from the benchmark. Structured as an ETN, investors avoids a K1 form at tax time, but carries the counterparty risk of its issuer. Note: BAL replaced an older ETN with the same ticker. The newer, series B note tracks the same index, but avoids path dependency issues. It also includes a call provision. The new version traded under the ticker BALB until November 16, 2018.
BAL Portfolio Management
BAL Tax Exposures
BAL Fund Structure
BAL Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of BAL. BAL is rated a 5 out of 5.
BAL Sector Breakdown
BAL Tenor Strategy
BAL invests solely in second-month futures contracts. This means that the fund will be particularly sensitive to changes in spot prices, but may be priced higher or lower than spot, sometimes dramatically.
BAL Rolling Strategy
BAL rolls contracts over an annually pre-determined 5 day period each month.