BOSDB Base Metals Short ETN
BOS Fund Description
BOS tracks the performance of futures contracts relating to aluminum, copper and zinc.
BOS Factset Analytics Insight
BOS provides monthly -1x exposure to an index of futures contracts on three industrial metals—aluminum, copper and zinc—deemed to have the least amount of contango by the index provider. The note, like many geared inverse products, is designed to provide this exposure only for its reset period; in this case, the time remaining until the next monthly reset. Anyone holding it for longer than this will be subject to the effects of compounding, which can cause the note’s returns to stray (sometimes greatly) from the promised -1x exposure. The index is designed to measure the performance of the chosen futures contracts on the three metals, the returns from rolling those contracts, as well as the cost of borrowing (collateral) as measured by 3-month Treasury bills. Its 75 bp fee is reasonable, considering some geared inverse commodities products charge twice that, but trading costs are more important, since the note is designed for day trading. Unfortunately, BOS has very little in assets, which provides very little liquidity for the fund’s shares. Trading is light on most days, and spreads are obscenely wide.
BOS CHARTS AND PERFORMANCE
BOS Portfolio Data
BOS Index Data
BOS Fund Structure
BOS Tax Exposures
BOS Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of BOS. BOS is rated a 5 out of 5.