DGZDB Gold Short ETN
DGZ Fund Description
DGZ tracks the performance of a futures contract on gold determined to be least impacted by contango.
DGZ Factset Analytics Insight
DGZ is, unlike most leveraged and inverse products, designed to provide its -1x exposure to its index on a monthly rather than daily basis. Still, the same caution applies: Investors holding it beyond the next reset date 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 gold determined to be least influenced by contango. The index measures the changes in the price of the gold futures contract, 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 gold products, trading costs are of greater importance, since DGZ is designed for round-trip intraday trading. To that end, the market for DGZ has small spreads, but overall daily volume isn't fantastic. Investors should therefore use limit orders and expect to wait to get orders filled. Investors interested in inverse gold ETPs will find better liquidity in DZZ or GLL.
DGZ CHARTS AND PERFORMANCE
DGZ Portfolio Data
DGZ Index Data
DGZ Fund Structure
DGZ Tax Exposures
DGZ Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of DGZ. DGZ is rated a 5 out of 5.