DTULiPath US Treasury 2-year Bull ETN
DTUL Fund Description
DTUL tracks the Barclays 2Y US Treasury Futures Targeted Exposure Index. The index increases when yield decreases and the note gains 10 cents for each 1 point gain in the index.
DTUL Factset Analytics Insight
DTUL offers atypical exposure to 2-year US Treasurys in an ETN that trades big for its small size. The “Bull” in the note’s name indicates direction—that it rises when yields fall, just as a bond would. DTUL differs from most leveraged products in that it does not set exposure based on a set multiple like 2x or 3x. Instead it aims for a fixed dollar exposure to its index, so it increases a dime for each one point increase in the index. The index itself (inversely) moves a point for each bp of change in yield with whole idea being fixed dollar exposure relative to changes in yield. And there’s the rub: A 10-cent increase on a $50 handle is a 20 bp move, while the same increase if the note stands at $100 produces a 10 bp move. This adds up to “variable” exposure compared with the more typical fixed-multiple daily-reset geared products as the note offers fixed exposure to Treasurys in dollars. The note has tiny AUM but trades well with reasonable spreads, indicating than most participants take a position for a day or two. Even with DTUL’s role as a tactical tool in mind, keep tabs on the note’s status as a viable entity as we see high risk that it could delist or be called away.
DTUL CHARTS AND PERFORMANCE
DTUL Portfolio Data
DTUL Index Data
DTUL Fund Structure
DTUL Tax Exposures
DTUL Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of DTUL. DTUL is rated a N/A out of 5.