DTUSiPath US Treasury 2-Year Bear ETN
DTUS Fund Description
DTUS provides inverse exposure to the Barclays 2Y US Treasury Futures Targeted Exposure Index. The index increases when yield decreases and the inverse note gains 10 cents for each 1 point drop in the index.
DTUS Factset Analytics Insight
DTUS offers atypical inverse exposure to 2 year US Treasurys in a thinly-traded ETN wrapper. The “Bear” in the note’s name indicates direction—that it rises when yields rise, unlike a bond. However, DTUS differs from most inverse products in that it does not set exposure based on a fixed multiple like -1x or -2. Instead it aims for a fixed dollar exposure to its index, so it increases a dime for each 1 point decrease 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. The market is cool to this approach judging from the slender AUM. DTUS's low volume would be disappointing for any fund but especially for a geared product which are typically held for short periods. We see high risk that the fund may de-list or be called away.
DTUS CHARTS AND PERFORMANCE
DTUS Portfolio Data
DTUS Index Data
DTUS Fund Structure
DTUS Tax Exposures
DTUS Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of DTUS. DTUS is rated a 5 out of 5.