STPPiPath U.S. Treasury Steepener ETN
STPP Fund Description
STPP tracks an index with exposure to US Treasury futures contracts, long 2-year and short 10-year. It should gain when the yield curve steepens.
STPP Factset Analytics Insight
STPP, an ETN, attempts to profit from a steepening in the Treasury curve. Its underlying index tracks a long position in 2-year Treasury notes and a short position in 10-year Treasury bonds. The strategy, in theory, should benefit when the yield curve steepens. When the yield curve steepens, rates on longer-term bonds rise relative to rates on short-term debt. Consequently, the prices of long-term bonds will decline relative to short-term bonds, and the fund’s long/short position will profit. The exposure is reset on a monthly basis. STPP trades poorly, with massive spreads and inconsistent volume, so limit orders are essential here. iPath charges a sizeable fee for such exposure, although it's a reasonable in the context of ETNs offering unique strategies like this one. As an ETN, STPP is merely a promise to pay the reference index's return, so investors are exposed to the credit risk of Barclays bank.
STPP Charts And Performance
STPP Portfolio Data
STPP Index Data
STPP Fund Structure
STPP Tax Exposures
STPP Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of STPP. STPP is rated a 5 out of 5.