Barclays Debuts Clone Of Inverse Treasury ETN

February 05, 2020

Barclays’ iPath ETN unit rolled out a “Series B” version of one of its existing products today. The iPath Series B US Treasury 10-year Bear ETN (BTYS) is basically a clone of the iPath US Treasury 10-Year Bear ETN (DTYS), offering constant inverse exposure to the performance of yields on 10-year Treasury notes.

Like its predecessor, BTYS comes with an expense ratio of 0.75% and lists on Cboe Global Markets, the parent company of ETF.com.

BTYS, like DTYS, reflects the performance of the Barclays 10Y US Treasury Futures Targeted Exposure Index. According to the ETN’s prospectus, its underlying index “employs a strategy that seeks to capture returns that are potentially available from an increase or decrease, as applicable, in the yields available to investors purchasing 10-year U.S. Treasury notes through a notional rolling investment in 10-year U.S. Treasury note futures contracts.”

DTYS has been on a largely downward trend for its entire existence, since launching in August 2010, and currently has less than $17 million in assets under management. The launch of BTYS gives investors a fresh starting point. Interestingly, while the prospectus for DTYS does not appear to have such a provision, BTYS’ prospectus specifically notes that Barclays can redeem or call the notes at any time at their discretion.

Contact Heather Bell at [email protected]

 

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