Seeking Alpha

DTO
  PowerShares DB Crude Oil Double Short ETN - NYSEARCA

11/27/2014, 7:21 PM ET
  • Dr. Kris | Send Message 23 Jun 2011

    Trade Note: Oil breaking down as shown by breakout in 2x bear ETFs DTO & SCO, breakdown in 2x bull ETF UCO, and breakdown in Brent ETF BNO.
    Reply
      DTO vs. ETF Alternatives
      DTO Description
      All of the PowerShares DB Crude Oil ETNs are based on a total return version of the Deutsche Bank Liquid Commodity Index-Oil (the "Index") which is designed to reflect the performance of certain crude oil futures contracts plus the returns from investing in 3 month United States Treasury bills. The Long ETN is based on the Optimum Yield™ version of the Index and the Short and Double Short ETNs are based on the standard version of the Index. The Optimum Yield™ version of the index attempts to minimize the negative effects of contango and maximize the positive effects of backwardation by applying flexible roll rules to pick a new futures contract when a contract expires. The standard version of the index, which does not attempt to minimize the negative effects of contango and maximize the positive effects of backwardation, uses static roll rules that dictate that an expiring futures contract must be replaced with a contract having a pre-defined expiration date.
      See more details on sponsor's website
      Key Info
      Find the right ETFs for your portfolio: Seeking Alpha's new ETF Hub