Seeking Alpha
 

iPath U.S. Treasury Flattener ETN (FLAT)

- NYSEARCA
FLAT vs. ETF Alternatives
FLAT Description
"The iPath® US Treasury Flattener Exchange Traded Note is linked inversely to the performance of the Barclays Capital US Treasury 2Y/10Y Yield Curve Index™. The index employs a strategy that seeks to capture returns that are potentially available from a ""steepening"" or ""flattening"", as applicable, of the U.S. Treasury yield curve through a notional rolling investment in U.S. Treasury note futures contracts. The level of the index is designed to increase in response to a ""steepening"" of the yield curve and to decrease in response to a ""flattening"" of the yield curve. To accomplish this objective, the performance of the index tracks the returns of a notional investment in a weighted ""long"" position in relation to 2-year Treasury futures contracts and a weighted ""short"" position in relation to 10-year Treasury futures contracts, as traded on the Chicago Board of Trade. The iPath® US Treasury Flattener ETN employs an index multiplier that provides the investor at maturity or upon redemption a participation rate of $0.10 gain or loss per each 1.00 point decrease or increase, respectively, in the level of the index. For purposes of calculating the closing indicative note value on a given day, the index multiplier is multiplied by the daily index performance, which is added to the daily interest that accrued from a notional investment of the value of the ETN at the 28-day U.S. Treasury Bill rate, from which all applicable costs and fees are deducted. "
See more details on sponsor's website
Country: United States
Key Info
Find the right ETFs for your portfolio: Seeking Alpha's new ETF Hub