H Man

Troubled By ETF Tracking Failures? Try ETNs

The 35bp mangement fee is the prorated management fee since I was using a YTD figure. I've looked into this a little more and the is a price difference between the indicative value (DJP.IV) and market price (DJP). Barclay's guarantees the index return minus management fees for the indicative value NOT the market price. If you refer to your second link and the "returns" section you can see what I'm taking about: ytd (as of April 30) market price return is 5.06% vs 5.80% and 5.56% for the index and indicative value.

So you get the index minus the management fee only if you buy when the market price is the same as the indicative price.

The 61bps difference is for ONLY 5 1/2 months which would annualize to roughly to 130 bps which is above the contractural terms.

It would be nice if Barclays would show historical premuim/discount as they do with their ETFs (AGG for example).