PowerShares and DB Team Up On New Foreign Bond ETNs

Invesco PowerShares and Deutsche Bank last week (3/23/2011) announced the first family of single-country sovereign debt ETNs.  Six new exchange-traded notes (“ETNs”) offer long exposure to German, Italian, and Japanese bonds.  Each country has a unleveraged ETN as well as a 3x leveraged version.

ETNs are senior unsecured debt obligations and are subject to the credit risk of Deutsche Bank AG, the issuer.  Performance is linked to the month-over-month returns (“monthly reset”) of the underlying futures indexes, minus fees and expenses.

PowerShares DB German Bund Futures ETN (BUNL) and PowerShares DB 3x German Bund Futures ETN (BUNT) provide investors with unleveraged or 3x leveraged exposure to the U.S. dollar value of the returns of a German bond futures index.

The underlying index attempts to measure the performance of a long position in Euro-Bund Futures of Federal Republic of Germany-government issued debt securities (“Bunds”) with a remaining term of not less than 8.5 years  and not more than 10.5 years as of the futures contract delivery date.

Investor fees are 0.50% for BUNL and 0.95% for BUNT.  Additional information can be found in the combined BUNL/BUNT overview, fact sheet (pdf), and prospectus (pdf).

PowerShares DB Italian Treasury Bond Futures ETN (ITLY) and PowerShares DB 3x Italian Treasury Bond Futures ETN (ITLT) provide investors with unleveraged or 3x leveraged exposure to the U.S. dollar value of the returns of an Italian bond futures index.

The underlying index attempts to measure the performance of a long position in Euro-BTP Futures of Republic of Italy-government issues debt securities (“BTPs”) with an original term of no longer than 16 years and remaining term to maturity of not less than 8.5 and no more than 11 years as of the futures contract delivery date.

Investor fees are 0.50% for ITLY and 0.95% for ITLT.  Additional information can be found in the combined ITLY/ITLT overview, fact sheet (pdf), and prospectus (pdf).

PowerShares DB Japanese Govt Bond Futures ETN (JGBL) and PowerShares DB 3x Japanese Govt Bond Futures ETN (JGBT) provide investors with unleveraged or 3x leveraged exposure to the U.S. dollar value of the returns of a Japanese bond futures index.

The underlying index attempts to measures the performance of a long position in 10-year JGB Futures of Japan-government issued debt securities (“JGBs”) with a remaining term to maturity of not less than 7 years and not more than 11 years as of their issue date and the futures contract delivery date.

Investor fees are 0.50% for JGBL and 0.95% for JGBT.  Additional information can be found in the combined JGBL/JGBT overview, fact sheet (pdf), prospectus (pdf).

Disclosure covering writer, editor, and publisher:  No positions in any of the securities mentioned.  No positions in any of the companies or ETF sponsors mentioned.  No income, revenue, or other compensation (either directly or indirectly) received from, or on behalf of, any of the companies or ETF sponsors mentioned.

Comments

One Response to “PowerShares and DB Team Up On New Foreign Bond ETNs”

  1. Nine More ETFs Emerge | Invest With An Edge on February 2nd, 2012 12:22 pm

    [...] Bond Index Fund (BUND), which also includes German corporate bonds.  Additionally, there is PowerShares DB German Bund Futures ETN (BUNL), which is an exchange-traded note and does not issue [...]

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