By Ron Rowland:
PowerShares launched a pair of DB Inverse JGB Futures ETNs in early November (11/9/11). The new exchange-traded notes (“ETNs”) are based on the DB USD Inverse JGB Futures Index, which is intended to measure the performance of a short position in 10-year JGB Futures in U.S. dollars.
Investor fees are 0.50% for PowerShares DB Inverse Japanese Govt Bond Futures ETN (NYSEArca:JGBS - News) and 0.95% for PowerShares DB 3x Inverse Japanese Govt Bond Futures ETN (NYSEArca:JGBD - News). Leverage will be reset monthly.
The new products came to market despite a poor investor reception by long-side versions. PowerShares DB Japanese Govt Bond Futures ETN (NYSEArca:JGBL - News) and PowerShares DB 3x Japanese Govt Bond Futures ETN (NYSEArca:JGBT - News) both launched on 3/23/11 and joined ETF Deathwatch in October.
Additional information can be found in the overview, fact sheet (pdf), and 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.
