New Inflation / Deflation ETNs: Better Than TIP?

PowerShares and Deutsche Bank, partners on a suite of exchange-traded notes targeting commodities and several international bond markets, have rolled out a pair of ETNs designed to target changes in inflation expectations. The new notes will be linked to indexes that are designed to measure the market’s expectations of future inflation implied by the difference in yields between a position in U.S. TIPS and an offsetting position in Treasuries with approximately equivalent terms to maturity. The new ETNs include: PowerShares DB US Inflation ETN (INFL): This note is linked to the DBIQ Duration-Adjusted Inflation Index, which consists of a long position in TIPS and a short position in Treasuries with approximately the same duration. PowerShares DB US Deflation ETN (DEFL): This note is linked to the DBIQ Duration-Adjusted Deflation Index. That index combines a short position in TIPS with a long position in U.S. Treasuries. Better Than TIPS? To understand [...] Click here to read the original article on ETFdb.com. Related Posts: New At ETFdb: ETF Scorecards Offer In-Depth Analysis And Ranking Of Every ETF Alternatives To The 20 Most Popular ETFs Thursday’s ETF To Watch: iShares Barclays TIPS Bond Fund (TIP) Five ETFs To Watch Ahead Of Ben Bernanke’s Jackson Hole Speech Thursday’s ETF Chart To Watch: iShares Barclays TIPS Bond Fund (TIP)