iPath US Treasury 5 Year Bull ETN (NYSEARCA:DFVL) Struggles To Maintain Momentum


Dallas, Texas 02/18/2014 (FINANCIALSTRENDS) – The half million market capped iPath US Treasury 5 Year Bull ETN (NYSEARCA:DFVL) issued by Barclays i Path is traded under the government bond category and has been traded in the markets since its inception in July of 2012. The fund tracks its yield and returns against the returns provided by the Barclays Capital 5Y US Treasury Futures Targeted Exposure Index and has provided returns of a negative 1.7 percent in the past one year. The fund has also not paid out any returns to its investors till date.

This intermediate term duration bond has traded in the  $54 to $60.62 range in the past one year, with an average of 10,615 trades or transaction volume on a monthly basis. In spite of the low appreciation, the investor community continues to support the fund thanks to the strong sentiment attached to the issuer and its solid creditworthiness. The S&P 500 index has rated Barclays banks long term unsecured obligations as a AA –ve, Moody’s has a Aa3 rating on the same.

The iPath US Treasury 5 Year Bull ETN (NYSEARCA:DFVL) is an laggard when compared to other government bond linked exchange traded funds issued by Barclays. For instance, the 20+ Year Treasury Bond ETF (TLT) which tracks performance against the Barclays Capital U.S. 20+ Year Treasury Bond Index, has a market cap of $3314 million and has appreciated by 4.83 percent year to date. It has also paid a relatively handsome dividend of $3.27 per share, which translates into a annual dividend yield of 3.07 percent.

The fund has a 20 day mean average trading price of $57.3 per share and has recorded a 20 day volatility of 31.35 percent. In the past one week, it has been trading in the red, with a 0.83 percent dip seen, over its past week valuations.