Deutsche Bank and Invesco PowerShares Capital Management LLC today announced that they will launch eight Exchange Traded Notes (ETNs) linked to the performance of industrial metals and crude oil.
PowerShares DB Base Metals ETNs
Deutsche Bank will issue four ETNs linked to the Deutsche Bank Liquid Commodity Index – Optimum Yield Industrial Metals (TM). The industrial metals index is intended to reflect the price changes in a basket of aluminum, copper and zinc futures. The ETNs will be traded on the NYSE Arca, listed as follows:
PowerShares DB Base Metals Double Short ETN (NYSE Arca: BOM)
PowerShares DB Base Metals Double Long ETN (NYSE Arca: BDD)
PowerShares DB Base Metals Short ETN (NYSE Arca: BOS)
PowerShares DB Base Metals Long ETN (NYSE Arca: BDG)
The Base Metals ETNs will offer investors cost-effective and convenient short or leveraged exposure to base metals: the PowerShares DB Base Metals Double Short ETNs offer investors exposure to two times the monthly inverse performance of the industrial metals index plus a monthly T-Bill index return; the PowerShares DB Base Metals Double Long ETNs offer investors exposure to two times the monthly performance of the industrial metals index plus a monthly T-Bill index return; the PowerShares DB Base Metals Short ETNs offer investors exposure to the monthly inverse performance of the industrial metals index plus a monthly T-Bill index return; and the PowerShares DB Base Metals Long ETNs offer investors exposure to the monthly performance of the industrial metals index plus the monthly T-Bill index return.
PowerShares DB Crude Oil ETNs
Deutsche Bank will issue two ETNs linked to the standard version of the Deutsche Bank Liquid Commodity Index – Light CrudeTM. The benchmark crude oil index is intended to reflect the price changes in the Nymex light sweet crude oil futures. The ETNs will be traded on the NYSE Arca, listed as follows:
PowerShares DB Crude Oil Double Short ETN (NYSE Arca: DTO)
PowerShares DB Crude Oil Short ETN (NYSE Arca: SZO)
The PowerShares DB Crude Oil Double Short ETNs offer investors exposure to two times the monthly inverse performance of the DB benchmark crude oil index, plus the monthly T-Bill index return. The PowerShares DB Crude Oil Short ETNs offer investors exposure to the monthly inverse performance of the DB benchmark crude oil index, plus the monthly T-Bill index return.
Deutsche Bank will also issue two ETNs linked to the Deutsche Bank Liquid Commodity Index – Optimum Yield Crude OilTM. The ETNs will be traded on the NYSE Arca, listed as follows:
PowerShares DB Crude Oil Double Long ETN (NYSE Arca: DXO)
PowerShares DB Crude Oil Long ETN (NYSE Arca: OLO)
The PowerShares DB Crude Oil Double Long ETNs offer investors exposure to two times the monthly performance of the DB Optimum Yield™ crude oil index, plus the monthly T-Bill index return. The PowerShares DB Crude Oil Long ETNs offer investors exposure to the monthly performance of the DB Optimum Yield™ crude oil index, plus the monthly T-Bill index return.
Each of the eight ETNs are senior unsecured obligations of Deutsche Bank. Each security being offered has separate terms and offers investors a different type of monthly exposure to a total return version of the Deutsche Bank Liquid Commodity Index – Optimum Yield Industrial MetalsTM, the Deutsche Bank Liquid Commodity Index – Light Crude, or the Deutsche Bank Liquid Commodity Index – Optimum Yield Crude OilTM. Investors can subscribe to any of the eight offerings. Deutsche Bank will issue the securities in denominations of $25. All of the securities are subject to an investor fee.
“We are very pleased with the success of our ETN platform, and today we continue our commitment to delivering cost-effective and convenient short and leveraged commodity exposure to investors by issuing the crude oil and base metals ETNs,” said Kevin Rich, Managing Director in Deutsche Bank’s Global Markets Investment Products group.
“The PowerShares DB Crude Oil and Base Metal ETNs represent innovative new ways to access sought-after commodity markets.” said Bruce Bond, President and CEO of Invesco PowerShares Capital Management. “In partnership with Deutsche Bank, we now offer investors 30 PowerShares DB commodity and currency portfolios.”
Earlier this year, Deutsche Bank issued 11 ETNs linked to variations of the Deutsche Bank Commodity Index and recently renewed its marketing agreement with Invesco PowerShares Capital Management LLC to co-brand the ETNs “DB PowerShares.” For more information on the ETNs, please visit: www.dbfunds.db.com/notes or www.powersharesetns.com.