deutsche-bank-agDeutsche Bank AG (London Branch)(OTC:BOMMF)

This ETN was delisted on April 11, 2019, and now trades over-the-counter on the pink sheets. As a result, shareholders should anticipate ultra-wide spreads, minimal trading volumes, and prices well above or below NAVs. BOM provides monthly -2x exposure to an index of futures contracts on three industrial metalsaluminum, copper and zincdeemed to have the least amount of contango by the index provider. The note, like many geared inverse products, is designed to provide this exposure for only for its reset period, in this case, until the next monthly reset. Anyone holding it for longer than this will be subject to the effects of compounding, which can cause the note`s returns to stray (sometimes greatly) from the promised -2x exposure. The index is designed to measure the performance of the chosen futures contracts on the three metals, the returns from rolling those contracts, as well as the cost of borrowing (collateral) as measured by 3-month Treasury bills. Its 75 bp fee is reasonable considering some geared inverse commodities products charge twice that, but trading costs are more important, since the note is designed for day trading. Unfortunately, BOM's assets are thin, which provides very little liquidity for the fund`s shares. It trades very little on most days, and spreads are very wideunattractive for a tactical tool.