DB Gold Double Short ETN due February 15, 2038
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DB Gold Double Short ETN due February 15, 2038 (DZZ) is an exchange-traded note designed to provide leveraged inverse exposure to gold prices. It is a structured debt instrument issued by Deutsche Bank, with its return linked to the performance of an index based on gold futures contracts.
This ETN seeks to deliver daily investment results that correspond to twice the inverse of the daily performance of the Deutsche Bank Liquid Commodity index - Optimum Yield Gold Excess Return. This means the note is intended to gain value when gold prices fall, and lose value when gold prices rise, on a daily basis. The return is achieved through the index, which is composed of a single unfunded gold futures contract. The note does not hold physical gold or futures directly; it is a senior, unsecured debt obligation of the issuer.
Investors use instruments like DZZ for short-term hedging or speculative purposes within portfolios, capitalizing on anticipated declines in the price of gold. The note has a stated maturity date but may be traded on the exchange before that time. Its performance can differ significantly from the inverse of gold's long-term price change due to the effects of daily rebalancing and compounding.