PowerShares DB US Deflation Exchange Traded Notes (DEFL)

Fund Description

The investment seeks to replicate, net of expenses, the DBIQ Duration-Adjusted Deflation Index. The index aims to track changes in the market’s expectations of future inflation implied by the difference in yields between Treasury Inflation-Protected Securities (TIPS) and U.S. Treasury bonds with approximately equivalent terms to maturity. To gain exposure to the market's expectation that future inflation will decrease, the ETNs take a notional short position in TIPS and a notional long position in U.S. Treasury bonds with approximately equivalent terms to maturity.