DEFL Tracks This Index: DBIQ Duration-Adjusted Deflation Index
Description: The index seeks to isolate a short exposure to the market’s expectation of future deflation and is designed to produce 1-point increase in the level of the short deflation index for every 0.01% decrease in the market’s expectation of future inflation by measuring the duration-adjusted combined performance of a notional short position in a hypothetical portfolio of five-year, 10-year and 30-year TIPS and corresponding notional long positions in futures contracts on U.S. Treasury bonds.