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DYY is a double long commodities ETN, based upon DPU. I have been trying to keep a 1/8th weighting in commodities ETNs (USCI and DBC, DBC having similar performance to DPU).

Schwab has this boilerplate about DYY:

Risks of Leveraged and Inverse ETFs

Leveraged ETFs seek to provide a multiple of the investment returns of a given index or benchmark on a daily basis. Inverse ETFs seek to provide the opposite of the investment returns, also daily, of a given index or benchmark, either in whole or by multiples. Due to the effects of compounding and possible correlation errors, leveraged and inverse ETFs may experience greater losses than one would ordinarily expect. Compounding can also cause a widening differential between the performances of an ETF and its underlying index or benchmark, so that returns over periods longer than one day can differ in amount and direction from the target return of the same period. Consequently, these ETFs may experience losses even in situations where the underlying index or benchmark has performed as hoped. Aggressive investment techniques such as futures, forward contracts, swap agreements, derivatives, options, can increase ETF volatility and decrease performance. Investors holding these ETFs should therefore monitor their positions as frequently as daily.

However, when I look at comparison graphs of DYY vs. DBC, I see pretty much the DBC/DPU on steroids that I would expect to see.

It would be nice to shrink my commodities holdings in half and use the resulting cash to invest in a high yielding and stable MLP like LINE or KMP, so I get the effect of the commodities weighting I had, but a dividend as well.

Any thoughts?

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