Barclays Bank has launched its first iPath exchange-traded notes in the UK with 12 new ETNs listed on the London Stock Exchange providing investors with exposure to commodities and volatility.
“Barclays Capital has always been at the forefront of delivering innovative, transparent products that help investors diversify their portfolios and access hard-to-reach asset classes. Today’s launch marks a natural extension of the global iPath ETN platform, which has USD6.9bn assets under management,” says Uwe Becker, managing director and head of investor solutions Europe, Barclays Capital.
The iPath V Stoxx Short-Term Futures Total Return ETN is exclusive to Barclays. It is based on the underlying Euro Stoxx 50 Volatility Short-Term Futures Total Return Index – the first of its kind in Europe.
Becker says education is essential for helping investors understand different types of exchange traded products and the underlying investments behind them.
“The ETP market in Europe is set to grow by around 25 per cent to USD280bn in 2010 and we expect the ETN market to grow substantially as part of that as investors seek efficient new ways to diversify. It is important for investors to understand how different ETPs work in an investment portfolio and what they are actually investing in,” he says.
iPath ETNs have a 30-year maturity and are senior, unsecured, unsubordinated, callable debt securities issued by Barclays Bank, linked to the performance of a market index. They have a daily redemption right and investors can trade them on an exchange at market prices.
Susquehanna and Flow Traders are the designated market markers for iPath ETNs.
