Barclays Bank has launched the iPath VStoxx Mid-Term Futures ETN, listed in Euros on the London Stock Exchange and Xetra and in Sterling on the LSE.
The ETN is designed to provide exposure to European volatility.
“We are pleased to offer investors simple and transparent access to medium-term European volatility through our iPath VStoxx Mid-Term Futures ETN,” says Uwe Becker, head of investor solutions for Barclays Capital in Europe. “While the VStoxx Short-Term ETN was designed to suit investors taking a view on equity volatility in the near future, this ETN is a useful solution for buy-and-hold investors. While it may be less sensitive to small movements in short term volatility, it is designed to exhibit a lower cost of carry over a longer holding period. It therefore aims to provide a cost-efficient tool for portfolio diversification, potentially going some way to providing protection against a market crash.”
iPath VStoxx Mid-Term Futures ETNs are senior, unsecured, unsubordinated callable debt securities, issued by Barclays Bank. They are linked to the performance of the underlying Euro Stoxx 50 Volatility Mid-Term Futures Index.
The introduction of the ETN complements a suite of iPath volatility ETNs including the VStoxx Short-Term Futures ETN, launched in April 2010, allowing investors to tailor their exposure to volatility to suit their investment profile.