Barclays Bank has launched a new series of iPath Exchange Traded Notes (ETNs) on the NYSE Arca stock exchange.
The iPath Inverse S&P 500 VIX Short-Term Futures ETN (II) are linked to the inverse performance of the S&P 500 VIX Short-Term Futures Index Excess Return (the Index), and offer investors a ‘short’ view on volatility of US equity markets. The ETNs will be listed on the NYSE Arca stock exchange under the ticker symbol IVOP.
The returns on these new ETNs are calculated in a similar manner to those on the existing iPath Inverse S&P 500 VIX Short-Term Futures ETNs (ticker symbol: XXV) launched on 16 July, 2010. The two series of ETNs are both linked to the inverse performance of the Index; however, they have, among other things, different inception dates, issue dates, final valuation dates and maturity dates, and the two series of ETNs are not fungible with one another.
The Index is designed to reflect the returns that are potentially available through an unleveraged investment in short-term futures contracts on the CBOE Volatility Index (the VIX Futures). VIX Futures reflect the implied volatility of the S&P 500 Index, which provides an indication of the pattern of stock price movement in the US equities market. The new series of ETNs is an uncollateralised debt obligation of Barclays Bank PLC with a 10-year maturity.