Barclays Bank has listed the Barclays ETN+ Shiller CAPE exchange-traded note on the NYSE Arca stock exchange.
The ETN seeks to provide a notional long exposure to four relatively undervalued US equity sectors that also exhibit relatively strong price momentum.
The index underlying the ETN uses the frequently cited cyclically adjusted price-to-earnings (CAPE) ratio as a metric for the valuation of US equity sectors.
“I found the collaboration with Barclays most productive. We have learned that applying the CAPE ratio concept to sectors within the US stock market offers a new, and powerful, approach to value investing,” says Professor Shiller.
“The ETN utilises Professor Shiller’s frequently cited CAPE ratio applied for the first time to sectors to create a value-oriented sector strategy developed through research conducted by Barclays and Professor Shiller over the course of a year-long collaboration,” says Laurence Black, a director in equity and funds structured markets at Barclays.
