Broken Product Count Jumps To 39 With Deutsche Bank ETN Creation Suspensions
Deutsche Bank (DB) announced it will temporarily suspend creations of 26 exchange-traded notes (“ETNs”) after the close of trading on March 29, 2013 (sic). DB apparently forgot March 29 is a market holiday, so the last day of “non-broken” status for these ETNs will actually be March 28. The...
RBS Rolls Out Five Rogers Enhanced Commodity ETNs
The Royal Bank of Scotland (RBS) introduced five new exchange traded notes (“ETNs”) on November 15. The new ETNS are based on “enhanced” versions of Rogers International Commodity Indexes (“RICI”). The underlying indexes were developed by RBS and Jim Rogers in October 2007 and have been maintained...
New Barclays Shiller CAPE Sector Rotation ETN
Barclays introduced a new exchange traded note (“ETN”) on October 11 under the ETN+ brand instead of the more familiar iPath brand. The Barclays ETN+ Shiller CAPE ETN (CAPE) will track the Shiller Barclays CAPE US Core Sector Index minus the 0.45% annual fee. The Cyclically Adjusted Price Earnings...
New RBS ETN Alternates Between 3 Large Cap Weighting Schemes
On September 6, the Royal Bank of Scotland (RBS) rolled out the RBS US Large Cap Alternator ETN (ALTL). The underlying index uses a multi-period momentum strategy to provide exposure to either the S&P 500 Total Return Index, the S&P 500 Equal Weight Total Return Index, or the S&P 500 Low...
UBS ETRACS Launches AMJ Replacement
UBS introduced the ETRACS Alerian MLP Index ETN (AMU) July 18. AMU provides another way to track the same index as the now “closed-end” JPMorgan Chase Alerian MLP ETN (AMJ). AMU is an exchange-traded note linked to the performance of the Alerian MLP Index. It pays a variable quarterly coupon...
Broken Product Alert: AMJ Converting To Closed-End Note
JPMorgan Chase (JPM) announced that one day soon it intends to halt new note creation for the JPMorgan Alerian MLP ETN (AMJ). When that day arrives, AMJ will become a broken product. Unfortunately, most shareholders, traders, and potential investors will not be made aware of this event when it...
Are JPMorgan Chase ETNs Safe?
I don’t know about you, but here in Texas I can barely drive a mile without passing a JPMorgan Chase (JPM) branch. They’re even inside the grocery stores. Simply being everywhere doesn’t make a bank safe, of course. As we learned last week, traders in London just cost JPMorgan $2 BILLION and...
Open Letter to ETF Regulators
Dear ETF Regulators, It is time to step up to the challenge of your job’s main mandate - protecting investors. Investor confidence in exchange traded funds (“ETFs”) and exchange traded notes (“ETNs”) is at a critical point. The abuses of a very small number of individual products...
VelocityShares Rolls Out Leveraged Energy and Copper ETNs
VelocityShares introduced eight new leveraged and inverse exchange traded notes (“ETNs”) tied to the daily performance of crude oil, natural gas, and copper futures. The February 8, 2012 launch included six energy related products providing 3x long and 3x inverse exposure to West Texas Intermediate,...
RBS Extends Trendpilot Concept to NASDAQ 100
Royal Bank of Scotland (“RBS”) introduced a new member of its Trendpilot exchange-traded notes (“ETNs”) line on December 13, 2011. The RBS NASDAQ 100 Trendpilot ETN (TNDQ) is linked to a systematic trend-following strategy. The methodology tracks the NASDAQ 100 Index when above its 100-day...
