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...
Inflation/Deflation ETN Pair Available from PowerShares
PowerShares DB US Inflation ETN (INFL) and PowerShares DB US Deflation ETN (DEFL) began trading December 6, 2011. They claim to be the first exchange-traded products offering direct exposure to US inflation/deflation expectations, i.e. the spread between Treasury Inflation-Protected Securities (TIPS)...
New Risk On Risk Off ETNs Tuned to Recent Market Conditions
UBS launched ETRACS Fisher-Gartman Risk On ETN (ONN) and ETRACS Fisher-Gartman Risk Off ETN (OFF) on November 30, 2011. The new exchange-traded notes (“ETNs”) are described as comprehensive “risk on” and “risk off” trading vehicles based on the newly invented Fisher-Gartman Risk Index. The...
PowerShares Adds Inverse Versions of Japanese Bond ETNs
PowerShares launched a pair of DB Inverse JGB Futures ETNs in early November (11/9/11). The new exchange-traded notes (“ETNs”) are based on the DB USD Inverse JGB Futures Index, which is intended to measure the performance of a short position in 10-year JGB Futures in U.S. dollars. Investor fees...
ETN Holders: Do You Know To Whom You Are Lending?
Exchange Traded Funds (“ETFs”) and Exchange Traded Notes (“ETNs”) are similar in some ways but have major differences as well. When you buy an ETF, you receive an ownership stake in a pooled investment, structured as an independent entity. When you buy an ETN, you are essentially lending...
RBS Launches Questionable Pharma ETP
The Royal Bank of Scotland last week (10/24/11) launched an exchange-traded note (“ETN”) linked to the performance of the NYSE Arca Equal Weighted Pharmaceutical Total Return Index. There are already four exchange-traded funds (“ETFs”) tracking this industry. Why anyone would want to gain...
VelocityShares Launches Eight Precious Metals ETNs
VelocityShares last week (10/17/11) added new ETNs linked to the performance of +/- 3x gold and silver futures and +/- 2x palladium and platinum futures. These are the first ETPs providing U.S. investors with this magnitude of precious metals leverage. The sponsor firm is a relatively new arrival in...
A Dozen New ETFs in the First Dozen Days of October
Early October saw more new ETFs come to market. The twelve recent introductions push the year-to-date count of new ETFs and ETNs to 260. The industry is on pace to have the most prolific year yet for new exchange-traded products. October’s early dozen includes four new ProShares ETFs, Russell’s...
CSMN: Market Neutral ETN from Credit Suisse
Credit Suisse launched a new exchange-traded note (“ETN”) on Wednesday (9/21/11) linked to the performance of an index designed to provide exposure to a market neutral investment strategy on North American, European, and Japanese stocks. The Credit Suisse Market Neutral Global Equity ETN (CSMN)...
IVO Terminates and IVOP Fills the Void
Another exchange-traded product met its demise this week. The iPath Inverse S&P 500 VIX Short-Term Futures ETN (IVO) triggered an early termination on September 12 when shares traded below $10. Barclays immediately called the notes for redemption at $11.8024 per share. They were then delisted...
