UBS Attempts Solid State Drive ETN Offering
UBS released two exchange-traded notes (“ETNs”) on September 15 that intend to track the performance of the solid state drive industry. The underlying index was created on August 26, has no performance history or back test information, and is far from being a pure play on the industry. UBS ETRACS...
Timing Oil Futures With TWTI
The Royal Bank of Scotland (“RBS”) introduced the fourth member of its Trendpilot line of exchange-traded notes last week (9/15/11). The RBS Oil Trendpilot ETN (TWTI) is linked to the performance of an index utilizing a systematic trend-following strategy to track oil futures when they are above...
New ETRACS VIX ETNs With 5.35% Annual Expenses
UBS on September 8 rolled out a dozen ETNs targeting long and short (inverse) exposure to VIX futures at six monthly maturity intervals. The new exchange-traded notes are anticipated to mature in 30 years. The inverse versions include an “Event Risk Weekly Hedge Cost” that saddles investors with...
XVZ: A Dynamic Volatility Strategy ETN
Barclays introduced the iPath S&P 500 Dynamic VIX ETN (XVZ) on August 18, 2011, providing investors with exposure to a strategy that dynamically allocates between short-term and mid-term VIX futures contracts. The new exchange-traded notes (“ETNs”) will track the S&P 500 Dynamic VIX Futures...
New Internet IPO ETNs Do Not Participate in IPOs
Huge opening-day pops in new public offerings tend to bring IPO investment vehicles out of the woodwork. However, if you think investing in these funds lets you participate, then think again. On Thursday (7/21/11), UBS rolled out the ETRACS Internet IPO ETN (EIPO) and the ETRACS Monthly 2x Leveraged...
Nine New ETPs for Week Ending 7/15/11
The parade of new exchange traded product launches continues unabated. Last week, nine new products came to market consisting of six ETFs and three ETNs. One of the new ETFs was from Precidian, a new sponsor in the ETF arena, and another is actively managed. A brief overview of the new products and...
BARL: Stocks and Oil Contango Problems Together In A Single Leveraged Product
If you want 100% exposure to crude oil contracts and their associated contango problems, plus you want to leverage up for another 100% exposure to large cap US stocks, then Morgan Stanley has just the product for you. It was just a few months ago (3/17/11) that Morgan Stanley became an ETN issuer...
UBS Launches Spread ETNs on Oil and Gas Futures
UBS Investment Bank announced (pdf) the launch of two new exchange-traded notes (ETNs) last week (6/16/11) designed to “take advantage of potential contango in the oil and natural gas markets.” The UBS ETRACS Natural Gas Futures Contango ETN (GASZ) and UBS ETRACS Oil Futures Contango ETN (OILZ)...
TDX/db-X, WisdomTree, and VelocityShares Changes
Sponsors of ETPs have been very busy lately making changes to their existing line-ups. Deutsche Bank renamed the five TDX target date ETFs last Friday (6/17/11), WisdomTree made various name, ticker, and index changes to seven of its ETFs yesterday (6/20/11), and two VelocityShares ETNs will undergo...
Leveraged BDC ETN With 14.6% Yield Launched
Just a month ago, UBS introduced the first ETP focusing on Business Development Companies. Now they are upping the ante with a leveraged version. The UBS ETRACS 2x Leveraged Long Wells Fargo Business Development Company ETN (BDCL) began trading 5/25/11, will reset its leverage monthly, and will pay...
