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 prior to the market opening on September 19.

Also on Monday (9/19/11), Barclays launched an IVO replacement (pdf) by tacking “II” to its name and “P” to its ticker symbol, producing the new iPath Inverse S&P 500 VIX Short-Term Futures ETN II (IVOP).

If you are experiencing déjà vu while reading this, you are not alone.  These events closely resemble a similar occurrence three months ago: VZZ Terminates and VZZB Fills the Void.  VZZ lasted only seven months.  IVO lasted eight months.

The new IVOP, launched at $20, has already traded as low as $15.62 after just four days on the market.  Like its predecessor, it also has a $10 early termination trigger and could easily set a new record for ”ETP with the Shortest Lifespan”.

IVOP has a 0.89% annual fee and appears to be identical to IVO, which is identical to XXV (IVO appears to be a clone of XXV) with the exception that IVOP’s initial participation level is based on a higher VIX level than when IVO launched.  Additional information on the “new” IVOP can be found in the overview, fact sheet (pdf), and prospectus (pdf).

Disclosure covering writer, editor, and publisher:  No positions in any of the securities mentioned.  No positions in any of the companies or ETF sponsors mentioned.  No income, revenue, or other compensation (either directly or indirectly) received from, or on behalf of, any of the companies or ETF sponsors mentioned.

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