{"id":2199,"date":"2021-07-12T10:44:30","date_gmt":"2021-07-12T10:44:30","guid":{"rendered":"https:\/\/investwithanedge.com\/?page_id=2199"},"modified":"2021-07-12T10:44:30","modified_gmt":"2021-07-12T10:44:30","slug":"citigroup-belly-flops-into-etp-sponsor-pool","status":"publish","type":"page","link":"https:\/\/investwithanedge.com\/citigroup-belly-flops-into-etp-sponsor-pool\/","title":{"rendered":"Citigroup Belly-Flops Into ETP Sponsor Pool"},"content":{"rendered":"
Citigroup (C) entered the pool of exchange traded product (ETP) sponsors on November 15, 2010 with the introduction of C-Tracks Citi Volatility Index Total Return ETN (CVOL)<\/strong>. One would think that Citi would pull out all the stops in an attempt to make a favorable first impression in a competitive market. They are making a splash, but it is not a favorable one.<\/p>\n Some of the most glaring shortcomings include:<\/p>\n CVOL intends to track the Citi Volatility Index Total Return minus the 1.15% annual investor fee. It is a new index intended as \u201ca measure of directional exposure to the implied volatility of large-cap U.S. stocks\u201d. The pricing sheet goes on to explain that the methodology \u201cis designed to produce returns that are correlated to the CBOE Volatility Index (the \u201cVIX Index\u201d), which is another measure of implied volatility of large-cap U.S. stocks.\u201d<\/p>\n\n