On Tuesday, Nov. 30, Barclays Bank PLC launched 11 leveraged exchange-traded notes under its iPath brand that offer investors long and short exposure in the form of paired products that track a variety of equity indexes covering everything from broad U.S. capitalization ranges to emerging markets. The bank also issued a new leveraged ETN tied to a volatility-linked index.
Per Morningstar, unlike most other leveraged exchange-traded products currently offered by providers like ProShares and Direxion, the Barclays ETNs differ in one crucial way: They will not reset exposure on a daily basis and as a result will not try to deliver results that are a multiple of, or the inverse multiple of, a given index’s daily return. Because of compounding arithmetic, daily leveraged exchange-traded products cannot promise that level of return over periods longer than one day. (A smaller number of leveraged exchange-traded products seek results that are a multiple of or the inverse of a given index’s monthly return.)
The 11 new iPath ETNs are as follows:
iPath Long Extended Russell 1000 TR Index ETN (ROLA)
iPath Short Extended Russell 1000 TR Index ETN (ROSA)
iPath Long Extended Russell 2000 TR Index ETN (RTLA)
iPath Short Extended Russell 2000 TR Index ETN (RTSA)
iPath Long Extended S&P 500 TR Index ETN (SFLA)
iPath Short Extended S&P 500 TR Index ETN (SFSA)
iPath Long Enhanced MSCI EAFE Index ETN (MFLA)
iPath Short Enhanced MSCI EAFE Index ETN (MFSA)
iPath Long Enhanced MSCI Emerging Markets Index ETN (EMLB)
iPath Short Enhanced MSCI Emerging Markets Index ETN (EMS)
iPath Long Enhanced S&P 500 VIX Mid-Term Futures ETN (VZZ)
