## [# Gold-Indexed ETN, Hedged S&P 1500 ETF Launch](/sections/daily-etf-watch/gold-indexed-etn-hedged-sp-1500-etf-launch)
# Gold-Indexed ETN, Hedged S&P 1500 ETF Launch
Barclays, Syntax debut sister funds to existing offerings.
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[By Dan Mika](/contributors/dan-mika)
Jun 17, 2021
Edited by: Dan Mika
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One of the largest banks in the world and a fund manager each launched new exchange-traded products on Wednesday, with both seeking to offset the effects of major swings in underlying indices.
**Managed Exposure For Gold Bugs**
Barclays Bank issued $250 million in new exchange-traded notes under the [**Pacer iPath Gold Trendpilot ETN (PBUG)**](https://www.sec.gov/Archives/edgar/data/0000312070/000110465920105746/a20-30865_4424b2.htm) on the NYSE Arca. The ETN’s underlying index allocates to a gold exposure in increments of 100%, 50% or 0% based on market signals.
Generally, the underlying index tracks three-month gold futures but features a trigger if the index swings more than 20% in either direction of the moving average of its last 200 days.
If the index shows a gain on the average of five straight trading days without breaching the 20% limit, the ETN aims to produce returns tied to that index. If the opposite occurs and the gold index declines for five days, the ETN shifts off its weights to avoid a bearish trend for the metal, relying instead on the three-month U.S. Treasury Bill interest rate.
If the index breaks either side of the 20% change trigger in a day, the fund cuts its weighting to the gold index in half.
PBUG is a sister ETN to Barclays’ [**Pacer iPath Gold ETN (GBUG)**](https://www.etf.com/GBUG), which tracks the same three-month gold index without a reweighting mechanism in the event of violent price movements. Investors will pay a fee of 0.65% annually to hold PBUG, while the GBUG has no expense ratio at all.
**Hedging S&P Downturns With Options**
Meanwhile, Syntax Advisors launched the [**Syntax Stratified U.S. Total Market Hedged ETF (SHUS)**](https://www.sec.gov/Archives/edgar/data/0001580843/000139834421009749/fp0065119_497-ixbrl.htm), also on the NYSE Arca.
The fund tracks the S&P 1500 Index and weights its holdings to avoid overinvesting in specific industries subject to the ebb and flow of the business cycle. At the same time, it uses short-term options against the index and 12- to 24-month spread options to provide a hedge against a broader downturn.
The hedging strategy raises the fund’s expense ratio to 0.65%, or 30 basis points higher than its nonhedged sibling, the [**Syntax Stratified U.S. Total Market Hedged ETF (SYUS)**](https://www.etf.com/SYUS). That expense ratio is also scheduled to rise to 1.3% after a fee waiver and reimbursement strategy expires next May.
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[ Dan Mika ](/contributors/dan-mika)
Dan Mika is a reporter for etf.com. He has previously covered business for the Ames Tribune and Cedar Rapids Gazette in Iowa, and BizWest Media in… [View Bio](/contributors/dan-mika)
Related Topics [Gold](http://www.etf.com/topics/gold)
[Precious Metals](http://www.etf.com/topics/precious-metals)
[Treasury](http://www.etf.com/topics/treasury)
[U.S.](http://www.etf.com/topics/us)