AROUND THE WORLD OF ETFs

October 19, 2010

iPath Adds Eight Treasury ETNs
In August, the iPath ETN family added eight exchange-traded notes to its lineup. Each is linked to a U.S. Treasury futures index. The products are Barclays’ first foray into fixed-income-based ETNs.

iPath’s new crop of ETNs includes three bull-and-bear pairs:

  • iPath US Treasury 10-year Bull ETN (NYSE Arca: DTYL)
  • iPath US Treasury 10-year Bear ETN (NYSE Arca: DTYL)
  • iPath US Treasury 2-year Bull ETN (NYSE Arca: DTUL)
  • iPath US Treasury 2-year Bear ETN (NYSE Arca: DTUS)
  • iPath US Treasury Long Bond Bull ETN (NYSE Arca: DLBL)
  • iPath US Treasury Long Bond Bear ETN (NYSE Arca: DLBS)

In addition, iPath launched a pair of ETNs designed to give investors the ability to take a view on whether the yield curve will steepen or flatten:

  • iPath US Treasury Steepener (NYSE Arca: STPP)
  • iPath US Treasury Flattener (NYSE Arca: FLAT)

Each ETN comes with an expense ratio of 0.75 percent.

Barclays Launches New Volatility-Linked ETN
Barclays Capital launched a new ETN based on the S&P 500 Dynamic Veqtor Index, the fourth volatility-linked exchange-traded product for the global banking giant.

The Barclays ETN+ S&P Veqtor Exchange Traded Note (NYSE Arca: VQT) began trading Sept. 1. It carries an annual expense ratio of 0.95 percent.

VQT tracks the S&P 500 Veqtor Index, which combines broad equity market exposure with a built-in volatility hedge by allocating assets among the S&P 500 Index, the S&P 500 Short-Term VIX Futures Index and cash. VIX, a product of the Chicago Board Options Exchange, reflects the prices of S&P 500 options and is a benchmark for measuring near-term volatility.

Claymore Closes Four Funds
Claymore Securities, which was acquired by Guggenheim Partners in October, closed four of its ETFs on Sept. 10. The company said in a statement issued in August that the funds had been lightly traded, and were being closed so it can turn its attention to “areas of greater investor interest.”

The list of funds included the following: the Claymore/Zacks Dividend Rotation ETF (NYSE Arca: IRO), which had $12.5 million in assets at the time of the announcement; the Claymore/Zacks Country Rotation ETF (NYSE Arca: CRO), with $3 million in assets; the Claymore/Beacon Global Exchanges, Brokers & Asset Managers Index ETF (NYSE Arca: EXB), with $2.8 million; and the Claymore/Robb Report Global Luxury Index ETF (NYSE Arca: ROB), with $16.2 million.

All shareholders remaining on Sept. 17 received a cash distribution into their brokerage account representing the value of their shares as of that date, including any capital gains and dividends.

 

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