Barclays Bank has launched an exchange-traded note (ETN) providing exposure to the Eurostoxx 50 volatility index on the Xetra exchange in Germany.
The iPath VStoxx Short-Term Futures Total Return ETN is based on the respective benchmark, which tracks the implicit volatility of equities in the Eurostoxx 50 index, built on a hypothetical portfolio.
The portfolio mirrors the returns on a rolling investment in two VStoxx futures contracts traded on Eurex, which have a residual maturity of one to two months.
The note, which has a 0.89% management fee, adds to the range of ETNs on the Deutsche Boerse, bringing the total number to 14 products, tracking volatility, currency and equity indices.
ETNs, which are debt securities and not funds, have been tradable on Xetra since last December.
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