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Barclays launches ETN+ Veqtor

BBR Staff Writer Published 02 September 2010

Barclays Capital, the investment banking division of Barclays, has expanded its volatility-linked products by introducing ETN+ Veqtor Exchange Traded Note (ETN) to provide investors with broad equity market exposure.

The Barclays ETN+ Veqtor ETN is linked to the performance of the S&P 500 Dynamic Veqtor Total Return Index and has been listed on the NYSE Arca stock exchange.

The index seeks to provide investors with equity market exposure with an implied volatility hedge by dynamically allocating its notional investments among equity, volatility and cash.

The equity component of the index is represented by the S&P 500 Total Return Index and the volatility component of the index is represented by the S&P 500 VIX Short-Term Futures Index.

Barclays Capital MD and Investor Solutions head Philippe El-Asmar said that the Veqtor ETN provides investors with an exchange-traded way to access US equity returns with a long volatility overlay designed by Standard & Poor’s to provide an alternative to the S&P 500.

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