Barclays launches ETNs linked to S&P 500 Dynamic Veqtor Total Return

By Angela McDaniels

Tacoma, Wash., Sept. 1 - Barclays Capital announced the listing of the Barclays ETN+ Veqtor exchange-traded notes on the NYSE Arca stock exchange under the ticker symbol "VQT."

The notes have a face amount of $100 each and were issued by Barclays Bank plc.

The ETNs are linked to the performance of the S&P 500 Dynamic Veqtor Total Return index. This index seeks to provide investors with broad equity market exposure with an implied volatility hedge by dynamically allocating its notional investments among three components: equity, volatility and cash.

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

The index increases its exposure to equities during periods of low market volatility and increases its implied volatility exposure during periods of high market volatility. It also incorporates a stop-loss mechanism that shifts the entire value of the index to a cash investment under certain exceptional circumstances.

"Today's launch expands our suite of volatility-linked products," Philippe El-Asmar, managing director, head of investor solutions at Barclays Capital, said in a company news release.

"The Veqtor ETN provides investors with an exchange-traded way to access U.S. 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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