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iPath Brings IVO Clone To Market

iPath, the exchange-traded note company backed by Barclays Bank, today rolled out the iPath Inverse S'P 500 VIX Short-Term Futures ETN (NYSEArca:IVOP), replacing an identical note, IVO, that was automatically redeemed last week after its price fell below a crucial $10 per shares threshold.

The new note, IVOP, will mature on Sept. 20, 2021, comes with an annual expense ratio of 0.89 percent and each note will be issued at a principal amount of $20, according to information posted on the company’s website.

The launch of IVOP makes the transition from its predecessor, IVO, seamless. A week ago, iPath announced that IVO would be redeemed on Sept. 19, with noteholders receiving the former ETN’s indicative value as of Sept. 12. It’s the second time in almost as many months that iPath has redeemed and relaunched one of its volatility-related ETNs.

Indeed, a similar redemption-and-replacement process occurred in early July with the iPath Long Enhanced S'P 500 VIX Mid-Term Futures ETN (NYSEArca:VZZ), which also tumbled below the same $10-per-share threshold that triggered an automatic redemption. VZZ was replaced by a clone, the iPath Long Enhanced S'P 500 VIX Mid-Term Futures ETN (NYSEArca:VZZB).

iPath has automatic redemption features on its leveraged and inverse ETNs, but not on its single-exposure long notes, such as the iPath S'P 500 VIX Short-Term Futures ETN (NYSEArca:VXX).

VXX is the single most popular volatility-related ETN on the market, with more than $872 million in assets.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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