New iPath ETNs: Callability and Lower Fees

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Includes: BALC, CAFE, COWC, GAZC, JJAC, JJCC, JJEC, JJGC, JJMC, JJNC, JJPC, JJSC, JJTC, JJUC, LDC, NIBC, PLAC, SGAR
by: Tom Lydon

iPath, the line of exchange-traded notes backed by Barclays, is planning a line of 19 new commodity-focused exchange traded notes (ETNs).

The new line of ETNs from iPath have a couple of features that will look like many of its existing products, but with two key differences: the new line will be callable and they are 0.5% cheaper than the previous commodity ETN family, explains Olivier Ludwig for Index Universe.

The callability option gives Barclays a way to shut the funds should it ever have difficulty meeting its obligations under terms of the ETNs. It also brings Barclays into line with the callable feature of ETNs offered by PowerShares, which have a provision allowing them to close.

The complete list of new notes can be viewed here. Among the commodities getting exposure include lead, metals, softs, sugar, tin and livestock.

Tisha Guerrero contributed to this article.

Disclosure: None