Barclays Unveils New Volatility Hedge ETN

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Barclays Capital has unveiled its newest addition to the ETN+ exchange traded note (ETN) family: a fourth fund linked to market volatility.

The VEQTOR Exchange Traded Note (NYSEArca: VQT) is intended to give investors a broad range of equity exposure. The note contains a volatility hedge, which it achieves by allocating assets to the S&P 500, the S&P 500 Short-Term VIX Futures and cash. [Volatility Puts VIX ETNs In Favor.]

This note is an extension of the suite of products Barclays has designed as volatility plays, which have made them popular with investors who are uncertain of where the markets are going in the near-term. Like all ETNs, VQT is backed as a debt security from Barclays bank PLC. [Everything You Need to Know About ETNs.]

Tisha Guerrero contributed to this article.