Barclays Introduces First-Ever No-Fee Exchange Traded Notes

This week, Barclays Bank PLC announced the launch of the first-ever no-fee exchange traded notes (ETNs). These are the iPath Gold ETNs (GBUG) and the iPath Silver ETNs (SBUG), which are also the first no-fee exchange traded products (ETPs) offering exposure to precious metals.

GBUG and SBUG offer investors exposure to commodity futures by tracking the performance of two Barclays indices: the Barclays Gold 3 Month Index Total Return (BCC2GC3T), and the Barclays Silver 3 Month Index Total Return (BCC2SI3T).

Each index is intended to reflect the performance of specified gold or silver futures contracts that will become the first liquid nearby futures contracts three months in the future, per a specified schedule. Additionally, the indices also reflect the return corresponding to the weekly-announced interest rate for specified 3-month US Treasury bills.

“Since Barclays brought the first ETNs to the US market in 2006, we have been consistently focused on providing investors with innovative and efficient products,” said Ian Merrill, Managing Director and Head of US Equity Derivative Sales.

“Today marks another exciting day in the evolution of Barclays’ iPath platform with the introduction of the first-ever ETNs that have no investor fees, and the first-ever no-fee ETPs offering exposure to precious metals.”

Related: Barclays Launches iPath Series B Carbon ETNs (GRN)

Barclays is a top three issuer of ETNs in the US, with over 20% market share of notional value, and multiple products listed on NYSE Arca, NASDAQ and CBOE.

“We are always looking to create the most efficient products possible for investors. By creating the first no-fee ETPs to track the gold and silver market, we are building on our pioneering reputation by delivering a product that we believe deserves consideration by any asset allocator seeking exposure to precious metals,” said Michael Hosana, Managing Director and Head of Quantitative Index Strategies Trading, Americas.

The ETNs will begin trading on the NYSE Arca exchange on October 8, 2019. More information for both ETNs can be found in their respective prospectuses.

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