On Tuesday, Barclays Bank PLC announced the launch of the Pacer® iPath® Gold Trendpilot ETNs (PBUG). The ETNs will track the performance of the Pacer Barclays Gold Trendpilot Total Return Index.
“At Pacer Financial, we are pleased to extend our relationship with Barclays by adding a second ETN that tracks gold,” says Sean O’Hara, President at Pacer Financial. “In addition to GBUG, a zero investor fee ETN that tracks the price of gold, Pacer and Barclays are adding a gold ETN that utilizes the Pacer Trendpilot methodology (PBUG).”
“We are excited to further expand our iPath platform with today’s launch of the Pacer iPath Gold Trendpilot ETN. Not only does this reinforce our commitment to offering investors with innovative risk management solutions, but it also marks our second product partnership with Pacer Financial,” says Shilpa Akella, Managing Director and Head of Cross-Asset Structuring Americas. “This could not come at a better time, as we continue to see investor demand for commodities, and we believe that the Trendpilot methodology is uniquely positioned to offer risk mitigated access to gold.”
The Index is calculated on a total return basis. It is intended to reflect (1) the performance over time of a dynamic allocation strategy by taking 100%, 50%, or 0% notional exposure to the Barclays Gold 3 Month Deferred Index Excess Return (the “Gold Index”) daily based on three specified signals that reference the short-term and long-term performance of the Gold Index and (2) the return that corresponds to the weekly announced interest rate for specified 3-month U.S. Treasury bills.
In addition, the Gold Index is intended to reflect the performance of a rolling position in specified gold futures contracts that will become the first liquid nearby futures contracts three months in the future in accordance with a specified schedule.
The ETNs do not guarantee any return of principal at or before maturity and do not pay any interest during their term. Instead, investors receive a cash payment in U.S. dollars at maturity or upon early redemption based on the Index’s performance.
The ETNs are expected to begin trading on the NYSE Arca exchange on June 16, 2021. The ETNs will feature an investor fee of 0.65% per annum. They will also be redeemable at the sole discretion of Barclays on any trading day on or after their inception until maturity. Please refer to the ETN prospectus for further details.
Barclays is a top issuer of ETNs in the US, with over 30% market share of notional value. The prospectus relating to the ETNs can be found on the product website at www.iPathETN.com/.