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Barclays Capital Lists iPath Exchange Traded Note (ETN) On SGX

Barclays Capital, the investment banking division of Barclays Bank PLC listed the iPath® Dow Jones-UBS Commodity Index Total ReturnSM Exchange Traded Note (ETN) on the SGX a couple of days ago.

The iPath® Dow Jones-UBS Commodity Index Total Return ETN is the first-ever ETN listed in Asia outside Japan. It provides both retail and institutional investors with exposure to a broad range of commodities by tracking the Dow Jones-UBS Commodity Index Total Return.

barclays bankAs at 30th September 2009, the index has a weightage of approximately:

  • Energy – 33%
  • Industrial Metals – 25%
  • Agriculture – 25%
  • Precious Metals – 11%
  • Livestock – 5%

While both ETN and ETF usually have the same objectives to track an index, the main difference between them is that ETNs are senior, unsecured, unsubordinated debt securities of the issuer. In this case, an investor of the ETN will have to take on the credit default risk of Barclays Bank PLC.

The factsheet of the ETN can be found here:

iPath® Dow Jones-UBS Commodity Index Total Return ETN

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