On Tuesday, Barclays Financial institution PLC introduced the launch of the Pacer® iPath® Gold Trendpilot ETNs (PBUG). The ETNs will monitor the efficiency of the Pacer Barclays Gold Trendpilot Complete Return Index.
“At Pacer Monetary, we’re happy to increase our relationship with Barclays by including a second ETN that tracks gold,” says Sean O’Hara, President at Pacer Monetary. “Along with GBUG, a zero investor payment ETN that tracks the worth of gold, Pacer and Barclays are including a gold ETN that makes use of the Pacer Trendpilot methodology (PBUG).”
“We’re excited to additional broaden our iPath platform with at this time’s launch of the Pacer iPath Gold Trendpilot ETN. Not solely does this reinforce our dedication to providing traders with revolutionary threat administration options, but it surely additionally marks our second product partnership with Pacer Monetary,” says Shilpa Akella, Managing Director and Head of Cross-Asset Structuring Americas. “This might not come at a greater time, as we proceed to see investor demand for commodities, and we consider that the Trendpilot methodology is uniquely positioned to supply threat mitigated entry to gold.”
The Index is calculated on a complete return foundation. It’s supposed to mirror (1) the efficiency over time of a dynamic allocation technique by taking 100%, 50%, or 0% notional publicity to the Barclays Gold Three Month Deferred Index Extra Return (the “Gold Index”) each day based mostly on three specified indicators that reference the short-term and long-term efficiency of the Gold Index and (2) the return that corresponds to the weekly introduced rate of interest for specified 3-month U.S. Treasury payments.
As well as, the Gold Index is meant to mirror the efficiency of a rolling place in specified gold futures contracts that may turn out to be the primary liquid close by futures contracts three months sooner or later in accordance with a specified schedule.
The ETNs don’t assure any return of principal at or earlier than maturity and don’t pay any curiosity throughout their time period. As a substitute, traders obtain a money cost in U.S. {dollars} at maturity or upon early redemption based mostly on the Index’s efficiency.
The ETNs are anticipated to start buying and selling on the NYSE Arca trade on June 16, 2021. The ETNs will function an investor payment of 0.65% every year. They may also be redeemable on the sole discretion of Barclays on any buying and selling day on or after their inception till maturity. Please seek advice from the ETN prospectus for additional particulars.
Barclays is a high issuer of ETNs within the US, with over 30% market share of notional worth. The prospectus referring to the ETNs might be discovered on the product web site at www.iPathETN.com/.
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