Volatility ETN uptake buoyed by eurozone concerns

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Exchange-traded notes (ETNs) offering access to European volatility are seeing increasing inflows on the back of Ireland's bailout and general eurozone concerns, Barclays Capital says.

Assets in the bank's short-term VStoxx ETN, launched in April, hit €100m on 30 November, while assets in the firm's mid-term VStoxx note unveiled in November have recently reached €5m. Natasha Jhunjhunwala, equity and funds structured markets at Barclays Capital, says: "With the current economic uncertainty in Europe, we've seen significant inflows into our European VStoxx ETNs over the last couple of weeks. "This year, the focus of uncertainty has been on Europe, while the US hasn't been affected as much. This is why we were keen to launch volatility ETNs in Europe." The underlyin...

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