Barclays launches its first dynamic volatility ETN

The ETN, which will trade on the New York Stock Exchange, will be linked to the S&P 500 Dynamic VIX Futures Total Return index. The index is designed to dynamically allocate between short-term and mid-term volatility futures, it allocates to mid-term futures when volatility is lower and switches into short-term futures when it goes up. "The target is the best of both worlds," says Tim Edwards, vice president of Investor Solutions at Barclays Capital in New York. "This is our first dynamic volatility product. It can be viewed as similar to a long-short strategy on two of our most po...