Barclays' new iPath commodity-linked ETNs start trading on NYSE Arca

By Angela McDaniels

Tacoma, Wash., April 21 - Barclays Bank plc announced that Thursday was the first day of trading on the NYSE Arca for 18 new iPath exchange-traded notes linked to Barclays Capital Pure Beta indexes.

It was also the first day of trading for the iPath Seasonal Natural Gas ETN (Symbol: DCNG).

The following are the new iPath Pure Beta commodity ETNs and their tickers symbols:

• iPath Pure Beta S&P GSCI-Weighted ETN (SBV);

• iPath Pure Beta Broad Commodity ETN (BCM);

• iPath Pure Beta Crude Oil ETN (OLEM);

• iPath Pure Beta Agriculture ETN (DIRT);

• iPath Pure Beta Grains ETN (WEET);

• iPath Pure Beta Copper ETN (CUPM);

• iPath Pure Beta Nickel ETN (NINI);

• iPath Pure Beta Livestock ETN (LSTK);

• iPath Pure Beta Energy ETN (ONG);

• iPath Pure Beta Industrial Metals ETN (HEVY);

• iPath Pure Beta Sugar ETN (SGAR);

• iPath Pure Beta Softs ETN (GRWN);

• iPath Pure Beta Precious Metals ETN (BLNG);

• iPath Pure Beta Lead ETN (LEDD);

• iPath Pure Beta Cotton ETN (CTNN);

• iPath Pure Beta Coffee ETN (CAFE);

• iPath Pure Beta Cocoa ETN (CHOC); and

• iPath Pure Beta Aluminum ETN (FOIL).

The new iPath Pure Beta commodity ETNs were created to give investors access to commodities while seeking to minimize the effects of distortions in the commodity markets, according to a Barclays news release.

Many commodity indexes roll their exposure to the corresponding futures contract on a monthly basis in accordance with a pre-determined roll schedule. In contrast, the Barclays Capital Pure Beta indexes may roll into one of a number of futures contracts with varying expiration dates.

The indexes aim to provide the best proxy for the average price return of the front-year futures contracts for each commodity in the index while avoiding parts of the futures curve that are subject to "persistent market distortions."

The bank now has 70 iPath ETNs with about $10 billion of assets under management in the United States, according to the news release.

Barclays noted that these are the first iPath ETNs that are callable. The bank can redeem them on any trading day until and including maturity.

Like other iPath ETNs, the new notes are putable at any time. Holders who exercise this option must put back at least 50,000 notes.

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