Email this Page
Home > About iPath ETNs > Essentials of iPath ETNs > Benefits of ETNs
Print this page Print this page

Benefits of ETNs

iPath Exchange Traded Notes (ETNs) offer investors access to the returns of a particular market or strategy, less investor fees, and offer the following benefits:

Gain access to difficult-to-reach exposures

iPath ETNs offer exposure to the returns of market benchmarks, less investor fees and costs, with exchange-traded accessibility. The ETN structure offers investors flexible exposure to investments in previously expensive or difficult-to-reach market sectors or strategies.

Help manage your taxable events¹

U.S. holders of iPath ETNs (other than the certain currency ETNs) should generally not be required to include amounts in income prior to sale, redemption or maturity. Investors should recognize gain or loss upon the sale, redemption or maturity of their iPath ETNs in an amount equal to the difference between the amount they receive at such time and their tax basis in the securities. This enables investors to generally manage the timing of taxable events related to their investment in iPath ETNs. However, significant aspects of the tax treatment of the ETNs are uncertain, and the IRS and U.S. Treasury are actively considering the tax treatment of instruments such as iPath ETNs, which could change at any time. Investors should consult a tax advisor about their own tax situation.

Trading Flexibility

iPath ETNs are listed on NYSE Arca and can be bought and sold at their market price on the secondary market anytime during trading hours, similar to other publicly traded securities. Certain iPath ETNs are listed on additional exchanges as well as NYSE Arca. Investors may also redeem a large block of securities, typically 25,000 or 50,000 securities, directly to the issuer, Barclays Bank PLC, subject to the procedures described in the relevant prospectus². A one-time redemption charge will apply to certain ETNs. The charge is intended to allow the issuer to recoup brokerage and other costs incurred in connection with an early redemption (although the proceeds from the charge may be more or less than such costs).

¹ Please see the applicable prospectus for a more complete discussion of the primary tax treatment and alternative tax characterizations that are possible with respect to each iPath ETN.

² The issuer may from time to time in its sole discretion reduce, in part or in whole, the minimum redemption amount. Any such reduction will be applied on a consistent basis for all holders of units at the time the reduction becomes effective.

Related Resources

Email this Page

Do you know someone who'd like to learn about iPath ETNs?
To send a link to this page to a fellow investor, please fill in all the fields below and click "Submit."

Recipient(s):

*
Please enter a valid email address

Message:

*
*

Your Information:

*
*
*
Please enter a valid email address

Thank you!

Your email was sent successfully.

Close Window

Help us improve this site
1000 characters remaining

Rate your experience on this site:

Very DissatisfiedVery Satisfied
Difficult Easy

Thank you

Your feedback has been received.

Thank you for taking the time to help us improve the iPath ETN site.

Close Window

Privacy Policy

+