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Home > About iPath ETNs > Essentials of iPath ETNs

Essentials of iPath® ETNs

Get comprehensive information and insight about iPath® Exchange Traded Notes (ETNs)

Learn how you can access the returns of market benchmarks or strategies with iPath ETNs, and discover the features and intended benefits of these securities.

Understanding iPath® ETNs

Learn about the basic structure of ETNs and see how they compare to equities, index funds, and Exchange Traded Funds (ETFs).
Begin learning the fundamentals

Benefits

Discover how to gain exposure to the returns of market benchmarks, help manage taxable events, and diversify your portfolio with iPath ETNs.
Learn about iPath ETN products

Trading and Redemption

Learn about your options for liquidating iPath ETNs and find out how indicative value and trading price are calculated.
Learn about trading and redemption

Premiums and Discounts

Learn about premiums and discounts in the market price of iPath ETNs and what may cause them to occur.
Learn about premiums and discounts

Tax Considerations

Understand the tax consequences of iPath ETNs and learn how ETNs should be treated for federal income tax purposes.
Learn about tax considerations

Leveraged ETNs

Learn how to access leveraged exposures through the iPath Leveraged ETN suite.
Learn about Leveraged ETNs

Diversification may not protect against market risk.

Selected Risk Considerations

An investment in the iPath ETNs described herein (the "ETNs") involves risks. Selected risks are summarized here, but we urge you to read the more detailed explanation of risks described under "Risk Factors" in the applicable prospectus supplement and pricing supplement.

You May Lose Some or All of Your Principal: The ETNs are exposed to change in the level of the underlying index between the inception date and the applicable valuation date. Additionally, if the level of the underlying index is insufficient to offset the negative effect of the investor fee and other applicable costs, you will lose some or all of your investment at maturity or upon redemption, even if the value of such index has increased or decreased, as the case may be. Because the ETNs are subject to an investor fee and any other applicable costs, the return on the ETNs will always be lower than the total return on a direct investment in the index components. The ETNs are riskier than ordinary unsecured debt securities and have no principal protection.

Credit of Barclays Bank PLC: The ETNs are unsecured debt obligations of the issuer, Barclays Bank PLC, and are not, either directly or indirectly, an obligation of or guaranteed by any third party. Any payment to be made on the ETNs, including any payment at maturity or upon redemption, depends on the ability of Barclays Bank PLC to satisfy its obligations as they come due. As a result, the actual and perceived creditworthiness of Barclays Bank PLC will affect the market value, if any, of the ETNs prior to maturity or redemption. In addition, in the event Barclays Bank PLC were to default on its obligations, you may not receive any amounts owed to you under the terms of the ETNs.

A Trading Market for the ETNs May Not Develop: Although the ETNs are listed on NYSE Arca, a trading market for the ETNs may not develop and the liquidity of the ETNs may be limited, as we are not required to maintain any listing of the ETNs.

No Interest Payments from the ETNs: You may not receive any interest payments on the ETNs.

Restrictions on the Minimum Number of ETNs and Date Restrictions for Redemptions: You must redeem at least 25,000 or 50,000 (depending on the series) ETNs of the same series at one time in order to exercise your right to redeem your ETNs on any redemption date. You may only redeem your ETNs on a redemption date if we receive a notice of redemption from you by certain dates and times as set forth in the pricing supplement.

Uncertain Tax Treatment: Significant aspects of the tax treatment of the ETNs are uncertain. You should consult your own tax advisor about your own tax situation.

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