BarCap offers compound relief in US with leveraged ETNs

Barclays Capital has launched exchange-traded-plus notes (ETNs) in the US that offer leveraged long or short exposure to the S&P 500 Total Return Index. The notes avoid the same compounding effects as leveraged and inverse exchange-traded funds (ETFs), which cause the funds to deviate from the intended returns if held for more than one day.

There are three classes of short ETN, offering one, two, or three times the inverse of the S&P 500’s performance. There are two classes of long, offering two