Morgan Stanley launches double long and short ETNs

Morgan Stanley has launched two exchange-traded notes (ETNs), the Market Vectors-Double Long Euro ETN and the Market Vectors-Double Short Euro ETN, both of which are traded on NYSE Arca. The ETNs offer leveraged exposure to the euro/US dollar exchange rate and are the first Market Vectors leveraged index products.

The Double Long Euro ETN offers a two-times leveraged long investment in the euro, based on the Double Long Euro Index developed by Morgan Stanley and maintained by Standard & Poor’s. For every 1% that the euro strengthens relative to the US dollar, the level of the index will increase by 2% as it is two-times leveraged. Conversely, for every 1% that the Euro weakens relative to the US dollar, the index decreases by 2%.

Similarly, the Double Short Euro ETN offers two-times leveraged short