RBS gold exchange-traded note aims to mitigate volatility

The third US-listed ETN from Royal Bank of Scotland tracks either gold or US Treasuries, giving investors access to a commodity while mitigating some of its volatility.

RBS note provides exposure to gold

Royal Bank of Scotland (RBS) has launched its third exchange-traded note (ETN). The note is based on the same concept as the bank's previous two ETNs but tracks the performance of gold.

The RBS Gold Trendpilot ETNs track an index of the same name which gives exposure to gold bullion or three-month US Treasuries, depending on the gold price. If the price of gold bullion is above its 200-day moving average for five consecutive days, the index will track that price; if it falls below that level, it