VelocityShares, a Janus Capital Group, Inc., begun trading two new 3x Leveraged Long and Inverse Oil ETNs, the VelocityShares 3x Long Crude Oil ETN (Nyse Arca: UWT) and the VelocityShares 3x Inverse Crude Oil ETN (Nyse Arca: DWT) , on Friday, December 09, 2016. Here is a synopsis of the new ETNs:
1. CLOSED 04/02/2020
FUND INFORMATION:
| Symbol: UWT | Exchange: NYSE ARCA |
| Name: VelocityShares 3x Long Crude Oil ETN | Net Expense Ratio: 1.50% |
FUND OBJECTIVE:
The VelocityShares 3x Long Crude Oil ETN is an exchange-traded note issued by Citigroup Global Markets Holdings Inc. and guaranteed by Citigroup Inc. maturing December 15, 2031.
The ETNs are designed for investors who seek leveraged long exposure, as applicable, to the daily performance of the S&P GSCI Crude Oil Index ER.
The Note will provide investors with a cash payment at the scheduled maturity or early redemption or acceleration based on the performance of the underlying index, S&P GSCI Crude Oil Index ER.
2.
FUND INFORMATION: CLOSED 04/02/2020
| Symbol: DWT | Exchange: NYSE ARCA |
| Name: VelocityShares 3x Inverse Crude Oil ETN | Net Expense Ratio: 1.50% |
FUND OBJECTIVE:
The VelocityShares 3x Inverse Crude Oil ETN is an exchange-traded note issued by Citigroup Global Markets Holdings Inc. and guaranteed by Citigroup Inc. maturing December 15, 2031.
The ETNs are designed for investors who seek leveraged inverse exposure, as applicable, to the daily performance of the S&P GSCI Crude Oil Index ER.
The Note will provide investors with a cash payment at the scheduled maturity or early redemption or acceleration based on the performance of the underlying index, S&P GSCI Crude Oil Index ER.
| REFERENCE INDEX: |
The S&P GSCI Crude Oil Index ER tracks a hypothetical position in the nearest-to-expiration NYMEX light sweet crude oil futures contract, which is rolled each month into the futures contract expiring in the next month.
Because the Index is an excess return index, its official settlement price each day is calculated based solely on changes in the daily settlement price(s) of the relevant NYMEX futures contract(s) and, unlike a direct investment in futures contracts or a total return index based on futures contracts, does not reflect interest that could be earned on funds committed to the trading of the underlying futures contract(s). The Index is determined, composed and calculated by S&P Dow Jones Indices LLC (Index Sponsor).
The official settlement price of the Index on each Index Business Day is determined based on that day’s daily settlement price of the relevant NYMEX light sweet crude oil futures contract(s). Accordingly, the official settlement price of the Index on each Index Business Day is based on trading in the relevant NYMEX light sweet crude oil futures contract(s) that occurs between 2:28 and 2:30 p.m., New York City time, on that day. There is typically a time lag in the publication of the daily settlement price, and the official settlement price of the Index based on the daily settlement price is typically not published until after 4:00 p.m., New York City time.
NYMEX light sweet crude oil futures contracts trade 23 hours a day, six days a week, including continuously before and after the time at which the daily settlement price is determined. However, the official settlement price of the Index on a given Index Business Day will not reflect any trading after 2:30 p.m., New York City time, on that day.
Useful Links:
UWT Home Page
DWT Home Page
Category: Commodities> Energy> WTIC Oil
ETFtrack comment:
The new ETNs (UWT and DWT) are linked to the same Index and each has a similar investment structure as UWTI and DWTI, respectively, both of which are issued by Credit Suisse AG and marketed under the VelocityShares brand. However, the new ETNs differ in important ways from UWTI and DWTI, including the fact that they have a different issuer (Citigroup Global Markets Holdings Inc. with a Citigroup Inc. guarantee). Any investor who has invested previously in UWTI/DWTI and is considering an investment in UWT/DWT should carefully review the pricing supplement for the new ETNs and understand the terms of the ETNs. Credit Suisse AG is not involved in any way in the offering of UWT or DWT.
Especially note that the two ETNs will not purchase/sell any commodities futures contracts or options on futures contracts. An investment in the ETNs thus does not constitute either an investment in futures contracts, options on futures contracts or in a collective investment vehicle that trades in these futures contracts (i.e., the ETNs will not constitute a direct or indirect investment in futures contracts), and investors will not benefit from the regulatory protections of the Commodity Futures Trading Commission (CFTC).