Investment objective

ETVs track individual assets or asset indexes and enable investors to gain exposure to these assets without trading futures or taking physical delivery

Type of security

Secured, undated, zero-coupon note

Issue size

ETVs are open ended investment vehicles

Accurate

ETVs accurately track the underlying asset index or individual asset

Liquid

ETVs are open-ended securities, and therefore are not limited to on-exchange volumes

Accessible

ETVs are traded and settled on regulated stock exchanges, the same as any equity, and can be purchased and held in ordinary brokerage or custodial accounts

Simple

ETVs do not involve any of the difficulties with buying and then managing a futures position (eg. worrying about margin calls, contracts expiring and rolling positions) or in buying and storing physical assets

Transparent

ETV pricing is based on a transparent formula with the pricing updated daily by the issuer

Guaranteed pricing

ETVs are priced using published settlement prices (rather than "best-efforts" pricing)

Flexible

Investors can long or short ETVs, and they are lendable and marginable

Spot return

Changes in price of the front month ("spot") futures contract

Roll return

Gain or loss from rolling long futures positions prior to expiry

Collateral return

Interest earned on the cash value of the initial investment