These new indexes track continuous exposure to oil futures prices and natural gas futures prices, respectively, using packaged calendar spread strategies.
In addition, ISE has partnered with UBS to launch two exchange-traded notes (ETNs) linked to these indexes: ETRACS Oil Futures Contango ETN and ETRACS Natural Gas Futures Contango ETN.
The According to ISE, the two ETNs will provide investors with exposure to futures-based calendar spread strategies in the oil and natural gas markets. Both products are now being traded on NYSE Arca.
ISE head of new product development Kris Monaco said their new partnership with UBS and the launch of two ETNs based on ISE’s strategy-based futures indexes mark significant achievements for their index business.
"By broadening our product offering to include both strategy-based indexes and futures-based indexes for the first time, we continue to expand our unique portfolio of indexes that serve as actionable investment strategies for exchange-traded funds (ETFs), ETNs and structured products," Monaco said.
