Lyxor, the Société Générale-owned exchange traded fund (ETF) provider, has entered the exchange traded note (ETN) market with the listing of a gold tracker.
The Lyxor ETN Long Gold will, in real time, track the performance of the gold spot price in US quoted dollars per troy ounce.
The note has a fixed annual fee of 0.3% and is listed on the London Stock Exchange.
ETNs are tracking instruments which have a similar risk profile to a direct investment in the underlying asset class, in this case the gold spot price. Investors’ capital is at risk, with the maximum loss being the initial investment.
Lyxor ETNs are secured notes which are guaranteed by Société Générale. They are 100% collateralised with Standard & Poors AAAf-rated euro government bonds or government bonds from the eurozone.