iPath Series B S&P 500 VIX Mid-Term Futures ETN

Frequently Asked Questions About VXZ

What does VXZ invest in?

The iPath® Series B S&P 500® VIX Mid-Term FuturesTM ETNs (the "ETNs") are designed to provide exposure to the S&P 500® VIX Mid-Term FuturesTM Index Total Return (the “Index”). The ETNs are riskier than ordinary unsecured debt securities and have no principal protection. The ETNs are unsecured debt obligations of the issuer, Barclays Bank PLC, and are not, either directly or indirectly, an obligation of or guaranteed by any third party. Any payment to be made on the ETNs, including any payment at maturity or upon redemption, depends on the ability of Barclays Bank PLC to satisfy its obligations as they come due. An investment in the ETNs involves significant risks, including possible loss of principal and may not be suitable for all investors. The Index is designed to provide access to equity market volatility through CBOE Volatility Index® (the "VIX Index") futures. The Index offers exposure to a daily rolling long position in the fourth, fifth, sixth and seventh month VIX futures contracts and reflects market participants’ views of the future direction of the VIX index at the time of expiration of the VIX futures contracts comprising the Index. Owning the ETNs is not the same as owning interests in the index components included in the Index or a security directly linked to the performance of the Index. For additional information regarding the risks associated with the ETNs, please see "Selected Risk Considerations" below.

What is the expense ratio of VXZ?

iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) charges an expense ratio of 0.89%. This is the annual fee deducted from fund assets to cover management and operations.

What is the duration of VXZ?

Effective duration measures VXZ's sensitivity to interest-rate changes — a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. VXZ's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of VXZ?

VXZ's credit quality breakdown — the share of holdings rated AAA through CCC and below — is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of VXZ?

Yield to maturity (YTM) is the total return you'd earn from VXZ if every bond in the portfolio is held to maturity at the current price. VXZ's YTM is published on the fund's factsheet on the issuer's website — it differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.

How big is VXZ?

iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) manages $37.5M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure — funds below ~$50M are at higher risk of liquidation.