Two of the more popular financial products of 2016 are back from the dead.
Bloomberg News reports that Citigroup rolled out a couple of risky triple-leveraged exchange-traded notes tied to oil on Friday after Credit Suisse delisted two eerily similar ETNs. The notes had gained attention earlier in the year as oil prices plummeted and investors, particularly millennials, starting pouring cash into them.
The marketing agent for the Citigroup notes is Janus Capital’s VelocityShares, which also was the brand on the Credit Suisse products. The new notes are called VelocityShares 3x Long Crude Oil ETN and VelocityShares 3x Inverse Crude Oil ETN, the old notes were the VelocityShares Daily 3x Long Crude ETN and VelocityShares Daily 3x Inverse Crude ETN. The ticker symbols for the Citigroup notes are UWT and DWT, a slight change from UWTI and DWTI for the Credit Suisse notes.
“They’ve quite obviously and deliberately made the new products as similar as humanly possible,” said Dave Nadig, chief executive officer of ETF.com. “The names are literally the same and the tickers are one letter off, absolutely creating a recipe for investor confusion.”
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