In Tuesday's Wall Street Journal Fund Track
, Shefali Anand writes that assets in exchange-traded
notes have dropped to $3.9 billion from their June peak
of $7.3 billion, with investors yanking 16 percent of assets
during the past two months while the rest of the decline
stems from market losses.
Trouble started brewing when currencies and commodities
markets began falling in the summer. Then came September,
and ETNs were dealt a huge blow when Lehman Brothers Holdings filed
for bankruptcy. (Lehman earlier this year rolled out ETNs to track
commodities and a private equity index.)
Anand notes that no new ETNs were launched after August (sixty-four were rolled out through June, almost triple the number for all of 2007, followed by three in August). But the drought may not last long, as some issuers,
and Deutsche Bank
, remain optimistic about ETN prospects. Barclays, in fact, plans to unveil new products in the next couple of months.
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