XETRA, the Deutsche Boerse trading platform, last week expanded its product range with the launch of two iPath ETNs (exchange-traded notes).

The iPath S&P 500 VIX Short-Term Futures Index ETN and the iPath S&P 500 VIX Mid-Term Futures Index ETN track the S&P 500 short-term and mid-term futures indices. These indices replicate a rolling position in short and mid-term implied volatility futures on the S&P 500 equity index.

The iPath VIX ETNs have traded in the US since January this year. ETNs have historically been more popular in the US market than elsewhere due to their tax advantages.

The S&P VIX short-term futures index had returned –58.08% in the year to date, as at 30 November 2009. The S&P VIX mid-term futures index had returned –17.14% over the same period.

The two ETNs carry an annual management fee of 0.89%.

XETRA now hosts 543 ETFs, 141 ETCs and 2 ETNs.