HSBC USA Inc. yesterday launched the S&P CTI ELEMENTS (SM) exchange-traded note (NYSEArca:LSC).
The new ETN is linked to the S&P Commodity Trends Indicator – Total Return (S&P CTI).
The S&P CTI is designed to apply a long/short approach to the commodities markets. The index is a diversified composite of sixteen physical commodity futures, grouped into six sectors. Each sector is positioned either long or short (except energy, which is always positioned either long or flat), based on its price behavior relative to its exponential moving average. This long/short exposure gives the S&P CTI ELEMENTS ETNs the capability to benefit from both rising and declining price trends in the commodities markets.