Bank of America Plans Volatility ETN to Compete With Barclays

Bank of America Corp. will introduce an exchange-traded note whose value is derived from the size of stock-price swings in the U.S., competing with Barclays Plc securities that won as much as $2.8 billion in assets.

The ETN will track prices for Standard & Poor’s 500 Index options using a Bank of America gauge similar to the Chicago Board Options Exchange Volatility Index, or VIX, according to John O’Brien, co-head of equity derivatives sales at the firm. It will be called the Investable Volatility Index.