Free Writing Prospectus
Filed Pursuant to Rule 433
Registration No. 333-169119
January 17, 2013
Free Writing Prospectus Filed Pursuant to Rule 433 Registration
No. 333-169119 January 17, 2013
IVOP
iPath® Inverse S&P 500 VIX Short-Term Futures™ ETN (II)
Note Description
The iPath® Inverse S&P 500 VIX Short-Term FuturesTM ETN (II) is designed to provide investors with inverse exposure
to the S&P 500 VIX Short-Term FuturesTM Index Excess Return.
Index Description
The S&P 500 VIX Short-Term FuturesTM Index Excess Return (the “Index”) is designed to reflect the returns that are
potentially available through an unleveraged investment in short-term futures contracts on the CBOE Volatility
Index® . The Index offers exposure to a daily rolling long position in the first and second month VIX Index futures
contracts and reflects the implied volatility of the S&P 500® at various points along the volatility
forward curve.
Note Details Cumulative Index Return2
Ticker IVOP 60%
Intraday Indicative Value Ticker IVOP.IV 40%
CUSIP 06741K486 20%
0%
ISIN US06741K4866
-20%
Primary exchange NYSE Arca -40%
Yearly fee1 0.89%
-60%
Inception date 9/16/2011 -80%
Maturity date 9/20/2021 -100%
Sep Oct Nov Dec Jan
12 Feb Mar Apr May Jun 12 Jul 12 Aug Sep
Issuer Barclays Bank PLC 11 11 11 11 12 12 12 12 12 12
Callable ETN Yes S&P 500 VIX Short-Term FuturesTM Index Excess Return
Source: S&P Dow Jones Indices, LLC (based on daily returns 09/11-9/12 since
Index Details Note inception date).
Index name S&P 500 VIX Short-Term FuturesTM Index Excess Return 2 Index returns are for illustrative purposes only and do not represent actual iPath
ETN performance. Index performance returns do not reflect any management
Composition Futures on S&P 500 VIX fees, transaction costs or expenses. Indexes are unmanaged and one cannot
invest directly in an index. Past performance does not guarantee future results.
Number of components 2 For current Index and iPath ETN performance, go to www.iPathETN.com.
Bloomberg Index ticker SPVXSTR
Index Composition
Inception date 1/22/2009
Base value and date 100,000 as of 12/20/2005
CBOE VIX FUTURE OCT 12 57.68%
Index sponsor S&P Dow Jones Indices, LLC
CBOE
VIX FUTURE NOV 12 42.32%
Source: S&P Dow Jones Indices, LLC, as of 9/30/2012. Index composition is
subject to change.
1 The investor fee is equal to the Yearly Fee times the principal amount of your securities times the index factor, calculated on a daily basis in the following
manner: The investor fee on the inception date will equal zero. On each subsequent calendar day until maturity or early
redemption, the investor fee will
increase by an amount equal to the Yearly Fee times the principal amount of
your securities times the index factor on that day (or, if such day is not a trading
day, the index factor on
the immediately preceding trading day) divided by 365. The index factor on any given day will be equal to the closing value of the
index on that day divided by the initial index level. The initial index level is the closing value of the index on the inception date of the securities.
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Annualized Performance, Standard Deviation And Correlation History
6-month 1-Year 3-Year 5-Year 10-Year Standard Index
Return % Return % Return % Return % Return % Deviation % Correlations4
Annualized Annualized Annualized Annualized Annualized3
S&P 500 VIX Short-Term FuturesTM Index ER -46.38 -83.35 -64.20 n/a n/a 73.15 1.00
S&P 500® 3.43 30.20 13.20 1.05 8.01 15.58 -0.80
MSCI EAFE Index -0.70 13.75 2.12 -5.24 8.20 19.60 -0.81
MSCI Emerging Markets IndexSM -1.84 16.93 5.63 -1.28 17.00 21.84 -0.74
Barclays U.S. Aggregate Bond Index 3.68 5.16 6.19 6.53 5.32 2.70 0.38
Dow Jones-UBS Commodity Index Total ReturnSM 4.70 5.99 5.26 -3.03 5.20 17.86 -0.54
Source: BlackRock, S&P Dow Jones Indices, LLC, MSCI, Barclays, Dow Jones Opco and UBS, as of 9/30/2012.
Index returns are for illustrative purposes only and do not represent actual iPath ETN performance. Index performance
returns
do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one
cannot invest directly in
an index. Past performance does not guarantee future results. For current Index and
iPath ETN performance, go to
www.iPathETN.com.
3 Standard deviation is a measure of variability from the expected value. Standard Deviation % Annualized is based on
monthly returns for 9/09 – 9/12, and
describes how the annual returns in a given annual period are likely
to differ from average annualized returns. Because the Standard Deviation % Annualized
is based on historical
data, it may not predict variability in annualized performance of the ETNs in the future. Source: BlackRock, Barclays
4 Correlations based on weekly returns for 9/09-9/12. Correlation is the term used to describe the statistical relationship between two or more quantities or
variables. Perfectly correlated assets will have a correlation coefficient of one, while the correlation coefficient will
be zero when returns on two assets are
completely independent. Source: BlackRock, Barclays
Selected Risk Considerations
An investment in the iPath ETNs described herein (the “ETNs”) involves risks. Selected risks are summarized here, but we urge you to read the more detailed
explanation of risks described under “Risk Factors” in the applicable prospectus supplement and pricing
supplement.
You May Lose Some or All of Your Principal: The ETNs are exposed to any increase in the level of
the underlying index between the inception date and the
applicable valuation date. Additionally, if the level
of the underlying index is insufficient to offset the negative effect of the investor fee and other applicable
costs, you will lose some or all of your investment at maturity or upon redemption, even if the value of such index has
decreased. Because the ETNs are
subject to an investor fee and any other applicable costs, the return on the
ETNs will always be lower than the total return on a direct investment in the index
components. The ETNs are
riskier than ordinary unsecured debt securities and have no principal protection.
Credit of Barclays Bank PLC:
The ETNs are unsecured debt obligations of the issuer, Barclays Bank PLC, and are not, either directly or indirectly, an obligation
of or guaranteed by any third party. Any payment to be made on the ETNs, including any payment at maturity or upon redemption, depends on the ability of
Barclays Bank PLC to satisfy its obligations as they come due. As a result, the actual and perceived creditworthiness of
Barclays Bank PLC will affect the
market value, if any, of the ETNs prior to maturity or redemption. In
addition, in the event Barclays Bank PLC were to default on its obligations, you may not
receive any amounts
owed to you under the terms of the ETNs.
Issuer Redemption: If specified in the applicable prospectus,
Barclays Bank PLC will have the right to redeem or “call” a series of ETNs (in whole but not in
part) at its sole discretion and without your consent on any trading day on or after the inception date until and
including maturity.
Automatic Redemption: If specified in the applicable prospectus, Barclays Bank PLC will
automatically redeem a series of ETNs (in whole only, but not in
part) at the specified automatic redemption
value if, on any valuation date prior to or on the final valuation date, the intraday indicative note value of the
ETNs becomes less than or equal to the applicable level specified in the prospectus. For ETNs inversely linked to the S&P 500 VIX Short-Term Futures™ Index
Excess Return, an automatic redemption may occur as a result of a precipitous increase in volatility in the U.S. equity
markets and is highly likely to occur if
the historical frequency of precipitous increases in volatility in
the U.S. equity markets persist.
The Performance of the Underlying Index is Unpredictable: An investment in
the ETNs linked to the inverse performance of the index is subject to risks
associated with fluctuations,
particularly an increase, in the performance of the index. Because the performance of the index is linked to the inverse
performance of futures contracts on the CBOE® Volatility Index (the “VIX Index”), the performance of the underlying index will depend on many factors
including, the level of the S&P 500® , the prices of options on the S&P 500® , and the level of the VIX
Index which may change unpredictably, affecting the
value of futures contracts on the VIX Index and,
consequently, the level of the underlying index. Additional factors that may contribute to fluctuations in the
level of such index include prevailing market prices and forward volatility levels of the U.S. stock markets and the
equity securities included in the S&P 500®
the prevailing market prices of options on the VIX Index,
relevant futures contracts on the VIX Index, or any other financial instruments related to the S&P
500® and the VIX Index, interest rates, supply and demand in the listed and over-the-counter equity derivative markets
as well as hedging activities in the
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Benefits Risks
May provide portfolio
diversification and completion* No principal protection
Ability to execute tactical views Credit risk of the
issuer
Interest Rate Management Concentration of index exposure
Hedging Tool Minimum redemption value directly with issuer
Exchange listed Market risk
Daily redemption capabilities directly to issuer Yearly fee and applicable costs
No tracking error to their specified underlying index**
* Diversification does not protect against market risk.
** Excluding fees and applicable costs and applies only to the indicative value, not necessarily to the secondary market price.
Tracking error refers to the under/over performance differential of an ETN versus its underlying index over a given time
period, after
accounting for the ETN’s fees and costs. One cannot invest directly in an index.
Your ETNs Are Not Linked to the Inverse of the VIX Index: The value of your ETNs will be linked to the inverse
performance of the underlying index, and your
ability to benefit inversely from any rise or fall in the level
of the VIX Index is limited. The index underlying your ETNs is based upon holding a rolling long
position in
futures on the VIX Index. These futures will not necessarily track the performance of the VIX Index. Your ETNs may not benefit from decreases in
the level of the VIX Index because such decreases will not necessarily cause the level of VIX Index futures to decrease. Accordingly, a hypothetical investment
that was linked directly to the inverse performance of the VIX Index could generate a higher return than your ETNs.
Market and Volatility Risk: The market value of the ETNs may be influenced by many unpredictable factors and
may fluctuate between the date you
purchase them and the maturity date or redemption date. You may also
sustain a significant loss if you sell your ETNs in the secondary market. Factors that
may influence the
market value of the ETNs include prevailing market prices of the U.S. stock markets, the index components included in the underlying
index, and prevailing market prices of options on such index or any other financial instruments related to such index; and supply and demand for the ETNs,
including economic, financial, political, regulatory, geographical or judicial events that affect the level of such index
or other financial instruments related to
such index.
A Trading Market for the ETNs May Not Develop: Although the ETNs are listed on NYSE Arca, a trading market for the ETNs
may not develop and the
liquidity of the ETNs may be limited, as we are not required to maintain any listing
of the ETNs.
No Interest Payments from the ETNs: You may not receive any interest payments on the ETNs.
Restrictions on the Minimum Number of ETNs and Date Restrictions for Redemptions: You must redeem at least
50,000 ETNs of the same series at one
time in order to exercise your right to redeem your ETNs on any
redemption date. You may only redeem your ETNs on a redemption date if we receive a
notice of redemption from
you by certain dates and times as set forth in the pricing supplement.
Uncertain Tax Treatment: Significant
aspects of the tax treatment of the ETNs are uncertain. You should consult your own tax advisor about your own tax
situation.
Barclays Bank PLC has filed a
registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before
you invest, you should read the prospectus and other documents Barclays Bank PLC has filed with the SEC for more complete information about the
issuer and this offering. You may get these documents for free by visiting www.iPathETN.com or EDGAR on the SEC website at
www.sec.gov.
Alternatively, Barclays Bank PLC will arrange for Barclays Capital Inc. to send you the
prospectus if you request it by calling toll-free 1-877-764-7284, or
you may request a copy from any other
dealer participating in the offering.
BlackRock Investments, LLC, assists in the promotion of the iPath ETNs.
The ETNs may be sold throughout the day on the exchange through any brokerage account. Commissions may apply
and there are tax consequences in the
event of sale, redemption or maturity of ETNs.
“Standard & Poor’s® “, “S&P 500® “, “S&P® “, “S&P
500® Total Return” and “S&P 500 VIX Short-Term Futures™”are trademarks of Standard & Poor’s Financial
Services, LLC (“S&P”) and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). These trademarks have been licensed
for use by S&P Dow Jones Indices LLC and its affiliates and sublicensed for certain purposes by Barclays
Bank PLC. “CBOE® “ and “VIX® “ are trademarks of the
Chicago Board Options
Exchange, Incorporated (“CBOE”) and have been licensed for use by S&P Dow Jones Indices LLC and sublicensed for certain purposes
by Barclays Bank PLC. This document is not sponsored, endorsed, or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or any of their respective
subsidiaries or affiliates (collectively, “S&P Dow Jones Indices”) or by CBOE. S&P Dow Jones Indices and
CBOE make no representation, condition or warranty,
express or implied, to the owners of the ETNs or to any
member of the public regarding the advisability of investing in securities generally or in the ETNs or in
the
ability of the index to track market performance.
© 2012 Barclays Bank PLC. All rights reserved. iPath,
iPath ETNs and the iPath logo are registered trademarks of Barclays Bank PLC. All other trademarks,
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servicemarks or registered trademarks are the property, and used with the permission, of their respective owners. iP-0630-1212
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- Not FDIC Insured—No Bank Guarantee—May Lose Value 1-877-764-7284 www.ipathetn.com Page 3 of 3
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