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
XVZ
iPath® S&P 500 Dynamic VIX ETN
Note Description
The iPath® S&P 500
Dynamic VIX ETN is designed to provide investors with exposure to the S&P 500® Dynamic VIX Futures™ Total Return Index.
Index Description
The S&P 500® Dynamic
VIX Futures™ Total Return Index (the “Index”) is designed to dynamically allocate between the S&P 500® VIX Short-Term Futures™ Index Excess Return and the S&P 500® VIX Mid-Term Futures™ Index Excess Return by
monitoring the steepness of the implied volatility curve. The Index seeks to react positively to overall increases in market volatility and aims to lower the roll cost of investments linked to future implied volatility.
Note Details
Ticker XVZ
Intraday Indicative Value Ticker
XVZ.IV
CUSIP 06741L609
ISIN US06741L6092
Primary exchange NYSE Arca
Yearly fee1 0.95%
Inception date 8/17/2011
Maturity date 8/18/2021
Issuer Barclays Bank PLC
Callable ETN No
Index Details
Index name S&P 500 Dynamic VIX FuturesTM Index TR 2
Composition Futures on S&P 500 VIX
Number of components 2
Bloomberg Index ticker
SPDVIXTR
Inception date 6/13/2011
Base value and date 1,000 as of 12/20/2005
Index
sponsor S&P Dow Jones Indices, LLC
Cumulative Index Return2
40%
32%
24%
16%
8%
0%
Aug 11 Nov 11 Feb 12 May 12 Aug 12
S&P 500 Dynamic VIX FuturesTM Index TR
Source: S&P Dow Jones Indices, LLC (based on daily returns 08/11-9/12 since Note inception date).
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.
Index Composition
100% 70.00%
60%
20%
-20%
-30.00%
-60%
S&P 500 VIX M/T Fut Index S&P 500 VIX S/T Fut Index
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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XVZ
Annualized Performance, Standard Deviation And Correlation History
3-month 6-month 1-Year 3-Year 5-Year Standard Index
Return % Return % Return % Return % Return % Deviation % Correlations4
Annualized3
S&P 500 Dynamic VIX FuturesTM Index TR -7.31 -7.74 -15.55 n/a n/a 2.20 n/a
S&P 500® 6.35 3.43 30.20 13.20 1.05 2.29 -0.67
MSCI EAFE Index 6.92 -0.70 13.75 2.12 -5.24 2.87 -0.65
MSCI Emerging Markets IndexSM 7.74 -1.84 16.93 5.63 -1.28 3.08 -0.65
Barclays U.S. Aggregate Bond Index 1.58 3.68 5.16 6.19 6.53 0.39 0.24
Dow Jones-UBS Commodity Index Total ReturnSM 9.69 4.70 5.99 5.26 -3.03 2.25 -0.45
Source: BlackRock, S&P Dow Jones Indices, LLC, MSCI, Barclays and Dow Jones Opco, UBS, as of 09/30/2012.
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
weekly returns for 9/11-9/12, 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 9/11-9/12. 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 decrease 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 increased. 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. The Performance of the Underlying Index is Unpredictable: An investment in the ETNs is subject to risks associated with fluctuations, particularly a decline, in the performance of the underlying index. Because the
performance of such index is linked to 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 equity-linked structured product markets.
Dynamic Allocation of Underlying Index: The value
of the underlying index will depend upon the success of such index in dynamically allocating between the short-term and mid-term volatility futures components. The allocation of such index is based on implied volatility measurements that may not
effectively predict trends in future volatility, and is made in accordance with pre-defined weightings that may not be optimal. Additionally, such index may allocate to short as well as long positions in the index components and is not guaranteed to
react positively to increased levels of market volatility.
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XVZ
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.
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. 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”, “S&P 500 VIX Short-Term Futures™”, “S&P 500 VIX Mid-Term Futures™” and “S&P
500® Dynamic VIX 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®”, “VIX®” and “BuyWrite” 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 indices 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, I0912 servicemarks or registered trademarks are the property, and used with the permission, of their respective owners. iP-0630-1212
XVZ -
- iP Not FDIC Insured —No Bank
Guarantee—May Lose Value 1-877-764-7284 www.ipathetn.com Page 3 of 3