Opta ETNs can offer investors exposure to market sectors and investment strategies that may be difficult to achieve with other investment alternatives. ETNs are not subject to some of the investment restrictions that may affect registered investment companies (RICs), including mutual funds and most exchange-traded funds (ETFs).

For instance, because mutual funds and many ETFs face restrictions when investing directly in commodity futures contracts, their ability to provide investors exposure to commodities may be limited. ETFs that access commodities indirectly may incur increased costs. ETNs do not face similar restrictions, providing an efficient means to gain exposure to difficult-to-access asset classes in a portfolio.

ETNs are designed to provide returns linked to the performance of an underlying index, net of investor fees. In most cases, the underlying index level and corresponding ETN Indicative Value are published throughout the trading day. Investors can access this information through market data services such as Bloomberg and Reuters, and also on the "Opta ETNs Market Data" section of this website.

Investors can sell their ETNs on an exchange at market price or require the Issuer to redeem (buy back) the ETNs for a cash payment equal to the applicable Indicative Value (subject to minimum size requirements).

ETN Issuers are obligated to deliver the index performance less fees (upon redemption or maturity), whereas tracking error in ETFs and index mutual funds, if any, is borne by investors.

Opta ETNs are senior, unsecured, debt securities issued by Lehman Brothers Holdings Inc. and are not rated separately from the Issuer. Any Issuer payment is subject to the Issuer's capacity to pay. An investment in the ETNs does not reflect an ownership interest in any class of asset comprising the applicable index to which the ETNs are linked.

ETN investors are exposed to changes in the index to which the ETN is linked. Opta ETNs are structured to reflect the appreciation or depreciation of linked indices in their trading price. In the unlikely event the underlying index level approaches zero, the ETN trading price could theoretically go to zero or trigger a forced redemption.

Even though they are listed on major U.S. exchanges, there is no guarantee that an active and liquid trading market will develop for all ETNs.

The Issuer charges investor fees that accrue through the term of the ETN. As a result, the return of the ETN will be lower than the return of the underlying index (please refer to the relevant prospectus for details on how investor fees are calculated).

Typically, Opta ETNs do not provide for any periodic payments or cash distributions until sale, redemption, or maturity.

There may be legislative or other regulatory changes pending related to the tax treatment of an ETN investment. Please see the "Legal, Regulatory & Tax Aspects" section of this website for more information.