ETRACS Leveraged Income ETN Toolkit

Welcome to the UBS ETRACS Leveraged Income ETNs page, highlighting the full toolkit of leveraged income ETRACS ETNs available to investors. The ETN Toolkit seeks to provide investors with customized solutions within the broader US equities universe.

Each Income ETN provides leveraged long exposure to the compounded monthly or quarterly performance of the applicable underlying price return index, less financing costs and tracking fees. An investment in the ETNs is subject to a number of risks, including the risk of loss of all of the investor's principal, and is subject to the creditworthiness of UBS AG. The ETNs do not guarantee any return or any coupon or distribution amount. We urge you to read the more detailed explanation of risks described in the prospectus and applicable prospectus supplement for the ETRACS ETN that you are interested in.

ASSET CLASS TYPE	TICKER	ETN NAME	INDEX NAME
Business Development Company	BDCX	ETRACS Quarterly Pay 1.5X Leveraged MVIS BDC Index ETN	MVIS US Business Development Companies Index
MLP	MLPR	ETRACS Quarterly Pay 1.5x Leveraged Alerian MLP Index ETN	Alerian MLP Index
Closed End Fund	CEFD	ETRACS Monthly Pay 1.5X Leveraged Closed-End Fund Index ETN	S-Network Composite Closed-End Fund Index
Mortgage REIT	MVRL	ETRACS Monthly Pay 1.5x Leveraged Mortgage REIT ETN	MVIS US Mortgage REITs Index
Small Cap High Dividend	SMHB	ETRACS Monthly Pay 2xLeveraged US Small Cap High Dividend ETN Series B	Solactive US Small Cap High Dividend Index
High Dividend Low Volatility	HDLB	ETRACS Monthly Pay 2xLeveraged US High Dividend Low Volatility ETN Series B	Solactive US High Dividend Low Volatility Index
Preferred Stock	PFFL	ETRACS Monthly Pay 2xLeveraged Preferred Stock ETN	Solactive Preferred Stock ETF Index


Ticker	BDCX	MLPR	CEFD	MVRL	SMHB	HDLB	PFFL
Index Features
Asset Class Type	BDC	MLP	CEF	m-REIT	Small Cap High Div.	High Div. Low Vol.	Preferred Stock
Index Ticker	MVBIZD	AMZ	CEFX	MVMORT	SOLSMHD	SOLHDLV	SOLPRF
Index Sponsor	MVIS	Alerian	S-Network	MVIS	Solactive	Solactive	Solactive
Constituents	US Stocks	US Stocks	US Stocks	US Stocks	US Stocks	US Stocks	US ETFs
ETN Feature
Coupon Frequency^[1]	Quarterly	Quarterly	Monthly	Monthly	Monthly	Monthly	Monthly
Current Yield	15.36%^[3]	9.55%^[3]	13.06%^[2]	17.37%^[2]	17.40%^[2]	11.89%^[2]	13.01%^[2]
Annual Tracking Fee Rate	0.95%	0.95%	0.95%	0.95%	0.85%	0.85%	0.85%
Annual Financing Fee Rate	3mLIBOR + 0.95%	3mLIBOR + 0.95%	3mLIBOR + 0.95%	3mLIBOR + 0.95%	3mLIBOR + 0.80%	3mLIBOR + 0.80%	3mLIBOR + 0.80%
Leverage	1.5x	1.5x	1.5x	1.5x	2x	2x	2x
Scheduled Leverage Reset Frequency	Quarterly	Quarterly	Quarterly	Quarterly	Monthly	Monthly	Monthly
Loss Rebalancing Event	-15%^[4]	-15%^[4]	-15%^[4]	-15%^[4]	-20%^[5]	-20%^[5]	-20%^[5]
Permanent Deleveraging Event^[6]	-50%	-50%	-50%	-50%	N/A^[7]	N/A^[7]	N/A^[7]
Zero Value Event^[8]	$0 CIV	$0 CIV	$0 CIV	$0 CIV	N/A^[9]	N/A^[9]	N/A^[9]
UBS Optional Acceleration Upon Minimum Indicative Value	N/A^[10]	N/A^[10]	N/A^[10]	N/A^[10]	$2 CIV^[11]	$2 CIV^[11]	$2 CIV^[11]
Prospectus Link	Prospectus	Prospectus	Prospectus	Prospectus	Prospectus	Prospectus	Prospectus

[1] Investors are not guaranteed any coupon or distribution amount. If the index constituents do not make any distributions, then investors will not receive any coupons.

[2] Current Yield (annualized) equals the most recently announced monthly Coupon Amount and the two immediately preceding monthly Coupon Amounts, multiplied by four (to annualize such coupons), divided by the Current Indicative Value of the ETN, or, if the Current Indicative Value is not available, then the most recent closing Indicative Value, and rounded to two decimal places for ease of analysis. The Current Yield is not indicative of future coupon payments, if any, on the ETN. Investors are not guaranteed any coupon or distribution amount under the ETN.

[3] Current Yield (annualized) equals the most recently announced Coupon Amount, multiplied by four (to annualize such coupons), divided by the Current Indicative Value of the ETN, or, if the Current Indicative Value is not available, then the most recent closing Indicative Value, and rounded to two decimal places for ease of analysis. The Current Yield is not indicative of future coupon payments, if any, on the ETN. Investors are not guaranteed any coupon or distribution amount under the ETN.

[4] If the Intraday Index Value has decreased by 15% or more from the Closing Index Level on the most recent Reset Valuation Date, a Loss Rebalancing Event will occur and the leverage will be reset to approximately 1.5x. Reset Valuation Dates generally occur monthly or quarterly and upon any Loss Rebalancing Event.

[5] If the Intraday Index Value has decreased by 20% or more from the previous Monthly Initial Closing Level or Loss Rebalancing Closing Level, a Loss Rebalancing Event will occur and the leverage will be reset to approximately 2x. The Monthly Reset Date generally occurs monthly and upon any Loss Rebalancing Event.

[6] If at any time the Intraday Index Value has decreased by 50% or more from the Closing Index Level on the most recent Reset Valuation Date, and the leverage has not yet been reset to 1.5x after the preceding Loss Rebalancing Event, a Permanent Deleveraging Event will occur and the leverage will be permanently reset to 1.0x over two Index Business Days.

[7] There is no Permanent Deleveraging Event applicable for this ETN.

[8] If at any time the Closing Indicative Value or the Current Indicative Value is less than or equal to zero, a Zero Value Event will occur and the Closing Indicative Value and the Current Indicative Value will be permanently reset to zero. A Zero Value Event cannot occur if the leverage has already been permanently reset to 1.0x as the result of a Permanent Deleveraging Event.

[9] There is no Zero Value Event applicable for this ETN.

[10] There is no UBS Optional Acceleration Upon Minimum Indicative Value event applicable for this ETN.

[11] If, at any time, the indicative value of the Securities on any Index Business Day equals $2.00 or less, the ETN may be accelerated and redeemed by UBS, at its option (even if the intraday indicative value would later exceed $2.00) for a cash payment equal to the Acceleration Amount.

UBS ETRACS Exchange Traded Notes are senior, unsecured, unsubordinated debt securities that are designed to track the returns of a specific market index, less investor fees. For more information about each ETRACS ETN please visit the respective product detail page, and review the prospectus and applicable prospectus supplement.

The ETNs are intended to be trading tools for sophisticated investors as part of an overall diversified portfolio. They are designed to achieve their stated investment objectives on a monthly or quarterly, or in certain circumstances, shorter basis. Their performance over longer periods of time can differ significantly from their stated objectives. The ETNs are riskier than securities that have intermediate or long-term investment objectives, and may not be suitable for investors who have a “buy and hold” strategy. Accordingly, the ETNs should be purchased only by knowledgeable investors who understand the potential consequences of investing in an Index and of seeking monthly or quarterly compounding leveraged long investment results. Investors should actively and continuously monitor their investments in the ETNs, even intra-day. It is possible that you will suffer significant losses in the ETNs even if the long-term performance of the applicable Index is positive.

Important legal information specific to ETRACS ETNs.

UBS AG has filed a registration statement (including a prospectus and supplements thereto) with the Securities and Exchange Commission, or SEC, for the offerings of securities to which this communication relates. Before you invest, you should read the prospectus, along with the applicable prospectus supplement, to understand fully the terms of the securities and other considerations that are important in making a decision about investing in the ETRACS. The applicable prospectus supplement for each ETRACS may be viewed by clicking on the ticker symbol of each ETRACS identified above. You may also view any of these documents without cost by visiting EDGAR on the SEC website at www.sec.gov. The securities related to the offerings are not deposit liabilities and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency of the United States, Switzerland or any other jurisdiction.

Disclaimer Business continuity

Important legal and regulatory information:

The products, services, information and/or materials contained within these web pages may not be available for residents of certain jurisdictions. Please consult the sales restrictions relating to the products or services in question for further information. Activities with respect to US securities are conducted through UBS Securities LLC, a US broker dealer. Member of SIPC

For information as to which entity provides the services in each jurisdiction click here.

The information in this section of the website may not be accessed in respect of any member state of the European Economic Area ("EEA") by persons who are retail investors. The securities referred to herein are not to be offered, sold or otherwise made available to any retail investor in the EEA and any person who is a retail investor in the EEA should not act or rely on this information or any of its contents. For these purposes, a retail investor means a person who is one (or more) of: (i) a retail client as defined in point (11) of Article 4(1) of Directive 2014/65/EU (as amended, "MiFID II"); (ii) a customer within the meaning of Directive 2002/92/EC (the "Insurance Mediation Directive"), where that customer would not qualify as a professional client as defined in point (10) of Article 4(1) of MiFID II; or (iii) not a qualified investor as defined in Directive 2003/71/EC (as amended, the "Prospectus Directive").

The information in this section of the website may not be accessed in respect of the United Kingdom by persons who are retail investors. The securities referred to herein are not to be offered, sold or otherwise made available to any retail investor in the United Kingdom and any person who is a retail investor in the United Kingdom should not act or rely on this information or any of its contents. For these purposes, a retail investor means a person who is one (or more) of: a retail client as defined in point (8) of Article 2 of Regulation (EU) No 2017/565 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018 (the "EUWA"); (ii) a customer within the meaning of the provisions of the Financial Services and Markets Act 2000 (the "FSMA") and any rules or regulations made under the FSMA to implement Directive (EU) 2016/97, where that customer would not qualify as a professional client, as defined in point (8) of Article 2(1) of Regulation (EU) No 600/2014 as it forms part of domestic law by virtue of the EUWA; or (iii) not a qualified investor as defined in Article 2 of the Prospectus Regulation as it forms part of domestic law by virtue of the EUWA ("UK Prospectus Regulation").