ETRACS S&P GSCI Crude Oil Total Return Index ETN

  • Current Indicative Value
  • 06/19/2018 | 08:00 pm
  • -- 37.78
  • Last close -- 37.78
  • 6/18/2018

Key Considerations




Selected risk considerations:

An investment in the ETRACS ETNs involves risks. Selected risks are summarized here, but we urge you to read the more detailed explanation of risks described in the "Risk Factors" section of the prospectus supplement for the ETRACS ETNs (the "ETRACS Prospectus"). Capitalized terms used below but not defined herein shall have the meanings attributed to them in the ETRACS Prospectus.                                                  

  • You may lose all or a substantial portion of your investment — The ETNs do not guarantee any return on your initial investment and are exposed to any decline in the level of the Index. You will lose some or all of your investment if the Index level does not increase enough to offset the negative effect of the Fee Amount, and the Redemption Fee Amount, if applicable. The Index is volatile and subject to a variety of market forces, some of which are described below. The Index Closing Level is therefore unpredictable. Commodity prices may change unpredictably, affecting the prices of oil underlying the exchange-traded futures contracts comprising the Index and, consequently, the value of the ETNs.

  • Market risk — The return on the ETNs, which may be positive or negative, is directly linked to the level of the Index. The performance of the Index is based on the prices of the Index Commodities, currently WTI crude oil futures contracts traded on the New York Mercantile Exchange. The level of the Index is affected by a variety of factors and may change unpredictably, affecting the value of your ETNs in unforeseeable ways.

  • Credit of issuer — The ETNs are senior unsecured debt obligations of the issuer, UBS AG ("UBS"), 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, call or upon early redemption, depends on the ability of UBS to satisfy its obligations as they come due. As a result, the actual and perceived creditworthiness of UBS will affect the market value, if any, of the ETNs prior to maturity, call or early redemption. In addition, in the event UBS were to default on its obligations, you may not receive any amounts owed to you under the terms of the ETNs. The ETNs do not benefit from any co-obligation of UBS Switzerland AG.

  • Concentration risks — The ETNs are linked to an Index which is currently comprised solely of WTI crude oil futures contracts traded on the New York Mercantile Exchange. As a result, the Index will be less diversified than other funds or investment portfolios investing in a broader range of products and, therefore, could experience greater volatility. An investment in the ETNs will increase your portfolio’s exposure to fluctuations in oil prices, which have been highly volatile over the past few years and may continue to be volatile and unpredictable in the future.

  • No interest payments from the ETNs — You will not receive any interest payments on the ETNs.

  • A trading market for the ETNs may not develop — Although the ETNs have been approved for listing on NYSE Arca, subject to official notice of issuance, a trading market for the ETNs may not develop. Certain affiliates of UBS may engage in limited purchase and resale transactions in the ETNs, although they are not required to and may stop at any time. We are not required to maintain any listing of the ETNs on NYSE Arca or any other exchange. In addition, we are not obliged to, and may not, sell the full aggregate principal amount of the ETNs shown on the cover of the ETRACS Prospectus. We may suspend or cease sales of the ETNs at any time, at our discretion. Therefore, the liquidity of the ETNs may be limited.

  • Requirements upon early redemption — You must satisfy the requirements described in the ETRACS Prospectus for your redemption request to be considered, including the minimum redemption amount of at least 50,000 ETNs, unless we determine otherwise or your broker or other financial intermediary bundles your ETNs for redemption with those of other investors to reach this minimum requirement and there can be no assurance that they can or will do so. Therefore, the liquidity of the ETNs may be limited. In addition, the payment you receive upon early redemption will be reduced by the Fee Amount and the Redemption Fee Amount. While UBS reserves the right to waive the minimum redemption amount or the Redemption Fee Amount from time to time in its sole discretion, there can be no assurance that UBS will choose to waive any redemption requirements or fees or that any holder of the ETNs will benefit from UBS’s election to do so. Therefore, the liquidity of the ETNs may be limited.

  • Your redemption election is irrevocable — You will not know the Redemption Amount at the time you elect to request us to redeem your ETNs and you will not be able to rescind your election to redeem your ETNs after your redemption notice is received by UBS. Accordingly, you will be exposed to market risk in the event market conditions change after UBS receives your offer and the Redemption Amount is determined on the applicable Valuation Date.

  • 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.

  • UBS’s Call Right — UBS may elect to redeem all outstanding ETNs on any Trading Day on or after February 23, 2017, as described under “Specific Terms of the ETNs — UBS’s Call Right” in the ETRACS Prospectus. If UBS exercises its Call Right, the Call Settlement Amount may be less than your initial investment in the ETNs.