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

 

   BDCs icon oil tower icon CEFs icon M-REIT icon seed in hand with % icon rate with % icon pref stocks icon
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 15.29%[3] 9.99%[3] 14.31%[2] 19.34%[2] 16.43%[2] 11.35%[2] 10.44%[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.