ETRACS Bloomberg Commodity Index Total Return ETN Series B

  • Current Indicative Value
  • 11/28/2020 | 07:14 pm
  • USD 13.95
  • Current Spot Price USD 13.91
  • 11/27/2020 | 01:10 pm

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 some or all of your principal — The ETNs do not guarantee any return on your principal. The ETNs are fully exposed to any decline in the level of the Index.  You will lose some or all of your principal if the Index Ending Level is below the Index level at the time you purchased the ETNs or if the Index Ending Level is not sufficiently above the Index level at the time you purchased the ETNs to offset the cumulative effect of the Fee Amount applicable to your ETNs.  The Index is volatile and subject to a variety of market forces, some of which are described below.  The Index Ending Level is therefore unpredictable.  Commodity prices may change unpredictably, affecting the prices of 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 performance of the Index, which is based on a variety of market and economic factors, interest rates in the markets and economic, financial, political, regulatory, judicial or other events that affect the markets generally.
  • Credit of issuer — The ETNs are senior unsecured debt obligations of the issuer, 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. Unlike the Series of UBS AG debt ETNs entitled “Medium-Term Notes, Series A”, the ETNs do not benefit from any co-obligations of UBS Switzerland AG.
  • Potential over-concentration in particular commodity sectors — The commodities underlying the futures contracts included in the Index are concentrated in a limited number of sectors, particularly energy and agriculture, and may therefore carry risks similar to a concentrated ETNs investment in a limited number of industries or sectors.
  • A trading market for the ETNs may not develop — Although the ETNs have been approved for listing, subject to official notice of issuance, on NYSE Arca, 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 stated principal amount of the ETNs set forth on the cover of this prospectus supplement. We may issue and sell additional ETNs from time to time and we may suspend or cease sales of the ETNs at any time, at our discretion. Therefore, the liquidity of the ETNs may be limited.
  • No interest payments from the ETNs — You will not receive any interest payments on the ETNs.
  • Requirements upon early redemption — You must satisfy the requirements described herein 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. While UBS reserves the right to waive the minimum redemption amount from time to time in its sole discretion, there can be no assurance that UBS will choose to waive any redemption requirements 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 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 at any time after November 4, 2019 as described under “Specific Terms of the ETNs — UBS’s Call Right” in the ETRACS Prospectus. If UBS exercises its call right, the Redemption Amount payable to you may be less than your initial investment in the ETNs. In addition, you may have to invest your proceeds in a lower return investment.