ETRACS Linked to the NYSE® Pickens Core Midstream Index

  • Current Indicative Value
  • 11/28/2020 | 07:14 pm
  • USD 14.27
  • Current Spot Price USD 14.27
  • 11/27/2020 | 01:10 pm

Key Considerations

Selected risk considerations:


An investment in the 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 ETNs (the ""ETRACS Prospectus""). Capitalized terms used below (and elsewhere in this document) but not defined herein shall have the meanings attributed to them in the ETRACS Prospectus.

  • You may lose some or all of your investment — The ETNs do not guarantee any return on your initial investment and are fully exposed to any decline in the level of the Index. The negative effect of the Accrued Tracking Fee and, in the case of early redemption at your option, the Redemption Fee Amount, will reduce your final payment. If the increase in the level of the Index (as measured by the Index Level at the end of the applicable Measurement Period or on the Redemption Valuation date, as applicable, as compared to the Initial Index Level (or the Index level at the time you purchase the ETNs, as applicable)) is insufficient to offset the negative effect of the Accrued Tracking Fee and, in the case of early redemption at your option, the Redemption Fee Amount, (less any Coupon Amounts and any Stub Reference Distribution Amount, as applicable, you may be entitled to receive), or if the final Index level is less than the Initial Index Level (or the Index level at the time you purchase the ETNs, as applicable), you may lose some or all of your investment at maturity or call, or upon early redemption.

  • The ETNs are not suitable for all investors. In particular, the ETNs should be purchased only by sophisticated investors who are willing to actively and continuously monitor their investment and who understand how path dependence affects the value of the ETNs — The ETNs require an understanding of path dependence of investment results and are intended for sophisticated investors to use as part of an overall diversified portfolio. The ETNs are fully exposed to any decline in the level of the Index, and your payment at maturity or call, or upon early redemption, is linked to the performance of the Index. The Accrued Tracking Fee also takes into account the performance of the Index, as measured by the Closing Indicative Value, and the absolute level of the Accrued Tracking Fee is dependent on the path taken by the Index to arrive at its ending level on any date of determination.

  • Market risk — The return on the ETNs, which may be positive or negative, is linked to the return on the Index as measured by the Index Factor, and which, in turn, is affected by 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 any third party. Any payment to be made on the ETNs, including any payment at maturity 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 and you could lose your entire investment. The ETNs do not benefit from any co-obligation of UBS Switzerland AG.

  • Potential over-concentration in a particular industry — There is only one industry — energy — related to the Index constituents. An investment in the ETNs will increase your portfolio’s exposure to fluctuations in the energy industry, and specifically the midstream energy sector.

  • You are not guaranteed a coupon payment — You will not receive a coupon payment on a Coupon Payment Date if the underlying Index constituents do not pay any dividends or distributions and the Reference Distribution Amount, calculated as of the corresponding Coupon Valuation Date, is zero. Similarly, the Stub Reference Distribution Amount (including as part of the Cash Settlement Amount, Redemption Amount or Call Settlement Amount, as applicable) may be zero if the underlying Index constituents do not pay any dividends or distributions during the applicable period.

  • 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 the prospectus. We may issue and sell additional ETNs from time to time and we may suspend, slow or cease sales of the ETNs at any time, at our discretion.

  • 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 elect to reduce or waive the minimum redemption amount in our sole discretion, on a case-by-case basis or your broker or other financial intermediary bundles your ETNs of such series for redemption with those of other investors to reach this minimum requirement. You should not assume you will be entitled to the benefit of any such waiver. In addition, the payment you receive upon early redemption will be reduced by the Redemption Fee Amount.

  • Your redemption election is irrevocable — You will not know the Redemption Amount at the time you elect to request that we redeem your ETNs. 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 Redemption 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 Business Day on or after August 25, 2019, 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 or the amount you would have otherwise been entitled to receive at maturity, and you may not be able to reinvest any amounts received at comparable terms or returns.