UBS Investment Bank has added to its suite of UBS E-Tracs exchange-traded notes with the UBS E-Tracs Daily Long-Short VIX ETN on NYSE Arca.
The ETN offers access to a trading strategy in a single exchange-traded security.
“We believe in the UBS E-Tracs platform and in the ETN as a structure that can efficiently respond to investor needs,” says Christopher Yeagley, managing director and US head of equity structured products. “Today’s launch marks our 18th ETN, giving investors a cost-efficient way to capitalise on the steepness of the short-end of the volatility market.”
The ETN is linked to the S&P 500 VIX Futures Term-Structure Index ER. The index is a composite index that measures the return from taking a long position in the S&P 500 VIX Mid-Term Futures Index Excess Return with 100 per cent weight, and taking a short, or inverse, position in the S&P 500 VIX Short-Term Futures Index Excess Return with 50 per cent weight, and rebalancing the weights of the long and short positions daily.
UBS has 17 other existing E-Tracs ETNs – ten that track the performance of various UBS Bloomberg CMCI indexes, like platinum, silver, gold, livestock and food; one that tracks the total return of the Dow Jones-UBS Commodity Index; one that is linked to the S&P 500 Gold Hedged Index; one linked to the Alerian MLP Infrastructure Index; one that offers 2x leveraged exposure to the Alerian MLP Infrastructure Index; one linked to the Alerian Natural Gas MLP Index; one that offers 1x monthly short exposure to the Alerian MLP Infrastructure Total Return Index; and an ETN linked to the Wells Fargo MLP Index.
