Bringing you live news and features since 2006 

UBS launches ETN with 2x leveraged exposure to a closed-end fund

RELATED TOPICS​

UBS Investment Bank has launched the ETRACS Monthly Pay 2xLeveraged Closed-End Fund ETN (CEFL) on the NYSE Arca.

CEFL is linked to the monthly compounded 2x leveraged performance of the ISE High Income Index, reduced by investor fees.
 
CEFL offers investors:
 
• Significant income potential in the form of a variable monthly coupon linked to two times the cash distributions, if any, on the index constituents. If the index constituents do not make distributions, then investors will not receive any coupons.
 
• Monthly compounded 2x leveraged exposure to an index comprised of 30 closed-end funds that vary by asset class, investment strategy, asset manager and investment region.
 
• Potential for price appreciation as the closed-end funds in the Index are selected, in part, on the basis of their share price discount from net asset value.
 
“The index tracked by CEFL selects and ranks the 30 component closed-end funds on the basis of their income yield and their discount from NAV,” says Paul Somma, senior ETRACS structurer. “So CEFL is expected to provide investors significant income potential, as well as the opportunity for price appreciation, all by way of a single, exchange-traded security.”

Latest News

ETP provider GraniteShares has announced it has surpassed USD5 billion in assets under management (AUM), reaching USD5.199 billion...
News came last night from the US that the SEC has approved CBOE’s proposal to list and trade VanEck’s spot..
Irish domiciled funds surpassed EUR4.3 trillion AuM (Assets under Management) at end-March 2024, a 15 per cent increase in net..
European white label ETF platform, HANetf, has announced its total assets under management (AUM) has now exceeded USD4.31 billion...

Related Articles

Timothy Rotolo, Range Funds
In 2023, Timothy Rotolo launched his business, Range Fund Holdings, the parent company for Range Indices and Range ETFs, followed...
Dan Miller, IQ-EQ
With just over a week to go till T+1 settlement begins in North America, Canada and Mexico, time is of...
Emily Spurling, Nasdaq
Last October’s ETF Express US Awards 2023 found Nasdaq winning Best Index Provider – ESG ETFs and Best Index Provider...
Vinit Srivistava, MerQube
Index provider, MerQube, launched in 2019, with the aim of providing a “technology-driven answer to the most complex, rules-based investment...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by