UBS Investment Bank has launched the ETRACS Monthly Pay 2xLeveraged US Small Cap High Dividend ETN on the NYSE Arca trading under the ticker SMHD.
SMHD is linked to the monthly compounded 2x leveraged performance of the SolactiveUS Small Cap High DividendIndex (the Index).
According to UBS, SMHD offers investors:
• Significant income potential in the form of a variable monthly couponlinked to 2x the cash distributions, if any, on the Index constituents.
• Monthly compounded 2x leveraged exposure to the Solactive US Small Cap High Dividend Index, less investor fees.
• 2x exposure to an index comprised of small cap publicly traded stocks with relatively high dividend yields compared to other small cap publicly traded stocks in the US market.
“We are pleased to add another innovative product to our suite of ETNs”, said Christopher Yeagley, Head of ETRACS. “We expect SMHD to provide significant income potential.”