Home > UBS Launches Twelve ETRACS Exchange Traded Notes Linked to the CBOE Volatility (VIX) Index
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UBS Launches Twelve ETRACS Exchange Traded Notes Linked to the CBOE Volatility (VIX) Index

September 9th, 2011

UBS Investment Bank announced that today is the first day of trading on the NYSE Arca for twelve new ETRACS Exchange Traded Notes (“ETNs”) linked to the daily performance of a particular index in the S&P 500 VIX Futures Index Series (each, an “Index” and collectively, the “Indices”). Investors now have the ability to trade, be it long or short, six specific VIX Index futures maturities, ranging from one month to six months.

Each of the six ETRACS S&P 500 VIX Futures ETNs (the “Long ETNs”) provides investors with a long exposure to one of six underlying Indices, depending on the series of ETNs purchased. Each of the six ETRACS Daily Short S&P 500 VIX Futures ETNs (the “Short ETNs”) provides investors with a short exposure to one of six underlying Indices. The tickers for the Long and Short ETNs, as well as their constant maturities, are provided below.


Six Long and Six Short ETNs
Constant Weighted
Average Futures Maturity
Long ETNs
Short ETNs
1 Month
(NYSE:VXAA)
(NYSE:AAVX)
2 Months
(NYSE:VXBB)
(NYSE:BBVX)
3 Months
(NYSE:VXCC)
(NYSE:CCVX)
4 Months
(NYSE:VXDD)
(NYSE:DDVX)
5 Months
(NYSE:VXEE)
(NYSE:EEVX)
6 Months
(NYSE:VXFF)
(NYSE:FFVX)
“Previously, there were limited alternatives for trading different maturities along the VIX futures curve. Investors now have the ability  to trade six individual VIX futures maturities, be it long or short,  based on their specific view on volatility,” said Christopher Yeagley, Managing Director and US Head of Equity Structured Products. “Welcome to the next generation of volatility investing.”
About the Indices
Each of the six Long ETNs is linked to the daily performance of a particular index in the S&P 500 VIX Futures Index Series, reduced by investor fees. Each Index underlying the Long ETNs is a total  return index and is composed of futures contracts on the VIX Index  having a constant weighted average maturity ranging from one month to  six months, depending on the series of the ETNs purchased, plus an  interest component linked to the 91-day Treasury Bill rate.
Each of the six Short ETNs is linked to the inverse daily  performance of the relevant Index, reduced by investor fees. Each  Index underlying the Short ETNs is an excess return index and is  composed of futures contracts on the VIX Index having a constant  weighted average maturity ranging from one month to six months, depending on the series of the ETNs purchased.
All the underlying Indices are rolling Indices, each of which rolls on a daily basis according to a pre-determined schedule that has the effect of keeping constant the weighted average maturity of the underlying futures contracts.
About ETRACS
For further information about ETRACS ETNs go to http://www.etracs.com.
Exchange Traded Access Securities, ETRACS, are exchange-traded notes, or ETNs, an innovative class of investment products offering access to markets and strategies that may not be readily available to investors, and offer unique diversification opportunities in a number of different sectors. ETNs offer:
  • Access to asset classes with historically low correlations to more traditional asset classes
  • Convenience of an exchange-traded security
  • Transparent exposure to a published index.
ETRACS ETNs are senior unsecured notes issued by UBS AG, are traded on  NYSE Arca, and can be bought and sold through a broker or financial  advisor. An investment in ETRACS ETNs is subject to a number of  risks, including the risk of loss of some or all of the investor’s  principal, and is subject to the creditworthiness of UBS. We urge you to  read the more detailed explanation of risks described under “Risk  Factors” in the prospectus supplement for the ETRACS ETN.
There are 24 other ETRACS ETNs:
ETRACS ETN Name
Ticker
Master Limited Partnerships
Alerian MLP Infrastructure MLPI
2x Monthly Leveraged Long Alerian MLP Infrastructure MLPL
1x Monthly Short Alerian MLP Infrastructure TR* MLPS
Alerian Natural Gas MLP MLPG
Wells Fargo MLP Index MLPW
Business Development Companies
Wells Fargo Business Development Company Index BDCS
2x Leveraged Long Wells Fargo Business Development Company Index
BDCL
Alpha Strategies
Daily Long-Short VIX ETN XVIX
Natural Gas Futures Contango ETN GASZ
Oil Futures Contango ETN OILZ
Hybrid
S&P 500 Gold Hedged SPGH
Commodities
CMCI TR UCI
CMCI Agriculture TR UAG
CMCI Energy TR UBN
CMCI Food TR FUD
CMCI Gold TR UBG
CMCI Industrial Metals TR UBM
CMCI Livestock TR UBC
CMCI Long Platinum ER* PTM
CMCI Short Platinum ER* PTD
CMCI Silver TR USV
DJ-UBS Commodity Index TR DJCI
Equities
Internet IPO ETN EIPO
Monthly 2xLeveraged Internet IPO ETN EIPL
*TR=Total Return and ER=Excess Return
The contents of any website referred to in this communication are not  part of, or incorporated by reference in, this communication. UBS has filed a registration statement (including a prospectus, as supplemented by a prospectus supplement for the offering of the ETRACS ETNs) with the Securities and Exchange Commission (the “SEC”) for the offering to which this communication relates. Before you invest, you should read these  documents and any other documents that UBS has filed with the SEC for  more complete information about UBS and the offering to which this communication relates. You may get these documents for free by visiting       EDGAR on the SEC website at www.sec.gov. Alternatively, you can request the prospectus and the applicable prospectus supplement by calling toll-free (+1.877.387.2275).
© UBS 2011. The key symbol, UBS and ETRACS are among the registered       and unregistered trademarks of UBS. “UBS Bloomberg Constant Maturity       Commodity Index” and “CMCI” are service marks of UBS and/or Bloomberg.       “Dow Jones,” “DJ-UBS Commodity Index” and “DJ-UBSCI” are service marks       of Dow Jones & Company Inc. and UBS AG, as the case may be. “Standard &       Poor’s®,” “S&P®,” “S&P 500®,” “Standard & Poor’s 500™,” “S&P 500 Gold       Hedged,” “SS&P 500 VIX Short-Term Futures Index,” “S&P 500 VIX 2-Month       Futures Index,” “S&P 500 VIX 3-Month Futures Index,” “S&P 500 VIX       4-Month Futures Index,” “S&P 500 VIX Mid-Term Futures Index,” and “S&P       500 VIX 6-Month Futures Index” are trademarks of Standard & Poor’s       Financial Services LLC (“S&P”) and have been licensed for use by UBS.       “VIX” is a registered trademark of the Chicago Board Options Exchange,       Incorporated (“CBOE”) and has been licensed to S&P. The ETNs are not       sponsored, endorsed, sold or promoted by Standard & Poor’s (“S&P”), its       third party licensors or the Chicago Board Options Exchange,       Incorporated (“CBOE”). Neither S&P nor CBOE makes any representation or       warranty, express or implied, to the owners of the ETRACS S&P 500 VIX       Futures ETNs and ETRACS Daily Short S&P 500 VIX Futures ETNs or any       member of the public regarding the advisability of investing in       securities generally or in the ETNs particularly or the ability of the       S&P 500 VIX Short-Term Futures Index, S&P 500 VIX 2-Month Futures Index,       S&P 500 VIX 3-Month Futures Index, S&P 500 VIX 4-Month Futures Index,       S&P 500 VIX Mid-Term Futures Index, and S&P 500 VIX 6-Month Futures       Index (the “Indices”) to track general market performance. S&P’s, its       third party licensors’ and CBOE’s only relationship to UBS is the       licensing of certain trademarks and trade names of S&P, its third party       licensors, CBOE and the Indices which are determined, composed and       calculated by S&P or its third party licensors without regard to UBS or       the ETNs. S&P and its third party licensors have no obligation to take       the needs of UBS or the owners of the ETNs into consideration in       determining, composing or calculating the Indices. Neither S&P nor CBOE       is responsible for and have not participated in the determination of the       prices and amounts of the ETNs or the timing of the issuance or sale of       the ETNs or in the determination or calculation of the equation by which       the ETNs are to be converted into cash. S&P and CBOE have no obligation       or liability in connection with the administration, marketing or trading       of the ETNs. NEITHER S&P, ITS AFFILIATES NOR THEIR THIRD PARTY       LICENSORS, OR CBOE, GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS OR       COMPLETENESS OF THE INDICES OR ANY DATA INCLUDED THEREIN OR ANY       COMMUNICATIONS, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN       COMMUNICATIONS (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT       THERETO. S&P, ITS AFFILIATES AND THEIR THIRD PARTY LICENSORS, AND       CBOE, SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS,       OMISSIONS OR DELAYS THEREIN. S&P AND CBOE MAKE NO EXPRESS OR       IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIM ALL WARRANTIES OF       MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT       TO THE MARKS, THE INDICES OR ANY DATA INCLUDED THEREIN. WITHOUT       LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P, ITS       AFFILIATES OR THEIR THIRD PARTY LICENSORS, OR CBOE, BE LIABLE FOR ANY       INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES,       INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME       OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH       DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY OR OTHERWISE.       Alerian MLP Infrastructure Index, Alerian Natural Gas MLP Index, Alerian       MLP Infrastructure Total Return Index, AMZI, AMZIX and ANGI are       trademarks of GKD Index Partners, LLC d/b/a Alerian and their use is       granted under a license from GKD Index Partners. Wells Fargo Securities,       Wells Fargo Securities, LLC, Wells Fargo, and Wells Fargo® Master       Limited Partnership Index are trademarks of Wells Fargo & Company and       have been licensed for use by UBS AG. ETRACS Wells Fargo MLP Index is       not issued, guaranteed, sponsored, endorsed, sold or promoted by Wells       Fargo & Company, Wells Fargo Securities, LLC or their subsidiaries and       affiliates (collectively, “Wells Fargo”). Wells Fargo makes no       representation or warranty, express or implied, to investors in the       ETRACS ETNs or any member of the public regarding the advisability of       investing in securities generally or in this ETRACS Wells Fargo MLP       Index particularly or the ability of any data supplied by Wells Fargo or       any Index to track financial instruments comprising the Index or any       trading market. Wells Fargo & Company does not guarantee that the Index       referenced by the ETRACS ETNs has been accurately calculated and shall       not have any liability for any error in the calculation. Wells Fargo’s       only relationship to UBS AG is the licensing of certain intellectual       property rights relating to the Index as well as trademarks and trade       names of Wells Fargo and of the data supplied by Wells Fargo that is       determined, composed, compiled and calculated by Wells Fargo or a third       party index calculator, without regard to this ETRACS Wells Fargo MLP       Index. Wells Fargo has no obligation to take into consideration the       ETRACS Wells Fargo MLP Index or investors in the ETRACS ETNs when       determining, composing, compiling or calculating the data. Wells Fargo       has no obligation or liability in connection with the listing,       registration, distribution, administration, marketing, trading or       redemption or settlement by the issuer or otherwise of this ETRACS Wells       Fargo MLP Index. Wells Fargo does not guarantee the accuracy and/or the       completeness of the index or of any data supplied by it or any data       included therein. Wells Fargo makes no warranty, express or implied, as       to results to be obtained by UBS AG and the ETRACS Wells Fargo MLP       Index, or any other person or entity from the use of index or of the       data supplied by Wells Fargo or any data included therein. Wells Fargo       makes no express or implied warranties, and expressly disclaims all       warranties of merchantability or fitness for a particular purpose or use       with respect to the index and the data supplied by Wells Fargo or any       data included therein. Without limiting any of the foregoing, in no       event shall Wells Fargo have any liability for any special, punitive,       indirect, or consequential damages (including lost profits), even if       notified of the possibility of such damages. Other marks may be       trademarks of their respective owners. All rights reserved. UBS assumes       sole responsibility for this marketing material, which has not been       reviewed by Bloomberg.
Notes to Editors
UBS draws on its 150-year heritage to serve private, institutional and corporate clients worldwide, as well as retail clients in Switzerland. We combine our wealth management, investment banking and asset management businesses with our Swiss operations to deliver superior  financial solutions.
UBS is present in all major financial centers worldwide. It has offices in over 50 countries, with about 37% of its employees working in the Americas, 37% in Switzerland, 16% in the rest of Europe and 10% in Asia Pacific. UBS employs about 65,000 people around the world. Its shares are listed on the SIX Swiss Exchange and the New York Stock Exchange  (NYSE).
Contact:
UBS
New York:
Michelle A. Lee, 212-333-3810


FUND LAUNCH, NYSE:AAVX, NYSE:BBVX, NYSE:CCVX, NYSE:DDVX, NYSE:EEVX, NYSE:FFVX, NYSE:VXAA, NYSE:VXBB, NYSE:VXCC, NYSE:VXDD, NYSE:VXEE, NYSE:VXFF


 

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