ETRACS Reports Tech Sector Top Performer: Solid State Drive ETN Leads Technology ETPs

UBS Investment Bank today announced that the ETRACS ISE Solid State Drive Index ETN (NYSEArca:SSDD), linked to the ISE Solid State Drive™ Index, is the top performing technology exchange-traded product (“ETP”)* year-to-date, significantly outperforming all other US-listed, non-leveraged and non-inverse exchange-traded notes (“ETNs”) and exchange-traded funds (“ETFs”) such as the Vanguard Information Technology ETF (NYSEArca:VGT), Technology Select Sector SPDR Fund (NYSEArca:XLK), iShares Dow Jones U.S. Technology Sector Index Fund (NYSEArca:IYW) and iShares S&P Global Technology Sector Index Fund (NYSEArca:IXN).

SSDD, like its leveraged counterpart, the ETRACS Monthly 2xLeveraged ISE Solid State Drive Index ETN (NYSEArca:SSDL), provides investors with exposure to a portfolio of companies actively involved in the solid state drive segment of the electronic storage industry.

The table below summarizes the year-to-date performance of the top technology ETPs listed on a U.S. securities exchange:

Ticker     Name     Underlying Index    

Total Return (YTD)

SSDD     ETRACS ISE Solid State Drive Index ETN     ISE Solid State Drive™ Index     29.97%
QGEM     EGShares Technology GEMS ETF     Dow Jones Emerging Markets Technology Titans Index     21.66%
CQQQ     Guggenheim China Technology ETF     AlphaShares China Technology Index     19.92%
XSD     SPDR S&P Semiconductor ETF     S&P Semiconductor Select Industry     18.28%
SKYY     First Trust ISE Cloud Computing Index Fund     ISE Cloud Computing Index     18.02%
QQQC     The Global X NASDAQ China Technology ETF     NASDAQ OMX China Technology Index     17.43%
SOXX     iShares PHLX SOX Semiconductor Sector Index Fund     PHLX Semiconductor Sector Index     16.68%
PXQ     PowerShares Dynamic Networking Portfolio     Dynamic Networking Intellidex Index     16.06%
MTK     SPDR Morgan Stanley Technology ETF     Morgan Stanley Technology Index     16.01%
IGV     iShares S&P GSTI Software Index Fund     S&P North American Technology-Software Index     15.34%
FXL     First Trust Technology AlphaDEX Fund     StrataQuant Technology Index     15.12%
PTF     PowerShares Dynamic Technology Sector Portfolio     Dynamic Technology Sector Intellidex Index     14.82%
EIPO     ETRACS Next Generation Internet ETN due July 19, 2041     UBS Next Generation Internet Index     14.79%
QTEC     First Trust NASDAQ-100 Technology Sector Index Fund     NASDAQ-100 Technology Sector Index     14.64%
IYW     iShares Dow Jones US Technology Sector Index Fund     Dow Jones U.S. Technology Index     14.55%
AXIT     iShares MSCI ACWI ex US Information Technology Sector Index Fund     MSCI All Country World ex USA Information Technology Index     14.33%
FTQ     Focus Morningstar Technology Index     Morningstar Technology Index     14.21%
VGT     Vanguard Information Technology Index Fund     MSCI US Investable Market Information Technology 25/50 Index     14.05%
RYT     Rydex S&P Equal Weight Technology ETF     S&P Equal Weight Index Information Technology     14.02%
SMH     Market Vectors Semiconductor ETF     Market Vectors US Listed Semiconductor 25 Index     13.44%
IGN     iShares S&P GSTI Networking Index Fund     S&P North American Technology-Multimedia Networking Index     13.42%
IXN     iShares S&P Global Technology Sector Index Fund     S&P Global Information Technology Sector Index     13.25%
IGM     iShares S&P GSTI Technology Index Fund     S&P North American Technology Sector Index     13.04%
PSI     PowerShares Dynamic Semiconductors Portfolio     Dynamic Semiconductors Intellidex Index     12.60%
PSJ     PowerShares Dynamic Software Portfolio     Dynamic Software Intellidex Index     12.15%
XLK     Technology Select Sector SPDR Fund     Technology Select Sector Index     12.14%
SOCL     Social Media Index ETF Profile     Solactive Social Media Index     12.06%
PNQI     PowerShares NASDAQ Internet Portfolio     NASDAQ Internet Index     11.92%
PSCT     PowerShares S&P SmallCap Information Technology Portfolio     S&P SmallCap 600 Information Technology Index     11.88%
IPK     SPDR S&P International Technology Sector ETF     S&P Developed Ex-U.S. BMI Information Technology Sector Index     11.88%
XSW     SPDR S&P Software & Services ETF     S&P Software & Services Select Industry Index     10.74%
PXN     PowerShares Lux Nanotech Portfolio     Lux Nanotech Index     9.92%
FDN     First Trust Dow Jones Internet Index Fund     Dow Jones Internet Index     8.27%

Source: ETFdb 2/22/2012

*As of 2/22/2012. Based on total return, as determined by ETFdb. All ETPs defined by ETFdb as US-listed, non-leveraged and non-inverse technology ETPs on 2/22/2012 were considered for this comparison. Note that newly issued ETPs may not be included in the ETFdb database and therefore may have been excluded from this comparison.

About the ISE Solid State Drive™ Index

The ISE Solid State Drive™ Index was created as a benchmark for the solid state drive technology market. The Index uses an equal weighted allocation across the drive manufacturer and component manufacturer categories as well as an equal weighted allocation methodology for all components within each sector category. Index components are reviewed quarterly for eligibility, and the weights are re-set according to that methodology.

About ETRACS

For further information about ETRACS ETNs, go to http://www.etracs.com.

Exchange Traded Access Securities ETNs (“ETRACS ETNs”), are exchange-traded notes, 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. ETRACS ETNs may 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 (“UBS”), 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 41 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 Monthly Leveraged Wells Fargo Business Development Company Index         BDCL
           

Alpha Strategies

         
  Long-Short S&P 500 VIX Futures         XVIX
  Natural Gas Futures Contango ETN         GASZ
  Oil Futures Contango ETN         OILZ
           

Hybrid

         
  S&P 500 Gold Hedged         SPGH
  Fisher-Gartman Risk On ETN      

ONN

  Fisher-Gartman Risk Off ETN        

OFF

             

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

         
  Next Generation Internet ETN         EIPO
  Monthly 2xLeveraged Next Generation Internet ETN         EIPL
  Long ISE Solid State Drive Index        

SSDD

  2xLeveraged Long ISE Solid State Drive Index        

SSDL

  Monthly 2xLeveraged ISE Cloud Computing TR        

LSKY

             

Volatility

         
  Long-Short S&P 500 VIX Futures        

XVIX

  Long 1-Month S&P 500 VIX Futures         VXAA
  Long 2-Month S&P 500 VIX Futures         VXBB
  Long 3-Month S&P 500 VIX Futures         VXCC
  Long 4-Month S&P 500 VIX Futures         VXDD
  Long 5-Month S&P 500 VIX Futures         VXEE
  Long 6-Month S&P 500 VIX Futures         VXFF
  Short 1-Month S&P 500 VIX Futures         AAVX
  Short 2-Month S&P 500 VIX Futures         BBVX
  Short 3-Month S&P 500 VIX Futures         CCVX
  Short 4-Month S&P 500 VIX Futures         DDVX
  Short 5-Month S&P 500 VIX Futures         EEVX
  Short 6-Month S&P 500 VIX Futures         FFVX

*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 offerings of the ETRACS ETNs) with the Securities and Exchange Commission (the “SEC”) for the offerings 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).

Futures and futures options trading is speculative, involves a high degree of risk and is not suitable for all investors. Past performance is not necessarily indicative of future results.

© UBS 2012. 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,” “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” 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 ETRACS ETNs are not sponsored, endorsed, sold or promoted by S&P or CBOE and neither S&P nor CBOE makes any representation regarding the advisability of investing in the ETNs. “ISE Cloud Computing™ Total Return Index”, “ISE Solid State Drive™ Index”, “ISE Oil Futures Spread™”, “ISE Natural Gas Futures Spread™”, “ISE™®”, and “International Securities Exchange®” are trademarks of International Securities Exchange, LLC (“ISE” or “Licensor”) and have been licensed for use for certain purposes by UBS Securities LLC and its affiliates. UBS AG’s ETRACS Monthly 2xLeveraged ISE Cloud Computing TR Index ETN, ETRACS ISE Solid State Drive Index ETN, ETRACS Monthly 2xLeveraged ISE Solid State Drive Index ETN, ETRACS Natural Gas Futures Contango ETN and ETRACS Oil Futures Contango ETN based on the ISE Cloud Computing™ Total Return Index, ISE Solid State Drive™ Index, ISE Natural Gas Futures Spread™ Index and the ISE Oil Futures Spread™ Index, respectively, are not sponsored, endorsed, sold or promoted by ISE, and ISE makes no representation regarding the advisability of trading in such product(s). Alerian MLP Infrastructure Index, Alerian Natural Gas MLP Index, Alerian MLP Infrastructure Total Return Index, Alerian Natural Gas MLP 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. “MBF Index Holdings, LLC”, “The Fisher-Gartman Risk Index”, “The Fisher-Gartman Equity Subindex” and “The Fisher-Gartman Sovereign Bond Subindex” are trademarks of MBF Index Holdings, LLC and have been licensed for use by UBS AG. The ETRACS Fisher-Gartman Risk On ETN and ETRACS Fisher-Gartman Risk Off ETN are not issued by, sponsored, endorsed, sold or promoted by MBF Index Holdings, LLC or its affiliates and MBF Index Holdings, LLC makes no representation regarding the advisability of investing in the product. MBF Index Holdings, LLC does not guarantee that the Index referenced by the product has been accurately calculated and shall not have any liability for any error in the calculation. 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

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