UBS Declares Coupon Payments On Four Monthly Pay ETRACS ETNs

ubs1UBS Investment Bank today announced coupon payments for four ETRACS exchange-traded notes (the “ETNs”), all traded on the NYSE Arca. The relevant coupon information is provided in the table below:

NYSE ticker ETN
name
Valuation date Ex-
date
Record date Payment date Coupon amount Payment schedule Current yield* (annualized)
RWXL ETRACS Monthly Pay 2xLeveraged Dow Jones International Real Estate ETN 07/30/13 08/08/13 08/12/13 08/20/13 $0.0942 Monthly 7.61%
DVYL ETRACS Monthly Pay 2xLeveraged Dow Jones Select Dividend Index ETN 07/30/13 08/08/13 08/12/13 08/20/13 $0.1034 Monthly 6.84%
SDYL ETRACS Monthly Pay 2xLeveraged S&P Dividend ETN 07/30/13 08/08/13 08/12/13 08/20/13 $0.1436 Monthly 5.21%
MORL ETRACS Monthly Pay 2xLeveraged Mortgage REIT ETN 07/30/13 08/08/13 08/12/13 08/20/13 $0.1062 Monthly 25.99%

* Due to the monthly coupon payment schedule of these ETNs, “Current Yield (annualized)” equals his hacs.com reason why we think they deserve a closer look the sum of the most recently announced Coupon Amount and the two immediately preceding Coupon Amounts, multiplied by four (to annualize such coupons), divided by the closing price of the ETN on its current Coupon Valuation Date, or, if the closing price is not available on that date, then the next available closing price, and rounded to two decimal places for ease of analysis. The Current Yield is not indicative of future coupon payments, if any, on the ETN. You are not guaranteed any coupon or distribution amount under the ETN.

Note: RWXL, DVYL, SDYL and MORL pay a variable monthly coupon linked to 2 times the cash distributions, if any, on the respective underlying index constituents, less withholding taxes, if any.  Variations in the amount of monthly distributions will lead to large variations in the Current Yield as calculated above.  As such, the Current Yield for each is not indicative of future coupon payments, if any, on these ETNs.

About ETRACS

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

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, 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 AG.  You are not guaranteed any coupon or distribution amount under the ETNs. We urge you to read the more detailed explanation of risks described under “Risk Factors” in the product supplement and pricing supplement for the ETRACS ETN.

This material is issued by UBS AG or an affiliate thereof (“UBS”). Products and services mentioned in this publication may not be available for residents of certain jurisdictions. Past performance is not necessarily indicative of future results. Please consult the restrictions relating to the product or service in question for further information. Activities with respect to US securities are conducted through UBS Securities LLC, a US broker/dealer. Member of SIPC (http://www.sipc.org/).

ETRACS ETNs are sold only in conjunction with the relevant offering materials. UBS has filed a registration statement (including a prospectus, as supplemented by a product supplement and pricing 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 product supplement and pricing supplement by calling toll-free (+1-877-387 2275). In the US, securities underwriting, trading and brokerage activities and M&A advisor activities are provided by UBS Securities LLC, a registered broker/dealer that is a wholly owned subsidiary of UBS AG, a member of the New York Stock Exchange and other principal exchanges, and a member of SIPC. UBS Financial Services Inc. is a registered broker/dealer and affiliate of UBS Securities LLC.

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