About E-TRACS
Exchange Traded Notes (ETNs) are senior, unsecured, unsubordinated debt securities that are designed to track the total return of a specific market index, less investor fees, and provide investors with exposure to the total returns of various market indices, including indices linked to stocks, bonds, commodities and currencies.
UBS Exchange Traded Access Securities (UBS E-TRACS) belong to an innovative class of investment products offering easy access to markets and strategies that may not be readily available to individual investors. After their initial offering, UBS E-TRACS ETNs can be bought and sold through a broker or financial advisor on a US securities exchange. ETNs are not equities or index funds, but they do share several characteristics with those products.
The UBS E-TRACS currently available are issued by UBS AG and listed on the NYSE Arca exchange. They may be purchased in a similar way to other publicly traded securities and can be bought or sold at any time during market hours.
How to invest in E-TRACS
- E-TRACS can be purchased through a broker on a U.S. securities exchange during market hours.
How to sell E-TRACS ETNs
- E-TRACS ETNs can be sold through a broker in the secondary market on a U.S. securities exchange during market hours.
Redemption info
How to Redeem E-TRACS ETNs
- Holders of E-TRACS generally may elect to require UBS to redeem their E-TRACS on any trading day during the term, subject to minimum size and certain other limitations and procedures specified in the relevant E-TRACS prospectus supplement.
- UBS may have a contingent right to call some E-TRACS prior to maturity where less than a specified principal amount continues to be traded. The existence of, and conditions for exercise of this right by UBS, will be specified in the applicable prospectus supplement.
- At maturity, or upon early redemption, the E-TRACS will be redeemed by UBS for a cash payment based on the performance of the underlying index, less an investor fee, amount (as specified in the relevant E-TRACS prospectus supplement for each offering of E-TRACS), determined on the final or applicable valuation date.
- Any cash amount that a holder may receive at maturity and upon early redemption will be determined by the performance of the underlying index (net of the investor fee amount payable by the holder).
- The E-TRACS do not pay interest and do not guarantee that investor’s will receive at least their principal investment at maturity. Investors may lose up to 100% of their original principal amount invested.
Investors should consult their broker or financial advisor for more information.
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