UBS Investment Bank announced that today is the first day of trading on
the NYSE Arca® for the ETRACS
S&P 500 VEQTOR Switch ETN (NYSE Arca®: VQTS). VQTS is
linked to the performance of the S&P 500 VEQTOR Switch Index
(the “Index”).
VQTS Offers Investors:
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Strategy linked to volatility targeted S&P 500 Index and long/short
VIX futures strategy
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VIX futures component aims to capture VIX roll yields and volatility
drops (when allocated to short positions in VIX futures) and capture
VIX upside during volatility spikes (when allocated to long positions
in VIX futures)
About the S&P 500 VEQTOR Switch Index
The S&P 500 VEQTOR Switch Index seeks to simulate a dynamic portfolio
that allocates between equity and volatility based on realized
volatility in the broad equity market. The allocation to the equity
component is dynamically adjusted to gain exposure to the S&P 500 with a
target volatility of 10%. The remainder of the index is allocated to the
S&P 500 VIX Futures Long/Short Switch Index (the "Futures Index") that
allocates between cash and long or short positions in an index of VIX
futures with a constant one month maturity. The Index was launched on
November 17, 2014 and has no performance history prior to that date.
About ETRACS:
For further information about ETRACS ETNs, go to www.etracs.com
or download the ETRACS
Full ETN List.
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:
-
Convenience of an exchange-traded security
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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
involves 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 applicable prospectus supplement, or product
supplement and pricing supplement, for the ETRACS ETNs in which you are
interested.
This material is issued by UBS AG and/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 prospectus supplement, or 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 applicable prospectus
supplement, or 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.
The S&P 500 VEQTOR Switch Index (the “Index”) is a product of S&P Dow
Jones Indices LLC (“S&P DJI”) and has been licensed for use by UBS AG.
S&P® and S&P 500® are registered trademarks of Standard & Poor’s
Financial Services LLC (“S&P”); S&P 500 VEQTOR Switch Index™ is a
trademark of S&P DJI and/or its affiliates; VIX® is a registered
trademark of Chicago Board Options Exchange, Incorporated (“CBOE”).
These trademarks have been licensed for use by S&P DJI and sublicensed
for certain purposes by UBS AG. The ETRACS ETN is not sponsored,
endorsed, sold or promoted by S&P DJI, S&P, CBOE or any of their
respective affiliates or their third party licensors and such parties
make any representation regarding the advisability of investing in the
ETRACS ETN.
UBS specifically prohibits the redistribution or reproduction of this
material in whole or in part without the prior written permission of UBS
and UBS accepts no liability whatsoever for the actions of third parties
in this respect. © UBS 2014. The key symbol, UBS and ETRACS are among
the registered and unregistered trademarks of UBS.Other marks may be
trademarks of their respective owners. All rights reserved.
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.
Its business strategy is centered on its pre-eminent global wealth
management businesses and its leading universal bank in Switzerland,
complemented by its Global Asset Management business and its Investment
Bank, with a focus on capital efficiency and businesses that offer a
superior structural growth and profitability outlook.
UBS is present in all major financial centers worldwide. It has offices
in more than 50 countries, with about 35% of its employees working in
the Americas, 36% in Switzerland, 17% in the rest of Europe, the Middle
East and Africa and 12% in Asia Pacific. UBS employs about 60,000 people
around the world. Its shares are listed on the SIX Swiss Exchange and
the New York Stock Exchange (NYSE).
Copyright Business Wire 2014