Symbols

CEFD

ETRACS Monthly Pay 1.5X Leveraged Closed-End Fund Index ETN·ARCA

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Key Stats

Assets Under Management

7.08MUSD

Fund Flow (1Y)

-1.92MUSD

Dividend Yield

15.94%

Discount / Premium to NAV

0.16%

Shares Outstanding

400.00K

Expense Ratio

1.90%

About ETRACS Monthly Pay 1.5X Leveraged Closed-End Fund Index ETN

Issuer

UBS

Brand

ETRACS

Home Page

https://etracs.ubs.com/product/detail/index/ussymbol/CEFD

Inception Date

Jun 2, 2020

Structure

Exchange-Traded Note

Index Tracked

S-Network Composite Closed-End Fund Index

Management Style

Passive

Dividend Treatment

Distributes

Distribution Tax Treatment

Ordinary income

Income Tax Type

Capital Gains

Max ST Capital Gains Rate

39.60%

Max LT Capital Gains Rate

20.00%

Primary Advisor

Distributor

UBS Securities LLC

CEFD provides monthly 1.5x leveraged exposure to 200 publicly-traded closed-end funds (CEFs) that are yield-focused. CEFs differ from ETFs in that they lack ETF's baked-in creation/redemption plumbing, so CEFS often trade at discounts or premiums since they have no outlet for arbitrage to keep market price in line with fair value. As such, the fund uses a weighting methodology that favors CEFs that trades at discount. CEFs trading at higher discount receives greater weight. CEFD holds three flavors of CEFs domiciled in the US, namely Investment-grade fixed income, high-yield fixed income and equity covered-call strategies. As a geared product, CEFD is designed as a short-term trading tool and not a long-term investment vehicle, so long-term returns could materially differ from those of the underlying index.