Symbols

HDLB

ETRACS Monthly Pay 2xLeveraged US High Dividend Low Volatility ETN Series B·NYSE

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Key Stats

Assets Under Management

4.84MUSD

Fund Flows (1Y)

-4.25MUSD

Dividend Yield

12.20%

Discount/Premium to NAV

-0.06%

Shares Outstanding

320.00K

Expense Ratio

1.65%

About ETRACS Monthly Pay 2xLeveraged US High Dividend Low Volatility ETN Series B

Issuer

UBS

Brand

ETRACS

Home Page

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

Inception Date

Oct 24, 2019

Structure

Exchange-Traded Note

Index Tracked

Solactive US High Dividend Low Volatility 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

HDLB is an income play. The underlying index selects from the 1,000 largest stocks, 80 companies with the highest expected yield based on analyst estimates. From these 80 names, it selects 40 with lower volatility over the past year. The low volatility screen simply aims to dampen the risk of picking stocks with the highest yield — risk that would be amplified by the note's leverage. The portfolio is weighted by liquidity. HDLB pays a monthly coupon- unusual for an ETN. It also resets its leverage monthly rather than daily. Liquidity of the note is an important consideration for investors. Like all ETNs, HDLB is not directly backed by stocks but by the credit of the issuing bank-UBS in this case. Another ETN byproduct: coupons are taxed as ordinary income, not qualified dividends.