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Products September 8, 2011
UBS Launches ETNs Linked to Volatility Index
UBS Investment Bank introduced 12 ETRACS Exchange Traded
Notes (ETNs) linked to the daily performance of an index in
the S&P 500 VIX Futures Index Series, which began trading on the NYSE Arca.
Reported by PLANADVISER staff
Investors now have the ability to trade, be it long or short, six specific VIX Index futures maturities, ranging from one month to six months.
Each of the six ETRACS S&P 500 VIX Futures ETNs provides investors with a long exposure to one of six underlying Indices, depending on the series of ETNs purchased. Each of the six ETRACS Daily Short S&P 500 VIX Futures ETNs provides investors with a short exposure to one of six underlying Indices.
“Previously, there were limited alternatives for trading different maturities along the VIX futures curve. Investors now have the ability to trade six individual VIX futures maturities, be it long or short, based on their specific view on volatility,” said Christopher Yeagley, Managing Director and U.S. Head of Equity Structured Products.
More information is available at http://www.etracs.com.