UBS launches new E-Tracs Daily Long-Short VIX exchange-traded notes

By Angela McDaniels

Tacoma, Wash., Dec. 1 - UBS AG, Jersey Branch's new exchange-traded access securities linked to the S&P 500 VIX Futures Term-Structure Index Excess Return began trading Wednesday on NYSE Arca under the ticker symbol "XVIX," according to a news release from UBS Investment Bank.

The UBS E-Tracs Daily Long-Short VIX exchange-traded notes are the 18th ETN in UBS' E-Tracs platform.

The underlying index is a composite index that measures the return from taking a long position in the S&P 500 VIX Mid-Term Futures Index Excess Return with a 100% weight and taking a short position in the S&P 500 VIX Short-Term Futures Index Excess Return with a 50% weight. The weights of the long and short positions are rebalanced daily.

The notes give investors "a cost-efficient way to capitalize on the steepness of the short end of the volatility market," Christopher Yeagley, UBS managing director and U.S. head of equity structured products, said in the release.

UBS has 17 other existing E-Tracs: 10 that track the performance of various UBS Bloomberg CMCI indexes, like platinum, silver, gold, livestock and food; one that tracks the total return of the Dow Jones - UBS Commodity index; one that is linked to the S&P 500 Gold Hedged index; one linked to the Alerian MLP Infrastructure index; one that offers two times leveraged exposure to the Alerian MLP Infrastructure index; one linked to the Alerian Natural Gas MLP index; one that offers 1x monthly short exposure to the Alerian MLP Infrastructure Total Return index; and one linked to the Wells Fargo MLP index.

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