NYSE Euronext (NYX) announced that its wholly-owned subsidiary, NYSE Arca, today began trading the UBS AG 2x Leveraged Long Exchange Traded Access Security (E-TRACS) Linked to the Alerian MLP Infrastructure Index due July 9, 2040 (NYSE Arca: MLPL). Issued by UBS AG, this Exchange Traded Note is a senior unsecured medium-term note with a two times leveraged return linked to the compounded monthly performance of the Alerian MLP Infrastructure Index (the “Index”), which also pays a variable quarterly coupon linked to the leveraged cash distributions associated with the underlying Index constituents, less financing costs and investor fees.
The Index provides an enhanced liquid subset of master limited partnerships that includes only midstream energy transportation and storage assets, and selects those companies that are infrastructure hard-asset focused. The Index provides diversified exposure specifically to infrastructure investment.
Due to the compounding of monthly returns, returns over periods other than one month will likely differ in amount and possibly direction from the target return for the same period. Investors should frequently monitor their holdings consistent with their strategies. The prospectus describes correlation, leverage and other risks.