Leveraged UBS ETN Targets CEFs

February 24, 2014

In December, UBS, the bank behind the Etracs family of exchange-traded notes, launched a double-exposure ETN focused on closed-end funds that are expected to shoot off a dividend of 19.4 percent.

The Etracs Monthly Pay 2xLeveraged Closed-End Fund ETN trades on the NYSE Arca under the symbol “CEFL” and has an “annual tracking rate” of 50 basis points, according to regulatory paperwork.

The ETN is essentially a double-exposure version of the YieldShares High Income ETF (YYY).

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