UBS Joins ETN Marketplace with Eight Fund Launch

By Murray Coleman

Swiss-based financial services giant UBS (UBS) entered the exchange-traded notes market on Friday, launching eight commodities and energy index-based portfolios to join a growing field.

All are listed on the NYSE Arca and marketed as E-TRACS. In terms of the makeup and construction of each new ETN's underlying index, at least in theory, they should provide a more blended approach to commodities investing.

The UBS ETNs trade under the following ticker symbols: CMCI Index (UCI), CMCI Agriculture Index (UAG), CMCI Livestock Index (UBC), CMCI Industrial Metals Index (UBM), CMCI Food Index (FUD), CMCI Energy Index (UBN), CMCI Gold Index (UBZ) and CMCI Silver Index (USV).

"UBS is thrilled to enter the ETN market with the launch of these eight notes," said Kurt Nelson, managing director and head of ETNs at UBS, in a statement.

The ETNs track the performance of the UBS Bloomberg Constant Maturity Commodity Index [CMCI], which UBS says is the first benchmark commodity index to diversify across both commodities and maturities.

"These products offer unique diversification opportunities in a number of commodities, and give accessibility to the UBS Bloomberg CMCI to a broader range of investors," said Nelson.

Basically, the indexes blend exposure over many months rather than buying only one month's contract at a time. That should provide balanced exposure to the commodity, while limiting the impact of contango and backwardation.

UBS E-TRACs are senior unsecured notes issued by UBS AG. The firm has built a site for its new lineup at www.ubs.com/e-tracs.

• More on Commodities ETFs and ETNs

Comments

[Serge Birbrair:]

Neither I nor others UBS clients whom UBS put in Auction Rate Securities will be supporting UBS products.
How can one trust institutions who promissed us CASH EQUIVALENT liquid paper and in reality delivered us the good chunk of $330,000,000,000 mouse trap we now can't get out!?

I be avoiding EVERYTHING sponsored and underwritten by UBS untill UBS makes the clients whole.

Serge Birbrair whose CASH EQUIVALENT sold to me by UBS in the form of College ARC's are now priced by UBS at 80 cents on the dollar.

2008 Apr 06 04:37 PM

[User 154659:]

ubs.com/e-tracs

2008 May 13 04:44 PM