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ETRACS 2x Leveraged ETN Snapshot, November 2018: HOML Rollercoaster


  • MORL/MRRL are the highest-yielding 2x ETNs, followed by SMHD and CEFL.
  • 3-month LIBOR increased by 17 bps this month, and 2x ETN expense ratios continue to break new highs.
  • HOML has gone on a roller-coaster in terms of its share price.
  • This idea was discussed in more depth with members of my private investing community, CEF/ETF Income Laboratory. Get started today »

Fund additions, closures, or notable adjustments

On October 9, 2018, UBS announced suspension of further sales of ETRACS Monthly Pay 2xLeveraged Small Cap High Dividend ETN (SMHD).

On November 9, 2018, UBS announced the launch of the ETRACS Monthly Pay 2xLeveraged US Small Cap High Dividend ETN Series B (NYSEARCA:SMHB).

In September, UBS launched the ETRACS Monthly Pay 2xLeveraged Preferred Stock ETN (PFFL). I missed the launch at the time and intend to cover this issue in a separate piece in the near future. Also, this ETN will be included in next month's ETN Snapshot.

The funds

Fund Ticker Inception Assets / m Volume / k Yield TER Adjusted TER 1x fund
Monthly Pay 2xLeveraged S&P Dividend ETN (SDYL) 5/2012 16.6 1.1 5.71% 0.70% 1.64% (SDY)
Monthly Pay 2xLeveraged Dow Jones Select Dividend Index ETN (DVYL) 5/2012 42.6 3.5 7.97% 0.75% 1.67% (DVY)
Monthly Pay 2xLeveraged US High Dividend Low Volatility ETN (HDLV) 9/2014 16.9 5.6 11.92% 1.45% 2.02%
Monthly Pay 2xLeveraged US Small Cap High Dividend ETN (SMHD) 3/2015 59.6 42.0 21.78% 1.65% 2.12%
Monthly Reset 2xLeveraged ISE Exclusively Homebuilders ETN (NYSEARCA:HOML) 3/2015 3.0 0.5 0.00% 1.65% 2.12%
Alternative equity
Monthly Pay 2xLeveraged Wells Fargo MLP Ex-Energy ETN (LMLP) 6/2014 26.7 17.6 15.23% 1.45% 2.02%
Monthly Pay 2xLeveraged MSCI US REIT Index ETN (LRET) 5/2015 5.5 1.9 8.96% 1.65% 2.12% (VNQ)
Monthly Pay 2xLeveraged Mortgage REIT ETN (MORL) 10/2012 445.5 284.2 22.04% 0.80% 1.69% (MORT)
Monthly Pay 2xLeveraged Mortgage REIT ETN Series B (MRRL) 10/2015 57.7 30.5 22.04% 0.80% 1.69% (MORT)
2xMonthly Leveraged Alerian MLP Infrastructure Index ETN Series B (MLPQ) 2/2016 76.2 48.0 17.79% 1.65% 2.12% (MLPI) (AMLP)
2xMonthly Leveraged S&P MLP Index ETN Series B (MLPZ) 2/2016 30.8 0.9 12.91% 1.95% 2.27% (

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This article was written by

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CEF/ETF Income Laboratory is a premium newsletter on Seeking Alpha that is focused on researching profitable income and arbitrage ideas with closed-end funds (CEFs) and exchange-traded funds (ETFs). We manage model safe and reliable 8%-yielding fund portfolios that have beaten the market in order to make income investing easy for you. Check us out to see why one subscriber calls us a "one-stop shop for CEF research.”

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2) Nick Ackerman: Nick is a former Financial Advisor and has previously qualified for holding Series 7 and Series 66 licenses. These licenses also specifically qualified him for the role of Registered Investment Adviser (RIA), i.e., he was registered as a fiduciary and could manage assets for a fee and give advice. Since then he has continued with his passion for investing through writing for Seeking Alpha, providing his knowledge, opinions, and insights of the investing world. His specific focus is on closed-end funds as an attractive way to achieve income as well as general financial planning strategies towards achieving one’s long term financial goals.

3) Juan de la Hoz: Juan has previously worked as a fixed income trader, financial analyst, operations analyst, and economics professor in Canada and Colombia. He has hands-on experience analyzing, trading, and negotiating fixed-income securities, including bonds, money markets, and interbank trade financing, across markets and currencies. He is the "ETF Expert" of the CEF/ETF Income Laboratory, and enjoys researching strategies for income investors to increase their returns while lowering risk.

4) Dividend Seeker: Dividend Seeker began investing, as well as his career in Financial Services, in 2008, at the height of the market crash. This experience gave him a lot of perspective in a short period of time, and has helped shape his investment strategy today. He follows the markets passionately, investing mostly in sector ETFs, fixed-income CEFs, gold, and municipal bonds. He has worked in the Insurance industry in Funds Management, helping to direct conservative investments for claims reserves. After a few years, he moved in to the Banking industry, where he worked as a junior equity and currency analyst. Most recently, he took on an Audit role, supervising BSA/AML Compliance teams for one of the largest banks in the world. He has both a Bachelors and MBA in Finance. He is the "Macro Expert" of the CEF/ETF Income Laboratory.

Analyst’s Disclosure: I am/we are long BDCl, HDLV. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Author's note: All data is as of November 9, 2018 (when this report was initially released to members) so numbers may be out of date. Please check latest data before making investment decisions.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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