UBS ETRACS Monthly Pay 2xLeveraged Wells Fargo MLP Ex-Energy ETN (LMLP)

Overview

The investment primarily targets a return that is linked to the monthly compounded 2x leveraged performance of the Wells Fargo® Master Limited Partnership Ex-Energy Index, with investor fees deducted. This strategic financial instrument is designed for those interested in magnifying their investment outcomes based on the performance of non-energy master limited partnerships (MLPs). It focuses on MLPs that are exempt from the energy sector, providing investors with a diversified option outside the traditional energy space. These MLPs are selected based on their listing on major U.S. stock exchanges such as the New York Stock Exchange (NYSE), NYSE MKT, or NASDAQ and must fulfill specific market capitalization and other predefined eligibility criteria to be considered for inclusion in the index.

Products and Services

• 2x Leveraged Investment on Wells Fargo® Master Limited Partnership Ex-Energy Index

This product offers investors the opportunity to potentially double the monthly performance of the Wells Fargo® Master Limited Partnership Ex-Energy Index. It applies a 2x leverage on the index's performance, excluding the energy sector, aiming to maximize returns for investors by focusing on non-energy MLPs listed on major U.S. exchanges. However, it's important to note that this leveraged approach also increases the risk, including the potential for higher losses.

• Index-Based Investment Strategy

By centering its strategy on the Wells Fargo® Master Limited Partnership Ex-Energy Index, this investment allows individuals to engage in a diversified portfolio of non-energy MLPs. These MLPs are selected based on strict criteria including their market capitalization, ensuring that the investment focuses on companies with a solid financial foundation. The index-based approach offers a transparent and systematic investment method, appealing to those looking to invest in the broad performance of selected MLPs outside the energy sector.