Key stats
About ETRACS Monthly Pay 2x Leveraged Small Cap High Dividend ETN Series B
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Inception date
Nov 8, 2018
Structure
Exchange-Traded Note
Dividend treatment
Distributes
Distribution tax treatment
Ordinary income
Income tax type
Capital Gains
Max ST capital gains rate
39.60%
Max LT capital gains rate
20.00%
Distributor
UBS Securities LLC
SMHB is a leveraged take on dividend-paying US small-caps. The ETNs underlying index selects from the 2000 smallest companies on the list of the 3000 largest US stocks. From this pool, 100 small-caps with the highest estimated 12-month forward dividend yield are selected. Holdings are weighted by 3-month average daily dollar volume, with a single security cap of 5%. SMHB applies a 2x leverage factor to this index, reset monthly. This infrequent reset period makes the note suitable for longer holdings periods than a daily-reset product, though investors will still feel the effects of compounding over time. The note pays a monthly coupon equal to twice the yield of the underlying index. SMHB is a replacement (Series B) for sibling SMHD, which was still trading but closed for creations as of the notes launch. Among several minor differences, SMHB includes a feature where the notes leverage will reset if the underlying index falls by 20% from the previous month, including intraday.
Classification
Returns
| 1 month | 3 months | Year to date | 1 year | 3 years | 5 years | |
|---|---|---|---|---|---|---|
| Price performance | — | — | — | — | — | — |
| NAV total return | — | — | — | — | — | — |
Dividends
Dividend payout history