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UBS Launches a 2x Leveraged ISE Cloud Computing TR Index Exchange Traded Note

UBS Investment Bank announces trading on the NYSE Arca for a new ETRACS Exchange Traded Note that provides a monthly compounded two times leveraged exposure to the performance of the ISE Cloud Computing Total Return Index (the “Index”). Investors now have the ability to obtain 2x leveraged exposure to a portfolio of companies actively involved in the cloud computing segment of the IT industry.   

The ETRACS Monthly 2xLeveraged ISE Cloud Computing TR Index ETN (Ticker: LSKY) provides a monthly compounded two times leveraged exposure to the performance of the Index, reduced by accrued tracking fees and accrued financing charges.

The Index currently consists of forty cloud computing stocks spanning the pure play, non pure play and technology conglomerate categories. Among the current Index constituents are Amazon.com Inc. and Blackboard Inc.

"There is a tremendous amount of investor interest in cloud computing, and this ETN provides investors with a leveraged alternative to gain exposure to companies involved in this exciting segment of the technology market," said Christopher Yeagley, Managing Director and US Head of Equity Structured Products. ”Investors are increasingly seeking exchange-traded solutions to obtain leveraged exposure to assets and we aim to continue to meet that demand.”

About the Index

The ISE Cloud Computing™ Total Return Index (Ticker: CPJ) was created as a performance benchmark for companies in the cloud computing technology market. The Index is a total return index that uses a market capitalization weighted allocation across the pure play, non pure play and technology conglomerate categorizations as well as an equal weighted allocation methodology for all components within each sector allocation. Index components are reviewed semi-annually for eligibility, and the weights are re-set according to that distribution. The Index was created on June 6, 2011 and has no performance history prior to that date.

The top 10 holdings in the Index, as of October 3, 2011, are as follows:

Top 10 Holdings
Amazon.com Inc AMZN 4.68%
Blackboard Inc BBBB 4.60%
RightNow Technologies Inc RNOW 4.53%
Cisco Systems Inc CSCO 4.14%
Google Inc GOOG 4.01%
Teradata Corp TDC 3.95%
Oracle Corp ORCL 3.69%
Equinix Inc EQIX 3.59%
Vmware Inc VMW 3.48%
Apple Inc. AAPL 3.46%

Source: ISE, as of October 3, 2011

Published Wednesday, October 05, 2011 6:06 PM by David Marshall
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UBS Launches a 2x Leveraged ISE Cloud Computing TR Index … « ImpartMe - (Author's Link) - October 6, 2011 1:09 AM
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