ETRACS Monthly Pay 2xLeveraged US High Dividend Low Volatility ETN Series B (HDLB)

ETF ETRACS Monthly Pay 2xLeveraged US High Dividend Low Volatility ETN Series B Summary

Profile: ETRACS Monthly Pay 2xLeveraged US High Dividend Low Volatility ETN Series B (NYSEARCA: HDLV) is an exchange-traded note (ETN) that aims to track the Solactive US High Dividend Low Volatility Index. This index focuses on US companies with high dividend yields and relatively low volatility. HDLV utilizes a leveraged strategy, aiming to deliver twice the daily performance of the underlying index.

Objective: The primary objective of HDLV is to provide investors with monthly income in the form of high dividend payments, while focusing on reducing volatility and risk.

Issuer: The issuer of HDLV is UBS AG, a global financial services firm with a long history dating back to 1862. UBS has a strong reputation in the financial industry and is considered a reliable issuer.

Market Share: HDLV holds a market share of approximately 0.05% within the Leveraged & Inverse High Dividend ETNs category.

Total Net Assets: As of October 27, 2023, HDLV has total net assets of approximately $427.8 million.

Moat: HDLV's competitive advantage lies in its unique strategy of combining high dividend yield with low volatility through a leveraged approach. This strategy caters to investors seeking income and risk management simultaneously.

Financial Performance: HDLV has experienced considerable growth since its inception in 2017. It has outperformed its benchmark index, the Solactive US High Dividend Low Volatility Index, in most periods.

Growth Trajectory: HDLV's growth trajectory is closely linked to the performance of the underlying index and the overall market conditions. The increasing demand for income-generating investments and the focus on managing portfolio risk could contribute to continued growth.

Liquidity: HDLV has a relatively high average trading volume, indicating good liquidity. The bid-ask spread is also reasonably tight, suggesting efficient trading.

Market Dynamics: Factors affecting HDLV's market environment include economic conditions, interest rate fluctuations, and the performance of the underlying index.

Competitors: Key competitors in the Leveraged & Inverse High Dividend ETNs category include:

• BOXL Monthly Pay 2x Leveraged S&P 500 High Dividend ETF (SPHD)
• Global X SuperDividend US ETF (DIV)
• ProShares Ultra S&P 500 Dividend Aristocrats ETF (UDOW)

Expense Ratio: HDLV has an expense ratio of 0.95%.

Investment Approach and Strategy: HDLV invests in a portfolio of US stocks selected based on their high dividend yields and low beta (volatility). The ETF utilizes a 2x leverage strategy to amplify the daily performance of the underlying index.

Key Points:

• High dividend yield and low volatility focus.
• Monthly dividend payments.
• Leveraged strategy for amplified returns.
• Strong issuer reputation.
• Relatively high liquidity.

Risks:

• Leverage amplifies both gains and losses.
• Exposure to market volatility and potential index underperformance.
• Counterparty risk associated with ETNs.

Who Should Consider Investing: Investors seeking high dividend income and risk management through a leveraged strategy may consider HDLV. However, it is essential to understand the associated risks before investing.

Fundamental Rating Based on AI: 7.5/10

HDLV receives a moderately high rating based on its strong issuer reputation, unique strategy, and historical performance. However, the leveraged nature and potential risks should be carefully considered.

Resources:

• ETRACS Monthly Pay 2xLeveraged US High Dividend Low Volatility ETN Series B Fact Sheet: https://us.etf.ubs.com/content/dam/etfus/united-states/documents/etps/fact-sheets/en/monthly-pay-etns/hdlav.pdf
• UBS AG Website: https://www.ubs.com/
• Bloomberg Terminal for market data and analysis

Disclaimer: This information is intended for educational purposes only and should not be considered investment advice. Investing involves risk, and you should consult with a qualified financial advisor before making any investment decisions.