USA_NYSE

Ubs launches two internet ipo Exchange Traded Notes

Two etracs linked to the ubs internet ipo index comprised of  twenty social networking, internet software and internet services stocks.….


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          UBS Investment Bank announced that today is the first day of trading on the NYSE Arca for two ETRACS Exchange Traded Notes (the “Internet IPO ETNs”) linked to the performance of the UBS Internet IPO Index (the “Index”). Investors now have the ability to gain either unleveraged or leveraged exposure to a portfolio of Internet-related companies that have gone public within the last three years, all by way of two, convenient exchange-traded securities.   

          Both Internet IPO ETNS are linked to a unique benchmark index that currently consists of twenty holdings representing the latest generation of Internet-related stocks such as LinkedIn, HomeAway, Pandora Media and OpenTable. Innovative index construction allows for the addition of new Internet-related companies within weeks after their IPOs, and a monthly Index rebalancing feature and 3-year age limit ensure that the companies in the Index remain up-to-date and relevant.  

          The ETRACs Internet IPO ETN (Ticker: EIPO) provides exposure to the performance of the Index, while the Monthly 2xLeveraged ETRACS Internet IPO ETN (Ticker: EIPL) provides a monthly compounded two times leveraged exposure to the performance of the Index.

          “There’s a tremendous amount of investor interest in the current generation of Internet-related companies,” said Christopher Yeagley, Managing Director and US Head of Equity Structured Products. “And now investors have a convenient way to access these stocks in a transparent, low-cost, exchange-traded product. Moreover, as new Internet-related companies go public, investors in these ETNs will gain exposure to them within weeks after their IPOs, provided they meet certain market capitalization and other eligibility requirements.”

          About the Index
          The UBS Internet IPO Index (NYSE ticker symbol “NETIPO”) is intended to measure, on a total-return basis, the performance of a subset of Internet-related companies listed on the NYSE or NASDAQ that satisfy specified market capitalization and other eligibility requirements. The Index provides exposure specifically to those Internet-related companies that have been publicly traded for less than three years. Standard & Poor’s Financial Services LLC serves as the calculation agent for the Index. The top 10 holdings in the Index, as of July 7, 2011, are as follows:
          Top 10 Holdings
          LinkedIn Corporation LNKD – 10.00%
          HomeAway Inc. AWAY – 10.00%
          Yandex NV YNDX – 10.00%
          Rackspace Hosting, Inc. RAX – 10.00%
          Pandora Media Inc. P – 9.57%
          Renren, Inc.-ADR RENN – 9.20%
          OpenTable, Inc. OPEN – 6.48%
          Ancestry.com, Inc. ACOM – 5.97%
          SouFun Holdings Ltd.-ADR SFUN – 3.44%
          Demand Media, Inc. DMD – 3.39%
          Source: Standard & Poor’s, as of July 7, 2011

           

          Source: ETFWorld – UBS

          WMCR
          Wilshire Micro-Cap ETF (based on the Wilshire US Micro-Cap Index)


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