banners-metals-gears-hires

Volatility Strategy

S&P 500 VIX Futures Long/Short Strategy Indexes

VelocityShares’® suite of three volatility-strategy ETPs includes the VelocityShares VIX Short Volatility Hedged ETN, the VelocityShares VIX Variable Long/Short ETN, and the VelocityShares VIX Tail Risk ETN. These products provide sophisticated investors with the opportunity to achieve a positive expected return from either the roll yield in VIX futures or a large increase in volatility.

The products enable sophisticated investors to implement volatility strategies without the need to actively trade underlying positions on a daily basis. All three of the strategies, regardless of the target volatility position, dynamically adjust to daily changes in the volatility market.

Leverage

Ticker

Name

Closing
Indicative
Value

ETNs Outstanding

Prospectus

Volatility-Strategy

VIX Futures Long/Short Strategy Indexes™

Dynamic BSWN VelocityShares VIX Tail Risk ETN 23.13 1,000,000 Prospectus
Dynamic LSVX VelocityShares VIX Variable Long/Short ETN 29.86 1,000,000 Prospectus
Dynamic XIVH VelocitySharesVIX Short Volatility Hedged ETN 46.09 1,040,000 Prospectus

Date as of 02/27/2017

VelocityShares  | 17 Old Kings Highway S | Darien, CT 06820 | 877-5 VELOCITY (877-583-5624) | Contact Us | Site Design: 341 Studios

ETN Risks

Important information about the VelocityShares ETNs is contained within the current prospectuses. For more complete information regarding the VelocityShares ETNs, download a prospectus from this site, call 1-877-5-VELOCITY or 1-203-992-4301, or write to Prospectus Inquiry, VelocityShares, 17 Old Kings Highway S, Darien, CT, 06820 to request a prospectus. You should read the prospectus carefully before making an investment decision.

The ETNs are not suitable for all investors. In particular, the ETNs should be purchased only by sophisticated investors who understand the consequences of investing in volatility indices and of seeking inverse or leveraged investment results, who understand the path dependence of the underlying indices and the ETNs, who do not intend to hold the ETNs as a buy and hold investment and who are willing to actively and frequently monitor their investment, even intraday. The ETNs are designed to achieve their stated investment objectives over the short-term, and the effect of non-continuous rebalancing and the resulting path-dependent nature of the exposure of each series of ETNs means that the ETNs may deviate significantly from their target exposure (and may even have exposure that is inverse to their respective intended target exposures) and may therefore fail to achieve their goal, particularly over longer periods of time. Therefore, it is likely that you will suffer significant losses even if the level of the CBOE Volatility Index® (the “VIX Index”) or the S&P 500 VIX Short-Term Futures Index increases over the long term. In addition, the need to maintain a constant exposure to VIX futures creates the potential for positive or negative returns based on the shape of the VIX futures curve (i.e. whether the market for VIX futures is in contango or in backwardation). These changes are separate from outright movements in VIX futures. As a result, the return on a position in VIX futures may vary significantly from the percentage changes of the VIX Index itself. Typically, though not in all market conditions, this “roll cost” significantly decreases the return for investors who are long VIX futures. As a result of this “roll cost” and other factors that may cause the value of your ETNs to decrease, including the effects of daily and quarterly rebalancing and the combined negative effect of the “Daily Investor Fee” and the “Futures Spread Fee” (each as described in the applicable prospectus supplement), there is a significant possibility that the amount payable on the ETNs at maturity or upon call, early redemption or acceleration will be less than the amount of your initial investment in the ETNs, and that you will lose part or all of your initial investment if you hold the ETNs for a long period of time. UBS does not expect that any investor will hold the ETNs from inception to maturity.

The ETNs do not guarantee any return of principal at maturity and do not pay any interest during their term.

Although we intend to list the ETNs on NYSE Arca, a trading market for your ETNs may not develop. We are not required to maintain any listing of the ETNs on NYSE Arca or any other exchange.

Prior to maturity, you may, subject to certain restrictions described in the prospectus, offer the applicable minimum number of your ETNs to the issuer for redemption on a Redemption Date (as defined in the prospectus). You must offer for redemption at least the applicable minimum number of ETNs (typically 25’000 or 50’000 depending on the product) as set forth in the pricing supplement, or an integral multiple in excess thereof, at one time in order to exercise your right to cause the issuer to redeem your ETNs on any Early Redemption Date. In addition, the issuer may charge investors a redemption charge of a percentage of the stated principal amount of any ETN that is redeemed at the investor’s option, at a rate as indicated in the applicable pricing supplement. Please see the applicable pricing supplement for fees or charges relating to the ETNs.

Any payment on the Securities is subject to the ability of UBS AG to satisfy its obligations as they become due.

The risks listed above are not exhaustive. Investors should review the prospectus for each ETN, including all risk factors set forth therein, and consult their independent tax, accounting, legal and financial advisors before investing in any ETN.

VelocityShares® is a trade name used by Janus Distributors LLC, a registered U.S. broker-dealer, in connection with the services and products described herein.

“VelocityShares” and the VelocityShares logo are trademarks of Janus International Holding LLC. Janus Index and Calculation Services LLC (“Janus Index”) is the licensor of certain trademarks, service marks and trade names of Janus International Holding LLC and of certain Indices, which are determined, composed and calculated by Janus Index without regard to the issuer of the any securities which may be linked to such indices. Neither Janus, Janus Index nor any other party guarantees the accuracy and/or the completeness of the indices or any date included therein.

“Standard & Poor’s®”, “S&P®”, “S&P 500®”, “Standard & Poor’s 500™”, and “S&P 500 VIX Short-Term Futures™” are trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and have been licensed for use by Janus Index & Calculation Services. “VIX” is a trademark of the Chicago Board Options Exchange, Incorporated (“CBOE”) and has been licensed for use by S&P. The ETNs are not sponsored, endorsed, sold or promoted by S&P or CBOE and S&P and CBOE make no representation regarding the advisability of investing in the ETNs.

Securities Products: Are Not FDIC Insured * Are Not Bank Guaranteed * May Lose Value

This site is for informational purposes only. Nothing herein constitutes a solicitation, offer or recommendation by VelocityShares or its affiliates to buy or sell securities. VelocityShares does not render investment, tax, accounting or legal advice. The securities discussed herein are complex products and may not be suitable for all investors and should only be used by knowledgeable investors who understand the potential consequences of seeking inverse or leveraged investment results. Investors should actively monitor their investments in the securities. Investors should review the prospectus for each security and make their own investment decisions based on their specific investment objectives and financial position and after consulting independent tax, accounting, legal and financial advisors. VelocityShares will receive a fee from the issuers of the products discussed on this site based on the quantity of products outstanding.

Past performance does not predict future performance. The value of the securities may decrease and investors may lose some or all of their investment.

Janus Distributors LLC, a registered broker-dealer, will only transact business in states in which it is registered, unless it is otherwise excluded or exempted from being registered in such state.

Please see “VelocityShares Terms of Use” for additional information regarding use of this website.