Yes, the ETNs are senior unsecured debt instruments issued by UBS.
No, VelocityShares is a brand owned by Janus Capital. The Dynamic Volatility ETNs are issued by UBS.
Each ETN has a “Daily Investor Fee” of 1.30% per annum, as described in the applicable prospectus supplement. In addition, each ETN is subject to the “Futures Spread Fee,” as described in the applicable prospectus supplement, which is an uncapped fee intended to approximate the hypothetical cost of buying and selling the number of first and second month VIX futures that would be necessary to replicate the performance of the applicable underlying index.
No, the ETNs do not generate K-1s.
The VelocityShares Volatility – Strategy ETNs are listed on NYSE ARCA. Janus Capital does not make markets in the ETNs. Investors must transact through their own broker dealer to transact in the securities.
The VelocityShares product specialist team, a division of Janus Capital, does not make specific recommendations for institutional portfolios; however, our team can help those institutional investors understand the potential impact the ETNs may have to a given portfolio.
Each underlying index has a target volatility position which enables sophisticated investors to analyze the potential impact each index has within a portfolio.
The underlying indices are futures based and do not use put and call option pricing to determine their net long or short position.
The return for each ETN will be based upon the daily performance of the applicable underlying index less the “Daily Investor Fee” and the “Futures Spread Fee,” as described in the applicable prospectus supplement.
No, the ETNS are not linked to the VIX®. Each product is linked to the applicable S&P Index as described in the applicable prospectus supplement.
No, the dynamic volatility strategies are intended for sophisticated investors to use as part of an overall diversified portfolio. There is no stated or recommended holding period, but these strategies should not be used as a buy and hold investment. The dynamic volatility strategies are designed to achieve their stated investment objectives over the short-term, and their performance over longer periods of time may differ from their stated objectives. Thus, these strategies should be used only by sophisticated investors who will actively and frequently monitor their investment, even intraday.
Each series of ETNs is designed to provide a delta one exposure to the S&P 500 VIX Futures Variable Long/Short Index – Short Term, the S&P 500 VIX Futures Short Volatility Hedged Index – Short Term, or the S&P 500 VIX Futures Tail Risk Index – Short Term before taking into account the Daily Investor Fee and the Futures Spread Fee, as described in the applicable prospectus supplement.
The VelocityShares Volatility-Strategy Exchange Traded Notes (“the ETNs”) are issued by UBS AG (“UBS”). The ETNs are senior, unsecured obligations of UBS which are designed to 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.