UBS Confirms Coupon Distributions on Eight ETRACS ETNs

UBS Announces Monthly Coupon Payments and Expected Distributions Across Eight ETRACS Exchange-Traded Notes

UBS Investment Bank has released a comprehensive update detailing both confirmed and expected coupon payments for a range of its ETRACS Exchange Traded Notes (ETNs), highlighting ongoing activity across income-generating structured products tied to equity, commodity, and options-linked indices. The announcement includes finalized coupon amounts for five ETNs listed on NYSE Arca, as well as expected payouts for three additional ETNs traded on NASDAQ. Together, these disclosures provide investors with insight into upcoming distribution cycles, indicative annualized yields, and the mechanics driving coupon variability across leveraged and covered-call strategies.

The update underscores UBS’s continued role as a major issuer in the ETN market, offering structured notes designed to provide investors exposure to high-dividend equity strategies, closed-end funds, preferred securities, mortgage REITs, and commodity-linked covered call indices. While these products often appeal to income-seeking investors due to their historically elevated distribution rates, the firm again stresses that coupon payments are variable and dependent on underlying index performance, market conditions, and the ability of UBS AG to meet its obligations.

Confirmed Coupon Payments for Five NYSE Arca-Listed ETNs

UBS has affirmed December 2025 coupon payments for five ETRACS ETNs listed on NYSE Arca. These products—HDLB, SMHB, PFFL, CEFD, and MVRL—offer leveraged exposure to equity and income-focused indices, with payment schedules structured on a monthly basis.

The announced coupon payments reflect valuation calculations as of the December 1, 2025 Coupon Valuation Date, with an Ex-Date and Record Date of December 12, 2025, and a Payment Date scheduled for December 22, 2025. Investors in these ETNs will receive the following distribution amounts:

1. HDLB – ETRACS Monthly Pay 2xLeveraged US High Dividend Low Volatility ETN Series B

Coupon Amount: $0.1745
Payment Schedule: Monthly
Annualized Current Yield: 12.52%

HDLB offers leveraged exposure to high-dividend, low-volatility U.S. equities. The 2x leverage means coupon payments reflect twice the cash distributions of the underlying index constituents, less applicable withholding taxes. Its yield remains variable due to market-driven changes in constituent distributions.

2. SMHB – ETRACS 2xMonthly Pay Leveraged US Small Cap High Dividend ETN Series B

Coupon Amount: $0.0422
Payment Schedule: Monthly
Annualized Current Yield: 19.76%

SMHB provides amplified exposure to high-dividend-paying small-cap companies. Small-cap stocks often exhibit more volatile dividend patterns, impacting coupon variability, especially with a 2x leverage factor applied.

3. PFFL – ETRACS 2xMonthly Pay Leveraged Preferred Stock ETN

Coupon Amount: $0.1368
Payment Schedule: Monthly
Annualized Current Yield: 13.39%

PFFL targets preferred stock distributions at a 2x leverage rate. Preferred securities often generate high yields, but the ETN’s leveraged structure increases both income potential and sensitivity to constituent distribution changes.

4. CEFD – ETRACS Monthly Pay 1.5X Leveraged Closed-End Fund Index ETN

Coupon Amount: $0.2210
Payment Schedule: Monthly
Annualized Current Yield: 14.36%

CEFD reflects 1.5-times exposure to a basket of income-oriented closed-end funds (CEFs). Because CEF distributions frequently fluctuate based on fund-level decisions and market conditions, coupon levels for CEFD can shift significantly month-to-month.

5. MVRL – ETRACS Monthly Pay 1.5x Leveraged Mortgage REIT ETN

Coupon Amount: $0.1670
Payment Schedule: Monthly
Annualized Current Yield: 18.58%

MVRL tracks mortgage REIT performance at 1.5x leverage. As mortgage REIT dividends are highly sensitive to interest rates, refinancing volumes, and funding costs, MVRL is prone to meaningful coupon variability.

Important Note on Coupon Variability

UBS reiterates that these ETNs do not guarantee future coupon amounts. Each payment is variable, determined by the cash distributions of the underlying index components and adjusted for leverage and withholding taxes. The “Current Yield (annualized)” figure represents an annualized estimate based on the most recent three coupon payments; it does not predict or assure future returns.

Because leveraged ETNs amplify both income and volatility, substantial variations in monthly distributions can cause wide swings in current yields, making these products suitable only for investors comfortable with their risks and the possibility of future coupon payments being reduced or even zero.

This detailed disclosure aligns with UBS’s continued transparency in communicating ETN payment expectations, risks, and methodologies.

Expected Coupon Payments for Three NASDAQ-Traded ETNs

In addition to the confirmed NYSE Arca-listed ETN distributions, UBS has also reported expected coupon payments for three NASDAQ-listed ETRACS ETNs: GLDI, SLVO, and USOI. These ETNs track covered call strategies on gold, silver, and crude oil exchange-traded products (ETPs), respectively. Their income is derived from notional option-writing activity embedded within their indices.

Assuming no market disruptions and no redemption or acceleration events, UBS anticipates the following payments for the December 2025 cycle:

1. GLDI – ETRACS Gold Shares Covered Call ETNs due February 2, 2033

Closing Indicative Value (as of 11/28/2025): $172.6384
Expected Coupon Amount: $3.2409
Payment Date: December 29, 2025
Expected Current Yield: 18.63%

GLDI’s income comes from the notional sale of covered call options on GLD shares within the Nasdaq Gold FLOWS™ 103 Index. The December 2025 option sale concluded on November 17, 2025, with cash distributions expected to be withdrawn from the index on December 15, barring market disruptions.

2. SLVO – ETRACS Silver Shares Covered Call ETNs due April 21, 2033

Closing Indicative Value (as of 11/28/2025): $97.4570
Expected Coupon Amount: $2.6875
Expected Current Yield: 27.82%

SLVO mirrors a similar process using SLV shares in the Nasdaq Silver FLOWS™ 106 Index. Because silver tends to be far more volatile than gold, options premiums—and by extension, coupon payments—are often higher relative to indicative value.

3. USOI – ETRACS Crude Oil Shares Covered Call ETNs due April 24, 2037

Closing Indicative Value (as of 11/28/2025): $48.8447
Expected Coupon Amount: $0.6282
Expected Current Yield: 16.17%

USOI’s income stream derives from covered-call writing on USO shares via the Nasdaq WTI Crude Oil FLOWS™ 106 Index. Crude oil’s inherent market volatility significantly impacts expected coupon outcomes.

Understanding the Covered Call ETN Mechanism

These three ETNs are not directly invested in the underlying ETPs—rather, they track indices that employ a notional covered call strategy. The option premium collected from these notional sales drives coupon payments.

The timeline for each cycle typically follows this sequence:

Index sells options — occurs monthly (e.g., November 17, 2025).
Options premiums generate a notional cash distribution.
Distribution amount is withdrawn from the index — expected December 15, 2025.
UBS declares a coupon amount — based on distribution amount and index rules.
ETN pays the coupon — final payment on December 29, 2025.

However, this system is sensitive to market disruptions, unexpected volatility, or liquidity issues in the options market. UBS emphasizes that expected coupon amounts may change in the presence of any such unforeseen events.

Key Notes on Expected Current Yield Calculations

UBS clarifies that “Expected Current Yield” is an estimate based on the expected coupon payment and the two preceding coupons, annualized, and divided by the ETN’s indicative value. This methodology provides a snapshot of recent distribution trends but does not serve as a forward-looking forecast.

Several factors contribute to the uncertainty of future yields:

Volatility in the underlying asset or index
Fluctuations in indicative value
Option premiums (for covered-call ETNs)
Distribution changes (for leveraged equity- or income-based ETNs)
Market disruption events
Possible ETN acceleration or redemption

UBS again cautions that coupon payments can vary meaningfully period to period and may be zero in some cases.

About ETRACS

ETRACS ETNs are senior unsecured notes issued by UBS AG, are traded on either NYSE Arca or NASDAQ, and can be bought and sold through a broker or financial advisor. An investment in ETRACS ETNs is subject to a number of risks, including the risk of loss of some or all of the investor’s principal, and is subject to the creditworthiness of UBS AG. Investors are not guaranteed any coupon or distribution amount under the ETNs. We urge you to read the more detailed explanation of risks described under “Risk Factors” in the applicable prospectus supplement for the ETRACS ETN.

UBS AG has filed a registration statement (including a prospectus and supplements thereto) with the Securities and Exchange Commission, or SEC, for the offerings of securities to which this communication relates. Before you invest, you should read the relevant prospectus, along with the applicable prospectus supplement and pricing supplements to understand fully the terms of the securities and other considerations that are important in making a decision about investing in the ETRACS ETNs. The applicable offering document for each ETRACS ETN may be obtained by clicking on the name of each ETRACS ETN identified above. You may also get these documents without cost by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, you can request the prospectus, the applicable prospectus supplement or pricing supplement, by calling toll-free (+1-877-387-2275). The securities related to the offerings are not deposit liabilities and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency of the United States, Switzerland or any other jurisdiction.

About UBS

UBS is a leading and truly global wealth manager and the leading universal bank in Switzerland. It also provides diversified asset management solutions and focused investment banking capabilities. UBS manages 6.9 trillion dollars of invested assets as per the third quarter 2025. UBS helps clients achieve their financial goals through personalized advice, solutions and products. Headquartered in Zurich, Switzerland, the firm is operating in more than 50 markets around the globe. UBS Group shares are listed on the SIX Swiss Exchange and the New York Stock Exchange (NYSE).

In the US, securities underwriting, trading and brokerage activities and M&A advisor activities are provided by UBS Securities LLC, a registered broker/dealer that is a wholly owned subsidiary of UBS AG, a member of the New York Stock Exchange and other principal exchanges, and a member of SIPC (http://www.sipc.org/). UBS Financial Services Inc. is a registered broker/dealer and affiliate of UBS Securities LLC.

This material is issued by UBS AG and/or any of its subsidiaries and/or any of its affiliates (“UBS”). This document was produced by and the opinions expressed are those of UBS as of the date of writing and are subject to change. It has been prepared solely for information purposes and for the use of the recipient. It does not constitute an offer or an invitation by or on behalf of UBS to any person to buy or sell any security. The information and analysis contained in this publication have been compiled or arrived at from sources believed to be reliable but UBS does not make any representation as to their accuracy or completeness and does not accept liability for any loss arising from the use hereof. Products and services mentioned in this material may not be available for residents of certain jurisdictions. Past performance is not necessarily indicative of future results. Please consult the restrictions relating to the product or service in question for further information.

The financial instrument is not sponsored, promoted, sold or supported in any other manner by Solactive AG nor does Solactive AG offer any express or implicit guarantee or assurance either with regard to the results of using the Index and/or Index trade mark or the Index Price at any time or in any other respect.

The S-Network Composite Closed-End Fund Index is a service mark of S-Network Global Indexes, Inc. (“S-Network”) and its use is granted under a license from S-Network. S-Network does not guarantee the accuracy and/or completeness of the S-Network Composite Closed-End Fund Index or any data included therein, and S-Network shall have no liability for any errors, omissions, interruptions, or defects therein. S-Network makes no warranty, express or implied, representations or promises, as to results to be obtained by UBS AG, or any other person or entity from the use of the S-Network Composite Closed-End Fund Index or any data included therein. S-Network makes no express or implied warranties, representations or promises, regarding the originality, merchantability, suitability, non-infringement, or fitness for a particular purpose or use with respect to the S-Network Composite Closed-End Fund Index or any data included therein. Without limiting any of the foregoing, in no event shall S-Network have any liability for any direct, indirect, special, incidental, punitive, consequential, or other damages (including lost profits), even if notified of the possibility of such damages.

The ETRACS Monthly Pay 1.5x Leveraged Mortgage REIT ETN (“MVRL ETN”) is not sponsored, endorsed, sold or promoted by MarketVector Indexes GmbH (“Licensor”) and Licensor makes no representation or warranty, express or implied, to the owners of the MVRL ETN or any member of the public regarding the advisability of investing in securities generally or in the MVRL ETN particularly or the ability of the Market Vectors® US Mortgage REITs Index to track the performance of the US mortgage REIT market.

UBS specifically prohibits the redistribution or reproduction of this communication in whole or in part without the prior written permission of UBS and UBS accepts no liability whatsoever for the actions of third parties in this respect.

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