About ETRACS Quarterly Pay 1.5X Leveraged Alerian MLP Index ETN (MLPR)

ETRACS Quarterly Pay 1.5X Leveraged Alerian MLP Index ETN (MLPR) seeks to provide investors with a leveraged return linked to the performance of the Alerian MLP Infrastructure Index. MLPs, or master limited partnerships, are a popular investment choice for those seeking exposure to the energy infrastructure sector. MLPs typically operate in areas such as pipelines, storage terminals, and processing plants, which generate steady cash flows. The Alerian MLP Infrastructure Index is designed to track the performance of MLPs that earn the majority of their cash flow from infrastructure assets. By providing investors with 1.5 times the daily return of this index, MLPR offers the potential for enhanced returns.

Investors considering MLPR should be aware of the risks associated with leveraged exchange-traded notes. Leveraged products are designed to amplify the returns of an underlying index, but they can also magnify losses in a declining market. Additionally, leveraged exchange-traded notes like MLPR are debt instruments, meaning investors are exposed to the credit risk of the issuer, UBS. It is important for investors to thoroughly understand the risks involved and carefully consider whether MLPR aligns with their investment objectives and risk tolerance.