About ETRACS 2xMonthly Pay Leveraged US Small Cap High Dividend ETN (SMHB)

The ETRACS 2xMonthly Pay Leveraged US Small Cap High Dividend ETN (SMHB) is an exchange-traded note that seeks to provide investors with two times the monthly performance of the Solactive US Small Cap High Dividend Index, before fees and expenses. The index is designed to track the performance of 75 U.S. small-cap stocks with relatively high dividend yields. The ETN pays a variable monthly coupon linked to the cash distributions, if any, of the index constituents. With SMHB, investors have the potential to enhance their returns by leveraging the performance of high dividend-paying small-cap stocks.

Investors considering SMHB should be aware of the risks associated with leveraged investing. Leverage magnifies both gains and losses, so if the index were to decline, the ETN could lose a significant portion or all of its value. Additionally, leveraged investing is designed for short-term trading strategies and may not be suitable for long-term investors. It is important for investors to carefully consider their investment objectives and risk tolerance before investing in SMHB.