In my opinion, any company (or security) that charges a 4% annual fee should be required to describe what it is doing to earn that fee and how the fee benefits investors. This really makes me wonder if anyone at the SEC actually looked at these products.<\/em><\/p>\nTo the credit of UBS, they do include the following warnings in multiple places throughout the literature using an all-cap typeface:<\/p>\n
EACH OF THE ETNs IS DESIGNED FOR TRADERS. IF YOU DO NOT UNDERSTAND THE EFFECTS OF DAILY RESETS, THE NEGATIVE CARRY ASSOCIATED WITH VIX FUTURES AND THE NEGATIVE EFFECTS OF THE EVENT RISK WEEKLY HEDGE COST, THEN YOU SHOULD NOT INVEST IN THE ETNs<\/p>\n
DUE TO CERTAIN CHARACTERISTICS OF THE ETNs, INCLUDING THE NEGATIVE EFFECTS OF THE EVENT RISK WEEKLY HEDGE COST, WHICH WILL BE SIGNIFICANT OVER LONGER PERIODS OF TIME, THE ETNS ARE NOT INTENDED TO BE A \u201cBUY AND HOLD\u201d INVESTMENT.<\/p>\n
Disclosure covering writer, editor, and publisher: No positions in any of the securities mentioned. No positions in any of the companies or ETF sponsors mentioned. No income, revenue, or other compensation (either directly or indirectly) received from, or on behalf of, any of the companies or ETF sponsors mentioned.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"UBS on September 8 rolled out a dozen ETNs targeting long and short (inverse) exposure to VIX futures at six monthly maturity intervals. The new exchange-traded notes are anticipated to mature in 30 years. The inverse versions include an \u201cEvent Risk Weekly Hedge Cost\u201d that saddles investors with 4% in additional annual fees on top …<\/p>\n","protected":false},"author":4,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"acf":[],"_links":{"self":[{"href":"https:\/\/investwithanedge.com\/wp-json\/wp\/v2\/pages\/1888"}],"collection":[{"href":"https:\/\/investwithanedge.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/investwithanedge.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/investwithanedge.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/investwithanedge.com\/wp-json\/wp\/v2\/comments?post=1888"}],"version-history":[{"count":0,"href":"https:\/\/investwithanedge.com\/wp-json\/wp\/v2\/pages\/1888\/revisions"}],"wp:attachment":[{"href":"https:\/\/investwithanedge.com\/wp-json\/wp\/v2\/media?parent=1888"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}