![]() The new ETN invests in a more diversified basket of 125 income-producing closed-end funds in the S-Network Composite Closed-End Fund Index like its predecessor, its primary goal is to maximize income by borrowing money to make additional investments. ![]() That ETN-which aimed to deliver twice the monthly return of the ISE High Income Index of the 30 highest-yielding closed-end funds trading at discounts-had fallen more than 80% in value from over $14 a share in February to a low of $1.52 on March 18 during the coronavirus crisis, which triggered an automatic prospectus-mandated redemption “as a result of the respective indicative values of the securities being less than $5.00 on the Acceleration Date,” according to the press release. This March, UBS announced the mandatory liquidation of its ETRACS Monthly Pay 2x Leveraged Closed-End Fund ETN (CEFL). ![]() The launch is unusual for a number of reasons. ![]()
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