ETRACS Monthly Pay 2xLeveraged

ETRACS Monthly Pay 2xLeveraged Preferred Stock ETN is an exchange-traded note issued by UBS that seeks to deliver two times the monthly performance of the Solactive Preferred Stock ETF Index, before financing costs and tracking fees. The note is designed to provide leveraged exposure to U.S. preferred securities through an index that reflects preferred stock exchange-traded funds, making it a market instrument focused on the preferred income segment. PFFL may also pay a variable monthly coupon tied to the leveraged cash distributions of the underlying index constituents, which means its income profile depends on whether those holdings generate distributions. The product is intended for investors looking for leveraged access to the preferred stock market within a structured ETN format. It is part of UBS’s ETRACS lineup of exchange-traded notes and is used in the fixed income and preferred securities segment of the U.S. market.