With UBS ETCs (Exchange Traded Commodities), you can make a targeted investment in a commodities index. Here, the emphasis is on cost efficiency, as only a small management fee is deducted as a rule. In return, the underlying indices pursue a total return approach, so that you can pocket the interest rate advantage arising from the (capital-saving) tracking of commodities prices via futures contracts, as most commodities are normally traded via futures contracts.

As futures contracts have a predefined term, commodities indexes have to carry out regular roll transactions in order to permanently track the commodities price. Roll losses may occur in this respect. UBS’ answer to this challenge are numerous UBS ETCs from the broadly based UBS Bloomberg CMCI Index family, which has a sophisticated roll concept to minimize roll losses. This means you can focus even more closely on the price behavior of commodities. Many UBS ETCs are not only offered in US dollars, but also on a currency-protected basis in Swiss francs and euros.

UBS ETCs are suitable for investors with a medium to high risk preference. Investors must take the issuer risk into consideration, since loss of the invested capital could occur if UBS AG becomes insolvent, regardless of the performance of the underlying asset.