UBS ETRACS Silver Shares Covered Call ETN (SLVO)
UBS ETRACS Silver Shares Covered Call ETN operates in the Asset Management industry of the Financial Services sector, headquartered in New York, NY, US. The stock last traded at $68.02, up 0.83% on the session, giving a market capitalisation of $211.4M. Its beta of 0.48 implies it has historically moved less than the broad market.
SLVO is neither the choice for those looking for exposure to physical silver nor does it provide pure exposure to silver futures. SLVO is structured as an ETN so it promises to track silver (and options on silver), not to hold it. Furthermore, its index has a notional short call position against the notional long position in the physically backed silver ETF, SLV. The calls are set to about 106% of the SLV`s price level. The covered call strategy gives investors indirect exposure to silver, but with limited upside as the nominal long position will get called away in periods of sharply rising prices or in volatile market environments. The tradeoff is yield as premiums from writing calls on an otherwise yield-less asset. SLVO aims to distribute the yield monthly, atypical for an ETN. Prior to May 31, 2024 the Issuer and counterparty credit risk of this ETN was Credit Suisse AG.
UBS ETRACS Silver Shares Covered Call ETN is most often compared with the following Financial Services names: