At a glance
Over the past year it returned +2.1% with distributions reinvested (S&P 500: +11.5%); over three years it returned +19.4% a year. At its worst it fell 34.7% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 29 months after the low.
The short version
ETRACS Monthly Pay 1.5x Leveraged Closed-End Fund Index ETN (CEFD) is a UBS exchange-traded note that aims to return 1.5 times an index of closed-end funds, minus fees, with leverage that resets daily. Its main draw is monthly income: the trailing 12-month yield was 16.18% as of October 27, 2026. The catch: it is unsecured UBS debt, and leverage deepens losses, as in 2022, when it fell 28.8%.
Price history
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CEFD +2.1% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| CEFD price data to Oct 27, 2026 | +1.6% | +2.1% | +19.4% | +1.8% | — | +4.4% |
- Over the year to Oct 27, 2026, CEFD returned +2.1%.
- Its 5-year annualized return was +1.8%.
- Its worst full calendar year was 2022 (-28.8%); its best was 2024 (+21.2%).
- The deepest fall in its price history was 36.8% (Nov 9, 2021 to Oct 25, 2023), recovered by Jul 3, 2025.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +1.6% |
| 2025 | +14.2% |
| 2024 | +21.2% |
| 2023 | +8.6% |
| 2022 | -28.8% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 34.3% over that stretch · deepest drop along the way 34.7%, back to its old high 28.6 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $2.3584 | |
| 2025 | $2.8600 | -1.8% |
| 2024 | $2.9116 | +5.1% |
| 2023 | $2.7700 | -16.3% |
| 2022 | $3.3100 |
How it works
CEFD is linked to an index of closed-end funds, as its name says. A closed-end fund (CEF) has a fixed number of shares that trade on an exchange, often at a price above or below the value of what the fund owns. Many CEFs borrow money to lift their income, and each charges its own fees. Because CEFD is a note rather than a fund, it publishes no holdings reports. The index rules for choosing and weighting funds are described in UBS's documents for the notes, not in fund reports.
The note is designed to pay 1.5 times the index's daily return, minus fees, and its exposure resets every day. Over any period longer than a day, compounding (each day's gain or loss building on the last) means the result can differ sharply from 1.5 times the index. The gap is usually unfavorable when markets swing up and down. Because many closed-end funds already borrow, this can stack leverage on top of leverage.
CEFD is unsecured UBS debt, with no collateral behind it. It owns no assets on investors' behalf, so every payment, including the monthly income, depends on UBS's ability to pay. UBS can also redeem the notes early, ending the investment on the bank's timetable rather than the holder's.
What it really costs
Structure and tax notes
- Resets its exposure every day. Over periods longer than a day, compounding means returns can differ sharply from 1.5× the index — usually worse in choppy markets. Built for short-term trading, not buy-and-hold.
- An exchange-traded note: unsecured debt of the issuing bank, not a fund. It owns no assets on investors’ behalf; it pays the index return minus fees only as long as the issuer can pay, so the bank’s credit matters, and the issuer can redeem the notes early.
In a retirement portfolio
It is a 1.5x leveraged note with exposure that resets daily, issued as unsecured UBS debt, and that design is meant for short-term trading rather than long-term holding.
CEFD's appeal is income: it pays monthly, and its trailing 12-month yield was 16.18% as of October 27, 2026. Leverage cuts both ways, though. It launched on June 2, 2020, after the 2008 and 2020 crashes, so it has no record of either. In 2022, its worst calendar year, it lost 28.8%. During that bear market it fell 34.7% and took 28.6 months after the low to recover. Its deepest drop, 36.8% from November 2021 to October 2023, took 20.3 months from its low to recover. Cashing out shares for spending during such a stretch would lock in steep losses.
It also carries risks most funds don't: daily leverage resets, UBS credit risk and possible early redemption. Fees come out of the index return, and the closed-end funds in the index charge their own. Past results don't predict the future, and a plan needs to look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Active traders who want short-term, 1.5x leveraged exposure to closed-end funds and can monitor positions daily.
- Income-focused traders who accept large swings in exchange for monthly payments; the trailing yield was 16.18% as of October 27, 2026.
- Investors who understand ETNs and accept relying on UBS's credit, plus the chance the notes are redeemed early.
Look elsewhere if
- Retirees who may need cash in a downturn: it fell 34.7% in the 2022 bear market and took 28.6 months to recover.
- Long-term holders: daily leverage resets mean multi-year returns can stray far from 1.5 times the index, usually worse in choppy markets.
- Investors who want a fund that owns assets and publishes holdings; CEFD is unsecured UBS debt with no fund holdings reports.
Close alternatives
Matched by leveraged/inverse funds on the same index (the index could not be identified from the name).
No close alternatives found.
Questions investors ask
Does CEFD pay monthly dividends?
Yes, CEFD pays monthly. Because it is an exchange-traded note, the payments come from UBS rather than from a fund's holdings, and they depend on UBS's ability to pay. Over the 12 months to October 27, 2026, it paid about $2.79 per share, a trailing yield of 16.18%. Past payments don't guarantee future ones, and the note's 1.5x leverage means its price can swing sharply.
Is CEFD an ETF or an ETN?
CEFD is an ETN, or exchange-traded note, not an ETF. It trades on an exchange like a fund, but it is unsecured debt issued by UBS. It owns no assets on investors' behalf and publishes no fund holdings reports. It pays the index return minus fees only as long as UBS can pay, so the bank's credit matters. UBS can also redeem the notes early.
What does 1.5x leveraged mean for CEFD?
It means CEFD aims to deliver 1.5 times the daily return of its closed-end fund index, minus fees, with exposure that resets every day. On a single day, gains and losses are roughly 1.5 times the index's move. Over longer periods, daily compounding means results can differ sharply from 1.5 times the index, usually for the worse in choppy markets. That's why products like this are built for short-term trading rather than long-term holding.
How has CEFD performed?
Its results have been uneven. Based on market prices as of October 27, 2026, CEFD returned 2.1% over one year, 19.4% a year over three years and 1.8% a year over five years. By calendar year, it lost 28.82% in 2022, then gained 8.56% in 2023, 21.22% in 2024 and 14.16% in 2025. It was up 1.65% for 2026 through October 27. Its price history begins February 22, 2021, after its June 2, 2020, launch.
Is CEFD good for retirement income?
It is built more for short-term trading than for long-term retirement income, despite its high monthly payments. Its trailing 12-month yield was 16.18% as of October 27, 2026, but it fell 36.8% from November 9, 2021, to October 25, 2023, and didn't recover until July 3, 2025. Daily leverage resets, UBS credit risk and the chance of early redemption add risks a typical income fund doesn't carry.