At a glance
It has $9.7M in assets; it paid 11.39% of its price in distributions over the past 12 months, monthly. Over the past year it returned +11.7% with distributions reinvested (S&P 500: +11.5%); over three years it returned +35.3% a year. At its worst it fell 78.6% in the 2020 crash (S&P 500: 33.7%) and 37.3% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 56 months and 23 months after the lows.
The short version
ETRACS Monthly Pay 2xLeveraged US High Dividend Low Volatility ETN Series B (HDLB) is an exchange-traded note issued by UBS. It is unsecured bank debt linked to twice the performance of an index of US high-dividend, low-volatility stocks, not a fund that owns shares. Leverage magnifies both sides: an 11.39% yield, paid monthly, over the 12 months to October 27, 2026, and a 78.6% plunge in early 2020.
Price history
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HDLB +11.7% 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 | |
|---|---|---|---|---|---|---|
| HDLB price data to Oct 27, 2026 | +15.2% | +11.7% | +35.3% | +13.8% | — | +4.9% |
- Over the year to Oct 27, 2026, HDLB returned +11.7%.
- Its 5-year annualized return was +13.8%.
- In the 2020 COVID crash it fell 78.6% and regained its old high 56.2 months after the low.
- Its worst full calendar year was 2020 (-50.8%); its best was 2021 (+62.8%).
- The deepest fall in its price history was 78.6% (Feb 20, 2020 to Mar 23, 2020), recovered by Nov 27, 2024.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +15.2% |
| 2025 | +27.2% |
| 2024 | +28.2% |
| 2023 | -3.8% |
| 2022 | -10.3% |
| 2021 | +62.8% |
| 2020 | -50.8% |
| 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 | Lost 78.2% over that stretch · deepest drop along the way 78.6%, back to its old high 56.2 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 26.3% over that stretch · deepest drop along the way 37.3%, back to its old high 23.4 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.5105 | |
| 2025 | $1.8300 | +36.6% |
| 2024 | $1.3400 | -6.9% |
| 2023 | $1.4400 | -13.9% |
| 2022 | $1.6728 | +21.2% |
| 2021 | $1.3800 | -26.2% |
| 2020 | $1.8700 |
How it works
HDLB is an exchange-traded note (ETN), not a fund. UBS issued it as unsecured debt, so holders lend money to the bank and have no claim on any specific assets. The note owns no stocks on investors' behalf and has no holdings list. Instead, UBS promises a return linked to twice the performance of a US stock index, minus fees. As the note's name says, the index targets high-dividend, low-volatility companies.
The 2x exposure is not fixed for the life of the note. It is reset at set intervals. Between resets, the index's moves are roughly doubled. Over longer stretches, compounding means results can drift well away from twice the index, usually for the worse when markets swing back and forth. Leverage cuts both ways: the note fell 78.6% between February 20 and March 23, 2020.
HDLB makes monthly cash payments, which added up to about $1.80 per note over the 12 months to October 27, 2026. Those payments and the note's value depend on UBS being able to pay, so the bank's credit matters. UBS can also redeem the notes early, which could end a holding at an inconvenient time. The product is small, with about $9.7 million in assets.
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 2× 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 offers twice-leveraged exposure that resets periodically, it is unsecured UBS debt, and it lost 78.6% in about a month in 2020 before taking about 56 months to recover.
HDLB's draw is income: an 11.39% yield over the 12 months to October 27, 2026, paid monthly. The trade-off is extreme swings. It launched in October 2019, so it has no record from the 2008 financial crisis. In the 2020 COVID crash it fell 78.6% from February 20 to March 23 and did not get back to that peak until November 27, 2024, about 56 months later. In the 2022 bear market it dropped 37.3% and needed about 23 months to recover. Its worst calendar year was 2020, when it lost 50.8%. Anyone who had to cash out in a year like that would have locked in deep losses. The notes also depend on UBS staying able to pay. Fees are listed in UBS's documents for the notes and come out of the note's value. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Experienced investors seeking twice the exposure to US high-dividend, low-volatility stocks who can withstand drops like the 78.6% fall in early 2020.
- Income seekers who can take high risk and want monthly payments, which produced an 11.39% yield over the 12 months to October 27, 2026.
- Active traders who watch positions closely and understand how a resetting 2x exposure can drift from twice the index over longer periods.
Look elsewhere if
- Retirees who may need to cash out in downturns: after its 2020 plunge, HDLB took about 56 months to regain its peak.
- Investors who want to own actual stocks: HDLB is unsecured UBS debt, holds no assets for investors and can be redeemed early by UBS.
- Anyone wanting steady returns: despite its low-volatility index, HDLB's price swings (annualized volatility) were about 30% over one and three years to October 27, 2026.
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 HDLB pay monthly dividends?
Yes, HDLB pays monthly. The payments come from a note rather than a fund, so they are not fund dividends in the usual sense. Over the 12 months to October 27, 2026, they totaled about $1.80 per note, a yield of 11.39%. The payments depend on UBS, the issuer, being able to pay. A high yield also doesn't protect against big price drops, like the 37.3% fall in 2022.
Is HDLB good for retirement income?
It is a high-risk way to seek income. HDLB yielded 11.39% over the 12 months to October 27, 2026, paid monthly, but it is twice-leveraged, unsecured debt issued by UBS. It fell 78.6% between February 20 and March 23, 2020, and needed about 56 months to get back to that peak. A retiree forced to cash out during a drop like that would lock in heavy losses. Past results don't predict future ones.
What's the difference between an ETN and an ETF?
An ETF is a fund that owns assets, such as stocks, on behalf of its shareholders. An ETN like HDLB is a bank's promise, here from UBS, to pay a return linked to an index, minus fees. HDLB owns no stocks for investors. If UBS could not pay, holders could lose money no matter how the index performed. UBS can also redeem the notes early.
Why did HDLB lose so much in 2020?
Leverage magnified the fall. HDLB is linked to twice the performance of a US high-dividend, low-volatility stock index, so between resets the index's moves are roughly doubled. In the COVID crash it fell 78.6% from February 20 to March 23, 2020, and it ended 2020 down 50.8%. It gained 62.8% in 2021 but did not get back to its February 2020 peak until November 27, 2024. Recovering from a deep loss takes a much larger percentage gain.
Is HDLB meant to be held long term?
It is built more for shorter-term use than for long holding periods. Its 2x exposure resets periodically, so over longer stretches compounding can push returns well away from twice the index, usually for the worse in choppy markets. Results have depended heavily on timing: as of October 27, 2026, it returned 35.3% a year over three years but about 4.9% a year since its October 2019 launch. UBS can also redeem the notes early.