At a glance
It has $27.2M in assets, the 5th largest of that group; it paid 21.99% of its price in distributions over the past 12 months, monthly. Over the past year it returned −10.7% with distributions reinvested (S&P 500: +11.5%), the weakest of those 6 funds; over three years it returned +7.0% a year. At its worst it fell 89.3% in the 2020 crash (S&P 500: 33.7%) and 48.1% in the 2022 bear market (S&P 500: 24.5%), and is still below its earlier high.
The short version
ETRACS 2xMonthly Pay Leveraged US Small Cap High Dividend ETN Series B (SMHB) is an exchange-traded note. That means it is unsecured UBS debt, not a fund. It is linked to twice the performance of an index of high-dividend US small-company stocks. Leverage and monthly payouts produced a 21.99% trailing yield as of October 27, 2026. But SMHB lost 90.1% from its 2018 peak to its 2020 low and had not recovered by then.
Price history
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SMHB -10.7% 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 | |
|---|---|---|---|---|---|---|
| SMHB price data to Oct 27, 2026 | +1.0% | -10.7% | +7.0% | -7.2% | — | -6.9% |
- Over the year to Oct 27, 2026, SMHB returned -10.7%, 6th of 6 among similar funds.
- Its 5-year annualized return was -7.2%.
- In the 2020 COVID crash it fell 89.3%, and had not regained its old high by the end of the data.
- Its worst full calendar year was 2020 (-43.3%); its best was 2021 (+68.9%).
- The deepest fall in its price history was 90.1% (Nov 14, 2018 to Mar 18, 2020), not yet recovered.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +1.0% |
| 2025 | -8.0% |
| 2024 | -15.8% |
| 2023 | +36.4% |
| 2022 | -36.0% |
| 2021 | +68.9% |
| 2020 | -43.3% |
| 2019 | +15.0% |
| 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 86.5% over that stretch · deepest drop along the way 89.3%, not recovered by the end of the data |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 43.2% over that stretch · deepest drop along the way 48.1%, not recovered by the end of the data |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.6600 | |
| 2025 | $0.8545 | -25.5% |
| 2024 | $1.1477 | +2.5% |
| 2023 | $1.1200 | -28.7% |
| 2022 | $1.5700 | +6.1% |
| 2021 | $1.4800 | +8.0% |
| 2020 | $1.3700 | -64.6% |
| 2019 | $3.8721 |
How it works
SMHB is an exchange-traded note (ETN), not a fund. Owning it means lending money to UBS. In return, UBS promises to pay an amount linked to an index of high-dividend US small-company stocks, minus fees. UBS doesn't own those stocks on noteholders' behalf. So there is no portfolio, no list of largest holdings, and no fund prospectus or holdings report to review. UBS's documents for the notes describe how the index picks, weights and rebalances its stocks.
The notes aim for twice the index's performance. That leverage is reset at regular intervals rather than held fixed. Gains and losses compound from each reset, so returns over months or years can differ sharply from twice the index. The gap is usually worse when markets swing back and forth. That is why products like this are built for short-term trading, not for holding over long periods.
The notes pay income monthly. Those payments, and whatever the notes are worth at the end, depend on UBS's ability to pay because the notes are unsecured debt. If UBS ran into financial trouble, noteholders could lose money no matter how the index performed. UBS can also redeem the notes early, which could force holders out at a bad time.
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
Its 2x leverage resets periodically, it has lost as much as 90.1% of its value, and its payments depend on UBS's credit.
SMHB launched in November 2018, so it has no record from the 2008 financial crisis. In the 2020 COVID crash it fell 89.3% in less than a month. In the 2022 bear market it dropped 48.1%. Its worst calendar year was 2020, down 43.3%. Its deepest drop, 90.1% from November 2018 to March 2020, had not been recovered as of October 27, 2026. Anyone forced to sell notes during a slide like that would have locked in most of the loss.
The trailing yield was 21.99% as of October 27, 2026, paid monthly. But payouts can't make up for losses that large, and they depend on UBS's credit. Fees come out of what the notes pay, and UBS's terms set the exact charge. Past results don't predict the future, and a retirement plan should look at the whole portfolio, not one holding.
Who it may suit — and who should look elsewhere
May suit
- Short-term traders who want twice-leveraged exposure to high-dividend US small-company stocks, watch positions closely, and understand how periodic leverage resets affect returns.
- Investors comfortable holding unsecured UBS debt instead of a fund, who accept that payments depend on UBS's credit and that UBS can redeem early.
- Risk-tolerant traders drawn to monthly payments, with a 21.99% trailing yield as of October 27, 2026, who can live with drops like 2020's 89.3% plunge.
Look elsewhere if
- Retirees who might need to sell in a downturn: SMHB fell 89.3% in the 2020 crash and 48.1% in 2022, recovering neither peak by October 2026.
- Long-term holders: periodic leverage resets mean multi-year returns can stray far from twice the index, and the notes have no holdings to review.
- Those wanting 2x small-cap exposure through a fund: ProShares Ultra Russell2000 (UWM) returned 17.4% versus SMHB's -10.7% over the year to October 27, 2026.
Close alternatives
Matched by leveraged/inverse funds on the same index (russell 2000), same direction.
| Fund | Exposure | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| SMHB this fund | 2× | — | $27.2M | -10.7% | +7.0% |
| SMLL Harbor Active Small Cap ETF | 1× | 0.8% | $14.9M | +2.9% | — |
| UWM ProShares Ultra Russell2000 | 2× | — | $315.8M | +17.4% | +32.6% |
| SAA ProShares Ultra SmallCap600 | 2× | — | $27.6M | +25.8% | +27.5% |
| TNA Direxion Daily Small Cap Bull 3X Shares | 3× | — | $1.70B | +19.0% | +40.1% |
| URTY ProShares UltraPro Russell2000 | 3× | — | $305.8M | +18.8% | +39.7% |
Questions investors ask
Is SMHB an ETF or an ETN?
SMHB is an ETN, or exchange-traded note. It trades on an exchange like an ETF, but it is unsecured debt issued by UBS, not a fund. UBS owns no stocks on noteholders' behalf. Instead, it promises a return linked to twice an index of high-dividend US small-company stocks, minus fees. That promise is only as good as UBS's ability to pay. UBS can also redeem the notes early.
Does SMHB pay monthly dividends?
Yes, SMHB pays monthly. Because it is a note, these are interest-like payments from UBS rather than fund dividends. Over the 12 months to October 27, 2026, it paid about $0.73 per share, a trailing yield of 21.99%. That high yield comes with large swings in value: SMHB's deepest drop during that year was 26.9%. The payments can change, and they depend on UBS's ability to pay.
Is SMHB good for retirement income?
SMHB is designed for short-term trading, which makes it a risky source of retirement income. Its trailing yield was 21.99% as of October 27, 2026, paid monthly. But it fell 90.1% from November 2018 to March 2020 and had not regained that peak by October 27, 2026. Its leverage resets periodically, so long-term results can stray far from twice the index. Its payments also depend on UBS's ability to pay.
Why has SMHB lost value over five years?
Leverage and compounding are big reasons. SMHB returned -7.2% a year over the five years to October 27, 2026, a total loss of 31%. Doubling an index's moves makes the drops bigger. And because the leverage resets, losses can compound when markets are choppy. Strong years such as 2021 (up 68.9%) and 2023 (up 36.4%) came alongside 2022 (down 36.0%), 2024 (down 15.8%) and 2025 (down 8.0%).
What's the difference between SMHB and UWM?
Both aim for twice the performance of US small-company stocks, but they differ in structure and focus. ProShares Ultra Russell2000 (UWM) is a fund tied to the broad Russell 2000 index. SMHB is unsecured UBS debt linked to a high-dividend small-cap index, and it pays monthly. Over the year to October 27, 2026, UWM returned 17.4% and SMHB returned -10.7%. Over three years, UWM returned 32.6% a year versus SMHB's 7%.