At a glance
It has $12.7M in assets. Over the past year it returned +92.4% with distributions reinvested (S&P 500: +11.5%); over three years it returned +47.3% a year. At its worst it fell 34.2% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 20 months after the low.
The short version
ETRACS 2x Leveraged MSCI US Minimum Volatility Factor TR ETN (USML) is an exchange-traded note from UBS, not a fund. It is unsecured bank debt that aims to deliver twice the daily return of an MSCI index of lower-volatility US stocks, minus fees. Because its leverage resets daily, results over weeks or months can stray far from 2x the index. It has made no distributions, and every payment depends on UBS's ability to pay.
Price history
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USML +92.4% 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 | |
|---|---|---|---|---|---|---|
| USML price data to Oct 27, 2026 | +95.5% | +92.4% | +47.3% | +20.3% | — | +23.6% |
- Over the year to Oct 27, 2026, USML returned +92.4%.
- Its 5-year annualized return was +20.3%.
- Its worst full calendar year was 2022 (-22.9%); its best was 2024 (+24.0%).
- The deepest fall in its price history was 35.3% (Dec 29, 2021 to Oct 14, 2022), recovered by Jul 12, 2024.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +95.5% |
| 2025 | +9.3% |
| 2024 | +24.0% |
| 2023 | +11.4% |
| 2022 | -22.9% |
| 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 34.2% over that stretch · deepest drop along the way 34.2%, back to its old high 20.4 months after the low |
How it works
USML is not a fund, and it owns no stocks on investors' behalf. It is an exchange-traded note (ETN): unsecured debt issued by UBS, launched on February 5, 2021. UBS promises to pay a return linked to an index, minus fees. Holders collect only if UBS can pay, so the bank's credit is part of the risk. UBS can also redeem the notes early. There is no fund prospectus and no holdings report to review.
As its name shows, the note is linked to a total-return MSCI US minimum volatility index. Total return (the TR in the name) means dividends from the stocks count toward the index level instead of being paid out. Minimum-volatility indexes generally aim for a mix of US stocks expected to swing less than the broad market. This is a factor approach, meaning the index leans toward stocks with one shared trait. UBS's offering documents for the notes set out the fee terms.
The 2x leverage resets every day. Each day the note aims for twice that day's index move, then starts fresh from the new level. Over longer periods, compounding means returns can differ sharply from 2x the index, usually for the worse when markets zigzag. The design is meant for short-term trading, not for holding over months or years.
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
USML resets its 2x leverage daily and is unsecured UBS debt, a design built for short-term trading rather than long holding periods.
USML launched in 2021, so it has no record through the 2008 financial crisis or the 2020 COVID crash. In the 2022 bear market it fell 34.2%. Its deepest decline, 35.3% from December 29, 2021 to October 14, 2022, took about 21 months after the low to recover, on July 12, 2024. Its worst calendar year was 2022, with a 22.9% loss. Cashing out shares or drawing income during that stretch would have locked in steep losses. Gains can be as extreme: as of October 27, 2026, the 1-year price return was 92.4%, with volatility (a measure of how widely returns swing) of 61.8%.
It has made no distributions, so it provides no income. Fees come out of the index return, and UBS's offering documents give the terms. Past results don't predict the future, and a retirement plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Active traders seeking short-term exposure to twice the daily move of an MSCI US minimum volatility index, who monitor positions closely.
- Experienced investors who understand that daily leverage resets can make multi-week results differ sharply from 2x the index, often for the worse.
- Those comfortable with UBS credit risk, since the note is unsecured bank debt that holds no stocks on investors' behalf and can be redeemed early.
Look elsewhere if
- Retirees needing income: it has made no distributions, because its total-return index counts dividends inside the note's value.
- Long-term holders: it fell 34.2% in the 2022 bear market, and its deepest drop, 35.3%, took about 21 months to recover.
- Investors who want to see what they own: an ETN files no holdings reports, and net assets were small, about $12.7 million.
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
Is USML an ETF or an ETN?
USML is an ETN, not an ETF. An exchange-traded note is unsecured debt issued by a bank, in this case UBS. It trades on an exchange like a stock, but it owns no assets on investors' behalf. UBS promises to pay the index-linked return minus fees, so holders depend on the bank's ability to pay. UBS can also redeem the notes early, and there are no holdings reports to review.
Is USML a good long-term investment?
It isn't built to be one. USML resets its 2x leverage every day. Over periods longer than a day, compounding can push returns far from twice the index, usually for the worse in choppy markets. In the 2022 bear market it fell 34.2%, and its deepest decline, 35.3%, took about 21 months after the low to recover. UBS credit risk adds another layer of risk that a regular stock fund doesn't carry.
Does USML pay dividends?
No. USML has recorded no distributions. Its name shows it follows a total-return (TR) index. That kind of index counts the dividends paid by its stocks as part of the index level instead of passing them to holders. Dividends affect the note's value but are never paid out as cash. That makes it a poor fit for anyone who needs regular income from a holding.
How has USML performed?
Returns have swung widely. As of October 27, 2026, the price return was 92.4% over 1 year, 47.3% a year over 3 years and 20.3% a year over 5 years. It lost 22.87% in 2022, then gained 11.37% in 2023, 23.97% in 2024 and 9.33% in 2025. It was up 95.5% for 2026 through October 27. Volatility over the year to that date was 61.8%.
What's the difference between USML and a minimum volatility ETF?
The main differences are leverage and structure. A typical minimum-volatility ETF is a fund that owns the stocks in its index on investors' behalf, uses no leverage and aims to swing less than the broad market. USML is UBS debt that aims for twice the index's daily return, resets that leverage daily and owns nothing for holders. That adds UBS credit risk and compounding effects that a plain fund avoids.