The UBS ETRACS Silver Shares Covered Call ETN (SLVO) is an exchange-traded note designed to track a strategy linked to the silver market, combining exposure to the metal with the systematic sale of covered call options. The instrument is issued by UBS AG and trades under the ticker SLVO on the Nasdaq.

Classified as a commodity-linked ETN with an income-oriented focus, SLVO seeks to reflect, before fees and expenses, the performance of a strategy based on silver exposure combined with the collection of option premiums.

The product follows a rules-based methodology and is linked to the Credit Suisse NASDAQ Silver FLOWS 106 Index, which combines silver exposure with a systematic covered call strategy. There is no discretionary active management.

The reference index underlying SLVO is structured to reflect a covered call strategy on silver exposure. It applies standardized criteria for option selection, maturity determination, and rolling procedures.

The methodology includes periodic adjustments to maintain continuity of the strategy and alignment with prevailing conditions in the silver and derivatives markets.

Diversification and sector exposure

SLVO provides concentrated exposure to the precious metals market through a structured strategy. The instrument involves:

• Silver exposure.

• Covered call strategy.

• Commodity-linked derivatives.

• Income generation through option premiums.

The structure reflects a specialized approach focused on income associated with the silver market.

Structure and costs

SLVO notes trade on the secondary market on the NASDAQ. Issuance and redemption occur through the issuer, consistent with the structure of exchange-traded notes.

The instrument charges a management fee as outlined in its prospectus and does not apply a performance fee. SLVO distributes income on a recurring basis, primarily derived from premiums collected through its covered call strategy.

As an ETN, the product is subject to the credit risk of the issuer, distinguishing it from exchange-traded funds structured as investment funds.

History and evolution of the instrument

SLVO was launched in 2013 during a period of expansion in income-focused structured products within the commodities market.

Since inception, it has served as a structured vehicle for accessing silver exposure with an income component, maintaining its rules-based methodology.

In recent years, SLVO has reflected volatility in the precious metals market, including movements associated with global inflation trends, U.S. dollar fluctuations, and changes in interest rate environments, while preserving its operational framework.

Additional Information

UBS ETRACS Silver Shares Covered Call ETN (United States) is an exchange-traded fund (ETF), with assets under management totaling $393.20 million.

Over the past 12 months, UBS ETRACS Silver Shares Covered Call ETN recorded a return of 28.45%, with its price trading between $62.46 and $107.41 during the same period.

The ETF is traded under the ticker SLVO.