UBS Introduces Risk ETNs Based on Fisher-Gartman Benchmarks | ETF Trends

UBS AG (NYSE: UBS), the investment bank that provides the suite of ETRACS exchange traded notes, has launched two new ETNs designed to let individuals speculate on higher or lower prices across a variety of asset classes, including commodities, stocks, bonds and currencies.

ETRACS Fisher-Gartman Risk On ETN (NYSEArca: ONN) tries to reflect the daily performance of the Fisher-Gartman Risk Index, which holds a mix of long and short positions on various asset classes that are expected to rise on an optimistic outlook and decrease when the outlook is negative. The fund is expected to do well during periods of economic growth. ONN has an expense ratio of 0.85%.

The tracking index is designed by Mark Fisher of MBF Asset Management and newsletter publisher Dennis Gartman. The Horizons Gartman ETF, which is listed in Canada, gives investors exposure to the investment strategies of The Gartman Letter. The ETF was launched in March 2009 (see chart below).

Current sector weightings include: Energy 48%, Equities 46%, Currencies 28%, Agriculture 18%, Metals 10%, Currencies -16% and Sovereign Bonds -34%. Total long exposure is 150% and total short exposure is -50%, which provides a total exposure of 100%.

ETRACS Fisher-Gartman Risk Off ETN (NYSEArca: OFF) tries to reflect the daily short, or inverse, exposure to the Fisher-Gartman Risk Index by holding long “risk off” instruments while shorting “risk on” instruments. The fund is expected to perform during periods with a negative outlook. OFF has an expense ratio of 1.15%.

Current sector weightings include: Energy -48%, Equities -46%, Currencies -28%, Agriculture -18%, Metals -10%, Currencies 16% and Sovereign Bonds 34%. Total long exposure is 50% and total short exposure is -150%, which provides a total exposure of -100%.