DVHL /// A Leveraged, High-Income Portfolio Yielding 14% From UBS

A Leveraged, High-Income Portfolio Yielding 14% From UBS

Summary

• UBS-ETRACS DVHL is a 2x leveraged ETN yielding 14%.
• The ETN is a broadly diversified portfolio of high-income asset classes.
• The ETN's portfolio leads with allocations to BDCs, MLPs, Dividend Stocks, Preferred Stocks, REITs and a spectrum of bonds.

Investors continue to look for high yield. As recently as today, Mohamed El-Erian makes this observation and discusses some of the rationale in his blog entry on The Exchange. He attributes the quest for yield, almost any type of yield, to low economic volatility combined with low inflation which minimizes the risk of disruptively sharp economic fluctuations. Add the fact that cash is paying almost nothing and the opportunity cost of foregoing yield becomes even more significant. Finally, there's the widely held view that equity valuations may be approaching worrisome levels, so investors are looking harder at other avenues of opportunity

http://seekingalpha.com/article/2132903-a-leveraged-high-income-portfolio-yielding-14-percent-from-ubs