# ETRACS 2x Leveraged MSCI US Minimum Volatility Factor TR ETN (USML): ETN Facts & Distributions > Markdown mirror of https://www.dividenddata.com/funds/usml for AI agents. Same live data as the HTML page, regenerated on the same refresh cycle. Not investment advice. - Issuer: ETRACS · Asset class: Equity - Strategy: Leveraged · Inception: 2021-02-05 USML is engineered to provide twice the daily price fluctuations of the MSCI USA Minimum Volatility Index. This benchmark is derived by refining the broader MSCI USA Index, its primary reference, with the goal of assembling a portfolio that exhibits the lowest possible volatility, all while adhering to specified criteria. The method for achieving this optimization involves an estimated co-variance matrix, which is developed using the Barra multi-factor equity model. Rigorous rules govern the index's composition: individual components must account for a minimum of 0.5% and a maximum of 1.5%... ## Key Facts | Metric | Value | |---|---| | Price | $47.26 | | Expense Ratio | 0.95% | | Assets Under Management | $4.7M | | NAV | $47.26 | | Holdings Count | 0 | | Distribution Yield (TTM) | — | | Annual Distribution (TTM) | — /share | | Distribution Frequency | — | | 52-Week Range | $38.97 – $47.28 | | Beta | 0.93 | ## Frequently Asked Questions ### What does USML invest in? USML is engineered to provide twice the daily price fluctuations of the MSCI USA Minimum Volatility Index. This benchmark is derived by refining the broader MSCI USA Index, its primary reference, with the goal of assembling a portfolio that exhibits the lowest possible volatility, all while adhering to specified criteria. The method for achieving this optimization involves an estimated co-variance matrix, which is developed using the Barra multi-factor equity model. Rigorous rules govern the index's composition: individual components must account for a minimum of 0.5% and a maximum of 1.5% of the total index weight. Furthermore, sector allocations are tightly managed, ensuring they do not stray by more than 5% from their weighting within the parent index. Given its leveraged structure and quarterly rebalancing, USML is explicitly designed for short-term trading applications and is unsuitable as a long-term investment instrument. Consequently, the compounding effect can lead to substantial deviations between its long-term returns and those of the underlying index. Lastly, it is crucial to recognize that as an exchange-traded note (ETN), investors are subject to the credit risk of its issuer, UBS. ### What is the expense ratio of USML? ETRACS 2x Leveraged MSCI US Minimum Volatility Factor TR ETN (USML) charges an expense ratio of 0.95%. This is the annual fee deducted from fund assets to cover management and operations. ### Is USML a good long-term hold? USML is a leveraged fund designed to deliver a daily multiple of its underlying index. Daily reset compounding means returns over multi-day periods can diverge significantly from the headline multiple, typically with negative drift in choppy markets. These funds are designed for short-term tactical use, not buy-and-hold. Review the fund's prospectus before holding more than a few days. ### How does USML's daily reset work? USML rebalances exposure each trading day to maintain its target leverage ratio against the next day's move. The daily reset means returns compound at the daily level, so a +1%, −1% sequence on the underlying doesn't return the underlying to flat after the leverage multiplier. Over time this path-dependence erodes returns in volatile markets and amplifies them in trending markets. ### How big is USML? ETRACS 2x Leveraged MSCI US Minimum Volatility Factor TR ETN (USML) manages $4.7M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure. Funds below ~$50M are at higher risk of liquidation. ### Is USML actively managed or an index fund? USML's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy. ### Does USML pay a dividend? ETRACS 2x Leveraged MSCI US Minimum Volatility Factor TR ETN (USML) currently distributes little or no income. Trailing-twelve-month yield is —. Investors looking for income should consider income-focused alternatives. See the Peers tab. ### How often does USML pay dividends? ETRACS 2x Leveraged MSCI US Minimum Volatility Factor TR ETN pays dividends on its published schedule. Each ex-dividend date, record date, and payment date is listed in the dividend history table on this page. ### What is USML's dividend yield? USML's trailing-twelve-month yield is —, calculated from the sum of dividends over the past year divided by the current price. ### When is USML's next ex-dividend date? USML hasn't announced its next ex-date yet. Once declared it'll appear at the top of the dividend history table on this page. ### How much will USML's expense ratio cost me over 30 years? On a $10,000 investment compounding at 7% gross return, a 0.95% expense ratio quietly compounds against your balance every year. The Fee Compounding Forecast card above projects the dollar drag for any holding period and assumption you pick. The typical result for a 1.0% expense ratio on a 30-year hold is roughly 25% of the final balance lost to fees. ### How does USML charge its expense ratio? The expense ratio is deducted in tiny daily slices from USML's net asset value (NAV). You never see a bill. The price quoted on every exchange is already net of fees. There's no "fee day" to avoid; the cost is continuous and built into the trading price. ### Why does USML cost more than a fund like VOO? USML is a leveraged fund (current expense ratio 0.95%). Daily-reset leverage products carry swap and financing costs that don't exist on a plain-vanilla equity ETF. The Cost Verdict card compares against the leveraged/inverse cohort where these costs are the norm. ### Are there cheaper alternatives to USML? The Lower-Fee Alternatives card above lists ETNs following the same investment strategy as USML (0.95%) but at a lower expense ratio. Each row shows the fee gap, the peer's AUM as a liquidity sanity-check, and a direct link to that fund's analysis page. Cheaper price doesn't automatically mean better. Verify the peer holds what you actually want. ## More on Dividend Data - Overview (HTML): https://www.dividenddata.com/funds/usml - Distribution history: https://www.dividenddata.com/funds/usml/dividend - Holdings & diversification: https://www.dividenddata.com/funds/usml/diversification - Fees & cheaper alternatives: https://www.dividenddata.com/funds/usml/expenses - Peer comparison: https://www.dividenddata.com/funds/usml/peers Data sourced from primary filings and market data providers; see https://www.dividenddata.com/methodology.