ETF Evaluator: ETRACS 2xMnthly Py Lvrgd US SmCpHiDivETN (SMHB) Follow This ETF

ETRACS 2xMnthly Py Lvrgd US SmCpHiDivETN Overview

ETRACS 2xMnthly Py Lvrgd US SmCpHiDivETN (SMHB) is a passively managed Miscellaneous Trading--Leveraged Equity exchange-traded fund (ETF). UBS launched the ETF in 2018.

The investment seeks to provide a two times leveraged return linked to the compounded monthly performance of the Solactive US Small Cap High Dividend Index (the “index”). The index is designed to measure the performance of 100 relatively small capitalization, dividend yielding index constituent securities selected from a universe of qualifying U.S. listed equity securities. The Securities are two times leveraged with respect to the index and, as a result, will benefit from two times any beneficial, but will be exposed to two times any adverse, compounded monthly performance of the index.

About ETRACS 2xMnthly Py Lvrgd US SmCpHiDivETN (SMHB)

There are 1 members of the management team with an average tenure of 7.73 years: No Manager (2018). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 1 primary benchmark: Solactive US Small Cap High Div USD index with a weighting of 200%. ETRACS 2xMnthly Py Lvrgd US SmCpHiDivETN has securities in its portfolio. The top 10 holdings constitute 0.0% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is considered to have an ESG focus with its investment selection and management.

ETRACS 2xMnthly Py Lvrgd US SmCpHiDivETN is part of the Other global asset class and is within the Miscellaneous ETF group. ETRACS 2xMnthly Py Lvrgd US SmCpHiDivETN has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0% There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). ETRACS 2xMnthly Py Lvrgd US SmCpHiDivETN has 0.0% of the portfolio in cash.

Assets Under Management

The fund has $20 million in total assets, which is below the $251 million average for the Trading--Leveraged Equity category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

SMHB Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The ETRACS 2xMnthly Py Lvrgd US SmCpHiDivETN expense ratio is high compared to funds in the Trading--Leveraged Equity category. ETRACS 2xMnthly Py Lvrgd US SmCpHiDivETN has an expense ratio of 0.85%, which is 11% lower than its category average, making the fund expense ratio grade a B. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. ETRACS 2xMnthly Py Lvrgd US SmCpHiDivETN has a portfolio turnover rate of 0%, which indicates that it holds its assets around /years. By way of comparison, the average portfolio turnover is 396% for the Trading--Leveraged Equity category.

Recently, in the month of July 2026, ETRACS 2xMnthly Py Lvrgd US SmCpHiDivETN returned -1.3%, which earned it a grade of B, as the Trading--Leveraged Equity category had an average return of -18.2%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

ETRACS 2xMnthly Py Lvrgd US SmCpHiDivETN has a trailing yield of 19.72%, which is above the 5.84% category average. The fund normally distributes its income monthly.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

ETRACS 2xMnthly Py Lvrgd US SmCpHiDivETN Grades

Year to date, the ETF has returned 13.9%, 10.1 percentage points better than the category, which translates into a grade of C. The fund has returned 14.5% over the past year (grade of C), -0.1% over the past three years (grade of F) and -3.9% per year over the past five years (grade of D).

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