Bubble + Leverage = Double Bubble

Just what we needed: A leveraged bubble.

UBS, the Swiss bank famous for private-client wealth management, launched a pair of exchange-traded notes today focused on Internet-related initial public offerings—one with single exposure and the other serving up double exposure—that could give investors a way to play the latest Internet IPO craze.

The ETRACS Internet IPO ETN (NYSEArca: EIPO) and the Monthly 2xLeveraged ETRACS Internet IPO ETN (NYSEArca: EIPL) are both based on an index that provides exposure to Internet companies that have been listed on either the New York Stock Exchange or Nasdaq for less than three years.

via UBS Rolls Out 1X, 2X Internet IPO ETNs.


  1. So Crates says:

    How is this not simply gambling?

    • Paul Kedrosky says:

      It's not simply gambling — it's just gambling. In other words, yes.

      • So Crates says:

        Heh – as long as you don't add me to this list:


  2. How can I short this?


  1. […] Leveraged Internet ETNs coming to a trading screen near you.  (IndexUniverse, Infectious Greed) […]