ProShares today announced the launch of the first two UBS ETRACS - ProShares ETNs, which are linked to WTI crude oil: UBS ETRACS – ProShares Daily 3x Long Crude ETN (WTIU) and UBS ETRACS – ProShares Daily 3x Inverse Crude ETN (WTID). The returns on WTIU and WTID are linked, respectively, to the daily compounded 3x leveraged and 3x inverse performance, of the Bloomberg WTI Crude Oil Subindex ERSM (the “Index”). The ETNs are issued by UBS AG and listed on NYSE Arca.

“We are pleased to work with UBS, a leading provider of ETNs, to bring these new exchange traded products to market,” said Steve Cohen, managing director of ProFunds Distributors, Inc., the marketing agent for the ETNs. “These ETNs offer investors new tools to manage risk and potentially enhance returns.”

About the Index

The Bloomberg WTI Crude Oil Subindex ERSM is intended to reflect an unleveraged investment in the WTI crude oil segment of the commodity futures market. Unlike equities, which entitle the holder to a continuing stake in a corporation, commodity futures contracts specify a delivery date for an underlying physical commodity.

The index notionally purchases WTI futures contracts, and, as the relevant futures contracts approach their expiration dates, the index replaces such contracts with other WTI futures contracts with later expirations. The index thus "rolls" its futures positions, and continually avoids delivery of the physical commodity. The WTI crude oil futures contracts tracked by the index roll approximately every other month to the contract that is two months longer in maturity.

About ProShares

ProShares is the brand name of the family of exchange traded products managed by ProShare Advisors, LLC, which is under common ownership with ProFunds Distributors, Inc. ProShares has been at the forefront of the ETF revolution since 2006 and is the leader in geared (leveraged and inverse) ETFs. ProShares is a registered trademark of ProShare Advisors, LLC.

The ETNs are intended to be daily trading tools for sophisticated investors to manage daily trading risks as part of an overall diversified portfolio. They are designed to achieve their stated investment objectives on a daily basis. Their performance over longer periods of time can differ significantly from their stated daily objectives. The ETNs are riskier than securities that have intermediate or long-term investment objectives, and may not be suitable for investors who plan to hold them for a period other than one day or who have a “buy and hold” strategy. Accordingly, the ETNs should be purchased only by knowledgeable investors who understand the potential consequences of investing in the Index and of seeking daily compounding leveraged long or leveraged inverse investment results, as applicable. Investors should actively and continuously monitor their investments in the ETNs, even intra-day. It is possible that you will suffer significant losses in the ETNs even if the long-term performance of the Index is positive, in the case of WTIU, or negative, in the case of WTID.

UBS AG has filed a registration statement (including a prospectus and a supplement thereto) with the Securities and Exchange Commission (”SEC”) for the ETNs. Before you invest, you should read the prospectus supplement dated January 4, 2017 and the prospectus dated April 29, 2016 to understand fully the terms of the ETNs and other considerations that are important in making a decision about investing in the ETNs. The prospectus supplement for the ETNs may be obtained at https://www.sec.gov/Archives/edgar/data/1114446/000119312517001934/d302964d424b2.htm. You may also get these documents without cost by visiting EDGAR on the SEC website at www.sec.gov. An investment in the ETNs is subject to a number of risks, including the risk of loss of some or all of the investor’s principal, and is subject to the creditworthiness of UBS. Investors are not guaranteed any coupon or distribution amount under the ETNs. Investors should read the more detailed explanation of risks described under “Risk Factors” in the prospectus supplement for the ETNs.

The ETNs do not pay any interest and do not guarantee any payment at maturity or upon call, acceleration or early redemption. The ETNs are fully exposed to the risk of three times the increase or decline, as applicable in the level of the Index and you may lose all or a significant portion of your investment in the ETNs.

The ETNs are senior unsecured debt obligations of the issuer, UBS, and are not, either directly or indirectly, an obligation of or guaranteed by any other party. Any payment to be made on the ETNs, including any payment at maturity, or upon call, acceleration or early redemption, depends on the ability of UBS to satisfy its obligations as they come due. As a result, the actual and perceived creditworthiness of UBS will affect the market value, if any, of the ETNs prior to maturity, call, acceleration or early redemption. In addition, in the event UBS were to default on its obligations, you may not receive any amounts owed to you under the terms of the ETNs.

The ETNs require an understanding of futures contracts, daily compounding and path dependence of investment results and are intended for sophisticated investors to use as part of an overall diversified portfolio, and should not be used as a buy and hold investment. The ETNs are risky and may not be suitable for investors who plan to hold them for periods of time longer than one day.

There may not be an active trading market in the ETNs; sales in the secondary market may result in significant losses.

There are restrictions on the minimum number of ETNs you may redeem and on the procedures and timing for early redemption, and any early redemption is subject to the “Redemption Fee Amount,” as described in the prospectus supplement.

A number of factors may affect the ETNs’ ability to achieve a high degree of correlation with the performance of the Index, and there is a significant possibility that the ETNs will not achieve a high degree of correlation with the performance of the Index over periods longer than one day.

The return on the ETNs is linked to the performance of the Index, which in turn is linked to the performance of futures contracts on WTI crude oil. WTI crude oil prices are subject to volatile price movements over short periods of time and are affected by numerous factors, including changes in supply and demand relationships, governmental programs and policies, national and international monetary, trade, political and economic events, changes in interest and exchange rates, speculation and trading activities in commodities and related contracts, weather, and agricultural, trade, fiscal and exchange control policies.

The index administrator may adjust the Index in a way that affects the index closing level, and the index sponsor has no obligation to consider your interests as a holder of the ETNs.

UBS Securities LLC and ProFunds Distributors, Inc. have entered into a License and Marketing Agreement pursuant to which UBS has licensed the “ProShares” name and associated marks for use connection with the ETNs and pursuant to which ProFunds Distributors provides certain marketing services with respect to the ETNs. ProFunds Distributors’ and its affiliates’ sole relationship to the ETNs is as licensor and marketing agent, and none of ProFunds Distributors or its affiliates shall have any liability for the investment performance of the ETNs or any errors, omissions, or interruptions of the ETNs or any related index.

ProFunds Distributors, Inc.