Dividend exposure in vogue with ETN providers

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In light of the popularity of dividend indexes as an underlying for exchange-traded funds (ETFs), UBS has brought the theme into the US exchange-traded note (ETN) market by listing two Etracs ETNs on the NYSE Arca exchange.

"This is the first time that exposure to this theme has been offered in note format in the US," says one US-based banker. "There is a high correlation between equities and dividends, and consequently there has been an increase in the volume of options on dividends in an

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