Business Development Companies

ETRACS Linked to the Wells Fargo Business Development Company Index

The ETRACS Linked to the Wells Fargo Business Development Company Index due April 26, 2041 is designed to track an investment in the Wells Fargo Business Development Company Index ("Index"), and may pay a variable quarterly coupon linked to the cash distributions associated with the underlying BDC constituents, less investor fees. Note that if the BDCs do not make distributions or those distributions do not overcome the investor fees, then investors will not receive any coupons. The index was created in January 2011 and has no performance history prior to date.

Market data
Distributions
Historical returns

Number of holdings
Index comparisons
Risks & Benefits

Profile

Name	ETRACS Linked to the Wells Fargo Business Development Company Index
Underlying Index	Wells Fargo Business Development Company Index
Issuer	UBS AG
Ticker Symbol	BDCS
Current Annual Index Yield*	9.78%
CUSIP	902641588
Primary Exchange	NYSE Arca
Initial Trade Date	April 27, 2011
Maturity Date	April 26, 2041
Annual Tracking Fee (%)*	0.85% accrued on a daily basis

* As of December 31, 2011. See 'Risk considerations & Benefits' as well as the 'Important legal information specific to ETRACS ETNs' link below for more information

The Current Annual Index Yield is calculated by Wells Fargo and is determined by taking the most recently declared distribution of each of the Business Development Companies that constitute the Index ("constituent BDC"), and creating an annualized yield for each constituent BDC by (i) multiplying that number by the dividend frequency and (ii) dividing the resulting number by the current market price of the applicable constituent BDC. The Current Annual Index Yield is the sum of the products of those individual yields of each constituent BDC and their relative weights in the Index. You are not guaranteed any coupon or distribution amount under the ETN.

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Market data

Closing Price	26.14	Volume	9,884
Net Change	0.05	20 Day Volume Average	35,337.05
% Change	0.00	Shares Outstanding	1,540,000
High (52 week)	27.89	Market Cap	40,255,599.98
Low (52 week)	21.29	Daily Indicative Value	26.14
Indicative Intra-Month Leverage Factor	1.00
Updated on: May 24, 2013

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Distributions

Payment date	Amount per security	Ex-date	Record date
01/23/2013	$0.4706	01/10/2013	01/14/2013
Total annual dividend paid 2012: $1.7528
10/22/2012	$0.4429	10/10/2012	10/12/2012
07/24/2012	$0.4551	07/12/2012	07/16/2012
04/23/2012	$0.3894	04/11/2012	04/13/2012
01/24/2012	$0.4654	01/11/2012	01/13/2012
Total annual dividend paid 2011: $0.8082
10/21/2011	$0.4236	10/11/2011	10/13/2011
07/22/2011	$0.3846	07/12/2011	07/14/2011

Source: UBS, NYSE and Bloomberg.

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Historical returns

	Total return*	Annualized return*	3 months	6 months
Wells Fargo Business Development Company Index	-11.15%	-12.02%	9.53%	-10.40%
S&P 500 Total Return	0.51%	0.55%	11.82%	-3.69%
S&P 500 Financials Total Return Index	-18.56%	-19.94%	10.82%	-14.44%
S&P Listed Private Equity Index	-19.68%	-21.12%	8.33%	-20.98%

*Since Index inception

Historical results for the period from January 28, 2011 through December 31, 2011.

Source: UBS Investment Bank, publicly available data.
Historical information presented is as of December 31, 2011 and is furnished as a matter of information only. Historical performance of the Index is not an indication of future performance.
Future performance of the Index may differ significantly from historical performance, either positively or negatively.
The ETRACS ETNs are subject to investor fees. As a result, the return on the ETNs will always be lower than the total return on a direct investment in the Index or the Index constituents.

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Number of holdings: 28 BDCs

Company Name	Symbol	Index Weight
American Capital Ltd	ACAS	10.86%
Ares Capital Corp	ARCC	9.78%
Apollo Investment Corp	AINV	9.71%
Prospect Capital Corp	PSEC	9.55%
Fifth Street Finance Corp	FSC	6.20%
Main Street Capital Corp	MAIN	5.54%
Solar Capital Ltd	SLRC	4.76%
Triangle Capital Corp	TCAP	4.43%
PennantPark Investment Corp	PNNT	4.25%
BlackRock Kelso Capital Corp	BKCC	3.86%
Hercules Technology Growth Capital Inc	HTGC	3.57%
New Mountain Finance Corp	NMFC	2.89%
Capital Southwest Corp	CSWC	2.35%
TICC Capital Corp	TICC	2.34%
Medley Capital Corp	MCC	2.31%
Golub Capital BDC Inc	GBDC	1.88%
THL Credit Inc	TCRD	1.80%
MCG Capital Corp	MCGC	1.73%
MVC Capital Inc	MVC	1.50%
Medallion Financial Corp	TAXI	1.37%
KCAP Financial Inc	KCAP	1.17%
Fidus Investment Corp	FDUS	1.14%
Gladstone Investment Corp	GAIN	1.09%
Gladstone Capital Corp	GLAD	0.97%
Stellus Capital Investment Corp	SCM	0.89%
Solar Senior Capital Ltd	SUNS	0.84%
NGP Capital Resources Co	NGPC	0.81%
Horizon Technology Finance Corp	HRZN	0.71%
Harris & Harris Group Inc	TINY	0.58%
WhiteHorse Finance Inc	WHF	0.57%
OFS Capital Corp	OFS	0.55%
		100.00%

Source: Wells Fargo, As of March 6, 2013
[WFBDC index underlies BDCS and BDCL]

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Index comparisons

Index comparisons graph

The graph illustrates the historical returns of the Index from January 28, 2011 through December 31, 2011 in comparison with other benchmark indices. Historical performance of the Index is not an indication of future performance. Future performance of the Index may differ significantly from historical performance, either positively or negatively. The ETRACS ETNs are subject to investor fees. As a result, the return on the ETNs will always be lower than the total return on a direct investment in the Index or the Index constituents.

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Key benefits & Selected risk considerations

Benefits:

Exposure to a portfolio of Business Development Companies through a single investment.
Income potential via variable quarterly coupons linked to the cash distributions, if any, paid on the BDCs in the Index, less investor fees. If the BDCs do not make distributions or those distributions do not overcome the investor fees, then investors will not receive any coupons.

Selected risk considerations:

An investment in the ETRACS ETNs involves risks. Selected risks are summarized here, but we urge you to read the more detailed explanation of risks described in the "Risk Factors" section of the prospectus supplement for the ETRACS ETNs (the "ETRACS Prospectus"). Capitalized terms used below but not defined herein shall have the meanings attributed to them in the ETRACS Prospectus.

You may lose some or all of your investment - The ETNs are fully exposed to any decline in the level of the Index. Because the Accrued Tracking Fee (which is based on the Annual Tracking Fee) reduces your final payment, the level of the Index, as compared to the Initial Index Level, will need to increase by an amount at least equal to the percentage of the Principal Amount represented by the Accrued Tracking Fee and Redemption Fee Amount, if applicable, less any coupons that are paid, in order for you to receive an aggregate amount over the term of the ETNs equal to at least the Principal Amount of your ETNs. If the increase in the level of the Index, as compared to the Initial Index Level, is insufficient to offset the negative effect of the Accrued Tracking Fee and Redemption Fee Amount, if applicable, less coupons that are paid, or if the Final Index Level is less than the Initial Index Level, you will lose some or all of your investment at maturity or call, or upon early redemption. In addition, note that the Accrued Tracking Fee reduces the cash distributions made by the Index constituents (if any) and therefore reduces the amount of coupons paid (if any) under the ETNs - see "You are not guaranteed a coupon payment", below.
If you purchase your ETNs at any time prior to the end of the Initial Measurement Period (the ten Index Business Days from and including the Initial Trade Date, subject to adjustments as described in the ETRACS Prospectus), you will not know the Initial Index Level until after the end of the Initial Measurement Period.
Market risk - The return on the ETNs, which may be positive or negative, is linked to the return on the Index as measured by the Index Performance Ratio, and which, in turn, is affected by a variety of market and economic factors, interest rates in the markets and economic, financial, political, regulatory, judicial or other events that affect the Index constituents or the markets generally.
Credit of issuer - 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 third party. Any payment to be made on the ETNs, including any payment at maturity, call or upon 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 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.
Limited performance history - The return on the ETNs is linked to the performance of the Index, which was introduced on January 28, 2011. As a result, the Index has a limited performance history, and it is uncertain how the Index will perform. Limited historical information will be available for you to consider in making an independent investigation of the Index performance, which may make it more difficult for you to make an informed decision with respect to an investment in the ETNs than if the Index had a longer performance history.
A trading market for the ETNs may not develop - Although we intend to list the ETNs on NYSE Arca, a trading market for the ETNs may not develop. Certain affiliates of UBS may engage in limited purchase and resale transactions in the ETNs, although they are not required to and may stop at any time. We are not required to maintain any listing of the ETNs on NYSE Arca or any other exchange. In addition, we are not obliged to, and may not, sell the full aggregate principal amount of the ETNs shown on the cover of the ETRACS Prospectus. We may suspend or cease sales of the ETNs at any time, at our discretion. Therefore, the liquidity of the ETNs may be limited.
No Redemption Prior to May 6, 2011 - You may elect to redeem your ETNs on or after May 6, 2011 until April 18, 2041. Accordingly, your ability to liquidate the ETNs may be limited prior to that date.
Minimum redemption amount - You must elect to redeem at least 50,000 ETNs for UBS to repurchase your ETNs, unless we determine otherwise or your broker or other financial intermediary bundles your ETNs for redemption with those of other investors to reach this minimum requirement and there can be no assurance that they can or will do so. Therefore, the liquidity of the ETNs may be limited.
You are not guaranteed a coupon payment - You will not receive a coupon payment on a Coupon Payment Date if the Reference Distribution Amount is less than the Accrued Tracking Fee. Similarly, you will not receive a coupon payment on a Redemption Date or Call Settlement Date if the Adjusted Reference Distribution Amount is less than the Adjusted Tracking Fee and, as applicable, the Redemption Fee Amount.
Uncertain tax treatment - Significant aspects of the tax treatment of the ETNs are uncertain. You should consult your own tax advisor about your own tax situation.
UBS's Call Right - UBS may elect to redeem all outstanding ETNs at any time on any Exchange Business Day (or if such day is not an Exchange Business Day, the next Exchange Business Day) on or after April 30, 2012, as described in the ETRACS Prospectus under the heading "Specific Terms of the ETNs- UBS's Call Right". If UBS exercises its Call Right, the Call Settlement Amount may be less than the Principal Amount of your ETNs. Alternatively, if the ETNs have increased in value, you may have to invest your proceeds in a lower-return investment.

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