Credit Suisse Securities (USA) has launched an exchange-traded note tracking the Swank Energy sponsored Cushing 30 MLP Index.
The ETN is listed on the NYSE Arca under the ticker symbol MLPN.
The Cushing 30 is a fundamental based North American energy infrastructure index, comprised of 30 equally weighted publicly traded MLPs.
By basing inclusion in the index on fundamental drivers such as cash flow, distribution growth, and balance sheet strength, the Cushing 30 corrects inherent flaws of market-capitalisation weighted indices and provides investors with an index that more accurately reflects the performance of a well-diversified passive MLP portfolio.
The Cushing 30 is calculated by Standard & Poor’s.
Swank Capital founder and managing partner Jerry Swank says: “MLPs provide exposure to both current income and growth, and the Cushing 30 linked ETN provides an additional means for investors who seek passive exposure to the emerging MLP asset class. For individual and institutional investors, efficient and prudent access to passively-managed MLPs can be optimally achieved through the Cushing 30 MLP Index, the only MLP index with allocations that capture fundamentally-derived performance and potential. In this way, the Cushing 30 is more representative of the MLP sector, and is a more ‘investable’ portfolio than a highly concentrated, market capitalization-weighted MLP index.”