UBS Investment Bank has expanded its UBS E-Tracs exchange-traded notes platform by adding the UBS E-Tracs Alerian Natural Gas MLP Index.
It has begun on NYSE Arca under the ticker symbol MLPG, and provides exposure to an equal weighted portfolio of master limited partnerships focused on natural gas infrastructure through a single investment.
"UBS has brought unique ETNs to market since we launched the UBS E-Tracs platform two years ago. UBS E-Tracs Alerian Natural Gas MLP Index is UBS’s 15th ETN on our E-Tracs platform and our third MLP ETN with Alerian," says Christopher Yeagley, managing director and US head of equity structured products. "Alerian has been the ideal partner to work with in creating MLP products. This ground-breaking new ETN, accompanied by UBS’s existing ETNs linked to Alerian indexes, now gives clients access to a well-rounded and far-reaching spectrum of MLPs."
A master limited partnership is a publicly traded limited partnership that unites the tax advantages of a partnership with the liquidity of a publicly traded stock. The Alerian Natural Gas MLP Index is an equal-weighted composite of the 15 largest natural gas infrastructure MLPs, and pays a variable coupon linked to the distributions associated with the underlying constituents. The index provides investors with a benchmark for the infrastructure component of the natural gas industry.
UBS has 14 other existing E-Tracs ETNs: ten that track the performance of various UBS Bloomberg CMCI indexes, like platinum, silver, gold, livestock and food; one that tracks the total return of the Dow Jones-UBS Commodity Index; one that is linked to the S&P 500 Gold Hedged Index; one linked to the Alerian MLP Infrastructure Index; and one linked to 2x Leveraged Alerian MLP Infrastructure Index.
UBS E-Tracs are senior unsecured notes issued by UBS, are traded like any other security on NYSE Arca, and can be bought and sold through a broker or financial adviser.