The UBS ETracs Alerian MLP Index ETN, linked to the Alerian MLP Index, has begun trading on the NYSE Arca.
The ETracs Alerian MLP Index ETN offers investors:
- Access to the Alerian MLP Index.
- Exposure to a portfolio of 50 energy master limited partnerships (MLPs) through a single, exchange-traded security.
- Income potential in the form of a variable quarterly coupon linked to the cash distributions, if any, on the MLPs in the index, less investor fees.
- Straightforward tax administration, as the coupons associated with the ETN are reported as ordinary income on Form 1099, therefore eliminating the administrative burden associated with K-1 tax forms.
“MLPs continue to be a highly-favoured asset for investors seeking attractive yields and relatively low correlation to other asset classes,” says Christopher Yeagley, managing director and US head of equity structured products. “So we are particularly excited to once again partner with Alerian, a market leader in the MLP space, to offer an ETN linked to their popular Alerian MLP Index.”