ETRACS Introduces the First MLP ETN to Track Non-Energy MLPs; Offers Significant Monthly Income Potential

UBS Investment Bank announced that June 11th, 2014 is the first day of trading on the NYSE Arca®  for the ETRACS Wells Fargo® MLP Ex-Energy ETN (NYSE Arca®: FMLP).  FMLP is linked to the performance of the Wells Fargo® Master Limited Partnership Ex-Energy Index …


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FMLP Profile
Underlying Index:   Wells Fargo® Master Limited Partnership Ex-Energy Index
Index Yield*:   7.69%
Income Potential:   Variable monthly coupon linked to the cash distributions, if any, of the Index constituents, less investor fees  
 
 *The Index Yield is calculated as of June 6, 2014 by the sponsor of the Index, Wells Fargo Securities, LLC. Because the Index Yield does not reflect investor fees, and the variable monthly coupon that may be paid by the ETN, if any, is subject to fees, the yield on the ETNs will always be less than the Index Yield (and the total return on the ETNs will always be less than the total return on a hypothetical direct investment in the Index or Index constituents). Investors are not guaranteed any coupon or distribution amount under the ETN.
FMLP Offers Investors:
•  Significant income potential in the form of a variable monthly coupon linked to the cash distributions, if any, on the Index constituents, less investor fees.
•  Exposure to an index comprised of publicly traded companies receiving partnership taxation treatment that derive a majority of their income from non-energy related activities.
•  Convenience of an exchange-traded security.
“Investors have increasingly focused on MLPs as an asset class,” said Christopher Yeagley, Head of ETRACS. “This is the first product with exposure to MLPs that exclusively operate outside of the energy industry.”
About the Wells Fargo®Master Limited Partnership Ex-Energy Index
The Wells Fargo® Master Limited Partnership Ex-Energy Index is intended to measure the performance of all non-energy master limited partnerships (“MLPs”) listed on the New York Stock Exchange (“NYSE”), NYSE MKT or NASDAQ that satisfy market capitalization and other eligibility requirements. The Index is a modified market capitalization-weighted index of master limited partnerships (MLPs) that do not have an energy focus and that have a market capitalization of at least $100 million at the time of inclusion. The capitalization weighting methodology is referred to as modified because it includes a 10% weighting limit under which the MLP classes of a particular issuer may not exceed 10% of the total capitalization of the Index. Wells Fargo Securities, LLC began publishing data on the Index on April 1, 2014.

Source: ETFWorld.com


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