ETRACS adds alerian mlp index etn to its suite of mlp-related etns..…
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UBS announced that today is the first day of trading on the NYSE Arca for the ETRACS Alerian MLP Index ETN (NYSE: AMU) linked to the Alerian MLP Index (the “Index”).
· Access to the popular Alerian MLP Index (NYSE: AMZ).
· 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.[1]
· 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.[2]
“MLPs continue to be a highly-favored asset for investors seeking attractive yields and relatively low correlation to other asset classes,” said 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.”
About MLPs
MLPs are limited partnerships primarily engaged in the exploration, marketing, mining, processing, production, refining, storage, or transportation of any mineral or natural resource. Because the MLP structure requires the distribution of at least 90% of an MLP’s income to its investors, MLPs typically have higher yields than regular dividend paying stocks.
About the Alerian MLP Index
The Index is a composite of 50 publicly-traded energy MLPs. The Index provides investors with a comprehensive benchmark for this emerging asset class. The Index is calculated using a float-adjusted, capitalization-weighted methodology and is disseminated in real-time on a price-return basis (NYSE: AMZ).
Source: ETFWorld – UBS
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