MLPSETRACS 1XMonthly Short Alerian MLP Infrastructure TR ETN
MLPS Fund Description
The ETRACS 1X Monthly Short Alerian MLP Infrastructure ETN provides monthly 1x exposure to a market-cap-weighted index of 25 energy infrastructure MLPs.
MLPS Factset Analytics Insight
This note is being redeemed. The last day of trading will be June 25, 2018. MLPS provides an inverse bet on one of the more popular investment themes in recent years: MLPs. The note is designed to move inversely with the Alerian MLP Infrastructure Index—a market-cap-weighted index of 25 MLPs focused in the energy infrastructure space. As such, MLPS ought to appreciate when the index declines. The note’s -1x exposure is reset on a monthly basis, meaning it can drift (sometimes greatly) from this expected exposure between the beginning and end of the month. This differs from the many daily inverse and leveraged products on the market, making the fund’s 85 bp expense ratio a more important consideration. Still, trading costs matter, regardless of whether they’ll be spread over a longer holding period. To that end, MLPS is both expensive and difficult to trade: Less than $10K worth of MLPS shares changes hands daily, and spreads average nearly 70 bps.
MLPS CHARTS AND PERFORMANCE
MLPS Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of MLPS. MLPS is rated a 5 out of 5.