LMLBETRACS Monthly Pay 2xLeveraged Wells Fargo MLP Ex-Energy ETN Series B
LMLB Fund Description
LMLB provides 2x leveraged exposure to a market-cap-weighted index of non-energy MLPs listed on US exchanges. Leverage resets monthly, and distributions are made monthly.
LMLB Factset Analytics Insight
LMLB provides leveraged exposure to MLPs by tracking a market cap weighted index of non-energy related MLPs listed on U.S exchanges. Index constituents are selected by a Committee and no single issuer may constitute more than 10% of the index. As a leveraged ETF, this product is built to be a tactical tool, not a long-term holding. Unlike most leveraged ETFs, LMLB’s 2x leverage is rebalanced monthly instead of daily. The real-world implication is that investors will get consistent 2x leverage, gross of fees, if they buy on the first trading day of the month and sell on the last. Investors who buy LMLP intra-month or hold it for multiple months will receive an uncertain degree of leverage that could be greater or less than 2x. Also worth noting is that some of the tax benefits of the MLP structure are lost once they are packaged together in an ETF or ETN (check ETF.com’s MLP white paper for more). We expect distributions, paid monthly, to be taxed as ordinary income, not qualified dividends.
LMLB Charts And Performance
LMLB Portfolio Data
LMLB Index Data
LMLB Fund Structure
LMLB Tax Exposures
LMLB Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of LMLB. LMLB is rated a N/A out of 5.