MLPQETRACS 2xMonthly Leveraged Alerian MLP Infrastructure Index ETN Series B
MLPQ Fund Description
MLPQ tracks a leveraged version of the Alerian MLP Infrastructure Index, an index of publicly traded energy infrastructure MLPs selected by distributions and weighted by market cap. The note resets its leverage monthly.
MLPQ Factset Analytics Insight
MLPQ offers leveraged exposure to energy infrastructure MLPs in an ETN wrapper. The underlying Alerian index selects constituents by distributions and weights by market cap. Still, the attractive tax treatment of distributions from the underlying pass-through entities does not translate to the ETN—MLPQ’s quarterly distributions are taxed as ordinary income. MLPQ’s index is tracked in unleveraged form by Alerian’s AMLP—a popular ETF organized as a C-corporation—and by MLPI and MLPB, sister ETNs from UBS.As with almost all geared ETPs, investors are unlikely to experience the target multiple over the long haul. MLPQ resets its leverage monthly, so investors won’t likely get the 2x multiple unless their horizon aligns with the note’s 1-month reset window.As an ETN, MLPQ carries counter party risk from a subsidiary of UBS. This Series B offering, launched in February 2015, effectively replaces an earlier series note, MLPL, which closed a week prior to MLPQ’s launch. MLPQ’s documents make clear that parent UBS AG Switzerland does not back the note, in contrast with the provisions of MLPL. Otherwise the predecessor note was extremely similar and tracked the same index.
MLPQ CHARTS AND PERFORMANCE
MLPQ Portfolio Data
MLPQ Index Data
MLPQ Fund Structure
MLPQ Tax Exposures
MLPQ Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of MLPQ. MLPQ is rated a N/A out of 5.