MLPZETRACS 2xMonthly Leveraged S&P MLP Index ETN Series B
MLPZ Fund Description
MLPZ tracks a 2x leveraged version of the S&P MLP Index, an index of publicly traded MLPs, selected and weighted by market cap. The note resets its leverage monthly.
MLPZ Factset Analytics Insight
MLPZ offers leveraged exposure to the broad MLP space in an ETN wrapper. The underlying S&P index selects and weights its MLP names by market cap, bypassing the distribution-based selection favored by many peer ETPs. The attractive tax treatment of distributions from the underlying oil and gas pass-through entities does not translate to the ETN—MLPZ’s quarterly distributions are taxed as ordinary income. The index is tracked in unleveraged form by Barclay’s IMLP ETN.MLPZ resets its leverage monthly. Investors are unlikely to experience the 2x multiple unless their horizon aligns with the note’s 1-month reset window.As an ETN, MLPZ carries counter party risk from a subsidiary of UBS. This Series B offering, launched in February 2015, effectively replaces a different series note, MLPV, which closed a week prior to MLPZ’s launch. MLPZ’s documents make clear that parent UBS AG Switzerland does not back the note, in contrast with the provisions of MLPV. Otherwise the predecessor note was extremely similar and tracked the same index.
MLPZ CHARTS AND PERFORMANCE
MLPZ Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of MLPZ. MLPZ is rated a N/A out of 5.