UBS Launches MLP ETN With Wells Fargo Index

November 02, 2010

UBS rolled out a master limited partnership exchange-traded note on Monday, this one tied to an index from Wells Fargo, adding one more security to a corner of the investment world that has become crowded this year given investors desire for yield.

The UBS AG Exchange Trade Access Securities (E-Tracs) Linked to the Wells Fargo MLP Index Due October 29, 2040 (NYSEArca MLPW), according to the New York Stock Exchange IPO Web site. UBS set the expense rate on the note to match a number of competitors, at 0.85 percent.

Many MLP products shoot off dividends of more than 6 percent, making them quite attractive at a time official interest rates are near zero and
stocks are gyrating with great volatility.  They are like tollbooths for commodities such as gasoline, collecting fees for transporting the products and are largely immune to price swings in the commodities themselves.

MLPW complements a number of other MLP-related products it has rolled out this year, though the index provider is different. The other existing funds include include the UBS E-TRACS 2x Monthly Leveraged Long Alerian MLP Infrastructure ETN (NYSEArca: MLPL) and the UBS E-TRACS Alerian Natural Gas MLP ETN (NYSEArca: MLPG) as well as the E-TRACS 1X Monthly Short Alerian MLP Infrastructure Total Return Index (NYSEArca: MLPS).

Find your next ETF

Reset All