UBS Launches New Energy ETN

The new exchange-traded note (ETN) provides leveraged exposure to a portfolio of energy infrastructure Master Limited Partnerships (MLPs) through a single investment.  

The announcement explained that a Master Limited Partnership is a publicly traded limited partnership that unites the tax advantages of a partnership with the liquidity of a publicly traded stock. The Alerian MLP Infrastructure Index is the leading index for investing in energy infrastructure. Because the revenues of energy infrastructure MLPs tend to be correlated with the demand for energy commodities rather than the price of energy commodities, MLPs in energy infrastructure industries have relatively consistent, predictable cash flows.  

UBS has 13 other existing E-TRACS ETNs – 10 of which track the performance of various UBS Bloomberg CMCI indexes, like platinum, silver, gold, livestock, food, etc, one that tracks the total return of the Dow Jones-UBS Commodity Index, one that is linked to the S&P 500 Gold Hedged Index, and one that is linked to the Alerian MLP Infrastructure Index.  

UBS E-TRACs are senior unsecured notes issued by UBS AG, are traded like any other security on NYSE Arca, and can be bought and sold through a broker or financial adviser.