Morgan Stanley Debuts High Yield MLP ETN

Investment banking giant Morgan Stanley made its first foray into the exchange-traded product world this week, rolling out an ETN offering exposure to the MLP sector. The Cushing MLP High Income Index ETN (MLPY) will offer exposure to a criteria-weighted index tracking the performance of 30 MLPs that hold energy infrastructure and related shipping assets in North America. The effective weighting strategy results in approximately equal allocations to many of the underlying holdings; as of March 1, ten different securities made up between 4.85% and 5.16% of the related index. The MLP ETP space has exploded in recent years; MLPY is the seventh product in the MLPs ETFdb Category, and UBS also offers inverse and leveraged options for this corner of the domestic energy market. Like most of the existing options, MLPY will be structured as an ETN, meaning that it is a debt security whose indicative value is tied [...] Click here to read the original article on ETFdb.com. Related Posts: MLP Exposure: ETF or ETN? UBS Debuts Wells Fargo MLP ETN (MLPW) MLP ETFs: Fact And Fiction ALPS Launches First MLP ETF (AMLP) When ETNs Are Better Than ETFs