Another MLP ETN Makes Its Debut
For those investors that just cannot decide on a master limited partnership (MLP) to add to their portfolio, there is now another exchange traded product to help with that effort.
Morgan Stanley (NYSE: MS) dipped its toes into the ETF world with the introduction of the Cushing MLP High Income Index ETN (NYSE: MLPY), an ETN designed to offer investors exposure to 30 North American MLPs involved in energy infrastructure and transportation.
MLPY is the seventh ETN or ETF to track this market niche, which has become a favorite destination for income-starved investors over the past several years.
The current indicative yield of the index underlying MLPY at launch was 6.6%, according to ETFdb.com. By comparison, the JPMorgan Alerian MLP Index ETN (NYSE: AMJ), the first ETN to track the MLP space, currently yields about 4.8%.
Other MLP exchange traded offerings include leveraged and inverse funds from UBS.
