Barclays Bank PLC launched the iPath S&P MLP Exchange Traded Note (NYSEARCA:IMLP) on the NYSE Arca stock exchange today.
"We are pleased to expand our suite of exchange traded notes with the first iPath ETN to offer exposure to the MLP market," said Kevin Burke, Head of Investor Solutions at Barclays. "Investors have shown considerable interest in the MLP market, and the iPath S&P MLP ETN will provide exposure in an exchange-traded format."
ETNs or "exchange-traded notes" are debt obligations issued by banks and financial institutions and they carry credit risk.
IMLP will compete with other MLP focused products like the ALPS Alerian MLP ETF (NYSEARCA:AMLP) and the JPMorgan Alerian MLP (NYSEARCA:AMJ).
"As investors continue to seek out investments with higher yield, this ETN offers the potential for income along with upside appreciation via index-linked exposure to US energy infrastructure-focused partnerships," said Kevin Murphy, Head of US Equity and Funds Solutions at Barclays.
The iPath S&P MLP ETN is linked to the performance of the consolidated VWAP level of the S&P MLP Index. The S&P MLP Index is designed to provide exposure to leading partnerships that trade on major U.S. exchanges and are classified in the GICS Energy Sector and GICS Gas Utilities Industry. The S&P MLP Index includes both master limited partnerships and publicly traded limited liability companies which have a similar legal structure to MLPs and share the same tax benefits as MLPs.
IMLP charges annual fees of 0.80% and has a maturity date of 12/15/2042.
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