Adding on to the growing family of master limited partnership fund products, Barclays launched its own MLP exchange traded note under its “ETN+” line on Wednesday.
The mew Barclays ETN+ Select MLP ETN (NYSEArca: ATMP) tries to reflect the performance of the Volume-Weighted Average Price level of the Atlantic Trust Select MLP Index, which tracks midstream U.S. and Canadian MLPs in the GICS Energy Sector and the GICS Gas Utilities Industry. ATMP has a 0.95% expense ratio. [Master Limited Partnership ETF: Attractive Yields with Risks]
The ETN holds a basket of 20 to 100 MLPs. Limited partners have a maximum weight in the index of 8% and general partners have a maximum weighting of 4%. Rebalances will occur quarterly.
The Atlantic Trust Select MLP Index has an average yield of 5.5%.
“In response to the growing demand for yield, this MLP ETN offers the potential for income along with upside appreciation via a more focused exposure to a subset of general partners and limited partners in the MLP space, developed by the Atlantic Trust team,” Ian Merrill, Head of Barclays ETNs, Americas, said in a press release.