UBS E-TRACS Alerian Natural Gas MLP ETN
The task of getting natural gas production to processing facilities and end users falls to a select group of firms that own all the pipelines and storage facilities dotting the North American countryside. There’s some big money to be made in providing and owning that vital infrastructure.
There are currently 16 exchange-traded funds dedicated to master limited partnership. However, their exposure varies on just what midstream infrastructure — if any at all — they hold. Yet, the UBS E-TRACS Alerian Natural Gas MLP ETN (MLPG) is the only pure way to bet on the MLPs that focus on natural gas.
MLPG tracks 20 different midstream firms who receive the bulk of their cash flows from the transportation, storage and processing of natural gas and natural gas liquids. This includes holdings in firms like Crestwood Midstream (CMLP) and Access Midstream Partners (ACMP). The exchange-traded note can provide a broad play on the overall need for more natural-gas-based infrastructure. The fund currently yields 5.02%.