JPMorgan Alerian MLP Index ETN
What is the JPMorgan Alerian MLP Index ETN?
The JPMorgan Alerian MLP Index ETN is an exchange-traded note that tracks the Alerian MLP Index. This is issued by JPMorgan Chase & Co.
Where have you heard about JPMorgan Alerian MLP Index ETNs?
The JPMorgan Alerian MLP ETN is the biggest and most popular MLP ETN on the market. Between its creation in April 2009 and mid-2015, it had amassed a total of $4.5 billion in assets under management.
What you need to know about JPMorgan Alerian MLP Index ETNs.
There are several aspects of a JPMorgan Alerian MLP Index ETN to break down:
JPMorgan – this refers to JPMorgan Chase & Co, a U.S. multinational banking and financial services company who issues and backs the ETN.
Alerian MLP Index – this is the float-adjusted and market cap-weighted benchmark index of energy Master Limited Partnerships (MLPs). An MLP is a version of a limited partnership that can be publicly traded.
ETN - exchange-traded notes are unsecured debt securities which are linked to the returns of a market performance. These are underwritten by JPMorgan, who will pay the ETN holder the value reflected in the index once the ETN matures.
JPMorgan Alerian MLP Index ETNs are popular with investors because they allow greater exposure to MLPs in the energy sector. Upon maturity, investors can either receive a cash payment from the underwriting bank or trade the ETN on a stock exchange. In the US, the number of ETNs issued is limited to 129,000,000.