Westwood Holdings Group (WHG), a publicly-traded investment
management boutique and wealth management firm, today launched the
Westwood Salient Enhanced Energy Income ETF (NASDAQ: WEEI), the
second Westwood Exchange-Traded-Fund (ETF). Like its sister
product, the Westwood Salient Enhanced Midstream Income ETF (NYSE:
MDST), WEEI is an actively managed ETF crafted to provide advisors
and investors with a robust solution for generating high
distributable monthly income, combining dividend yield and options
premiums from covered calls, while still offering the potential for
equity appreciation within the energy sector. The Fund’s objective
is current income and capital appreciation.
In contrast to MDST’s exclusive midstream exposure, WEEI also
offers exposure to a broad spectrum of energy companies including
upstream, downstream, oil service and integrated companies that
operate in all phases of oil exploration, production, service and
distribution. This diversified exposure to the energy industry
means WEEI’s portfolio is more closely tied to commodity pricing
which can be volatile, providing the potential for high income
generation from options premiums.
“The launch of WEEI, Westwood’s second ETF, is a natural
progression for Westwood within the energy income space following
last month’s launch of MDST,” said Greg Reid, president of Real
Assets at Westwood and WEEI portfolio manager. “It is an exciting
time in the energy sector from both a capital appreciation and
income perspective, and we anticipate it’s just the beginning of a
decade-long upcycle.”
Parag Sanghani, who is on Westwood’s Energy team and portfolio
manager of WEEI and MDST, added, “In addition to providing exposure
to market leaders in the energy sector, WEEI actively manages the
portfolio to optimize returns and targets an annualized yield in
the range of 6-8% annually, far outpacing those of traditional
energy ETFs that only offer 3% yields.”
WEEI seeks to be more diversified, not as top-heavy, more
selective and more nimble than commonly-held energy ETFs. It seeks
to enhance traditional energy exposure with a significant added
income component, making it an attractive option for retail
investors seeking both income and total return.
Brian Casey, CEO of Westwood Holdings Group, commented on the
launch, stating, "We are excited to launch our second
actively-managed ETF within the last two months. WEEI’s structure
will focus on increasing yield through covered call option writing
and dividends, as we continue to launch innovative products that
serve our clients' evolving investment needs."
For more information on the Westwood Salient Enhanced Energy
Income ETF and other investment solutions offered by Westwood,
please visit westwoodetfs.com.
ABOUT WESTWOOD HOLDINGS GROUP, INC.
Westwood Holdings Group, Inc. is a focused investment management
boutique and wealth management firm.
Founded in 1983, Westwood offers a broad array of investment
solutions to institutional investors, private wealth clients and
financial intermediaries. The firm specializes in several distinct
investment capabilities: U.S. Value Equity, Multi Asset, Energy
& Real Assets, Income Alternatives, Tactical Absolute Return
and Managed Investment Solutions, which are available through
separate accounts, the Westwood Funds® family of mutual funds,
exchange-traded funds (ETFs) and other pooled vehicles. Westwood
benefits from significant, broad-based employee ownership and
trades on the New York Stock Exchange under the symbol “WHG.” Based
in Dallas, Westwood also maintains offices in Chicago, Houston and
San Francisco.
For more information on Westwood, please
visit westwoodgroup.com.
Westwood ETFs are distributed by Northern Lights Distributors,
LLC (Member FINRA). Northern Lights Distributors and Westwood ETFs
(or Westwood Holdings Group, Inc.) are separate and
unaffiliated.To determine if this Fund is an appropriate
investment for you, carefully consider the Fund’s investment
objectives, risk factors, charges and expenses before investing.
This and other information can be found in the Fund’s prospectus,
which may be obtained by calling 800.944.0755. Please read the
prospectus carefully before investing.
The Fund is newly formed and has no operating history.
The Fund’s investments are concentrated in the energy
infrastructure industry with an emphasis on securities issued by
MLPs, which may increase price fluctuation. The value of
commodity-linked investments such as the MLPs and energy
infrastructure companies (including midstream MLPs and energy
infrastructure companies) in which the Fund invests are subject to
risks specific to the industry they serve, such as fluctuations in
commodity prices, reduced volumes of available natural gas or other
energy commodities, slowdowns in new construction and acquisitions,
a sustained reduced demand for crude oil, natural gas and refined
petroleum products, depletion of the natural gas reserves or other
commodities, changes in the macroeconomic or regulatory
environment, environmental hazards, rising interest rates and
threats of attack by terrorists on energy assets, each of which
could affect the Fund’s profitability.
MLPs are subject to significant regulation and may be adversely
affected by changes in the regulatory environment including the
risk that an MLP could lose its tax status as a partnership. If an
MLP were to be obligated to pay federal income tax on its income at
the corporate tax rate, the amount of cash available for
distribution would be reduced and such distributions received by
the Fund would be taxed under federal income tax laws applicable to
corporate dividends received (as dividend income, return of capital
or capital gain). Investing in MLPs involves additional risks as
compared to the risks of investing in common stock, including risks
related to cash flow, dilution and voting rights. Such companies
may trade less frequently than larger companies due to their
smaller capitalizations, which may result in erratic price movement
or difficulty in buying or selling. Additional management fees and
other expenses are associated with investing in MLP funds. The tax
benefits received by an investor investing in the Fund differs from
that of a direct investment in an MLP by an investor. This document
does not constitute an offering of any security, product, service
or fund, including the Fund, for which an offer can be made only by
the Fund’s prospectus. No fund is a complete investment program and
you may lose money investing in a fund. The Fund may engage in
other investment practices that may involve additional risks and
you should review the Fund prospectus for a complete description.
“Alerian MLP Index,” “Alerian Midstream Energy Select Index,”
“AMZ,” and “AMEI” are trademarks of Alerian and their use is
granted under a license from Alerian. One cannot invest directly in
an index.
Media Contact:
Tyler BradfordHewes
Communications212.207.9454tyler@hewescomm.com
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