Westwood Announces Launch of Westwood Salient Enhanced Energy Income ETF (WEEI)
Westwood Holdings Group (WHG) has announced the launch of the Westwood Salient Enhanced Energy Income ETF (NASDAQ: WEEI), the second ETF from the company. This new actively managed ETF aims to provide high distributable monthly income by combining dividend yield and options premiums from covered calls, while still offering potential equity appreciation within the energy sector. With a focus on current income and capital appreciation, WEEI offers exposure to a wide range of energy companies, including upstream, downstream, oil service, and integrated companies, presenting a diversified portfolio closely tied to commodity pricing. The ETF targets an annualized yield in the range of 6-8% annually, exceeding traditional energy ETFs' 3% yields, making it an attractive option for retail investors seeking both income and total return.
The launch of Westwood Salient Enhanced Energy Income ETF (WEEI) provides investors with a high distributable monthly income through a combination of dividend yield and options premiums from covered calls.
WEEI offers exposure to a diversified portfolio of energy companies, including upstream, downstream, oil service, and integrated companies, which can potentially lead to high income generation from options premiums.
The ETF targets an annualized yield in the range of 6-8% annually, surpassing traditional energy ETFs' 3% yields, making it an appealing option for retail investors seeking income and total return.
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Westwood’s Second ETF Rounds Out High-Yielding Investment Offerings for the Energy Sector
DALLAS, May 01, 2024 (GLOBE NEWSWIRE) -- 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
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.
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