Westwood Holdings Group Announces Monthly Income Distributions for Enhanced Midstream and Energy Income ETFs

Westwood Holdings Group announces monthly income distributions for two ETFs, MDST and WEEI, offering significant income potential to investors.

Quiver AI Summary

Westwood Holdings Group (WHG) has announced monthly income distributions for its two Exchange-Traded Funds (ETFs): the Westwood Salient Enhanced Midstream Income ETF (MDST) and the Westwood Salient Enhanced Energy Income ETF (WEEI). Both ETFs, launched in 2024, aim to provide investors with significant monthly income through a combination of dividends and options premiums from covered calls. The current distribution per share is $0.225 for both funds, yielding an annualized rate of 9.9% for MDST and 12.3% for WEEI. MDST focuses on midstream energy companies, while WEEI provides broader exposure to various energy sectors. As of January 3, 2025, MDST has $75 million in net assets and WEEI has $14 million. The funds are actively managed and designed for high income generation, but they also carry risks typical of the energy sector and investments in master limited partnerships (MLPs).

Potential Positives

• Announcement of significant monthly income distributions for Westwood Salient Enhanced Midstream Income ETF (MDST) and Westwood Salient Enhanced Energy Income ETF (WEEI), indicating strong performance in providing income to investors.
• MDST achieved an annualized distribution rate of 9.9%, while WEEI delivered a 12.3% rate, showcasing the funds' ability to generate attractive returns for investors.
• Both ETFs utilize a dual strategy of dividend yield and options premiums, appealing to investors seeking robust income solutions in the energy sector.
• MDST and WEEI are actively managed funds with substantial net assets ($75 million and $14 million respectively), reflecting growing investor interest and confidence in these offerings.

Potential Negatives

• Both ETFs (MDST and WEEI) are newly formed with limited operating history, which may raise concerns for investors about their stability and performance reliability.
• WEEI has reported negative annualized and market returns since inception, indicating potential underperformance compared to expectations and competitor funds.
• The distribution rates for both ETFs are at risk of being unsustainable, as they may be artificially high due to favorable market conditions that may not continue, leading to potential future investor dissatisfaction.

FAQ

What are the monthly income distributions for WHG's ETFs?

The Westwood Salient Enhanced Midstream Income ETF (MDST) has a distribution of $0.2259, while the Westwood Salient Enhanced Energy Income ETF (WEEI) has a distribution of $0.2251.

What is the annualized distribution rate of MDST and WEEI?

MDST has an annualized distribution rate of 9.9%, while WEEI has a distribution rate of 12.3% as of January 3, 2025.

What investment strategies do MDST and WEEI utilize?

Both ETFs use an actively managed strategy that combines dividend yield and options premiums from covered calls for generating income.

What types of companies do MDST and WEEI invest in?

MDST invests in midstream energy companies, while WEEI offers broad exposure to various energy sectors, including upstream and downstream companies.

How has the performance of MDST and WEEI been since their inception?

As of December 31, 2024, MDST's market price has increased by 16.92%, while WEEI has seen a market price decline of 4.19% since inception.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$WHG Hedge Fund Activity

We have seen 20 institutional investors add shares of $WHG stock to their portfolio, and 16 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

• KING LUTHER CAPITAL MANAGEMENT CORP removed 53,750 shares (-22.5%) from their portfolio in Q3 2024
• DE LISLE PARTNERS LLP added 38,996 shares (+131.4%) to their portfolio in Q3 2024
• RUSSELL INVESTMENTS GROUP, LTD. added 38,115 shares (+15.7%) to their portfolio in Q3 2024
• SUSQUEHANNA INTERNATIONAL GROUP, LLP added 22,546 shares (+inf%) to their portfolio in Q3 2024
• ACUITAS INVESTMENTS, LLC added 21,938 shares (+16.1%) to their portfolio in Q3 2024
• SEI INVESTMENTS CO added 14,000 shares (+inf%) to their portfolio in Q3 2024
• CITADEL ADVISORS LLC removed 13,532 shares (-100.0%) from their portfolio in Q3 2024

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

Full Release

DALLAS, Jan. 10, 2025 (GLOBE NEWSWIRE) --


Westwood Holdings Group


(WHG), a publicly-traded investment management boutique and wealth management firm, today announced monthly income distributions for


Westwood Salient Enhanced Midstream Income ETF (NYSE: MDST)


and


Westwood Salient


Enhanced


Energy


Income


ETF


(NASDAQ:


WEEI)


as shown in the table below. This pair of


Westwood




Exchange-


Traded


Funds


(ETFs)


deliver income from both dividends and options premiums to help provide monthly income distributions for investors. Most recently, both strategies are providing double-digit income to investors.

Both MDST and WEEI are actively managed funds, designed to provide advisors and investors with a robust solution for generating high distributable monthly income, combining dividend yield (distributions paid from the Fund’s net investment income) and options premiums from covered calls, while also offering the potential for equity appreciation within the energy sector.

Launched April 8, 2024, MDST seeks to deliver current income and capital appreciation by investing in midstream energy companies, defined as companies and master limited partnerships (MLPs) that gather, transport, store and distribute crude oil, natural gas and other energy products. The fund combines dividend yield and options premiums from covered calls to target significant monthly income distributions. MDST currently has

$75 million

in net assets, as of

January 3, 2025

.

WEEI, which launched April 30, 2024, offers broad exposure to energy companies, including upstream, downstream, oil service and integrated companies that operate in all phases of oil exploration, production, service and distribution. Like MDST, WEEI combines dividend yield and options premiums from covered calls to target significant monthly income distributions. WEEI currently has

$14 million

in net assets as of

January 3, 2025

.

The performance data quoted represents past performance. Current performance may be lower or higher than the performance data quoted above. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than their original cost. For performance information current to the most recent month-end, please call toll-free (877) 386- 3944.

NAV Return represents the closing price of underlying securities. Market Return is calculated using the price which investors buy and sell ETF shares in the market. The market returns in the table are based upon the midpoint of the bid/ask spread at 4:00 pm EST, and do not represent the returns you would have received if you traded shares at other times.

¹

The Annualized Distribution Rate shown is as of

January 3, 2025

. The Annualized Distribution Rate is the rate an investor would receive if the most recent distribution, which includes option premium income, remained the same going forward. The Annualized Distribution Rate is calculated by multiplying an ETF's Distribution per Share by twelve (12), and dividing the resulting amount by the ETF's most recent NAV. The Distribution Rate represents a single distribution from the ETF and does not represent its total return. The current months distribution is 100% return of capital (ROC) for MDST and 23.15% ROC for WEEI. Distributions may also include a combination of ordinary dividends, capital gain, and return of investor capital, which may decrease an ETF's NAV and trading price over time. As a result, an investor may suffer significant losses to their investment. These Distribution Rates may be caused by unusually favorable market conditions and may not be sustainable. Such conditions may not continue to exist and there should be no expectation that this performance may be repeated in the future.

More information on Westwood’s ETF offerings is available at


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 these Funds are 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 prospectus’, which may be obtained by calling 800.944.0755. Please read the prospectus carefully before investing.

The Funds are newly formed and have limited 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. Covered Call Strategy Risk: This risk arises when an investor holds a long position in a stock and simultaneously sells a call option against it. While this strategy can generate income, it limits potential upside gains if the stock price rises significantly above the strike price of the option. Options Risk/Flex Options Risk: This refers to the inherent risks associated with trading options, such as the risk of losing the entire premium paid for an option if it expires out-of-the-money. Flex options risk is a specific type of options risk that arises from the flexibility of flex options, which can be adjusted or exercised under certain conditions.

The SEC 30-Day Yield represents net investment income earned by the Fund over a 30-day period, expressed as an annual percentage rate based on the Fund's share price at the end of the 30-day period. 30-day SEC yield is a standardized calculation adopted by the SEC based on a 30-day period that helps investors compare funds using a consistent method of calculating yield. The subsidized yield includes the effect of any fee waivers or expense reimbursements, while the unsubsidized yield excludes these cost reductions, showing what the yield would be if the fund had to cover all expenses from its own income. Options Premiums is the price paid to purchase an option contract.

Covered Call Option is a financial contract that gives the holder the right, but not the obligation, to buy a specific asset at a predetermined price (strike price) within a specified time period. Dividend Yield is a dividend expressed as a percentage of a current share price.

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.

Media Contact:

Tyler


Bradford




Hewes Communications




212.207.9454






tyler@hewescomm.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.