Westwood Announces Launch of Westwood Salient Enhanced Energy Income ETF (WEEI)

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 6-8% 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."