Westwood Celebrates One-Year Anniversary of Westwood Salient Enhanced Energy Income ETF (NYSE: WEEI)
DALLAS, April 30, 2025 (GLOBE NEWSWIRE) -- Westwood Holdings Group (NYSE:WHG), a boutique asset management, trust and wealth services firm, is pleased to celebrate the one-year anniversary of the Westwood Salient Enhanced Energy Income ETF (NYSE:WEEI) ("WEEI" or the "Fund"). Since its launch, WEEI has gained strong traction among income-seeking investors, delivering on its objective of providing a steady stream of income with an annualized distribution rate of 11.9%1 as of March 28, 2025.
WEEI is designed to offer investors exposure to the energy sector seeking to provide enhanced income through its covered-call strategy. We believe this approach allows investors to participate in the strong cash flow generation of energy companies while benefiting from additional yield through options premiums. The ETF's double-digit performance has resonated with advisors and investors looking for a reliable income solution in an evolving market environment. WEEI celebrates this milestone about a month behind its sister ETF, Westwood Salient Enhanced Midstream Income ETF (NYSE:MDST), which employs a similar strategy but focuses on the midstream segment of the energy market. MDST is rapidly approaching $100 million in assets under management.
"Our goal with WEEI was to create a solution with the potential to provide both attractive income and exposure to the broader energy sector's resilience, in contrast to the midstream focus of MDST," said Greg Reid, president of Real Assets at Westwood and a WEEI portfolio manager. "Over the past year, WEEI has demonstrated its ability to generate consistent cash flow, making it a valuable tool for income-focused investors in any market cycle."
Parag Sanghani, Westwood Energy team senior portfolio manager, added, "Investor demand for income solutions remains strong; we believe WEEI's combination of dividend income and options premiums has helped investors navigate today's dynamic environment, allowing the Fund to serve multiple functions within a given portfolio in this way. The disciplined approach we consistently take ensures that we continue to seek opportunities that optimize returns, while managing risk effectively."
With energy infrastructure playing a critical role in global markets, we find WEEI offers a diversified and liquid solution for investors seeking both income and exposure to a resilient asset class. The Fund's structure aims to provide tax efficiency, transparency and accessibility, aligning with Westwood's commitment to innovative and investor-focused strategies.
"We are excited to mark this milestone for WEEI and remain focused on expanding our ETF lineup with strategies that provide meaningful benefits to investors," said Brian Casey, CEO of Westwood Holdings Group. "We remain committed to delivering investment solutions that meet the evolving needs of our clients."
| Standardized Performance as of 3/31/25 | QTD | Since Inception | ||
| WEEI Inception: April 30, 2024 | WEEI Fund NAV (%) | 8.63% | 4.05% | |
| Expense ratio: 0.85% | WEEI Market Price (%) | 8.86% | 4.30% | |
| Subsidized/Unsubsidized 30-Day Yield | ||||
| WEEI 2.34%/2.34% | ||||
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 (800) 994- 0755.
For more information on the Westwood Salient Enhanced Energy Income ETF (NYSE:WEEI) and other investment solutions offered by Westwood, please visit westwoodetfs.com.
ABOUT WESTWOOD HOLDINGS GROUP, INC.
Westwood Holdings Group, Inc. (NYSE:WHG) is a boutique asset management firm that offers a diverse array of actively-managed and outcome-oriented investment strategies, along with white-glove trust and wealth services, to institutional, intermediary and private wealth clients. For over 40 years, Westwood's client-first approach has fostered strong, long-term client relationships due to our unwavering commitment to delivering bespoke investment strategies with a vehicle-optimized approach, exceptional counsel and unparalleled client service. Our flexible and agile approach to investing allows us to adapt to constantly changing markets, while continually seeking innovative strategies that meet our investors' short- and long-term needs.
Our Westwood team comes from varied backgrounds and life experiences, which reflects our origins as a woman-founded firm. We are committed to incorporating diverse insights and knowledge into all aspects of our services and solutions. Our culture and approach to our business reflect our core values—integrity, reliability, responsiveness, adaptability, flexibility and collaboration—and underpin our constant pursuit of excellence. 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.
1The Annualized Distribution Rate shown is as of March 28, 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 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.
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 800.994.0755. Please read the prospectus carefully before investing.
The Funds are newly formed and have limited operating history.
No investment strategy or process can guarantee performance results.
Exchange Traded Funds (ETFs) are subject to market risk, including the possible loss of principal. The value of the portfolio will fluctuate with the value of the underlying securities. ETFs trade like a stock, and there will be brokerage commissions associated with buying and selling exchange traded funds unless trading occurs in a fee-based account. ETFs may trade for less than their net asset value. Investing in ETFs may not be suitable for all investors.
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.
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 differ 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.
Westwood ETFs does not provide tax advice. Please consult your tax advisor before making any decisions or taking any action based on this information.
Energy infrastructure companies are entities involved in the development, construction, and maintenance of systems and facilities that produce, transport, and distribute energy.
Options premiums are the prices paid by buyers to acquire options contracts. These premiums are influenced by various factors, including the underlying asset's price, volatility, time until expiration, and interest rate.
A covered call is an options strategy where an investor holds a long position in an asset and sells (writes) call options on that same asset to generate income from the option premiums.
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.
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