MLPL seems like an interesting ETN to just buy and hold and for the long term. Even if there was a 40% crash in the Alerian MLP index, you could just keep collecting the dividend and wait for the market to recover. If there was a 40% crash and MLPL lost 80% because of the leverage, as long as the dividend didn't get cut in the underlying MLPs, the dividend of MLPL would be huge (about 50%). I know this is an extreme example, but it seems to me that you could just keep collecting the dividend and ride it out if you had a long-term outlook. Anybody have any thoughts?
I've done some research and answered my own question. I wouldn't touch this ETN with a 10-foot pole. I just glanced at the prospectus and noticed all the jargon about automatic early redemption if the value falls 30% from the previous month, etc. You would get redeemed and closed out at the worst possible time and suffer huge losses. Buyer beware on this ETN.