Universal Email can be use dot create a news letter, however, depending on the number of people you are sending the newsletter to, you may run into limitations imposed by your hosts SMTP server settings.
The SMTP server will likely have a set number of connections it will allow, this may be 20, 50, or 200. this will determine the number of people that you can successfully send the news letter to. universal Email does not have a way of sending the email in small bursts to get round that limitation.