Exchange Traded Concepts, the third-party fund sponsor behind
the "ETF-In-A-Box" concept, appears from the looks of regulatory
filings to be closer to launching another ETF focused on master
limited partnerships in partnership with Yorkville ETF
ETC, and Yorkville, a New York-based asset manager, launched
their first MLP ETF-the Yorkville High Income MLP ETF
(NYSEArca:YMLP) a little over a year ago-and this week they have
updated their registration statement for another MLP fund, this one
focused on infrastructure names. Revisions to original filings that
provide additional details on a fund-a particular price-are usually
a telltale sign that a launch might be near.
The new Yorkville High Income Infrastructure MLP ETF
(NYSEArca:YMLI), which will also come to market through Exchange
Traded Concepts' "ETF-In-A-Box" solution, is expected to have an
annual management fee of 0.82 percent, or $82 for each $10,000
invested, according to the latest filing said.
The fund will target an infrastructure subset of MLPs,
comprising only the ones that earn most of their cash flow from
storage and transportation of energy commodities, such as oil and
MLPs are partnerships that generate most of their income from
the natural resources sector, but they make money from fees such as
transportation tolls rather than from the underlying commodities
themselves. That trait allows them to mitigate volatility linked to
are a niche that's gathering traction as investors look for
alternative income sources and hope to tap into the U.S.' booming
energy industry. In fact, two new MLP-focused strategies have been
rolled out since the beginning of the year as providers look to
cater to that demand.
The Global X Junior MLP ETF (NYSEArca:MLPJ), which serves up
unique access to small-cap names in the segment, came to market on
Jan. 15, roughly a week after the iPath S&P MLP ETN
(NYSEArca:IMLP) was launched.
All together, the additions are quickly adding new wrinkles to a
space that's currently dominated by the likes of the $5.13 billion
JPMorgan Alerian MLP ETN (NYSEArca:AMJ) and ALPS' $4.45 billion
Alerian MLP ETF (NYSEArca:AMLP), to name a few.
YMLI will track a Solactive index comprising MLPs involved with
transportation and storage as well as gathering of natural gas and
oil. The market capitalization of the securities in the index
ranged from $1.3 billion to $49.7 billion as of Jan. 29, the filing
The index is rebalanced annually, but may be adjusted more often
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