Yorkville ETF Advisors, a New York-based asset manager, today is
bringing to market another ETF focused on master limited
partnerships, but this one aimed at infrastructure names.
The Yorkville High Income Infrastructure MLP ETF
(NYSEArca:YMLI), like Yorkville's first MLP fund 'YMLP,' will track
a Solactive index, and be brought to market through Exchange Traded
Concepts' "ETF-In-A-Box solution." YMLI costs 0.82 percent in
The new ETF complements investor exposure to the MLP segment,
one that's often divided between production and transportation
names on one hand, and infrastructure on the other. YMLI invests in
infrastructure MLPs, namely partnerships focused on the
transportation and storage of oil products and natural gas.
MLPs are partnerships that generate most of their income from
the natural resources sector, and they make money from fees such as
transportation tolls rather than from the underlying commodities
themselves. That attribute protects them from volatility in
Also, in part because MLPs aren't taxed as corporations, they
tend to pay hefty dividends, an attractive feature at a time when
investors are searching for income in an ongoing environment of
ultra-low interest rates.
What's more, the pipeline-type business model also shows very
low correlation to the broader equities market and the economy in
general, making MLPs good diversification tools.
The latest addition to the MLP ETF market will join sizable
competitors, albeit broader in scope, such as the $4.79 billion
JPMorgan Alerian MLP ETF (NYSEArca:AMJ) and the $5.173 billion
ALPS' Alerian MLP ETF (NYSEArca:AMLP). Global X Funds also has an
MLP ETF in the market, 'MLPA.'
The Yorkville High Income MLP ETF (NYSEArca:YMLP)-the firm's
first ETF-has gathered just under $100 million in assets since it
came to market last March.
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