Yorkville Launches Infrastructure MLP ETF

In keeping up with the growing interest for yield generating master limited partnerships, Yorkville ETF Advisors launched another MLP-related exchange traded fund Tuesday that focuses on the infrastructure sub-sector.

According to a press release, the Yorkville High Income Infrastructure MLP (YMLI) will try to reflect the performance of the Solactive High Income Infrastructure MLP Index, which provides exposure to infrastructure MLPs. YMLI has a 0.82% expense ratio. [Master Limited Partnerships: High-Yield Sector Gets Small-Cap ETF]

Sub-sector allocatiosn include natural gas pipelines 32.0%, general partners 8.0%, gathering & processing 32.0%, crude oil pipelines 12.0% and refined product pipelines 16.0%.

The ETF has 25 holdings and its’ top 10 components make up 40% of the overall weightings.

Master limited partnerships are an expanding segment of the energy industry as demand for pipelines, storage and processing systems develop to accommodate rising U.S. energy production.

MLPs build, acquire and operate transportation assets. While investors link MLPs with energy, specifically natural gas and crude oil, they are more involved with transporting the commodities. Consequently, the performance of MLPs is less dependent on commodity prices than on how much of the commodity is pushed through. [Master Limited Partnerships]

“Infrastructure MLPs provide investors with a potential source of high income and distribution growth in a yield-starved environment,” Darren Schuringa, managing partner of Yorkville ETF Advisors, said in the press release. “YMLI represents Yorkville’s latest step toward offering a complete suite of products built on the firm’s extensive MLP research and asset management experience.”

For more information on new fund products, visit our new ETFs category.

Max Chen contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.