Amplify to liquidate oil-hedged MLP income ETF

Mar 29th, 2018 | By | Category: Alternatives / Multi-Asset

Amplify ETFs has announced the upcoming liquidation of the Amplify YieldShares Oil-Hedged MLP Income ETF (AMLX US).

Amplify to Liquidate Amplify YieldShares Oil-Hedged MLP Income ETF

Amplify is to liquidate the YieldShares Oil-Hedged MLP Income ETF.

Having launched on BATS (no Cboe ETF Marketplace) on 1 June 2017, the fund has failed to attract sufficient interest from investors.

Shareholders can sell their holdings in the fund before the end of 19 April 2018, the final trading day. Shares will then be delisted and no new creation units will be sold.

The closure comes on the back of the recent ruling by the Federal Energy Regulatory Commission that some master limited partnerships (MLPs) may have to reduce the amount that they charge their customers. This prompted a sell-off in the MLP space.

Although the ruling removes a cost that MLPs have historically been able to charge customers, it doesn’t change the allowable rates of return that MLPs can charge, making the potential impact of the ruling hard to assess.

Some firms have estimated an impact of between 5-10% of their earnings or cash flow.

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