USCF partners with Miller/Howard on actively managed midstream energy ETF

Mar 26th, 2021 | By | Category: Equities

United States Commodity Funds (USCF) has launched a new income-focused ETF targeting high-yielding companies operating in the midstream energy infrastructure segment.

USCF partners with Miller/Howard on actively managed midstream energy ETF

USCF has partnered with Miller/Howard Investments to launch an actively managed midstream energy ETF.

The USCF Midstream Energy Income Fund (UMI US) has been listed on NYSE Arca and comes with an expense ratio of 0.85%.

The fund is actively managed and sub-advised by Miller/Howard Investments, a New-York based portfolio management firm that emphasizes income-producing equities as an essential element to building long-term wealth.

Miller/Howard will apply its hallmark bottom-up research to US and Canadian midstream energy infrastructure companies of any market capitalization. Up to 25% of the portfolio may be allocated to master limited partnerships (MLPs).

The firm’s fundamental investment approach focuses on the quality of a company, its ability to grow income, and the sustainability of its business model and practices. Key metrics include income, growth of income, distribution coverage, leverage, direct-commodity price exposure, and contract quality.

Miller/Howard also integrates ESG research into its investment decisions, considering factors such as a firm’s exposure to environmental risks, policies on diversity and inclusion, and corporate governance.

John Love, President and CEO of USCF, said: “USCF was founded on the principle of bringing previously difficult to access asset classes to every investor. UMI introduces the midstream energy market to our investors thoughtfully by not only seeking a high level of income but also offering exposure to master limited partnerships (MLPs) without a K-1.”

Luan Jenifer, President of Miller/Howard Investments, added: “We are excited to enter the ETF arena with our new collaborators, USCF. This new fund utilizes the established methods that Miller/Howard has effected to bring the midstream energy sector, including MLPs, to investors more broadly and without a K-1.”

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