Yorkville launches high income infrastructure MLP ETF

Feb 18th, 2013 | By | Category: Equities

Yorkville ETF Advisors has expanded its line-up of master limited partnership (MLP) products with the launch of the Yorkville High Income Infrastructure MLP ETF (YMLI).

Yorkville launches high income infrastructure MLP ETF

Yorkville has launched the high income infrastructure MLP ETF.

The NYSE-listed fund provides exposure to infrastructure MLPs, which are expected to benefit significantly over the next decade in response to demand for pipelines, storage facilities and processing systems required by rapidly growing US energy production.

Darren Schuringa, managing partner of Yorkville ETF Advisors, said: “Infrastructure MLPs provide investors with a potential source of high income and distribution growth in a yield-starved environment.”

He added: “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.”

The fund complements the existing Yorkville High Income MLP ETF (YMLP), which launched in March last year and has accumulated almost $140 million in assets. The two offerings have no overlap in holdings and, together, provide composite exposure to the MLP universe.

The fund is benchmarked to the Solactive High Income Infrastructure MLP Index, an index utilising a three-level screen to provide the basis for both quality (as defined by stable and growing distributions) and high income within a less concentrated portfolio.

Index constituents have market capitalisations greater than $1 billion and three-month average daily trading volume of $4 million. The index has 25 constituents, which are equal-weighted. The index is rebalanced annually and is published and maintained by Structured Solutions.

The fund has annual operating expenses of 0.82%. Exchange Traded Concepts serves as investment adviser, with Yorkville ETF Advisors and Index Management Solutions as sub-advisers.

Alternative products in the exchange-traded products space include the Alerian MLP ETF (AMLP) and the UBS ETRACS Alerian MLP Infrastructure Index ETN (MLPI), both of which are linked to the Alerian MLP Infrastructure Index and listed on the NYSE Arca. Similar to the Solactive index, the Alerian index comprises 25 energy infrastructure MLPs earning the majority of their cash flow from the transportation and storage of energy commodities.

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