Direxion Files Master Limited Partnership ETF
July 8th, 2013 at 11:35am by John Spence
Direxion, best known for its 300% leveraged and inverse exchange traded funds, plans to launch a master limited partnership product that would join a growing lineup of MLP ETFs.
The firm has filed an initial prospectus with the SEC for Direxion Zacks High Income MLP Shares.
It would be Direxion’s first ETF devoted to master limited partnerships, Morningstar reports.
The asset class has grown popular with investors seeking extra yield and some diversification benefits. [Master Limited Partnership ETF]
The Direxion MLP ETF would change an expense ratio of 0.65%, according to the filing.
The fund’s tracking index is comprised of about 25 stocks selected by Zacks Investment Research, based on investment and other criteria, from a universe of MLPs listed on domestic exchanges.
MLPs are publicly traded partnerships engaged in the transportation, storage, processing, refining, marketing, exploration, production, and mining of minerals and natural resources, the filing said.
The largest MLP exchange traded products include Alerian MLP ETF (NYSEArca: AMLP) and JPMorgan Alerian MLP Index ETN (NYSEArca: AMJ).
The opinions and forecasts expressed herein are solely those of John Spence, 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.