The fund has 30 holdings, including Magellan Midstream Partners at 5.2%, Plains All American Pipeline at 5.1% and Buckeye Partners at 5.1%. Overall, the fund’s component stocks are more or less evenly spread out.
Sector allocations include natural gas pipelines 41.4%, petroleum transportation 39.5%, exploration & production 7.0%, refining/distribution 6.9% and coal production 5.3%.
MLPA doe snot require a K-1 form come tax season. Investors will only need to fill out a 1099 tax form. Additionally, the ETF may be used in an IRA or 401(k) plan.
The new MLP ETF will compete with other funds, like the ALPS Alerian MLP ETF (NYSEArca: AMLP), which has an expense ratio of 0.85%, and the JP Morgan Alerian MLP Index ETN (NYSEArca: AMJ), which has an expense ratio of 0.85%. [High Income MLP ETF Launches]
For more information on master limited partnerships, visit our MLPs category.
Max Chen contributed to this article.