Subsector allocations include exploration & production 44%, energy transportation/storage 39.5%, refining/distribution 13.4% and energy equipment 3.2%.
MLPs build, acquire and operate transportation assets. While investors link MLPs with energy, specifically natural gas and crude oil, they are more involved with transporting the commodities. Consequently, the performance of MLPs is less dependent on commodity prices than on how much of the commodity is pushed through. [Master Limited Partnerships]
According to a Global X note, the International Energy Association calculates that the U.S. will become the world’s largest oil producer by 2017 and a net exporter of natural gas by 2020. MLP related funds will capture the build up in energy infrastructure to meet the exploration, production, transportation and storage demands as the country goes through its energy growth spurt.
Some other MLP funds include:
- ALPS Alerian MLP ETF (NYSEArca: AMLP)
- First Trust North American Energy Infrastructure Fund (NYSEArca: EMLP)
- Yorkville High Income MLP ETF (NYSEArca: YMLP)
- JP Morgan Alerian MLP Index ETN (NYSEArca: AMJ)
- Credit Suisse Master Limited Partnerships ETN (NYSEArca: MLPN)
For more information on new product launches, visit our new ETFs category.
Max Chen contributed to this article.