“Because of legislation forbidding open-end funds from owning more than 25% of their portfolio in MLPs, AMLP is structured as a C-corporation,” according to Morningstar analyst Abby Woodham.
The actively managed First Trust North American Energy Infrastructure Fund (NYSEArca: EMLP) was the first ETF to limit direct MLP exposure to less than 25% and holds exposure to MLP affiliates and other energy infrastructure stocks. EMLP has a 0.95% expense ratio and a 2.66% 30-day SEC yield.
The recently launched Global X MLP & Energy Infrastructure ETF (NYSEArca: MLPX) also limits MLP holdings to under 25%. MLPX has a 0.45% expense ratio. [Global X’s New MLP ETF Attempts to Avoid Tax Bite]
For more information on new fund products, visit our new ETFs category.
Max Chen contributed to this article.