Global X is launching a master limited partnership exchange traded fund structured as a Regulated Investment Company, avoiding the effects of double taxation associated with C-corporation structure.

According to a note, the Global X MLP & Energy Infrastructure ETF (NYSEArca: MLPX) will begin trading Wednesday, August 7. The fund will try to reflect the performance of the Solactive MLP & Energy Infrastructure Index, which tracks midstream energy infrastructure MLPs and corporations that own and operate pipelines, storage facilities and other assets used in transporting, storing, gather and processing natural gas, natural gas liquids, crude oil or other refined products. MLPX has a 0.45% expense ratio.

Top holdings include Enbridge Inc. 9.0%, Transcanada Corp 9.0%, Kinder Morgan Inc 9.0%, Williams COS 8.0% and Spectra Energy 7.0%. The fund weights 76.6% to natural gas pipelines and 23.4% to petroleum pipelines.

The ETF doesn’t hold more than 25% of its holdings in MLPs due to regulatory restrictions. However, since MLPX is structured as a Regulated Investment Company or Unite Investment Trust, the fund is eligible to pass taxes  on capital gains, dividends or interest earned directly to clients or individual investors.

This process helps protect investors from double taxation where the company and individual investors would be taxed.

On the other hand, the Alerian MLP ETF (NYSEArca: AMLP) is structured as a C-corporation and incurs a deferred tax liability out of the returns every day. Consequently, some argue that AMLP has an expense ratio closer to 5% – 0.85% base expense ratio plus 4% fees listed as “other expenses.” [A Closer Look at Master Limited Partnership ETFs and ETNs]