For instance, First Trust introduced the actively managed First Trust North American Energy Infrastructure Fund (NYSEArca: EMLP), the first RIC-compliant MLP product that doesn’t dilute the tax benefits of holding individual MLPs. However, by limiting MLP holdings to 25%, the ETF includes other energy infrastructure firms with similar characteristics to MLPs. [An Almost MLP ETF Without Hidden Surprises]

Additionally, the newer Global X MLP & Energy Infrastructure ETF (NYSEArca: MLPX) also limits holdings of MLPs and includes a basket of energy infrastructure stocks to eliminate the corporate-level taxation associated with C-Corporation ETFs.

Morningstar analyst Abby Woodham, though, warns that the new breed of MLP ETFs can generate less yields than conventional MLP funds, but they may also come with lower management fees.

“This isn’t anything new—these are little more than what have been traditionally known as diversified energy funds,” Ron Rowland, president of Capital Cities Asset Management, an asset-allocation consultant to other advisers, said in the article.

For more information on master limited partnerships, visit our MLPs category.

Max Chen contributed to this article.