Typically when we cover the MLP space as it pertains to ETPs, we focus on the giants there, AMLP (Alerian MLP ETF, Expense Ratio 0.85%),and AMJ (Alerian MLP Index ETN, Expense Ratio 0.85%) because they tend to have the most action in terms of fund flows as well as directional options activity.
Recent flows in a much smaller fund in the space, EMLP (First Trust North American Energy Infrastructure, Expense Ratio 0.95%) have caught our attention, with the fund has pulled in close to $200 million in new assets in short order, on some larger trading volume days earlier in May.
These recent inflows have pushed EMLP on at least a few new radars as the fund is fifth largest MLP focused ETP now in the U.S. product landscape. Judging by net inflows in the space, interest continues to be on the rise in MLP based products, and other growing notables that previously may have evaded the attention of ETF portfolio managers due to smaller asset sizes or lower trading volumes include ATMP (Barclays ETN Select MLP ETN, Expense Ratio 0.95%) which now has >$320 million in AUM after its March 2013 launch, as well as YMLP (Yorkville High Income MLP ETF, Expense Ratio 0.82%) and AMU (ETRACS Alerian MLP Index ETN, Expense Ratio 0.80%) which have $293 million and $266 million in AUM respectively.
In fact, based on the quick success in YMLP, Yorkville launched YMLI (Yorkville High Income Infrastructure MLP ETF, Expense Ratio 0.82%) last year, and that fund has a respectable $38 million
in assets at this point.
The space has also attracted a rather diverse group of ETF providers, whom previously may have been known for ETP products of different niches, i.e. Direxion in this case who has ZMLP (Direxion Zacks MLP High Income Shares, Expense Ratio 0.65%), which has pulled in >$20 million since its January 2014 launch.
Similarly, Global X has several products in this space now too, notably MLPA (Global X MLP ETF, Expense Ratio 0.45%) and MLPX (Global X MLP & Energy Infrastructure ETF, Expense Ratio 0.45%). Two reasons that
stand out to us in terms of why the growth in the space are pretty simple: 1) Continual desire for yield from investment managers and investors alike and 2) Desire for investment manager expertise in a space that tends to be difficult to trade at times on a single equity basis.
Direxion Zacks MLP High Income Shares
For more information on Street One ETF research and ETF trade execution/liquidity services, contact Paul Weisbruch at pweisbruch@streetonefinancial.com.
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