AMZA is managed by Jay Hatfield, a former hedge fund manager and investment banker at Morgan Stanley where he focused on the utility and energy infrastructure sectors.
Due to its status as an actively managed ETF, AMZA can employ hedging via derivatives and even short MLPs during periods of increased market stress. Investors will also be treated to a single form 1099 come tax time, not a pesky, late-arriving K-1. The new ETF charges 1.05% per year.
“We believe that investing in companies with tangible assets that produce free cash flow creates stable, intrinsic value and is likely to produce reliable income to investors over time,” said Hatfield in a statement.
ETF Trends editorial team contributed to this post.