That low by comparison yield is a direct result of EMLP capping its MLP exposure. By doing so, the ETF’s largest holding is Kinder Morgan (NYSE: KMI), which by way of one of the largest energy sector acquisitions in U.S. history, earlier this year folded its partnerships into a traditional corporate structure. EMLP also allocates a third of its weight to electric utilities, a nice advantage in year which utilities are vying with health care to be the S&P 500’s best sector.
Investors have not been deterred by EMLP’s yield. Although it is low by MLP standards, it is still almost 90 basis points above where 10-year Treasury yields closed Monday. The ETF has added $413 million in new assets this year and with $971.3 million in assets under management, EMLP is one of the largest actively managed ETFs in the U.S. [Another Big Year of MLP ETF Inflows]
EMLP’s ascent has helped make First Trust the second-largest issuer of actively managed ETFs behind PIMCO. For the week ending Dec. 12, First Trust had $2.44 billion in actively managed ETF assets under management across 14 funds, according to AdvisorShares data.
First Trust North American Energy Infrastructure Fund
