For the week ending Jan. 25, EMLP’s shares outstanding total rose by 400,000 as the ETF added $47.5 million in new assets, according to AdvisorShares data. EMLP is now one of the largest actively managed ETFs in the U.S.
EMLP has also proven resilient as oil prices have plunged. Over the past 90 days, the ETF has gained 1% while the United States Oil Fund (NYSEArca: USO) has plunged 46%. EMLP has a 12-month distribution rate of almost 3.1%. [Active MLP ETF Works]
“2014 provided a good reminder of how difficult it is to accurately forecast crude oil prices. Like any commodity, prices are ultimatelydetermined by supply and demand; but, more so than most other commodities, free market forces are heavily influenced by both geopolitics and government regulations. As global oil markets seek equilibrium in the months ahead, we believe investors should be prepared for continued volatility. Moreover, ETF investors should evaluate the extent to which certain funds may be exposed to future volatility in the price of oil and natural gas. For those seeking exposure to non-cyclical energy infrastructure investments, we believe EMLP may be a valuable alternative to MLP index ETFs,” adds Issakainen.
First Trust North American Energy Infrastructure Fund