Midstream Marvels: An ETF Strategy for the Low-Rate Landscape

In a stubbornly low interest-rate environment, investors are seeking out alternative avenues to generate extra yield. Midstream energy companies and master limited partnerships are two of the more credible asset classes in this arena.

In the upcoming webcast, Midstream Marvels: An ETF Strategy for the Low-Rate Landscape, John Love, President and Chief Executive Officer, USCF; and John Cusick, Portfolio Manager and Research Analyst, Miller/Howard Investments, will dive deeply into the midstream energy market and outline a new actively managed strategy.

Specifically, USCF recently launched the USCF Midstream Energy Income Fund (UMI) with sub-adviser Miller/Howard Investments, a Woodstock, NY-based, research-driven portfolio management firm. UMI, an actively-managed ETF, will apply Miller/Howard’s hallmark bottom-up fundamental research to midstream energy infrastructure companies focused on energy transportation, storage, and gathering/processing.

The Miller/Howard investment philosophy emphasizes income-producing equities as essential elements to building long-term wealth. Dividend income from high-yielding sectors like midstream energy can be used to fund current spending needs or, when reinvested, to drive the power of compounding to grow wealth over time. Miller/Howard has integrated environmental, social, and governance (ESG) analysis with fundamental research since its first strategy in 1991.

UMI is the first collaboration between USCF and Miller/Howard and illustrates how it is possible to invest in the energy sector while considering ESG attributes.

Miller/Howard’s research and analysis focuses on the quality of a company, its ability to grow income, and the sustainability of its business model and practices. In the unique case of MLPs, where traditional avenues for shareholder engagement and proxy voting are unavailable, Miller/Howard has written two Open Letters to MLP/Midstream Management Teams calling for them to address key issues ESG issues identified by investors. Miller/Howard is also dedicated to dialogues with MLP and midstream companies, with recent initiatives focused on environmental management, board gender diversity, and disclosures around executive compensation.

Financial advisors who are interested in learning more about a midstream energy strategy can register for the Wednesday, April 21 webcast here.