Global X Funds launched the Global X Junior MLP ETF (MLPJ) in January. MLPJ targets the small-cap segment of the master limited partnership (MLP) market.
The Global X Junior MLP ETF is linked to the Solactive Junior MLP Index, which shadows energy and resource master limited partnerships with market sizes between $200 million and $2.5 billion. As of Jan. 11, 2013, the index consisted of 25 MLPs and the three largest components of the index were Suburban Propane Partners, Northern Tier Energy and Alliance Resource Partners. The fund pays quarterly income distributions. Tax features of MLPJ include 1099 tax reporting (no K-1s) and qualified dividends. Like all MLP ETFs, MLPJ is IRA and 401(k) eligible. “We are pleased to offer the first and only ETF that provides access to the rapidly growing junior MLP market,” said Bruno del Ama, chief executive officer of Global X Funds. “MLPJ uniquely meets investor demand for both income and growth in the energy space.” MLPJ will join other ETPs focused in the same sector like the ALPS Alerian MLP ETF (AMLP), the Global X MLP ETF (MLPA), and the JPMorgan Alerian MLP ETN (AMJ).
MLPJ’s annual expense ratio is 0.75%. Global X Funds is based in New York and manages $1.58 billion in ETF assets.