Alerian, a Dallas-based research group, launched the Alerian MLP ETF (AMLP) on Wednesday, August 25. The company says it is the first exchange-traded fund to access the master limited partnership asset class.
There are several MLP-related exchange-traded notes, or ETNs, currently trading – such as the UBS E-TRACS Alerian MLP Infrastructure ETN (MLPI).
On August 26, the new ETF traded at about $15 a share on volume of 722, 700 shares.
Unlike traditional corporations, MLPs are publicly traded companies that are structured as partnerships that must distribute the majority of their profits and are shielded from certain tax liabilities. As a result, unitholders often enjoy yields of 5-12% on their MLP holdings.
The Alerian MLP ETF provides exposure to the Alerian MLP Infrastructure Index (AMZI), a liquid, midstream-focused subset of energy MLPs that earn most of their cash flow from the transportation, storage, and processing of energy commodities, the company says.
According to a statement, “The index provides diversified, hard-asset exposure specifically to infrastructure investment,” says Alerian.