As of 27/01/2022
Fund Overview
The Alerian Midstream Energy Dividend UCITS ETF (MMLP) aims to provide diversified exposure to midstream energy companies involved in the processing, transportation and storage of oil, natural gas and natural gas liquids in the US and Canadian markets. The MMLP midstream energy ETF includes both master limited partnership companies (MLPs) and C-corps.
MMLP is the first UCITS ETF to provide exposure to the energy infrastructure sector via an Alerian index. By employing a synthetic strategy, MMLP enables efficient replication of the index.
Please remember that the value of your investment may go down as well as up and past performance is no indication of future performance.
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Why Invest in MMLP Energy ETF?
Yield Enhancement:
MLPs pay no taxes at the entity level so they can pay out more of their cash flow to investors as distributions. The 5 year average yield for energy infrastructure companies, represented by the AEDW Index is 7.62% (Source: Alerian, as of January 22nd 2021).
Defensive Energy Exposure:
Given the fee-based nature of midstream, cash flows are less sensitive to commodity price volatility compared to other sectors of energy, such as oil and gas producers.
Stable Cash Flows:
Midstream companies are largely fee-based, volume-driven businesses that benefit from the growing US and Canadian energy production and rising demand domestically and internationally.
Risks
Energy infrastructure companies may be subject to specific industry
and sector risks such as commodity price fluctuations and decrease in
demand for energy during a recession
While there is no legislation currently aimed at MLPs, a removal or
alteration of MLPs’ tax treatment could negatively affect performance
The use of swaps as a replication strategy introduces counterparty risk
Investors’ capital is fully at risk and investors may not get back the
amount originally invested
Exchange rate fluctuations could have a negative or positive effect on
returns
The value of equities and equity-related securities can be affected by
daily stock and currency market movements
Further risks are disclosed in the KIID and Prospectus