The Alerian Midstream Energy Dividend UCITS ETF
The Alerian Midstream Energy Dividend UCITS ETF (MMLP) is a UCITS compliant Exchange Traded Fund domiciled in Ireland. Due to list in July and August.
The fund seeks to provide diversified exposure to energy companies involved in the processing, transportation and storage of oil, natural gas and natural gas liquids in the US and Canadian markets and includes MLPs and C-corps.
It 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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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 7.2% (Source: Alerian, as of May 29th 2020).
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.
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.
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