Global X’s MLP ETF crosses $500m AUM on 5-year anniversary

May 4th, 2017 | By | Category: Alternatives / Multi-Asset

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The Global X MLP ETF (NYSE: MLPA) has surpassed $500 million in assets under management, coinciding with the fund’s five year anniversary since its launch.

Jay Jacobs, director of research of Global X.

Jay Jacobs, director of research of Global X.

MLPA tracks the Solactive MLP Infrastructure Index, a reference for the performance of the largest, most liquid midstream Master Limited Partnerships.

According to Global X, the ETF offers several beneficial characteristics including high income potential (MLPs typically pay high yields to investors because they do not pay corporate income taxes) and midstream exposure (MLPA invests in midstream pipelines and storage facilities that have less sensitivity to energy prices).

The ETF has attracted nearly $240 million in net inflows over the last twelve months and is part of Global X’s $2.4bn income ETF suite.

“Despite the low oil price environment, midstream MLPs have demonstrated that their business models built on the transportation and storage of oil and natural gas remain robust,” said Jay Jacobs, director of research of Global X. “Increasingly, investors are exploring low cost, passive exposure to midstream MLPs as a potential source of yield.”

The top holdings in the fund include Energy Transfer (13.0%), Enterprise Products (10.1%), Magellan Midstream (7.9%), MPLX (6.9%) and Buckeye (6.1%).

The ETF has a management fee of 0.45%, more than 40% less than the industry’s average management fee of 0.78% for MLP exchange-traded products.

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