First Trust to Introduce Infrastructure ETF on Thursday (EMLP)
First Trust, the tenth-largest U.S. ETF sponsor by assets, will introduce the First Trust North American Energy Infrastructure Fund (NYSE: EMLP) on Thursday June 21. The First Trust North American Energy Infrastructure Fund, which will charge an annual expense ratio of 0.95 percent, will be the tenth new ETF introduced by First Trust this year.
The fund will be actively managed, according to its prospectus. EMLP will invest primarily in MLPs, Canadian income trusts, pipeline firms, utilities, and other companies that derive at least 50% of their revenues from operating or providing services in support of infrastructure assets such as pipelines, power transmission and petroleum and natural gas storage in the petroleum, natural gas and power generation industries
In the prospectus, First Trust said EMLP's investment strategy will have an emphasis on current distributions and dividends paid to shareholders. The fund can invest in coal, midstream and propane MLPs, among others.
Due to high yields and low correlations to the broader market, MLPs have surged in popularity among investors over the past several years. Exchange-traded products providers have met that demand with an array of new products, including the Yorkville High Income MLP ETF (NYSE: YMLP) and the Global X MLP ETF (NYSE: MLPA), both of which debuted earlier this year.
In terms of assets under management at MLP exchange-traded products, the JPMorgan Alerian MLP Index ETN (NYSE: AMJ) and the ALPS Alerian MLP ETF (NYSE: AMLP) combine to hold the bulk of the roughly $7.5 billion in AUM across MLP ETFs and ETNs.
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