Active Energy Infrastructure ETF Hits The Market (EMLP)
By Michael Johnston:First Trust has launched its first actively-managed ETF, debuting a fund this week that will offer exposure to U.S. and Canadian energy infrastructure companies. The North American Energy Infrastructure Fund (EMLP) will invest in Master Limited Partnerships (MLPs), Canadian income trusts, pipeline companies, and utilities that generate at least half of their revenues from the operation of infrastructure assets such as pipelines, power transmission, and petroleum and natural gas storage.Interest in the North American energy infrastructure sector has spiked in recent years, in part because of the search for meaningful yield brought on by a prolonged period of record low interest rates. Because MLPs are required to distribute substantial portions of their earnings to receive certain tax advantages, these securities are known to offer hefty yields. Moreover, energy infrastructure assets generally do not exhibit the same degree of volatility as traditional oil stocks. Because these companies focus on theComplete Story »
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