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Mark Kennedy

Yorkville ETF Advisors Launches New MLP ETF - YMLI

By February 12, 2013

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Last week I told you about a new MLP fund that was in the works. Well, that fund finally launched today...

  • YMLI - Yorkville High Income Infrastructure MLP ETF

According to Yorkville, YMLI provides exposure to infrastructure MLPs, which offer capital appreciation potential as a group of companies expected to grow significantly over the next decade in response to demand for pipelines, storage and processing systems required by rapidly growing U.S. energy production.

"Infrastructure MLPs provide investors with a potential source of high income and distribution growth in a yield-starved environment," asserts Darren Schuringa, managing partner of Yorkville ETF Advisors. "YMLI represents Yorkville's latest step toward offering a complete suite of products built on the firm's extensive MLP research and asset management experience."

YMLI's debut complements the Yorkville High Income MLP ETF (YMLP), which was fifth among all new equity ETFs in 2012 as defined by net asset inflows. The two offerings have no overlap in holdings and, together, provide composite exposure to the MLP universe.

"Our rules-based index products empower investors with new tools to customize their asset class exposure depending on their needs," adds Schuringa.

The Solactive High Income Infrastructure MLP Index, which YMLI tracks, is the only MLP index that utilizes a three-level screen to provide the basis for both quality (as defined by stable and growing distributions) and high income within a less concentrated portfolio.

Index constituents have market capitalizations greater than $1 billion and three-month average daily trading volume of four million dollars. The 25 constituents with the proper balance of income quality and quantity - as determined by the index provider, and measured by distribution size, growth and coverage ratio - are selected as equal-weighted index holdings, resulting in a less concentrated high income portfolio.

The Index, which is rebalanced annually, is published and maintained by Structured Solutions AG (www.structured-solutions.eu). Structured Solutions AG determines the components and relative weightings of the securities in the Index and publishes information regarding the Index.

Exchange Traded Concepts, LLC will serve as investment adviser to YMLI.  Yorkville ETF Advisors, LLC and Index Management Solutions, LLC will serve as sub-advisers. For more information on YMLI, please visit www.yetfs.com.

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