The Yorkville High Income MLP ETF (NYSEARCA:YMLP) outpaced more than 90 percent of exchange traded funds launched in 2012 as measured by net asset inflows. YMLP was the fifth most successful U.S.-listed equity ETF and eleventh most successful U.S.-listed ETF launched in 2012 overall in terms of inflows out of 174 peers*.
“MLPs offer equity income exposure to the North American energy development revival and we believe investors will be rewarded in strategies that offer true diversification within the asset class.”
YMLP, launched on March 13, 2012, has surpassed $100 million in assets under management in less than ten months of trading.
Darren Schuringa, managing partner of Yorkville ETF Advisors, points to several reasons for the success of the fund.
- The 30 Day SEC Yield as of 12/31/2012 was 8.33% for YMLP.
- The rules-based index that YMLP tracks aims to identify those MLPs least likely to cut their distributions and most likely to increase them.
- Broader access to the MLP asset class and the demand for U.S. energy infrastructure.
“Our success since launch shows us that investors want stable high income sources in the energy infrastructure space,” says Schuringa. “MLPs offer equity income exposure to the North American energy development revival and we believe investors will be rewarded in strategies that offer true diversification within the asset class.”
Since inception on 3/13/12 through 12/31/12, YMLP has returned -7.18%. 30 Day SEC Yield as of 12/31/2012 was 8.33%.
The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. For performance current to the most recent month-end, please call 1-855-937-9383 or visit www.yetfs.com.
The Solactive High Income MLP Index tracked by YMLP is a rules-based index that applies a tiered liquidity weighting methodology to account for liquidity constraints and increase diversification of the portfolio. Analyzed factors include coverage ratio of distributions, distribution growth and size of distributions. A select group of MLPs that are deemed to be most favorable across all three factors become index constituents.
The Solactive High Income MLP Index 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 serves as investment adviser to YMLP. Yorkville ETF Advisors, LLC and Index Management Solutions, LLC serve as sub-advisers.
For more information on YMLP, please visit www.yetfs.com.
About Yorkville ETF Advisors, LLC
Yorkville ETF Advisors, LLC is an asset management firm and a subsidiary of Yorkville ETF Holdings, LLC.
The firm offers a rules-based investment philosophy with the intention of creating ETFs to track new investable indexes oriented toward income and superior investment solutions. Yorkville ETF Advisors uses proven investment management and research to provide investors with innovative investment strategies.
The team at Yorkville ETF Advisors consists of leading industry professionals who have extensive experience in areas such as MLP research and investment management, index derivatives and distribution. This experience gives the firm the necessary resources to develop income-generating ETFs and provide leadership to support the initiatives of the firm and its sister companies within Yorkville ETF Holdings.
“Complete List of New 2012 ETFs” ETF Database, December 31, 2012
“ETF Fund Flows Tool” IndexUniverse
Carefully consider the Fund’s investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Fund’s prospectus, which may be obtained by visiting yetfs.com. Read the prospectus carefully before investing.
Diversification may not protect against market risk.
Investing involves risk, including the possible loss of principal. Narrowly focused investments typically exhibit higher volatility. The energy industry is highly volatile due to significant fluctuation in the prices of energy commodities, as well as political and regulatory developments. Rising interest rates could adversely impact the performance and/or the present value of cash flow of MLPs operating in the energy sector. The abilities of MLPs operating in the energy sector to grow and increase cash distributions can be highly dependent on their ability to make acquisitions that generate increasing cash flows.
Investments in common units of MLPs involve risks that differ from investments in common stock including risks inherent in the structure of MLPs, including (i) tax risks, (ii) risk related to limited control of management or the general partner or managing member, (iii) limited rights to vote on matters affecting the MLP, except with respect to extraordinary transactions, and (iv) conflicts of interest between the general partner or managing member and its affiliates and the limited partners or members, including those arising from incentive distribution payments or corporate opportunities, and cash flow risks. General partners typically have limited fiduciary duties to an MLP, which could allow a general partner to favor its interests over the MLP’s interests. MLP common units can be affected by macro-economic and other factors affecting the stock market in general, expectations of interest rates, investor sentiment towards MLPs or the energy sector, changes in a particular issuer’s financial condition, or unfavorable or unanticipated poor performance of a particular issuer (in the case of MLPs, generally measured in terms of distributable cash flow). Prices of common units of individual MLPs and other equity securities also can be affected by fundamentals unique to the partnership or company, including cash flow growth, cash generating power and distribution coverage. See the prospectus for more detail.
The fund invests in royalty trusts, which are dependent upon the product and sales of natural resources; as the resources deplete, production and cash flows steadily decline, which may decrease distribution rates to the fund. The Fund is non-diversified.
Exchange Traded Concepts, LLC serves as the investment advisor and Yorkville ETF Advisors, LLC and Index Management Solutions, LLC serve as sub advisors to the fund. The Funds are distributed by SEI Investments Distribution Co., which is not affiliated with Exchange Traded Concepts, LLC or any of its affiliates.