The Yorkville High Income MLP ETF (NYSEARCA:YMLP) has declared its third distribution at an annualized yield of 9.29 percent. 30 Day SEC Yield as of 9/30/12 was 7.61%.
YMLP, the first and only exchange-traded fund (ETF) delivering exposure to high income, commodity-based master-limited partnerships (MLPs), will issue $0.405206 per share to holders of the fund. Yorkville estimates that 100% of the distribution will be treated as return of capital.
The ex-/reinvestment date for the distribution is November 14, 2012, the record date is November 16, 2012, and the payable date is November 20, 2012. Yorkville ETF Advisors plans to issue future distributions on a quarterly basis. Distributions are scheduled, but not guaranteed, going forward each year in February, May, August and November, with the next distribution occurring in February 2013.
Since inception on 3/13/12 through 9/30/12, YMLP has returned -1.00%, for an annualized total return of -1.83%. 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 (1-855-YES-YETF) or visit http://www.yetfs.com.
The Solactive High Income MLP Index tracked by YMLP is a rules-based index that applies a multi-factor selection model to the MLP universe. Analyzed factors include coverage ratio of distributions, distribution growth and size of distributions. A select group of MLPs 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, which 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.
To obtain the most recent prospectus, please click here YMLP Prospectus.
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 has proven investment management and research that provides 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.
To receive a distribution, you must be a registered shareholder of the fund on the record date. Distributions are paid to shareholders on the payment date. There is no guarantee that capital gains distributions will not be made in the future. Your own trading will also generate tax consequences and transaction expenses. Past distributions are not indicative of future distributions. Please consult your tax professional or financial adviser for more information regarding your tax situation.
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.
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 treated as a regular corporation for federal income tax, which differs from most investment companies. Unlike traditional ETFs, the Fund is subject to U.S. federal income tax as well as state and local income taxes. Further, the amount of taxes currently paid by the Fund will vary depending on the amount of income, and gains derived from investments and/or sales of MLP interests and such taxes will reduce your return. A portion of the Fund’s distributions is expected to be treated as a return of capital for tax purposes. To the extent distributions represent a return of capital; an investor’s cost basis will be reduced at the time of sale potentially increasing taxes owed.
The Fund may defer income taxes for many years on gains attributable to its underlying MLP holdings and the deferred tax liability used to calculate the Fund’s NAV could vary dramatically from the Fund’s actual tax liability. Upon sale of an MLP security, the Fund may be liable for previously deferred taxes and, as a result, the determination of the Fund’s actual tax liability may substantially increase expenses and lower the Fund’s NAV.
Unlike most ETFs, the Fund expects to effect share redemptions principally for cash, rather than in-kind, which may make the Fund less tax-efficient than an investment in a conventional ETF. Furthermore, the Fund may need to sell portfolio securities in order to raise cash for redemptions. These factors may increase transaction costs and result in the Fund having wider bid and offering spreads than conventional ETFs.
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.
Solactive Indexes have been licensed for use by Exchange Traded Concepts, LLC. Yorkville Funds are not sponsored, endorsed, issued, sold, or promoted by Solactive, nor does this company make any representations regarding the advisability of investing in the Yorkville Funds.