Yorkville MLP ETF fleshed out in three months with 'ETF-in-a-box'

By Toni Weeks

San Diego, March 13 - Exchange Traded Concepts, LLC said that the Yorkville High Income MLP ETF began trading Tuesday on the NYSE Arca under the symbol "YMLP."

The new exchange-traded fund utilized Exchange Traded Concepts' "ETF-in-a-box" turnkey solution to planning and creating new ETFs.

"We knew speed to market would be critical for our ETFs and desired a faster, cost-effective platform to launch and market them," Darren Schuringa said in a press release, pointing out that the initial filing with the Securities and Exchange Commission for the new ETF took place only three months ago. Schuringa is a co-founder of Yorkville ETF Holdings and portfolio manager for the ETF.

"The success we've had bringing Yorkville's High Income MLP ETF to market validates the concept and platform we developed to launch ETFs," J. Garrett Stevens, chief executive officer of Exchange Traded Concepts, LLC added in the release.

The new fund, which is the first ETF product to begin trading through Exchange Traded Concepts' private-label ETF platform, is also the first ETF to deliver exposure to high income, commodity-based Master Limited Partnerships. According to subadviser Yorkville Capital Management, LLC, the fund was developed to capture the investment opportunity in commodity sector MLPs, which historically have provided higher yields and faster distribution growth than the more popular infrastructure sector.

"YMLP shatters today's MLP ETF mold by intentionally focusing on the untapped commodity sectors of the MLP asset class, due to their favorable income characteristics," Schuringa said.

As previously reported, the fund seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Solactive High Income MLP Index, 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 distribution. A select group of MLPs that are the most favorable across all three of these factors become index constituents. The constituents fall primarily in the commodity MLP sector, which historically has exhibited more favorable distribution characteristics and similar risk-adjust returns when compared to infrastructure MLPs. The fund will normally invest at least 80% of its total assets in securities of the index.

The fund's investment adviser is Oklahoma City-based Exchange Traded Concepts, LLC. Index Management Solutions, LLC is a subadviser along with Yorkville.

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