Midstream energy ETF surpasses $50m AUM following industry milestone merger

  • L&G US Energy Infrastructure MLP UCITS ETF (MLPi) recently merged into MMLP.
  • MMLP provides exposure to midstream energy companies involved in the processing transportation and storage of oil natural gas and natural gas liquids in the US and Canadian markets.
  • Midstream energy is defensive by nature which can make it resilient in periods of high inflation.
  • MMLP’s index dividend yield is approximately 7.65%. [1]

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October 2023 London

HANetf Europe’s first and only independent white-label UCITS ETF and ETC platform[2] and leading provider of digital asset ETPs is delighted to announce that Alerian Midstream Energy Dividend UCITS ETF (MMLP) has reached $54.87 million assets under management (AUM) following the groundbreaking merger with L&G US Energy Infrastructure MLP UCITS ETF into MMLP. [3]

The merger helps to consolidate the midstream energy ETF offering for European investors while also increasing the scale of the combined funds.

Launched in July 2020 MMLP provides exposure to midstream energy companies involved in the processing transportation and storage of oil natural gas and natural gas liquids -in both the US and Canadian markets. It tracks the Alerian Midstream Energy Dividend Index. As of the end of September MMLP’s index dividend yield is approximately 7.65%. [4]

The midstream energy sector is fee-based meaning cash flows are less sensitive to commodity price volatility compared to other energy sectors such as oil and gas producers. This makes enables MMLP to be a defensive play in periods of high inflation and commodity price volatility.

Additionally MLPs pay no taxes at the entity level and can therefore pay out more of their cash flows to investors as distributions. Midstream companies are volume-driven businesses that stand to benefit from the growing US and Canadian energy production -and rising demand domestically and internationally.

Since the energy crisis exacerbated by Russia’s Invasion of Ukraine and a subsequent unwillingness (or inability) to rely on Russian oil and gas US and Canadian companies have had to step up. European demand for liquefied natural gas (LNG) has grown over the past 12 months with Europe becoming the primary destination for US LNG exports in 2022 (at 64%).

MMLP has a US-listed sister fund Alerian MLP ETF (AMLP) with over $7.07 billion AUM. HANetf’s white-label service allows US investors to bring their products to Europe as Irish-domiciled UCITS ETFs quickly and efficiently. MMLP is one such example of this and HANetf has brought over 10 US-listed ETFs to the European market.

Hector McNeil Co-CEO and Co-Founder of HANetf comments: “We are delighted to see MMLP reach just under $55 million AUM following the merger of MLPI into it. The deal could prove to be a precursor to similar and larger mergers for HANetf in the future including merging entire platforms with our own. The merger is facilitated due HANetf’s unique position of being able to provide services to asset managers who want to enter the ETF market cost and time efficiently and also to existing issuers who are looking for innovative solutions such as this merger.

“MMLP is extremely timely given the ongoing energy crisis and inflation -for investors looking for a defensive play against rising rates MMLP provides a strong solution.”

All performance figures are showing net data. Past performance is not indicative of future performance and when you trade ETFs your capital is at risk.

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