New ETF - Alerian Midstream Energy Dividend UCITS ETF - MMLP - 10.36% yield

Interesting new ETF just listed on LSE.

31 MLP & C-Corps US & Canadian. 84% investment grade. US energy companies. Revenues tied to long term contracts and many inflation proof.

Current yield is 10.36%. historical 5 year average circa 7.5%.

Alerian US firm with 75% market share in this space.

1 Like

You’ll get yourself on the naughty list if you keep big-upping your own products

So far no one’s noticed

Shhhhhhhhh

:shushing_face:

4 Likes

Either way… I want this…

Why? I literally cannot understand the point of this product.

If Freetrade had 1000s of sensible ETFs then sure, go ahead, add it, why not. Until then I’d rather they add something more useful.

When it does reach that point I’ll go ahead and set up my own Asia Downstream Energy weighted by the length of the CEO’s Twitter handle ETF and charge 0.4% for it because apparently there’s a market for this stuff.

Pretty popular in the US. $20bn of AUM in ETFs there. its pretty clear and i think even more interesting since BP & Shell have cut dividends. MLP and C-Corps get special tax treatment and all income is passed tax free. The 5 year avg yield is 7.5%. 80%+ of companies are investment grade. Income is pretty hard to find and anything yielding 10.5% is pretty incredible tbh. After the massive 0.4% you mention thats still 10.1%, not bad.

TBH i only work with asset managers i like. alerian are a great firm. get your point tho.

I just mean it seems weird to pay for such a strange product with so few constituents

It hasn’t returned 10.5% though, it actually has a negative return over the past 5 years.

Not sure that’s aimed at me
But - cool, glad to hear it :man_shrugging:

I think the 10.5% is referring to the yield rather than the return. The cost of the ETF is relatively high but then it is relatively small. There are certain fixes regulatory costs which are large but diluted in larger ETFs.

correct its the yield