NEW YORK TheStreet -- In the last couple of years there has been a flurry of exchange-traded products covering the master limited partnerships, or MLPs, with all of the funds so far having slightly different weightings of the same relatively large MLPs. MLPs often provide infrastructure that allows oil and gas to get from one place (where it is taken out of the ground) to where it can be processed for consumption (like refineries) and collects what amounts to a toll.
The new Global X Junior MLP ETF hopes to separate from the pack by offering small-cap MLP exposure. The Global X literature promoting the fund points to IEA estimates about increased oil and gas production in the U.S. benefitting MLPs in general, and increased production in the Bakken benefitting the small caps in particular, as the catalyst to buy MLPJ because exploration is more likely to involve smaller companies, even for transportation.
The methodology for the underlying index' construction calls for companies with market caps of $2.5 billion or less. The largest holdings in the fund are Suburban Propane Partners 6.77%, Northern Tier Energy 6.61% and Alliance Resource Partners . The fund has 25 holdings in all and charges a 0.75% expense ratio. ...
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