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Tortoise Capital Advisors Introduces its First MLP ETF


Tortoise Capital Advisors, a Kansas-based money manager specializing in energy investments, introduced its first exchange traded fund today, the Tortoise North American Pipeline Fund (TPYP) .

Passively managed, the Tortoise North American Pipeline Fund tracks the Tortoise North American Pipeline Index. That is an in-house index as Tortoise also announced the debut of “Tortoise Index Solutions, LLC, a registered investment advisor and index developer that provides research-driven indices, exchange-traded products and thought leadership in the universe of essential assets. Tortoise’s suite of indices represents different sectors of the broader North American energy sector, using proprietary, research-driven and rules-based methodologies. Currently, Tortoise Index Solutions offers three indices on a price and total return basis: Tortoise MLP Index (TMLP/TMLPT), Tortoise North American Pipeline Index (TNAP/TNAPT), and Tortoise Oil & Gas Producers Index (TNEP/TNEPT),” according to a statement.

The Tortoise North American Pipeline Index is a float-adjusted, cap-weighted index comprised of U.S. and Canadian pipeline firms. The index is home to 102 companies with an average market value of nearly $7.4 billion, according to Tortoise data.

TPYP, the new ETF, also holds 102 stocks with weights ranging from 0.004% to 8.5%. Williams Cos. (WMB), currently the subject of rampant takeover talk, is the new ETF’s largest holding. Other top five holdings include Enbridge (ENB), TransCanada (TRP), Kinder Morgan (KMI) and Spectra Energy (SE). [MLP ETF Rises on Williams Takover Rumor]

“We believe TPYP provides investors a quality way to access both pipeline companies and pipeline MLPs through a passive strategy. We created this fund based on what we perceived as a need in the market for an ETF that not only provides access to the full universe of North American pipeline companies, but does so in a way that more fully captures the total return potential of these assets,” said Tortoise Vice President Jeremy Goff in the statement.

The new ETF, which debuted with $25 million in assets under management, charges 0.7% per year. Investors in TPYP will not be subject to pesky K-1 tax forms come tax time. Rather, TPYP affords investors 1099 tax treatment, according to the issuer.

Tortoise North American Pipeline Fund Top 10 Holdings


Table Courtesy: Tortoise Capital Advisors

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.