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Should You Invest in the Global X MLP & Energy Infrastructure ETF (MLPX)?

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Looking for broad exposure to the Energy - MLP segment of the U.S. equity market? You should consider the Global X MLP & Energy Infrastructure ETF (MLPX - Free Report) , a passively managed exchange traded fund launched on 08/06/2013.

Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.

Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Energy - MLP is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 8, placing it in top 50%.

Index Details

The fund is sponsored by Global X Management. It has amassed assets over $424.70 M, making it one of the larger ETFs attempting to match the performance of the Energy - MLP segment of the U.S. equity market. MLPX seeks to match the performance of the Solactive MLP & Energy Infrastructure Index before fees and expenses.

The Solactive MLP & Energy Infrastructure Index is intended to give investors a means of tracking the performance of MLPs and energy infrastructure corporations.

Costs

Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.

Annual operating expenses for this ETF are 0.45%, making it one of the least expensive products in the space.

It has a 12-month trailing dividend yield of 4.76%.

Sector Exposure and Top Holdings

It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

The top 10 holdings account for about 68.24% of total assets under management.

Performance and Risk

So far this year, MLPX has lost about -7.67%, and is down about -12.05% in the last one year (as of 04/26/2018). During this past 52-week period, the fund has traded between $11.50 and $14.60.

The ETF has a beta of 1.20 and standard deviation of 27.85% for the trailing three-year period, making it a high risk choice in the space. With about 40 holdings, it has more concentrated exposure than peers.

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.


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