Global X launches low-expense MLP ETF

|About: Global X MLP & Energy In... (MLPX)|By:, SA News Editor

The Global X MLP & Energy Infrastructure ETF (MLPX) begins trading. With expense ratio of just 0.45%, it's the cheapest MLP-related fund out there (after taxes) thanks to its structure as a Regulated Investment Corporation instead of a C-Corp.

Avoiding this double-taxation saves on costs, but its holdings cannot be 100% MLPs - it also owns companies involved in pipeline, storage, and transportation of energy products. Top holdings include Enbridge (9%), Transcanada (9%), Kinder Morgan (9%), Williams COS (8%), and Spectra (7%).

One C-Corp competitor - the Alerian MLP ETF (AMLP) - has a nominal expense ratio of 0.85% that ends up being closer to 5% once deferred tax liability is added (it's listed in the fees as "other expenses.").

Another MLP ETF with limited MLP exposure is the actively-managed First Trust North American Energy Infrastructure Fund (EMLP) with expense ratio of 0.95%.

Global X has a C-Corp MLP ETF (MLPA) with nominal expense ratio of 0.45% that rises to 3.52% after the tax liability.

Related ETFs/ETNs: AMJ, MLPI, MLPN, YMLP, MLPL, ATMP, AMU, IMLP, MLPG, YMLI, MLPY, MLPW, MLPJ, MLPS.