DUBLIN, Calif., June 2, 2017 /PRNewswire/ — ETP Ventures, an index creator focused on solutions for the ETF industry, launched its first index, the Oil Hedged MLP index (Ticker OILMLPTR), and licensed it to Amplify ETFs for the creation of a new Master Limited Partnership (MLP) Exchange Traded Fund (ETF). The fund was listed on BATS Global Markets on June 1, 2017.
The Oil Hedged MLP Index is a rules-based index seeking to provide exposure to the 20 highest-yielding MLPs that are involved in oil and gas services, while seeking to reduce crude oil correlation. The 20 index components are selected based on 12-month dividend yield forecasts and equally weighted within the index. To reduce crude oil correlation, the index tracks short positions in near-term crude oil futures contracts. The short oil position ranges from 40% to 100% of the value of the MLPs in the index based on proprietary correlation measures.
ETP Ventures was founded by energy industry veteran Michael Ellison and financial services entrepreneur Joseph McDonald, who recognized the problem of MLP value losses in periods of falling crude oil prices.
“The MLP investment product space, which currently accounts for $64 billion in assets and 75 products, saw their assets cut nearly in half by sharp declines in crude oil prices twice in the last eight years,” said Mr. McDonald. “The severe problem of high correlation between MLPs and crude oil has gone unanswered until now. Our solution seeks to eliminate the daily price relationship between oil and MLPs, thereby allowing pure exposure to the highly favorable dividend income and earnings growth of MLPs,” he added.
Price and return data for OILMLPTR are independently calculated by Solactive AG, and published by ETP Ventures.
About Amplify ETFs
Amplify believes the ETF structure empowers investors through efficiency, transparency and flexibility. Using those benefits as a foundation, Amplify seeks to build ETFs powered by investment strategies from leading index providers and asset managers within unique market segments. Amplify ETFs are sponsored by Amplify Investments, a registered investment advisor. Amplify is also the sponsor of YieldShares, a brand of income-oriented ETFs. The firm was founded by Christian Magoon, an ETF veteran who has launched over 50 ETFs in the United States to date.
About ETP Ventures
ETP Ventures creates financial indexes aimed at reducing volatility in high dividend asset classes, and solving key problems in high growth areas. Our index methodologies are designed to serve the Exchange Traded Fund (ETF) industry. The members have significant experience in the areas of energy and financial services. The indexes developed by the company are used by investment product sponsors and third party index groups in the development of new products.
For the latest information and updates, visit www.hedgedmlp.com.
Kris Monaco, 610-228-2095
Chris Yeagley, 610-228-2095
Joseph McDonald, 804-503-0094
SOURCE ETP Ventures