FYI: Cushing Asset Management, a Texas-based asset manager best known in the ETF industry for the master limited partnership (“MLPs”) indexes it provides for ETNs, is jumping the fence and listing a series of ETFs that track its MLP index.
Cushing Energy & MLP ETF (XLEY)
Cushing Utility & MLP ETF (XLUY)
Cushing Transportation & MLP ETF (XLTY)
Cushing Energy Supply Chain & MLP ETF (XLSY)
All the ETFs are built more or less the same way. They start with the Cushing 30 MLP Index then smoosh it together with another index from either S&P or Dow Jones. Companies and MLPs in each product are chosen and weighted based on current yield. Weighting for each company is capped at 6% with a minimum constituent weight of 1%. The total weight of all MLP constituents is capped at 24% at rebalancing for tax reasons, discussed below. The Indexes are rebalanced quarterly.
Regards,
Ted
