Performance
Growth of $100 (10 years as of 9/30/2020)**
Source: Morningstar Direct.
MHI MLP Fundamental Index
Alerian MLP Index
S&P 500 Index
Annualized Performance (as of 9/30/2020)**
MHI MLP Fundamental Index
(45.39)
(19.93)
(10.00)
(2.75)
Alerian MLP Index
(48.35)
(20.75)
(11.58)
(4.17)
S&P 500 Index
15.15
12.28
14.15
13.74
Source: Morningstar Direct. Parentheses represent negative performance data.
It is not possible to invest directly in an index. Index performance does not reflect the deduction of any fees and expenses.
**Miller/Howard Investments, LLC conducted a back test for the MLP Fundamental Index going back to the selection date of November 21, 2008 (Invest Date: November 28, 2008). For the back test, the threshold for the three-month average daily value was waived for all selection dates, excluding the selection date conducted on August 16, 2013. For the historical date November 21, 2008, the Market Capitalization requirement of $500 million was reduced to $400 million to ensure an eligible universe of at least 25 companies. The Market Capitalization requirement was used on all following selection dates. Annualized Performance and Growth of $100 noted above are based on the back test for the period November 28, 2008 – August 22, 2013.
Past performance does not guarantee future results.
It is not possible to invest directly in an index. Index performance does not reflect the deduction of any fees and expenses.
**Miller/Howard Investments, LLC conducted a back test for the MLP Fundamental Index going back to the selection date of November 21, 2008 (Invest Date: November 28, 2008). For the back test, the threshold for the three-month average daily value was waived for all selection dates, excluding the selection date conducted on August 16, 2013. For the historical date November 21, 2008, the Market Capitalization requirement of $500 million was reduced to $400 million to ensure an eligible universe of at least 25 companies. The Market Capitalization requirement was used on all following selection dates. Annualized Performance and Growth of $100 noted above are based on the back test for the period November 28, 2008 – August 22, 2013.
Past performance does not guarantee future results.
Sector Weights
As of selection date 11/20/2020***
***May not total to 100% due to rounding
| Index Information | |
| Tickers | |
| Price Return | MLPMP |
| Total Return | MLPMH |
| Inception Date | August 23, 2013 |
| Calculated by | Chicago Board Options Exchange |
| Rebalancing | Quarterly |
| Index Portfolio Characteristics | |
| Number of Companies | 25 |
| 15 MLPs from Large Group equal weighted at 5% | |
| 10 MLPs from Mid-Small Group equal weighted at 2.5% | |
Constituents
As of selection date 11/20/2020
| Large Cap Group/Company | Ticker |
| Cheniere Energy Partners LP | CQP |
| DCP Midstream LP | DCP |
| Enable Midstream Partners LP | ENBL |
| Enterprise Products Partners LP | EPD |
| Energy Transfer LP | ET |
| Holly Energy Partners LP | HEP |
| Magellan Midstream Partners LP | MMP |
| MPLX LP | MPLX |
| NuStar Energy LP | NS |
| Plains All American Pipeline LP | PAA |
| Phillips 66 Partners LP | PSXP |
| Shell Midstream Partners LP | SHLX |
| Sunoco LP | SUN |
| TC PipeLines LP | TCP |
| Western Midstream Partners LP | WES |
| Mid-Small Cap Group/Company | Ticker |
| BP Midstream Partners LP | BPMP |
| CrossAmerica Partners LP | CAPL |
| Crestwood Equity Partners LP | CEQP |
| Delek Logistics Partners LP | DKL |
| Global Partners LP/MA | GLP |
| Noble Midstream Partners LP | NBLX |
| PBF Logistics LP | PBFX |
| Rattler Midstream LP | RTLR |
| USA Compression Partners LP | USAC |
| Westlake Chemical Partners LP | WLKP |
| Total Members | 25 |
| Download Constituents List ► | |
The securities identified and described above do not represent all of the securities purchased, sold or recommended for client accounts, or all securities considered as a candidate for inclusion in the Index. The reader should not assume that an investment in the securities identified was or will be profitable.
Overview
About This Index
The Miller/Howard MLP Fundamental Index® is a composite of 25 energy master limited partnerships (MLPs) that uses modified equal weighting based on certain quantitative fundamental factors of publicly traded MLPs. The index seeks to go beyond cap-weighted MLP exposure, focusing on fundamental factors that we've identified as potential key drivers of total return performance.
Selection Criteria
- Distribution Growth
- Distribution Coverage
- Estimated Fiscal Year Capital Expenditure
Key Ranking Factors
The index utilizes three main factors in its selection process: distribution growth, distribution coverage, and estimated capital expenditures. In addition, a portion of the index is allocated to mid- and small-cap MLPs.
- Distribution growth is commonly viewed as an MLP's most attractive characteristic. The potential "unfixed" nature of its distributions over time is not only appealing to investors for the growing income stream it provides, but can also be indicative of future growth.
- Distribution coverage is a measure of an MLP's ability to pay regular distributions. A higher distribution-coverage ratio could also signal an MLP's ability to raise future distribution payments.
- Capital expenditures are an important factor to consider, as MLPs with internal and external expansion opportunities often lead to distribution growth.
- Mid- and small-cap MLPs are included. Most MLP investment products are highly concentrated in the largest and most liquid midstream MLPs. Mid- and small-cap MLPs potentially offer attractive risk/return profiles, and can be additive to total income generation. Importantly, these companies may also be involved in industry consolidation in future years.
Eligibility Requirements
- Must be listed on the New York Stock Exchange (including NYSE Arca and NYSE Amex) or NASDAQ.
- Must have existed for at least 12 months.
- Must be an energy MLP or general partner.
- No distribution cut in previous year.
- Market capitalization of at least $500 million.
- Above certain three-month-average daily trading volume thresholds.
Document Links
Index Methodology White Paper ►
Miller/Howard MLP Fundamental Index® Q&A ►
Constituents ►