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.

News

September 28, 2020—CNX Midstream Partners LP (CNXM) has been acquired by CNX Resources Corp (CNX) and the ticker has delisted from the New York Stock Exchange generating a special rebalance of the Miller/Howard MLP Fundamental Index (the Index). The replacement candidate for CNXM will be Genesis Energy LP (GEL).

GEL will enter the index at CNXM's weight.

The Index special rebalance is expected to occur at the close on September 29, 2020.

Document Links

Index Methodology White Paper  ►
Index Fact Sheet  ►
Miller/Howard MLP Fundamental Index^® Q&A  ►
Constituents  ►

Linked Products

C-Tracks Exchange Traded Note  ►