MDST Profile
The Westwood Salient Enhanced Midstream Income ETF is an actively managed exchange-traded fund designed to focus on income generation through investments in the midstream sector. Under normal market conditions, the fund invests at least 80% of its net assets, including any borrowings made for investment purposes, in securities of midstream North American corporations and U.S. master limited partnerships (MLPs). This emphasis on midstream entities reflects the fund's strategy to target companies involved in the transportation, storage, and processing of energy resources, which are critical components of the energy infrastructure.
Midstream North American corporations and MLPs are known for their potential to generate stable and attractive income streams due to their fee-based revenue structures, which are often less sensitive to commodity price fluctuations compared to upstream or downstream energy sectors. The ETFs investment approach focuses on leveraging these characteristics to deliver enhanced income to its investors, making it a suitable option for those seeking steady cash flows and exposure to the midstream energy sector.
The funds non-diversified status indicates a concentrated investment strategy, focusing heavily on a specific sector rather than spreading investments across a broader range of assets. This concentration allows the ETF to target opportunities within the midstream energy space, potentially benefiting from the specialized knowledge and expertise of the fund managers in identifying high-quality midstream investments. The concentration also underscores the funds commitment to harnessing the potential of midstream energy infrastructure investments for income generation.
Managed by Westwood Salient, the ETF combines active management with a strategic focus on midstream energy assets. The active management approach enables the fund to adapt to market changes and optimize its holdings based on evolving opportunities within the midstream sector. By concentrating on midstream North American corporations and U.S. MLPs, the Westwood Salient Enhanced Midstream Income ETF aims to deliver a robust income profile while capitalizing on the essential role of midstream infrastructure in the energy industry.
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