The Tortoise MLP ETF (TMLP) strives to offer a higher after-tax return profile than other MLP products at a lower fee.
Investors deserve MLP products that are low-cost, transparent and aligned with their interests. The investment landscape has evolved, and innovation in the ETF structure has unlocked a better way to deliver master limited partnership (MLP) exposure. With the Tortoise MLP ETF, we are modernizing access to an essential asset class and removing the compromises of past structured product setups.
TMLP delivers several attractive features via an innovative regulated investment company (RIC) structure.
- 100% pure MLP exposure
- Tax efficient
- Single 1099 reporting, no K-1s
- No corporate tax drag or NAV tax deferral
TMLP invests in publicly traded companies organized as limited partnerships or limited liability companies that are engaged in the transportation, production, processing, and/or storage of energy commodities. Built upon the Tortoise Capital legacy of MLP innovation and the seasoned, 10+ year, rules-based Tortoise MLP Index®, TMLP provides balanced exposure across the MLP universe.
The Problem with the Current Universe of MLP Funds
Historically, MLP-dedicated funds accepted the C-Corp structure as the only way to hold more than 25% MLP exposure. This structure is not investor-friendly, as C-Corp funds pay a 21% corporate tax at the fund level, reducing the return of each dollar. Furthermore, deferred tax liability (DTL) adjustments can create unwanted artificial NAV volatility unrelated to fundamentals, and outflows can hurt remaining shareholders by concentrating tax liabilities.
The chart below highlights how AMLP has underperformed its primary benchmark, the Alerian MLP Infrastructure Index, since 2010.
AMLP standardized performance as of 9/30/2025: 1YR NAV/MP: 7.85%/7.78%, 3YR NAV/MP: 17.70%/17.68%, 5YR NAV/MP: 28.80%/28.78%, Since Inception NAV/MP: 4.69%/4.68%.
Past performance is no guarantee of future results.
The TMLP Advantage
TMLP was designed to address the structural limitations associated with MLP C-Corp ETFs. As a regulated investment company (RIC), TMLP avoids the fund-level corporate tax drag inherent in C-Corp structures. IRS rules limit a RIC’s direct ownership of MLPs to 25% of assets. To provide full exposure while remaining compliant, TMLP uses a total return swap linked to the Tortoise MLP Index. The swap is designed to replicate economic performance akin to holding the index directly. Finally, since the fund operates under the ETF Rule, it can also process in-kind redemptions, which helps minimize taxable events for shareholders.
How TMLP compares to the Alerian MLP ETF (AMLP):
| Feature | AMLP (C-Corp) | Tortoise MLP ETF (Registered investment structure & Total return swap) |
|---|---|---|
| Unitary Fee | 0.85% | 0.50% |
| NAV Drag | Yes – 21% corporate tax | None |
| Upside Capture | 100% Upside | |
| Deferred Tax Liability (DTL) Adjustments Revisions made to balance to reflect accurate tax obligations. | Yes – DTL re-measurement can introduce NAV volatility unrelated to market fundamentals | |
| Tax Burden as Investors Exit | Deferred tax liability weighs more heavily on remaining shareholders | None |
| Distribution Schedule | Quarterly | Quarterly |
TMLP strives to outshine AMLP (a C-Corp MLP fund) in many areas, providing the potential for a better-performing, more efficient and cost-effective solution.
Alerian MLP ETF Important Information
Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns less than one year are not annualized. NAV prices are used to calculate market price performance prior to the date when the fund first traded on the New York Stock Exchange. Market performance is determined using the bid/ask midpoint at 4:00pm Eastern time, when the NAV is typically calculated. Market performance does not represent the returns you would receive if you traded shares at other times. For standardized performance current to the most recent month end for AMLP, please call 1-866-759-5679 or visit www.alpsfunds.com.
The investment objectives, strategies, policies or restrictions of AMLP may differ, and more information can be found in its prospectus. Therefore, we generally do not believe it is possible to make direct fund comparisons in an effort to highlight the benefits of a fund versus another.
AMLP Investment Objective: The Alerian MLP ETF (AMLP) seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of its underlying index, the Alerian MLP Infrastructure Index (AMZI).
Click here for standardized performance, ETF fees, and prospectus.
AMLP Expense Ratio: 0.85%
Important Information
Nothing contained in this communication constitutes tax, legal, or investment advice. Investors must consult their tax advisor or legal counsel for advice and information concerning their particular situation. This communication contains certain statements that may include “forward-looking statements.” All statements, other than statements of historical fact, included herein are “forward-looking statements.” Although Tortoise Capital believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Actual events could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. You should not place undue reliance on these forward-looking statements. This communication reflects our views and opinions as of the date herein, which are subject to change at any time based on market and other conditions. We disclaim any responsibility to update these views. These views should not be relied on as investment advice or an indication of trading intention. Discussion or analysis of any specific company-related news or investment sectors are meant primarily as a result of recent newsworthy events surrounding those companies or by way of providing updates on certain sectors of the market. Tortoise Capital, through its family of registered investment advisers, does provide investment advice to Tortoise-related funds and others that include investment into those sectors or companies discussed in this communication. As a result, Tortoise Capital does stand to beneficially profit from any rise in value of the sectors broadly discussed, including individual companies contained within.
Tortoise Capital Advisors, LLC. is the adviser to Tortoise MLP ETF; Exchange Traded Concepts, LLC serves as sub-adviser.
Before investing in the funds, investors should consider their investment goals, time horizons and risk tolerance. The funds’ investment objective, risks, charges and expenses must be considered carefully before investing. The statutory prospectuses and the summary prospectuses (click here) contain this and other important information about the funds. Copies of the funds’ prospectus may be obtained by calling 855-994-4437 or by emailing info@tortoisecapital.com. Read it carefully before investing.
As stated in the Prospectus, the total annual operating expenses are 0.50%. The adviser has agreed to pay all expenses incurred by the fund except for the advisory fee, interest, taxes, brokerage expenses and other fees, charges, taxes, levies or expenses (such as stamp taxes) incurred in connection with the execution of portfolio transactions or in connection with creation and redemption transactions.
Investing involves risk. Principal loss is possible. The fund is classified as “non-diversified,” which means the fund will expose a larger percentage of its assets to a smaller number of issuers than would a diversified fund. Exposure to a limited number of issuers exposes the fund to greater market risk and potential losses than if its assets were diversified among a greater number of issuers. Because the fund’s investment exposure will be concentrated in the energy infrastructure industry, the Fund is subject to loss due to adverse occurrences that may affect that industry. The fund’s focus in this industry presents more risk than if it were broadly diversified over numerous industries and sectors of the economy. Companies in the energy infrastructure industry are subject to many risks that can negatively impact the revenues and viability of companies in this industry, including, but not limited to risks associated with companies owning and/or operating pipelines, gathering and processing assets, power infrastructure, propane assets, as well as capital markets, terrorism, natural disasters, climate change, operating, regulatory, environmental, supply and demand, and price volatility risks.
MLPs are subject to many risks, including those that differ from the risks involved in an investment in the common stock of a corporation. Holders of MLP units have limited control and voting rights on matters affecting the partnership and are exposed to a remote possibility of liability for all of the obligations of that MLP. Holders of MLP units are also exposed to the risk that they will be required to repay amounts to the MLP that are wrongfully distributed to them. MLPs generally do not pay U.S. federal income tax at the partnership level, although under the centralized audit regime, MLPs are audited and imputed underpayments at the partnership level. The performance of securities issued by MLP Affiliates, including common shares of corporations that own general partner interests, primarily depends on the performance of an MLP. The risks and uncertainties that affect the MLP, its operational results, financial condition, cash flows and distributions also affect the value of securities held by that MLP’s affiliate.
The fund is classified as “non-diversified,” which means the Fund will expose a larger percentage of its assets to a smaller number of issuers than would a diversified fund. The Fund is a recently organized investment company with a limited operating history. As a result, prospective investors have a limited track record or history on which to base an investment decision
Derivatives may be riskier than other types of investments because they may be more sensitive to changes in economic market conditions than other types of investments and could result in losses that significantly exceed the Fund’s original investment. The Fund’s use of derivatives instruments, including OTC swap arrangements, involves risks that are different from those associated with direct investments in portfolio securities. For example, if a swap agreement counterparty defaults on its payment obligations to the Fund, this default will cause the value of your investment in the Fund to decrease. The Fund may enter into derivatives arrangements with one or a limited number of counterparties.
Shares of exchange-traded funds (ETFs) are not individually redeemable and owners of the shares may acquire those shares from the ETF and tender those shares for redemption to the ETF in Creation Units only, see the ETF prospectus for additional information regarding Creation Units. Investors may purchase or sell ETF shares throughout the day through any brokerage account, which will result in typical brokerage commissions.
Nothing contained in this communication constitutes tax, legal or investment advice. Investors must consult their tax advisor or legal counsel for advice and information concerning their particular situation.
Quasar Distributors, LLC, distributor
NOT FDIC INSURED · NO BANK GUARANTEE · MAY LOSE VALUE