Cushing Energy & MLP ETF (XLEY)

Overview

The investment discussed seeks to mimic the performance, prior to deductions for fees and expenses, of the Cushing® Energy Index. This objective is primarily achieved by allocating at least 80% of the fund's total assets (excluding any collateral from securities lending) into the securities that make up the index. This particular index is known for monitoring the market activities of companies listed within the S&P 500 Energy Index and the Cushing® 30 MLP Index, providing a targeted investment strategy towards the energy sector. Moreover, there is a provision allowing up to 20% of the total assets (again, excluding any collateral from securities lending) to be invested in securities or other financial instruments not present within the index, offering a slight diversification in investment strategy. It should be noted that this fund identifies itself as non-diversified, highlighting a focused investment approach within the energy industry.

Products and Services

The fund offers investment opportunities through several key avenues, particularly structured towards individuals or entities looking to invest in the energy sector. Below are the primary investment services provided by the fund:

• Index-Based Investment:

  This is the fund's core offering, focusing on tracking the returns of the Cushing® Energy Index before accounting for fees and expenses. By investing primarily in the component securities of the index, the fund seeks to offer a return that mirrors the index's performance, which encompasses a broad spectrum of companies within the energy sector.

• S&P 500 Energy Index and Cushing® 30 MLP Index Exposure:

  The fund specifically targets its investments towards companies that are part of the S&P 500 Energy Index and the Cushing® 30 MLP Index. This strategy provides investors with exposure to significant players in the energy and MLP spaces, aiming to capitalize on the growth and income potential within these sectors.

• Non-Index Investments:

  In order to provide flexibility and the potential for enhanced returns, the fund allows for up to 20% of its assets to be allocated towards securities or other investment vehicles not included in its primary index. This portion of the fund's strategy is aimed at taking advantage of opportunities that may not be captured by the index's performance but are still within the broader scope of the energy sector.