This is an active ETF that invests most of its net assets in North American energy infrastructure companies. The management team hand-picks U.S. and Canadian natural gas and electric utilities, companies that own pipeline and storage assets, and listed MLPs and their affiliates.

It suits investors who want exposure to the energy sector, with utilities cushioning commodity price swings, along with quarterly cash flow.

It is an ETF run with an active (discretionary) management approach by First Trust.

The fund invests most of its net assets in stocks of North American energy infrastructure companies. By mixing midstream companies that operate pipeline, storage, and processing assets with regulated utilities, it tilts toward cash flow that comes from contracts and rate regulation rather than commodity prices. Holdings and weightings are adjusted at the managers' discretion.

• An active structure in which the managers select securities directly rather than following an index
• A blended portfolio that holds regulated utilities alongside midstream rather than midstream alone, lowering oil price sensitivity
• An approach that adjusts the MLP weighting to manage the burden of the fund's tax structure

Assets under management (AUM) stand at $4.3B, and the expense ratio is 0.95% per year.

Because the fund is actively managed, its fees run higher than those of index-tracking products. In exchange, the managers have room to adjust the mix of utilities and midstream depending on the oil price environment.

The energy infrastructure category as a whole has performed steadily, supported by demand for dividends and expectations of rising power demand. However, because of the large utility weighting, there are recurring periods when performance diverges from midstream-only products depending on the direction of interest rates.

Money looking for both high dividends and real infrastructure assets tends to flow steadily into this category. Interest shifts toward utilities when talk of data center power demand grows, and toward midstream when expectations for natural gas exports rise.

Its strengths are a blended makeup that lowers oil price sensitivity and quarterly distributions. Its weaknesses are the fee burden that comes with active management and sector concentration.

The MLPX ETF shown in the table is an index-based product focused on midstream and MLPs, with lower fees and larger assets. The UMI ETF also invests in midstream, but it is an active fund that hand-picks a small number of stocks, so its character is closer to this ETF. EINC and similar products are relatively small, and the MLPI ETF is a newer product that boosts its distribution yield with an options strategy. Outside the table, midstream index products such as AMLP and ENFR are worth comparing, as is XLU if you want utilities only.

Here is what to check before investing in this ETF. Because it is an actively managed product, you need to monitor both its fees and changes in portfolio composition, and the utility weighting has a large influence on performance.

Because the fund is concentrated in one sector, North American energy infrastructure, a sharp drop in oil prices or a regulatory change is reflected in performance right away. Because of its utility weighting, there may be periods in rising-rate environments when it lags midstream-only products.

It is a fitting choice for investors who want energy exposure but want to reduce oil price volatility. If cost is your priority, compare index-based products such as the MLPX ETF, and if you want pure midstream exposure, compare options such as AMLP as well.