Source, the European exchange-traded product provider, has launched the Source Morningstar US Energy Infrastructure MLP UCITS exchange-traded fund.

As the first of its kind in Europe, the fund seeks to provide exposure to US energy infrastructure via master limited partnerships, the firm said.

It will track the Morningstar MLP Composite Index, a rules-based index which targets 97 per cent of the MLP universe by market capitalisation, and currently comprises 39 constituents.

The London-listed fund has a management fee of 0.50 per cent per annum and is available in reinvesting and distributing share classes. It is regulated by the Central Bank of Ireland.

“US energy infrastructure has become a major investment theme, but for European investors, investment opportunities are limited. This product offers a convenient and well-thought-out package: diversified exposure from a highly-regarded index provider and a robust, transparent ETF structure,” said chief executive officer Ted Hood.

Source stresses that domestic US energy production has seen extraordinary growth since 2005, as technological advances have allowed the extraction of oil and natural gas from previously inaccessible reserves. This rising production is driving a significant expansion of energy infrastructure across the US, and MLPs are key players, the firm said.

Although structured as partnerships, MLPs are listed and traded on US exchanges like conventional shares. They own and operate many of the US’ core infrastructure assets, including pipelines, storage facilities, gathering systems and processing facilities.