MDST vs TMLP

MDSTCWestwood Salient Enhanced Midstream Income ETF

TMLPCTortoise MLP ETF

In short

MDST Midstream pipelines already throw off cash. MDST layers a covered call overlay on an actively picked pipeline and MLP book, then pays it out monthly, in a 1099 wrapper instead of the MLP K-1 shuffle.

TMLP MLP exposure without the K-1 envelope. TMLP takes its index exposure through total return swaps inside a RIC structure, so shareholders get a single Form 1099 and skip the fund-level deferred tax accrual that C-corp MLP funds carry.

Stated mandate

MDST The Fund seeks income by investing at least 80% of its net assets, including certain investment-purpose borrowings, in securities of North American midstream corporations and U.S. master limited partnerships.

TMLP The Fund seeks to track, before fees and expenses, the total-return performance of the Tortoise MLP Index SM.

Why people hold it

• MDST Two income engines, one ticker: distributions from pipelines and MLPs, plus premium collected from writing calls on holdings. Cash goes out monthly.gcs-web.com
• Caps direct MLP holdings at 25% of assets, so shareholders get a 1099 and skip K-1 forms; part of each payout can be return of capital.dividend.comwestwoodgroup.com
• Actively run, not index-shadowing: Westwood's team picks the midstream names and runs the option overlay, with at least 80% in North American midstream and US MLPs.westwoodgroup.com

• TMLP Full MLP index exposure via total return swaps in a RIC wrapper: one Form 1099, no K-1s, and none of the fund-level deferred tax liability legacy C-corp MLP funds accrue.tortoisecapital.com
• Tracks the Tortoise MLP Index, a rules-based benchmark with a 10-plus year history covering 20-some partnerships across energy transport, processing and storage.tortoisecapital.com
• Home-field advantage: Tortoise launched the first MLP closed-end fund in 2004 and built this index itself rather than licensing someone else's.tortoisecapital.com
• Pays quarterly, with distributions designed to line up with the cash-generating profile of the index's underlying MLPs.tortoisecapital.com

Worth knowing

• MDST Costs 0.80% a year. That is about the energy-cohort median, but roughly double an index-built midstream fund like MLPX at 0.45%.
• Calls written on holdings swap upside for premium: when those pipelines rip, the capped positions do not come along for the whole ride.gcs-web.com
• Launched in 2024, non-diversified, and concentrated in one industry, so the record is short and the ride is sector-shaped.westwoodgroup.com

• TMLP 0.50% a year sits a bit above the typical index-tracking ETF. That's the toll for the swap-based, K-1-free plumbing.
• Swaps carry counterparty risk. The fund may deal with one or a limited number of counterparties, and a counterparty default would reduce the value of your shares.tortoisecapital.com
• A December 2025 launch: still small and thinly traded, and non-diversified, so spreads can be wider and a short list of names drives the ride.tortoisecapital.com

Full MDST profile⁠

Full TMLP profile⁠