What is TPZ? An Energy Solution for Financial Advisors

A New Era of Energy Requires a New Approach

Electrification. AI infrastructure. Data center growth. The energy sector is evolving, and the demands for energy infrastructure are shifting just as rapidly. Yet many ETFs remain anchored to outdated benchmarks—tracking upstream producers or focusing narrowly on oil and gas exposure.

For financial advisors witnessing these market changes, a different kind of solution is required: one that delivers real asset exposure, seeks stable income and the flexibility to adapt. That’s where the Tortoise Essential Energy Fund (TPZ) stands apart.

TPZ at a Glance: A Multi-Asset Strategy for an Evolving Landscape

TPZ is not a traditional energy ETF—and that’s by design. Launched in its ETF form in late 2024, TPZ was developed by Tortoise Capital to reflect today’s energy realities: essential infrastructure, rising electricity demand and the need for risk-managed income solutions.

Its actively managed portfolio spans multiple asset classes and sectors, including:

Electric utilities expanding capacity to support grid modernization
Natural gas infrastructure providing scalable, reliable baseload power
Nuclear-connected companies tied to the resurgence of zero-carbon energy
Covered call strategies designed to enhance yield in various market conditions

This breadth offers more than just diversification—it provides access to the income-generating backbone of the modern energy economy.

Structural Differentiators That Matter

Many energy ETFs take a narrow approach, tracking indexes with limited flexibility, infrequent distributions, and volatile return profiles. TPZ takes a different path.

Feature	TPZ	Passive Energy ETF
Strategy	Active	Passive
Focus	Electrification + Infrastructure	Upstream oil & gas
Asset Types	Equities, bonds, covered call options	Typically equities only
Income Frequency	Monthly	Quarterly
Tax Form	1099 (no K-1)	1099 (no K-1)
Active Share	80%	Varies, often <10%

Key takeaway: TPZ blends the dependability of essential infrastructure with the agility of active management, without the administrative friction of legacy energy structures.

Why Advisors Choose TPZ

TPZ is built for advisors seeking strategic flexibility, income consistency, and tax efficiency, especially in environments where volatility and client sensitivity are high.

TPZ is designed for:

Registered investment advisors (RIAs) focused on reliable income potential and simplicity
Model builders looking for differentiated energy allocations
Wealth managers aiming to reduce equity beta and tax drag

Tax-Efficient Income—Without Complexity

For advisors managing tax-sensitive portfolios, structure matters as much as strategy. TPZ is built with this in mind:

1099 tax reporting—no K-1s, no surprises
Designed to minimize capital gains distributions via the ETF’s in-kind transfer mechanism
Expense ratio of 0.85%, competitive for a multi-asset active strategy

Advisors avoid tax friction. Clients avoid complexity.

Is TPZ the Right Fit for Your Clients?

In a world where energy markets are evolving, TPZ delivers more than exposure—it offers a strategic solution. Whether you’re looking to anchor an infrastructure allocation, enhance after-tax yield, or provide clients with consistent income from real assets, TPZ may offer the right blend of innovation and reliability.

In client portfolios, TPZ may serve as:

A core infrastructure sleeve with regulated, real-asset exposure
A differentiated source of monthly income potential in a multi-asset income model
A lower-volatility way to gain electrification exposure—without chasing speculative themes

Download the eBook

Beta is the covariance of manager and benchmark divided by the variance of the benchmark. Beta is a measure of systematic risk, or the sensitivity of a manager to movements in the benchmark. A beta of 1 implies that you can expect the movement of a manager’s return series to match that of the benchmark used to measure beta.

Disclosures

Nothing in this article should be considered a solicitation to buy or an offer to sell any shares of the portfolio in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction. 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.