Investors flocked to MLPs in the uncertainties that emerged in last summer’s steep equity market sell-off, as MLPs seemed to provide a safe harbor in that they have historically exhibited low correlations to stocks and bonds, and at the same time have provided attractive distributions of income to investors. MLPA tracks the Solactive MLP Composite Index and is priced as the “discount” offering in the space currently with an expense ratio of 45 bps.
YMLP is currently at 82 bps, whereas AMJ is 85 bps, and AMLP is also 85 bps. MLPA’s goal is to provide a proxy for the overall performance of U.S. listed MLPs, much like the Alerian Index attempts to do with AMJ and AMLP, and thus hopes to capitalize on its much lower expense ratio and carve into the massive assets that have accumulated in both AMJ and AMLP over the last several years.
JP Morgan Alerian MLP Index ETN
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