“The vehicles often have layers of fees that erode the ultimate return realized by investors,” Johnson added. “Many unsophisticated investors are surprised with the more complicated tax issues that investing in these structures typically entails.”
MLP exchange traded products have unique tax-related wrinkles that investors need to consider. [An Overview of MLP ETFs]
Exchange traded products for this asset class include JP Morgan Alerian MLP Index ETN (NYSEArca: AMJ), Alerian MLP ETF (NYSEArca: AMLP), Yorkville High Income MLP (NYSEArca: YMLP) and Global X MLP (NYSEArca: MLPA).
For more information on master limited partnerships, visit our MLPs category.
Max Chen contributed to this article.