Investment researcher Morningstar was out recently with a warning on one the category’s most popular funds, ALPS Alerian MLP ETF (NYSEArca: AMLP). [Morningstar Warns on MLP ETF Taxes]
MLP ETFs and exchange traded notes have added over $200 million in assets since mid-October, reports Murray Coleman for MarketWatch. [MLP ETFs in Focus After Hurricane Sandy]
“The average investor is probably best served buying MLPs in an IRA (individual retirement account) through an ETN, which typically receives better tax treatment than an ETF since it represents a note tied to the performance of an underlying index and doesn’t actually own securities,” Austin Poirier, a senior investment advisor at Ballentine Partners, said in the article.
MLP ETFs include:
- ALPS Alerian MLP ETF
- First Trust North American Energy Infrastructure Fund (NYSEArca: EMLP)
- Global X MLP ETF (NYSEArca: MLPA)
- Yorkville High Income MLP ETF (NYSEArca: YMLP)
MLP ETNs include:
- JP Morgan Alerian MLP Index ETN (NYSEArca: AMJ)
- Credit Suisse Master Limited Partnerships ETN (NYSEArca: MLPN)
- Morgan Stanley Cushing MLP High Income Index ETN (NYSEArca: MLPY)
- UBS ETRACS Alerian MLP Infrastructure ETN (NYSEArca: MLPI)
- UBS ETRACS 2xMonthly Leveraged Long Alerian MLP Infrastructure ETN (NYSEArca: MLPL)
- UBS ETRACS Alerian Natural Gas MLP ETN (NYSEArca: MLPG)
- UBS E-TRACS Alerian MLP Index ETN (NYSEArca: AMU)
- UBS ETRACS Wells Fargo MLP Index ETN (NYSEArca: MLPW)
- UBS ETRACS 1xMonthly Short Alerian MLP Infrastructure TR* ETN (NYSEArca: MLPS)
For more information on master limited partnerships, visit our MLPs category.
Max Chen contributed to this article.