“Traditional assets will continue to dominate the MLP space as the enormous investment in large-scale pipeline/midstream infrastructure projects to serve the shale basins has several years to play out,” Fitch said.

Unlike popular MLP ETPs, like the Alerian MP ETF (NYSEArca: AMLPand JPMorgan Alerian MLP Index ETN (NYSEArca: AMJ), MLPX limits direct exposure to MLPs to 25% of the portfolio and includes other energy infrastructure stocks. MLPX is also one of the cheapest MLP-related funds, with a 0.45% expense ratio. AMLP and AMJ both have 0.85% expense ratios.

Hybrid MLP ETFs include exposure to master limited partnerships, MLP affiliates and other energy infrastructure stocks so that they won’t have to be structured as a C-Corporation and incur taxes whenever it rebalances holdings. MLPX and the Alerian Energy Infrastructure ETF (NYSEArca: ENFR) are two passive, index-based options, whereas the First Trust North American Energy Infrastructure Fund (NYSEArca: EMLP) is actively managed. ENFR has a 0.65% expense ratio and EMLP has a 0.95% expense ratio. [How MLP ETF Structures Affect Yields and Returns]

Global X MLP & Energy Infrastructure ETF

For more information on master limited partnerships, visit our MLPs category.


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