“First, correlations tend to mean-revert, and it’s not a big leap to suggest that MLPs and crude oil will decouple to some extent. The three month correlation of daily returns is more sensitive than the 12 month correlation we’ve used, and it shows that the relationship has weakened in recent weeks,” according to Investing.com.
As witnessed in other areas of the market, dividend growth stocks and ETFs have outperformed in the long run, whereas dividend cutters have historically underperformed. AMLP outperformed many other MLP-related exchange traded products for the past year and 3-year periods.
“MLPs have demonstrated a more meaningful relationship with stocks both recently and over twenty years. So the more pertinent question for the potential MLP investor is to ask where stocks are going, but perhaps that seems both obvious and unanswerable, so attention shifts back to crude,” adds Investing.com.
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Global X MLP & Energy Infrastructure ETF