MLPs are also favored income destinations, but retirees or investors close to retirement should consult with their financial advisors and accountants before allocating to MLPs in retirement accounts.
The ALPS Alerian MLP ETF (NYSEArca: AMLP), the largest exchange traded fund holding master limited partnerships (MLPs), is getting a lift this year from higher oil prices and investors’ thirst for higher-yielding assets.
MLPs primarily deal with the distribution and storage of energy products, so their business model is less reliant on the commodities market since MLPs profit off the quantity of oil and natural gas they are able to move around.
Related: Downtrodden MLP ETFs May Offer Long-Term Opportunity
MLPs don’t make their money based on oil or gas prices. Unlike other energy sector stocks, MLPs primarily deal with the distribution and storage of energy products, so their business model is less reliant on the commodities market since MLPs profit off the quantity of oil and natural gas they are able to move around.
Other options in the MLP ETF arena include the Global X MLP & Energy Infrastructure ETF (NYSEArca: MLPX), InfraCap MLP ETF (NYSEArca: AMZA) and the Tortoise North American Pipeline Fund (NYSEArca: TPYP).
For more news on MLPs, visit our MLP category.