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. Consequently, MLPs have historically shown a weaker correlation to energy prices over longer periods as MLPs act more like energy toll roads, profiting on the volume of oil moving through their pipelines.
“The ETF’s largest holding is Energy Transfer Partners, which comprises 11.6 percent of its exposure. The fund lost a record $636 million in assets in July, as energy firms battled to cut distributions to shareholders in order to stabilize their balance sheets and simplify their operations,” according to Bloomberg.
Shares of AMLP gained nearly 3% last week.
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