When coupled with a diversified asset allocation, MLPs can help increase the diversification and enhance the potential for returns and income. In the current environment, we favor MLP ETFs that focus on midstream businesses, such as pipelines. Our outlook for interest rates over the near term, attractive valuations, and potentially reduced volatility should bode well for the sector. Additionally, many MLP ETFs can provide access to this market without the tax filing headaches associated with K-1s.
This article was written by Gary Stringer, CIO, Kim Escue, Senior Portfolio Manager, and Chad Keller, COO and CCO at Stringer Asset Management, a participant in the ETF Strategist Channel.
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