MLP ETFs Fight For Redemption

“The Enterprise Value to EBITDA ratio (EV-to-EBITDA), which seeks to provide more color on the valuations of MLPs, increased marginally in July compared to June as higher oil prices helped MLP unit prices. Since July 2016, the EV-to-EBITDA ratio has increased by approximately 14.60%,” according to Global X.

Related: Why You May Need MLPs in Your Portfolio in 2017

MLP provide income potential as the firms typically pay out the majority of operating cash to investors on a quarterly basis. Looking ahead, MLPs may continue to grow distributions if there is increased energy demand and new energy infrastructure spending. MLPs may also be a play on the current Trump administration’s plans to expand its infrastructure spending, which may also include increased energy pipelines to transport the increasing need for oil to fuel our economy.

MLPX has seen third-quarter inflows of over $24 million while investors have added nearly $176 million to AMLP in the current quarter.

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