Click here to read the original article on ETFdb.com.
Related Posts:- AMJ Gets A Cap: MLP ETFs In Focus
- UBS Debuts Wells Fargo MLP ETN (MLPW)
- MLP ETFs: Fact And Fiction
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Guide To MLP ETFs (And ETNs)
June 27, 2012 at 07:00 AM EDT
Interest in Master Limited Partnerships (MLPs) has climbed significantly over the past few years as the evolution of the exchange-traded product structure has made accessing this asset class cost-effective and easy for investors of all walks. MLPs have caught the attention of yield-hungry investors in particular as this often times overlooked corner of the domestic energy market offers attractive, steady dividend distributions similar to utility companies [see also Energy Bull ETFdb Portfolio]. MLPs are publicly-traded limited partnerships, an overwhelming majority of which operate as energy infrastructure companies. These businesses own and operate natural gas and crude oil pipelines and storage tanks; as such, these companies offer indirect exposure to the energy market since their revenues are not directly tied with underlying commodity prices. MLPs operate under the “toll road” business model in the sense that they generate fee-based revenues, which gives them a risk/return profile that’s more comparable to a utility [...] Click here to read the original article on ETFdb.com. Related Posts: AMJ Gets A Cap: MLP ETFs In Focus UBS Debuts Wells Fargo MLP ETN (MLPW) MLP ETFs: Fact And Fiction ALPS Launches First MLP ETF (AMLP) UBS Launches Inverse MLP ETN
Interest in Master Limited Partnerships (MLPs) has climbed significantly over the past few years as the evolution of the exchange-traded product structure has made accessing this asset class cost-effective and easy for investors of all walks. MLPs have caught the attention of yield-hungry investors in particular as this often times overlooked corner of the domestic energy market offers attractive, steady dividend distributions similar to utility companies [see also Energy Bull ETFdb Portfolio]. MLPs are publicly-traded limited partnerships, an overwhelming majority of which operate as energy infrastructure companies. These businesses own and operate natural gas and crude oil pipelines and storage tanks; as such, these companies offer indirect exposure to the energy market since their revenues are not directly tied with underlying commodity prices. MLPs operate under the “toll road” business model in the sense that they generate fee-based revenues, which gives them a risk/return profile that’s more comparable to a utility [...]
