MLP ETFs: Fact And Fiction

The relatively short history of the ETF industry has witnessed both predictable failures and unexpected successes. The hyper-targeted HealthShares line of ETFs seemed like an ill-conceived idea from day one, and few were surprised when the plug was repeatedly pulled on various iterations of the MacroShares products [see ETF Hall Of Shame: Nine Exchange-Traded Debacles]. On the other end of the spectrum are exchange-traded products focusing on the MLP market, a corner of the energy market with which many investors are relatively unfamiliar. When JPMorgan introduced the Alerian MLP ETN (AMJ) in April 2009, few were aware of the new product, and even fewer anticipated that it would be a huge success. But AMJ expanded rapidly, with assets swelling to more than $700 million by the end of the year. As interest rates slid to record lows and dividend yields tumbled, many investors embraced MLPs a source of current income [...] Click here to read the original article on ETFdb.com. Related Stories: ETF Tracking Error: Fact And Fiction ALPS Launches First MLP ETF (AMLP) UBS Launches New Natural Gas MLP ETN (MLPG)