More Thoughts On MLP ETFs/ETNs

With interest rates still hovering near record lows and expected to remain depressed for the foreseeable future, investors have been forced to get creative in their hunt for yield. Some have dialed up exposure to junk bonds, while others have ventured beyond the U.S. border and embraced debt of emerging markets issuers. MLPs have been another increasingly popular option for yield-hungry investors, as this often overlooked corner of the domestic energy market has the potential to offer some juicy current returns that may be more characteristic of bonds than equities. Master Limited Partnerships (MLPs) are entities that generally own infrastructure, such as pipelines that transport natural gas and crude oil. In order to qualify as an MLP, a firm must generate at least 90% of its income from what what the IRS deems to be “qualifying” sources, including the transport or processing of certain energy commodities. MLPs must make quarterly [...] Click here to read the original article on ETFdb.com. Related Posts: MLP Exposure: ETF or ETN? UBS Debuts Wells Fargo MLP ETN (MLPW) MLP ETFs: Fact And Fiction UBS Launches Inverse MLP ETN ALPS Launches First MLP ETF (AMLP)