January 14, 2013 at 09:00 AM EST
How To Find The Best MLP ETF
As an investment category, master limited partnerships (MLPs) have long been popular with investors who want to generate tax-advantaged income from their investments. These entities are generally built around natural resources (especially the transport of oil and/or gas), and in exchange for passing along a very high percentage of earnings to shareholders, they are given preferential tax treatment [Download How To Pick The Right ETF Every Time]. Unfortunately, ownership of MLPs can significantly complicate an investor’s tax returns, and there are always company-specific risks to consider. ETFs offer a real advantage because they not only diversify the risk, they also provide a simple Form 1099 to investors instead of a K-1. On the downside, MLP ETFs/ETNs are still relative newcomers to the market, and there aren’t a lot of large or liquid options. Price Drivers Given that so many MLPs are built around midstream, storage or energy transportation businesses, it’s not [...] Click here to read the original article on ETFdb.com. Related Posts: Guide To MLP ETFs (And ETNs) MLP ETFs Have Post-Election Hangover AMJ Gets A Cap: MLP ETFs In Focus UBS Launches Leveraged MLP Infrastructure ETN (MLPL) UBS Adds Its Own Alerian MLP ETN (AMU)
As an investment category, master limited partnerships (MLPs) have long been popular with investors who want to generate tax-advantaged income from their investments. These entities are generally built around natural resources (especially the transport of oil and/or gas), and in exchange for passing along a very high percentage of earnings to shareholders, they are given preferential tax treatment [Download How To Pick The Right ETF Every Time]. Unfortunately, ownership of MLPs can significantly complicate an investor’s tax returns, and there are always company-specific risks to consider. ETFs offer a real advantage because they not only diversify the risk, they also provide a simple Form 1099 to investors instead of a K-1. On the downside, MLP ETFs/ETNs are still relative newcomers to the market, and there aren’t a lot of large or liquid options. Price Drivers Given that so many MLPs are built around midstream, storage or energy transportation businesses, it’s not [...]

Click here to read the original article on ETFdb.com.

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