A Guide for Investors to MLP ETF

NGL Energy Partners is the most popular and reliable publicly traded master limited partnership which is traded on New York Stock Exchange under the tag name of NGL. This is the primary MLP today that is globally acclaimed for offering multiple services to the end-users and producers. The company focuses on achieving organic growth simply by investing in all new assets with a hope to increase their operations, enhance volumes and achieve great returns on investment. Today there are over 25 MLP ETF traded on New York Stock Exchange, but the most popular among them is NGL. Although most of the investment vehicles have the similar characteristics, but what set NGL apart is the unique index construction strategy due to which it always top the list.

Today, a larger number of investors across the globe are searching for effective ways to manage their tax situations, whether it is through tax efficient vehicles such as equity ETFs or tax-deferred accounts such 401(k). Investors who are searching for the best and the tax-benefit investment opportunity will surely find MLP ETF or master limited partnership quite helpful and unique for them.

Master limited partnerships are basically considered to be a unique type of investment pooling vehicle that has a certain objective that is to disburse the earned income in the form of partnership to the investors directly. This type of investment pooling vehicle can only be used in businesses where over 90% of revenue is generated from certain predefined activities, like sorting crude oil, managing natural gas pipelines etc. In general, MLPs are the unique investment vehicle can merge the public tradability of a stock with pass through tax treatment of traditional partnership.

Today, MLP ETF has become the unique cornerstone of energy sector too that guarantee to offer higher yielding without strict restrictions to interest rates. In this investment opportunity the shareholders receive the majority of profits through distributions, thus making them the most attractive and appealing investment vehicle for all income seekers. Most importantly, this investment pooling vehicle doesn’t follow the similar price patterns like other conventional bonds and stocks and this is like a bonus for the investors seeking to balance or diversify the broad mix of assets.

Source : http://mlpfunds.weebly.com/blog/a-guide-for-investors-to-mlp-etf

Detailing the top 10 MLP ETFs for the investors

The growing popularity of ETFs has led to the increase in population that is planning to invest over these funds. However before you invest over them, you must know the top 10 MLP ETF that can serve your purpose of investing over them and make you land over the expected benefits.

Here is a brief outline for the top 10 MLP ETFs as categorized by the experts. Study the details before you invest over them.

  1. E-TRACS 1xMonthly Short Alerian MLP Infrastructure Total Return ETN

The index of this alternative provides the investors with enough exposure and counts in 25 energy infrastructures that are associated with MLPs

  1. Cushing MLP High Income Index ETN

The option emphasizes on current yield and is count in leading options for those who are interested in investing their wealth upon MLP ETFs.

  1. Junior MLP ETF

The index of this option is prepared in a way that it tracks the entire performance of the segment that is linked to small-capitalization.

  1. Yorkville High Income MLP ETF

The index of this MLP ETF counts in the MLPS which are lined with oil production and exploration.

  1. RBC ETN Linked to Yorkville MLP Distribution Growth Leaders Liquid PR Index

The index of this alternative is basically the driven strategy that tracks the investment based on the liquidity profile and growth.

  1. Global X MLP ETFs

The index is designed in a way that it tracks the overall performance of asset class that is being dealt.

  1. Alerian MLP ETF

The index of this option is disseminated by the exchange stock market of New York.

  1. Global X MLP & Energy Infrastructure ETF

The index tends to assist the investors with tracking performance of both energy infrastructure corporations as well as the MLPs.

  1. Yorkville High Income Infrastructure MLP ETF

This is a rule-based index that counts in the three-level screens.

  1. InfraCap MLP ETF

The striking feature for this investing option is that it is not linked to any kind of benchmark.

Authentic information to know what is Master Limited Partnership?

Master Limited Partnership is one of the most common forms of business and it is not meant to be done alone. If you are not aware of the concept of MLP investing or master limited partnership, then I would like to bring this to your knowledge that MLP includes all business partners as well as the investment members who are investing and sharing all profits or losses together. Well, a master limited partnership business cannot be performed alone and hence, it is referred to as publicly traded limited partnership. Such form of business includes an owner and his business partners and investment partners. The shares of the business ownership are known as units. Another important fact that is associated with the master limited partnership is that it is usually operated with the help of infrastructure capital advisors, legit financial resources, natural resources, financial services and supporting real estate industries.

How a master limited partnership works?

Just like any company or an organization, MLPs are also considered as a suitable accumulation of business partners and resources. You cannot refer any MLP business as a single entity. Now, many of us are not aware of one of the distinctive features of any MLP business that it combines all potential tax advantages of the business partnership with the public traded stock benefits. For those who do not know what is master limited partnership can talk to the experts and recognize the fact that they allow the income to pass through without subjecting the corporate income taxes. For people who are heading forward to own the MLP, must realize their responsibility to pay taxes which are being charged on their individual parts of the income. Thus, it eliminates the concept of double taxation which is generally handled by those dealing in corporations. This option merges the liquidity of stocks being traded publicly with the added benefits of partnerships.

Source: http://mlpfund.blogspot.com/2015/04/authentic-information-to-know-what-is.html

Facts to be considered while over Master Limited Partnership ETF

For those who are still not aware about the master limited partnership funds can now access their internet connections and check the details about these limited partnership options that are traded publicly. The shares of ownership linked with MLP investment are recognized as units. These funds generally operate for the enterprises that are dealing in the operations of natural resources. Thus, if you have a firm that deals in processing, production or transportation of natural resources, you can consider these funds for limited partnership. NGL energy partners is one of these companies that has gained its recognition with these MLP funds.

Besides just serving the needs of enterprises dealing in natural resources, the funds can also work for various real estate industries and firms that are engaged in financial services. The master limited partnership funds involve lower risks and benefit the users without making them wait. However, before considering the idea to get along with MLP investment options, you need to ensure that are aware about every essential fact linked with them. NGL Energy partners is the perfect example that ids involved with thee funds. This is a complicated form of twofold corporate taxation.

The distribution is made similarly as the funds and is dealt on the quarterly basis. Thus, the users must be aware with the fact that they are not being guaranteed with the cash distributions. Most of the unit holders are responsible to the taxes which are dealt in equal proportion as the share of their income. You can grab these MLP units from the brokers and thereafter turn yourself into the unit holder. However, it is equally essential to have complete understanding about this investment opportunity before getting along with it.

Take your time to read the facts linked with it and get along with the content and highlights of most popular articles. Various experts can also help you in knowing the details about this opportunity. You can consider their advices and realize the tactics that can help you in earning multiple streams for making your enterprise grow.

Source : http://mlpfund.blog.com/2015/03/26/facts-to-be-considered-while-over-master-limited-partnership-etf/

Know every essential detail about Master Limited Partnership

A Master Limited Partnership, commonly known as MLP is a form of limited partnership that is dealt publicly on exchange. The concept of this partnership merges the tax benefits with liquidity which is linked with the traded securities. These traded securities are also dealt publicly. Experts believe that Alerian MLP is one of the safest alternatives that can serve the users with desired profits without risking their possibilities. NGL Energy partners is one of the companies that are linked with this concept of limited partnership. These funds are basically limited by the federal law of United States and are applicable to each and every enterprise that deals in any kind of business. Most of these enterprises are linked with the use of natural resources.

In case if you are dealing with the firm that is linked with natural resource such as petroleum, gas and other natural forms of resources, you will have to deal in these funds. There are certain pre-fixed expectations that are required to meet the MLP status. So if your firm is involved in operations like transportation, production or processing of these natural resources, you must get along with Master Limited Partnership funds. You can go through the profile of NGL energy partners and understand the stringent provisions linked with MLPs. Alerian MLP is one of the funds that distribute the profits on quarterly basis.

The amount being paid to the investors is generally in accordance with the pre-determined amount that is mentioned in the contract. You can check the added details of these funds on the official web link and know the real facts. The funds are really popular amongst those who are involved in the pipeline business. This is certainly one of the most stable sources of income that can serve the income. The energy MLP funds are those which are based on the energy infrastructures that operate in United States. These MLPs count in pipelines, natural gas, terminals, processing plants, oil and gasoline. These funds are vertically integrated and qualify the current law. Make sure that you have got enough details about them before you actually head forward and consider these funds for your needs.

Source : http://mlpfund.tumblr.com/post/114479256288/know-every-essential-detail-about-master-limited

Abide by advices from Jay Hatfield to earn profits

MLP is an unbeaten concept which is based upon the fascinating speculations on energy and related resources. We shall be dealing in the example of a pipeline which is used for transportation of gas and oil from one area to another. These pipelines are generally preinstalled and transport these materials from one spot to another. Since the entire framework is recurring with the trades that oblige undifferentiated administration of Master Limited Partnership with Jay Hatfield. MLP investing is certainly not everyone’s cup of tea. You need to stay really carefully while dealing in the MLP ETF and related options.

Not all amongst us are well-aware with the core concept of MLP investing. This is an ensured market option that has unique contribution for the basics of business parts. Most of us know the fact that it does not takes enough time in the decline of any business. In the above example, pipeline was the prime hard resource that can be used for transportation of gas and liquor materials. Since it will be really long for observing devalue of this hard resource, you must acquire it on a permanent basis. This can help you in escaping from iterative and avoidable expense. There are various other factors that are linked with MLP ETF and must be known to the users Jay Hatfield believes that this is a two-fold taxation concept that can benefit the investors without making them wait for too long.

Make sure that you are well-aware about every hidden fact associated with this typical form of twofold corporate taxation. Most of the MLP speculators are experienced about the tactics that can help them in acquiring the profits and allocating their share of income on the quarterly basis. The Alerian MLP alternatives can be really useful in realizing the facts about pipeline and its role in entire business model. Study the reasons and apprehend the advices by Mr. Hatfield. He is an experienced person who can help you in grabbing the best form of solution for your needs. He can be really helpful in multiplying your streams and ensuring better opportunities to grab the expected profits.

Source : https://sites.google.com/site/mlpfundetf/abide-by-advices-from-jay-hatfield-to-earn-profits

First Pure Actively-Managed MLP ETF Launched

One area of the MLP ETF world that has continued to thrive is master limited partnerships, or MLPs. These alternative income-generating securities offer exposure to energy infrastructure, pipeline and storage businesses that return significant earnings to shareholders.

On October 2, Infrastructure Capital Advisors launched a competitive exchange-traded fund that is the first pure actively-managed portfolio of mid-stream MLP companies. The InfraCap MLP ETF AMZA 1.8% seeks current income and steady growth by investing in a diversified portfolio of energy companies.

AMZA will seek a total portfolio yield of 8.00 percent and will include 1099 tax report instead of the traditional K-1 that you would receive if you owned an MLP directly. In addition, this ETF will seek to generate qualified dividends that are payable quarterly to shareholders.

At launch, the largest holding in AMZA is Kinder Morgan Energy Partners LP (NYSE: KMP), which represents nearly 10 percent of the total portfolio. Companies such as KMP are traditionally less sensitive to changes in commodity prices because of their “toll road” style business models that derive steady cash flow.

According to the press release, this new ETF is designed to leverage the benefits of active management and proprietary internal research. Weightings are based on estimated total return and company fundamentals instead of market capitalization.

AMZA will be managed by Jay D. Hatfield, who has extensive experience in the energy infrastructure companies as a previous co-founder and general partner of an NYSE-listed MLP.

Jay Hatfield stated, “We are pleased to introduce this innovative product in what we believe to be the early innings of the US energy infrastructure boom and to provide our investors with the benefit of active management and potentially superior returns.”

AMZA will compete with the well-established Alerian MLP AMLP 1.3%, which has more than $9.5 billion in total asset and follows a passive index approach that captures 25 of the largest MLPs.

The First Trust North American Energy Infrastructure Fund EMLP 2.06% set a precedent for success in an actively managed portfolio of energy companies. This ETF invests in a basket of MLP and utility companies with more than $860 million in assets. EMLP has gained more than 18 percent so far this year on the strength of both asset classes.

Ultimately, AMZA gives MLP investors another vehicle to consider when constructing a portfolio to generate income, manage risk, or seek market-beating returns.

Source : http://www.benzinga.com/etfs/sector-etfs/14/10/4897725/first-pure-actively-managed-mlp-etf-launched

U.S. Energy Investing: New Actively-Managed MLP ETF Seeks Superior Total Return

The growing master limited partnership (MLP) investment space continues to parallel growing investor interest in real assets.

A first actively-managed MLP ETF signifies that novel approaches offer opportunity to access the investment class in more nuanced ways.

The U.S. midstream sector is expected to grow, with $346 billion projected in investment in midstream, downstream and energy-related chemicals value chains between 2012 and 2025.

The asset class of infrastructure continues to receive growing investor interest. Particularly since the financial crisis of 2007-2008 and ensuing economic recession, confidence in many asset classes were diminished as well as retirement portfolio values. While the stock market has “recovered” in general, investor sentiment can be characterized as mixed with Federal Reserve interventions hanging over the U.S. stock market and low rates for savings. Interestingly, the infrastructure asset class, based on less volatile, real assets, has received more investor capital than in years past.

Infrastructure investment is increasingly becoming accessible to investors of all types through listed firms, master limited partnerships (MLPS) and real estate investment trusts (REITs). An infrastructure investor article notes the following:

Average annual performance for global listed infrastructure stood at 11.4% over the past ten years, higher than the 5.0% rate of return for global bonds and approximately 8.0% return for global equities, according to a paper by Franklin Templeton. “A third of the total return has come from dividends, and dividends have grown by on average over 10% per year over that ten-year period (from 2003 to 2014),” said Wilson Magee, director of global real estate and infrastructure securities at Franklin Real Asset Advisors, who authored the paper. – “Global Infra Equities Provide Long-term Outperformance,” Infrastructure Investor, Oct 1, 2014.

Numerous analysts see that the midstream area of energy has “tremendous growth opportunities.” The shale gas boom began the renewed interest in MLP investments, but the shale oil boom reinforced the overall mega-trend – that the U.S. has become a top global oil and gas producer. These trends in U.S. oil and gas production are expected to be positive for a number of decades, according to Energy Information Administration projections. The U.S. will become an exporter of natural gas, and exports of refined petroleum products are increasing year by year.[i]

According to a Barron’s article about income investing, energy MLPs have performed well year-to-date:

Year to date, the Alerian MLP Index (Total return: AMZX) is higher by 17.0%, compared to an increase of 12.2% for the Philadelphia Utilities Index components and an increase of 8.0% for the S&P 500. For the past 12 months, Alerian has returned 24.1%, compared to a 13.5% increase for the Philadelphia Utilities Index components and 17.4% for the S&P 500.

Aside from the return aspects of the MLP universe, the access to MLP investing is becoming simplified by the numerous MLP ETFs available. A new first-of-its-kind MLP ETF listed on October 1 – the InfraCap MLP ETF (NYSEARCA:AMZA). Unique to the ETF is its “actively managed” status, by Infrastructure Capital Advisers, the New York City-based investment specializing in energy, MLPs and other key infrastructure sectors.

AMZA consists of high-quality, midstream energy MLPs and related general partners, a pure MLP exposure; the firm expects to establish an initial annualized distribution yield of 8.0%. The fund seeks to achieve capital appreciation, a high level of current income and steady growth in the income stream. According to fund manager Jay Hatfield, with deep expertise in the sector, he expects they will “generate superior total return.”

Jay Hatfield believes that growth prospects for certain MLPs is superior to others. He notes,”We have prudently substituted the general partner (GP) for limited partners (LP), in particular, where the valuation is attractive, and on an ongoing basis. The wonderful thing about GPs is that they have a superior return on capital, depending on their vintage.” Think Energy Transfer Equity (NYSE:ETE), the GP to Energy Transfer Partners (NYSE:ETP), the LP. Bellwether MLP ETF, the Alerian MLP ETF (NYSEARCA:AMLP), and most other indices do not include the GP, offers Hatfield. Through the ways in which AMZA will structure its portfolio, Hatfield expects that cash flow should grow by 2-3% higher than the index (AMZ). The fund’s fees are 1.05%, compared to the category average of 2.08%. (See their holdings.)

About the GP optimization strategy, Hatfield says:

“By substituting in more attractively priced MLPs, in particular the GPs, you can directly see the higher return on invested capital. There are other MLPs that have superior investment opportunities, however, we look at our relative valuation model to consider their price. The GPs are a better way to optimize the index.”

Beyond being actively managed, the fund differentiates itself from the index by using the tools of:

1) Optimizing the weighting of holdings based on relative growth characteristics, alongside the GP additions.

2) Responding to corporate events such as mergers and acquisitions and equity issuances, and adjusting weightings accordingly.

3) Selectively using leverage and limited options trading. They have no leverage to date as they prefer to move more slowly than quickly in the beginning.

Speaking for Infrastructure Advisors, Hatfield mentions that they wanted to develop a business driven by distribution to individuals and wealth managers. By offering good products and developing trust, he believes they will create a long-term business with franchise value. This particular ETF is useful for personal and trust accounts and IRAs.
The AMZA outlook

The ETF AMZA can be viewed alongside other MLP ETFs, but note that the fund’s inception was October 1, in comparison to the Alerian MLP ETF of 8/25/2010 and UBS E-TRACS Alerian MLP Infrastructure Index (NYSEARCA:MLPI) of 3/31/2010, both closely tracking the index. AMZA has assets under management of $2.5 million and over 100,000 shares issued. Hatfield was a co-founder of the MLP NGL Energy Partners LP (NYSE:NGL) and serves on the board.

When asked about the recent declines in West Texas Intermediate (WTI), the U.S. crude oil benchmark, which recently drove down E&P and MLP stocks, Hatfield was not overly concerned. He says, “In the short run, we think it is a good opportunity. We look at dislocations to change weightings. It is also a good entry point right now to get into the asset class because there is a little weakness.” MLPs tend to over-respond to oil prices, Hatfield observes: “Since they have longer-term contracts, they are insensitive to commodity swings within a band. Commodity volatility is one reason why active management can be an advantage over passive management.”

The large opportunity to help investors gain income security in retirement was a motivation for the fund’s inception. “After the recession, the MLPs had a tendency to survive and continue their distributions. MLPs and REITs did relatively well and survived versus financial institutions that reduced their dividends,” he adds. Hatfield believes that “income from real assets” is a way forward.

Source : http://seekingalpha.com/article/2547405-u-s-energy-investing-new-actively-managed-mlp-etf-seeks-superior-total-return

Infrastructure Capital Advisors Launches MLP ETF

New York-based Infrastructure Capital Advisors has launched an ETF offering exposure to one of the best-performing alternative strategies of the year, master limited partnerships.

Infrastructure Capital bills the InfraCap MLP ETF as the first actively managed ETF offering “pure” MLP exposure. The fund consists of high-quality, midstream energy MLPs and related general partners and expects to establish an initial annualized distribution yield of 8.0%. The fund seeks to achieve “capital appreciation, a high level of current income and steady growth in the income stream.”

The fund is managed by the firm’s CEO, Jay Hatfield, who was a co-founder and general partner of an MLP, a hedge fund manager focused on the energy and utility sectors, and a Morgan Stanley utility and energy infrastructure investment banker.

MLPs were up 16.44% year to date as of end-September, according to Hedge Fund Research, while the average hedge fund was up 1.19%.

“We are pleased to introduce this innovative product in what we believe to be the early innings of the US energy infrastructure boom and to provide our investors with the benefit of active management and potentially superior returns” said Hatfield in a statement. “We believe that investing in companies with tangible assets that produce free cash flow creates stable, intrinsic value and is likely to produce reliable income to investors over time.”

Founded in 2012, Infrastructure Capital Advisors manages an actively managed ETF and a series of private investment partnerships.

Source  : http://www.finalternatives.com/node/28555

A Look at a New MLP ETF

Master limited partnership are among the income-generating asset classes that have been enjoying this year’s slide in U.S. Treasury yields. Interest rates that are still low by historical standards and with investors still hunting for yield, exchange traded funds tracking MLPs remain in demand. There are now more than 20 MLP ETFs and exchange traded notes (ETNs) on the market.

Issuers are meeting that demand with new product introductions, including the InfraCap MLP ETF (NYSEArca: AMZA), which debuted on Thursday. Although the market for MLP exchange traded products is growing and increasingly competitive, the InfraCap MLP ETF has at least one way of standing out from the crowd.

The new fund is the first actively managed ETF to offer pure play MLP exposure. The First Trust North American Energy Infrastructure Fund (NYSEArca: EMLP), which debuted in June 2012 and has since soared to $858.9 million in assets under management, is actively managed, but holds royalty trusts, pipeline companies, utilities, and other companies in addition to MLPs. [Long-Term Investors Love MLP ETFs]

“AMZA is structured to appeal to those who want to invest in the U.S. energy infrastructure industry and benefit from the ongoing oil and gas drilling renaissance. The fund invests in midstream MLPs that are principally involved in the gathering, processing, transportation, and storage of crude oil, natural gas, natural gas liquids, and refined products. These volume based, ‘toll-road’ businesses typically generate and distribute substantial cash flow to their owners and represent a largely commodity insensitive investment in the domestic energy revolution,” according to a statement issued by InfraCap.

The new ETF is home to 31 holdings, including familiar names such as Kinder Morgan Energy Partners (NYSE: KMP), Markwest Energy Partners (NYSE: MWE) and Magellan Midstream Partners (NYSE: MMP). That trio combines for about 24% of AMZA’s weight, according to issuer data.

AMZA is managed by Jay Hatfield, a former hedge fund manager and investment banker at Morgan Stanley where he focused on the utility and energy infrastructure sectors.

Due to its status as an actively managed ETF, AMZA can employ hedging via derivatives and even short MLPs during periods of increased market stress. Investors will also be treated to a single form 1099 come tax time, not a pesky, late-arriving K-1. The new ETF charges 1.05% per year.

“We believe that investing in companies with tangible assets that produce free cash flow creates stable, intrinsic value and is likely to produce reliable income to investors over time,” said Hatfield in a statement.

Source  : http://www.etftrends.com/2014/10/a-look-at-a-new-mlp-etf/