Self Directed Investor Inc
SDI: "Empowering investors with ideas and education"
Symbol Lookup »  
Topics:ChinaETFsEarningsEconomyEnergyForexGoldIncomeLessonsIdeasTrading

  • Other news: News from PR Newswire
| More

MLP ETFs Have Post-Election Hangover

Mon, Nov 19, 9:15 AM ET, by Michael Johnston

It’s a little more than a week out, but one of the biggest losers from the 2012 elections so far has been the entities responsible for transporting oil and gas across North America and storing petroleum products. Master Limited Partnerships have seen a string of steep sell-offs in recent days, erasing the impressive gains that had been accumulated during the first ten months of the year. These generally stable entities have seen significant downside volatility in recent days, stringing together long losing streaks that are uncommon in this corner of the energy market [see our Energy Bull ETFdb Portfolio].

Most MLP ETPs are near breakeven territory year-to-date:

Symbol Name 1 Week 4 Week YTD 1 Year 3 Year 5 Year
AMJ Alerian MLP Index ETN -6.37% -8.92% -0.09% 6.26% 65.91% n/a
AMLP Alerian MLP ETF -4.24% -5.78% -0.48% 4.35% n/a n/a
MLPI E-TRACS Alerian MLP Infrastructure Index -6.41% -8.87% -0.76% 9.13% n/a n/a
MLPN Cushing 30 MLP Index ETN -7.00% -9.88% -4.42% 2.40% n/a n/a
EMLP North American Energy Infrastructure Fund -3.97% -8.53% n/a n/a n/a n/a
YMLP Yorkville High Income MLP ETF -11.13% -13.75% n/a n/a n/a n/a
MLPG E-TRACS Alerian Natural Gas MLP Index -7.80% -12.07% -3.07% 1.40% n/a n/a
AMU ETRACS Alerian MLP Index ETN -6.46% -8.59% n/a n/a n/a n/a
MLPY Cushing MLP High Income Index ETN -7.13% -11.98% 1.16% 2.18% n/a n/a
MLPA MLP ETF -7.74% -9.48% n/a n/a n/a n/a
MLPW E-TRACS Wells Fargo MLP Index -6.77% -9.44% 2.69% 6.93% n/a n/a
Returns as of 11/16/2012

Higher Taxes, Lower Drilling

With uncertainty looming over the tax picture in 2013, part of the sell-off in MLPs could be related to the fear that tax exemptions afforded to MLPs could disappear going forward (MLPs are able to avoid “double taxation” of dividends as long as certain criteria are met). While the elimination of those tax advantages is certainly a possibility, it would do very little to solve the fiscal issues; according to the Joint Committee on Taxation, the MLP tax breaks would generate only about $300 million for the government–or about 2.5 hours of deficit buildup [see also ETF Picks For 3 Of America's Best Small Companies].

Another factor that may be weighing on MLPs this week relates to the outlook for U.S. drilling activity–which in turn drives the demand for transportation and storage services provided by MLPs. As highlighted during the debates, Obama is considerably less open to increasing drilling in the U.S. while his opponent had made the Keystone Pipeline a key part of his initiative to create domestic jobs. That boost to MLPs is likely now off the table [see 5 ETF Strategies To Reign In Risk].

High Yield Opportunity?

Of course, the recent decline in prices has had the effect of pushing up yields on MLP ETPs; effective distribution yields are now as high as 7.8% for the Cushing MLP High Income Index ETN (MLPY, A-) and 6.3% for the popular Alerian MLP ETF (AMLP, A+). Again, it’s worth noting that the operations of these entities are relatively stable; they generate fee-based revenue that doesn’t depend much on spot prices for oil and gas, and the current tax code incentivizes them to pay out substantial portions of current earnings in the form of dividends.

In other words, the recent sell-off has perhaps created some attractive entry points for an asset class that should continue to churn out cash to shareholders for the foreseeable future. If you’re considering a position in MLPs, it’s worthwhile reviewing the pros and cons of the two primary structures through which these securities can be accessed–this is one case where ETFs and ETNs are very different.

[For more ETF analysis, make sure to sign up for our free ETF newsletter or try a free seven day trial to ETFdb Pro]

Disclosure: No positions at time of writing.


SDI Glossary: "price" Definition
SDI Glossary: "ETFs" Definition
SDI Glossary: "Risk" Definition
SDI Glossary: "Yield" Definition
This Article's Word Cloud:   AMLP   Alerian   America   Cushing   ETFdb   ETPs   Energy   High   Income   Index   Infrastructure   MLPY   MLPs   North   Partnerships   TRACS   Week   Year   about   adsbygoogle   been   could   current   days   dividends   drilling   during   entities   free   generate   have   little   long   more   part   prices   recent   seen   sell   stable   territory   that   these   this   very   week   which   would   year   yields

| More

EPHE Crowded With Sellers
Thu, May 28, 11:24 AM ET, by ETF Channel

In trading on Thursday, shares of the iShares MSCI Philippines ETF (EPHE) entered into oversold ...

IWF, GILD, V, CMCSA: Large Inflows Detected at ETF
Thu, May 28, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: IWF, GILD, V, CMCSA Exchange traded funds (ETFs) trade just ...

KRE, OZRK, GBCI, CATY: Large Inflows Detected at ETF
Thu, May 28, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: KRE, OZRK, GBCI, CATY Exchange traded funds (ETFs) trade just ...

USMV, ABC, PAYX, MCD: Large Inflows Detected at ETF
Thu, May 28, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: USMV, ABC, PAYX, MCD Exchange traded funds (ETFs) trade just ...

OEF, ABBV, BA, BIIB: ETF Outflow Alert
Thu, May 28, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: OEF, ABBV, BA, BIIB Exchange traded funds (ETFs) trade just ...

TAN, SUNE, SCTY, FSLR: Large Outflows Detected at ETF
Thu, May 28, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: TAN, SUNE, SCTY, FSLR Exchange traded funds (ETFs) trade just ...

Questar a Top Ranked SAFE Dividend Stock With 3.7% Yield (STR)
Thu, May 28, 8:34 AM ET, by ETF Channel

Questar Corp. (STR) has been named to the Dividend Channel ''S.A.F.E. ...

IYZ Makes Bullish Cross Above Critical Moving Average
Wed, May 27, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the iShares U.S. Telecommunications ETF (IYZ) crossed above their ...

EWG: Large Inflows Detected at ETF
Wed, May 27, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: EWG Exchange traded funds (ETFs) trade just like stocks, but ...

SCZ: ETF Inflow Alert
Wed, May 27, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: SCZ Exchange traded funds (ETFs) trade just like stocks, but ...

EDC Crosses Below Key Moving Average Level
Wed, May 27, 11:14 AM ET, by ETF Channel

In trading on Wednesday, shares of the Daily Emerging Markets Bull 3x Shares ETF (EDC) ...

Brazil Consumer (BRAQ) Enters Oversold Territory
Wed, May 27, 11:14 AM ET, by ETF Channel

In trading on Wednesday, shares of the Brazil Consumer ETF (BRAQ) entered into oversold territory, ...

RSX Makes Notable Cross Below Critical Moving Average
Wed, May 27, 11:14 AM ET, by ETF Channel

In trading on Wednesday, shares of the Russia ETF (RSX) crossed below their 200 day ...

EVX Makes Notable Cross Below Critical Moving Average
Wed, May 27, 11:14 AM ET, by ETF Channel

In trading on Wednesday, shares of the Environmental Services ETF (EVX) crossed below their 200 ...

VOO: ETF Inflow Alert
Wed, May 27, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: VOO Exchange traded funds (ETFs) trade just like stocks, but ...

CWI, TSM, RY.CA, TD.CA: ETF Inflow Alert
Wed, May 27, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: CWI, TSM, RY.CA, TD.CA Exchange traded funds (ETFs) trade just ...

iShares MSCI Mexico Capped ETF Experiences Big Outflow
Wed, May 27, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: EWW Exchange traded funds (ETFs) trade just like stocks, but ...

11.8% of XLG Holdings Seeing Recent Insider Buys
Wed, May 27, 9:54 AM ET, by ETF Channel

A look at the weighted underlying holdings of the Guggenheim Russell Top 50 Mega Cap ...

EGShares S&P Emerging Markets Core Breaks Below 200-Day Moving Average - Notable for EMCR
Tue, May 26, 4:14 PM ET, by ETF Channel

In trading on Tuesday, shares of the EGShares S&P Emerging Markets Core ETF (EMCR) crossed ...

SMIN Crosses Below Key Moving Average Level
Tue, May 26, 4:14 PM ET, by ETF Channel

In trading on Tuesday, shares of the iShares MSCI India Small-Cap ETF (SMIN) crossed below ...

SPDR Russell 1000 Low Volatility Breaks Below 200-Day Moving Average - Notable for LGLV
Tue, May 26, 4:14 PM ET, by ETF Channel

In trading on Tuesday, shares of the SPDR Russell 1000 Low Volatility ETF (LGLV) crossed ...

iShares Emerging Markets Dividend Breaks Below 200-Day Moving Average - Notable for DVYE
Tue, May 26, 4:14 PM ET, by ETF Channel

In trading on Tuesday, shares of the iShares Emerging Markets Dividend ETF (DVYE) crossed below ...

RBL Makes Notable Cross Below Critical Moving Average
Tue, May 26, 3:54 PM ET, by ETF Channel

In trading on Tuesday, shares of the SPDR S&P Russia ETF (RBL) crossed below their ...

iShares 10-20 Year Treasury Bond (TLH) Shares Cross Above 200 DMA
Tue, May 26, 3:54 PM ET, by ETF Channel

In trading on Tuesday, shares of the iShares 10-20 Year Treasury Bond ETF (TLH) crossed ...

SCO Makes Bullish Cross Above Critical Moving Average
Tue, May 26, 3:54 PM ET, by ETF Channel

In trading on Tuesday, shares of the ProShares UltraShort Bloomberg Crude Oil ETF (SCO) crossed ...

Becton, Dickinson Achieves #89 Analyst Rank, Surpassing Ryder System
Tue, May 26, 11:54 AM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

ISTB Makes Notable Cross Below Critical Moving Average
Tue, May 26, 11:14 AM ET, by ETF Channel

In trading on Tuesday, shares of the iShares Core 1-5 Year USD Bond ETF (ISTB) ...

Natural Resources (HAP) Shares Cross Below 200 DMA
Tue, May 26, 11:14 AM ET, by ETF Channel

In trading on Tuesday, shares of the Natural Resources ETF (HAP) crossed below their 200 ...

First Trust Dow Jones Global Select Dividend Index Fund Breaks Below 200-Day Moving Average - Notable for FGD
Tue, May 26, 11:14 AM ET, by ETF Channel

In trading on Tuesday, shares of the First Trust Dow Jones Global Select Dividend Index ...

GLL Crosses Above Key Moving Average Level
Tue, May 26, 11:14 AM ET, by ETF Channel

In trading on Tuesday, shares of the ProShares UltraShort Gold ETF (GLL) crossed above their ...

Health Care Select Sector SPDR Fund Experiences Big Inflow
Tue, May 26, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: XLV, PFE, UNH, BMY Exchange traded funds (ETFs) trade just ...

VUG, ORCL, AMGN, ACT: ETF Inflow Alert
Tue, May 26, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: VUG, ORCL, AMGN, ACT Exchange traded funds (ETFs) trade just ...

MDY, AAP, CHD, SIG: ETF Outflow Alert
Tue, May 26, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: MDY, AAP, CHD, SIG Exchange traded funds (ETFs) trade just ...

DIA, GS, IBM, MMM: ETF Outflow Alert
Tue, May 26, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: DIA, GS, IBM, MMM Exchange traded funds (ETFs) trade just ...

IDV: Large Outflows Detected at ETF
Tue, May 26, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: IDV Exchange traded funds (ETFs) trade just like stocks, but ...

FDL Crosses Below Key Moving Average Level
Tue, May 26, 10:54 AM ET, by ETF Channel

In trading on Tuesday, shares of the First Trust Morningstar Dividend Leaders Index Fund ETF ...

DOO Makes Notable Cross Below Critical Moving Average
Tue, May 26, 10:54 AM ET, by ETF Channel

In trading on Tuesday, shares of the WisdomTree International Dividend ex-Financials Fund ETF (DOO) crossed ...

XLY, DIS, AMZN, HD: Large Outflows Detected at ETF
Tue, May 26, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: XLY, DIS, AMZN, HD Exchange traded funds (ETFs) trade just ...

SPDR S&P Transportation Breaks Below 200-Day Moving Average - Notable for XTN
Fri, May 22, 4:14 PM ET, by ETF Channel

In trading on Friday, shares of the SPDR S&P Transportation ETF (XTN) crossed below their ...

BSV Crosses Below Key Moving Average Level
Fri, May 22, 4:14 PM ET, by ETF Channel

In trading on Friday, shares of the Vanguard Short-Term Bond ETF (BSV) crossed below their ...

SCPB Makes Notable Cross Below Critical Moving Average
Fri, May 22, 4:14 PM ET, by ETF Channel

In trading on Friday, shares of the SPDR Barclays Short Term Corporate Bond ETF (SCPB) ...

Tyson Foods Moves Up In Analyst Rankings, Passing American Tower
Fri, May 22, 11:54 AM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

GURU, ALLY, AMX, BIDU: Large Outflows Detected at ETF
Fri, May 22, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: GURU, ALLY, AMX, BIDU Exchange traded funds (ETFs) trade just ...

VIG, UTX, ABT, TXN: ETF Outflow Alert
Fri, May 22, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: VIG, UTX, ABT, TXN Exchange traded funds (ETFs) trade just ...

IYZ, LVLT, CTL, SBAC: Large Outflows Detected at ETF
Fri, May 22, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: IYZ, LVLT, CTL, SBAC Exchange traded funds (ETFs) trade just ...

11.5% of TWOK Holdings Seeing Recent Insider Buys
Fri, May 22, 9:44 AM ET, by ETF Channel

A look at the weighted underlying holdings of the SPDR Russell 2000 ETF (TWOK) shows ...

FRI Crosses Below Key Moving Average Level
Thu, May 21, 4:14 PM ET, by ETF Channel

In trading on Thursday, shares of the First Trust S&P REIT Index Fund ETF (FRI) ...

RRF Crosses Above Key Moving Average Level
Thu, May 21, 4:14 PM ET, by ETF Channel

In trading on Thursday, shares of the WisdomTree Global Real Return Fund ETF (RRF) crossed ...

Vanguard REIT (VNQ) Shares Cross Below 200 DMA
Thu, May 21, 4:14 PM ET, by ETF Channel

In trading on Thursday, shares of the Vanguard REIT ETF (VNQ) crossed below their 200 ...

URE Crosses Below Key Moving Average Level
Thu, May 21, 4:14 PM ET, by ETF Channel

In trading on Thursday, shares of the ProShares Ultra Real Estate ETF (URE) crossed below ...

  More articles:  1 2 3 4 5 6 7 next »

ABOUT US »   ADVERTISE »   CONTACT US »   TERMS OF USE & PRIVACY POLICY »

MLP ETFs Have Post-Election Hangover | Self Directed Investor | Copyright © 2008 - 2015, All Rights Reserved

Any ideas and opinions presented in Self Directed Investor content are for informational and educational purposes only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners. In no way should any content contained herein be interpreted to represent trading or investment advice. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All site visitors agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.

SDI is associated with: ValueForum.com -- a subscription-based online social networking forum of serious individual investors. | MarketNewsVideo.com -- videos appearing on SDI are produced by Market News Video. | TickerTech.com -- stock quote content appearing on SDI is at least 20 minutes delayed and is powered by Ticker Technologies. | GoldStockStrategist.com -- Edited by Scott V. Nystrom, PhD, Gold Stock Strategist provides analysis on gold mining companies.