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

PG Named Top 25 SAFE Dividend Stock Increasing Payments For Decades
Mon, Apr 27, 8:14 AM ET, by ETF Channel

Procter & Gamble Co. (PG) has been named to the Dividend Channel ''S.A.F.E. ...

Daily Developed Markets Bear 3x Shares (DPK) Enters Oversold Territory
Fri, Apr 24, 4:14 PM ET, by ETF Channel

In trading on Friday, shares of the Daily Developed Markets Bear 3x Shares ETF (DPK) ...

First Trust STOXX European Select Dividend Index Fund Breaks Above 200-Day Moving Average - Bullish for FDD
Fri, Apr 24, 4:14 PM ET, by ETF Channel

In trading on Friday, shares of the First Trust STOXX European Select Dividend Index Fund ...

Ecolab Achieves #50 Analyst Rank, Surpassing Zimmer Holdings
Fri, Apr 24, 11:54 AM ET, by ETF Channel

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

TQQQ, ATVI, AKAM, ALTR: ETF Outflow Alert
Fri, Apr 24, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: TQQQ, ATVI, AKAM, ALTR Exchange traded funds (ETFs) trade just ...

IXC, COP, KMI, OXY: ETF Inflow Alert
Fri, Apr 24, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: IXC, COP, KMI, OXY Exchange traded funds (ETFs) trade just ...

SPY, WFC, CMCSA, WMT: ETF Outflow Alert
Fri, Apr 24, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: SPY, WFC, CMCSA, WMT Exchange traded funds (ETFs) trade just ...

EEM, MBT, SCCO, SKM: Large Inflows Detected at ETF
Fri, Apr 24, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: EEM, MBT, SCCO, SKM Exchange traded funds (ETFs) trade just ...

SLV: Large Inflows Detected at ETF
Fri, Apr 24, 11:24 AM ET, by ETF Channel

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

HEDJ: Large Inflows Detected at ETF
Fri, Apr 24, 11:24 AM ET, by ETF Channel

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

VB, XHR, AMBA, CMPR: Large Inflows Detected at ETF
Fri, Apr 24, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: VB, XHR, AMBA, CMPR Exchange traded funds (ETFs) trade just ...

IXJ, ABBV, ABT, TMO: ETF Outflow Alert
Fri, Apr 24, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: IXJ, ABBV, ABT, TMO Exchange traded funds (ETFs) trade just ...

IWN, ODP, LHO, JBLU: ETF Outflow Alert
Fri, Apr 24, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: IWN, ODP, LHO, JBLU Exchange traded funds (ETFs) trade just ...

YINN: ETF Inflow Alert
Fri, Apr 24, 11:24 AM ET, by ETF Channel

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

Insiders Pile Into Holdings of FNK ETF
Fri, Apr 24, 9:34 AM ET, by ETF Channel

A look at the weighted underlying holdings of the First Trust Mid Cap Value AlphaDEX ...

Parker Hannifin a Top Socially Responsible Dividend Stock With 2.0% Yield (PH)
Fri, Apr 24, 9:34 AM ET, by ETF Channel

Parker Hannifin Corp. (PH) has been named a Top Socially Responsible Dividend Stock by Dividend ...

EWU Crosses Above Key Moving Average Level
Thu, Apr 23, 4:14 PM ET, by ETF Channel

In trading on Thursday, shares of the iShares MSCI United Kingdom ETF (EWU) crossed above ...

VOT: Large Inflows Detected at ETF
Thu, Apr 23, 11:24 AM ET, by ETF Channel

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

VNQ: ETF Outflow Alert
Thu, Apr 23, 11:24 AM ET, by ETF Channel

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

VIG, EOG, CAT, GD: ETF Outflow Alert
Thu, Apr 23, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: VIG, EOG, CAT, GD Exchange traded funds (ETFs) trade just ...

SDY, PBCT, HCP, O: Large Outflows Detected at ETF
Thu, Apr 23, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: SDY, PBCT, HCP, O Exchange traded funds (ETFs) trade just ...

IGV, ADBE, INTU, EA: Large Inflows Detected at ETF
Thu, Apr 23, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: IGV, ADBE, INTU, EA Exchange traded funds (ETFs) trade just ...

FDT, FLEX, NXPI, ICLR: Large Outflows Detected at ETF
Thu, Apr 23, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: FDT, FLEX, NXPI, ICLR Exchange traded funds (ETFs) trade just ...

EWW: Large Inflows Detected at ETF
Thu, Apr 23, 11:14 AM ET, by ETF Channel

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

EEMV, BAP, BVN: ETF Inflow Alert
Thu, Apr 23, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: EEMV, BAP, BVN Exchange traded funds (ETFs) trade just like ...

TLT: ETF Inflow Alert
Thu, Apr 23, 11:14 AM ET, by ETF Channel

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

Ameriprise Financial a Top Socially Responsible Dividend Stock With 2.0% Yield
Thu, Apr 23, 9:34 AM ET, by ETF Channel

Ameriprise Financial Inc (AMP) has been named a Top Socially Responsible Dividend Stock by Dividend ...

iShares 0-5 Year High Yield Corporate Bond (SHYG) Shares Cross Above 200 DMA
Wed, Apr 22, 4:54 PM ET, by ETF Channel

In trading on Wednesday, shares of the iShares 0-5 Year High Yield Corporate Bond ETF ...

SPXL: ETF Outflow Alert
Wed, Apr 22, 11:14 AM ET, by ETF Channel

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

HEWJ: Large Inflows Detected at ETF
Wed, Apr 22, 11:14 AM ET, by ETF Channel

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

QLD, ALXN, AAL, ADI: Large Outflows Detected at ETF
Wed, Apr 22, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: QLD, ALXN, AAL, ADI Exchange traded funds (ETFs) trade just ...

SPLV, TRV, XL, CB: ETF Outflow Alert
Wed, Apr 22, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: SPLV, TRV, XL, CB Exchange traded funds (ETFs) trade just ...

IRV Crosses Above Key Moving Average Level
Tue, Apr 21, 4:14 PM ET, by ETF Channel

In trading on Tuesday, shares of the SPDR S&P International Materials Sector ETF (IRV) crossed ...

McKesson Achieves #14 Analyst Rank, Surpassing Facebook
Tue, Apr 21, 12:14 PM ET, by ETF Channel

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

MVV, DDD, AAN, ANF: ETF Outflow Alert
Tue, Apr 21, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: MVV, DDD, AAN, ANF Exchange traded funds (ETFs) trade just ...

FXI: Large Inflows Detected at ETF
Tue, Apr 21, 11:24 AM ET, by ETF Channel

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

PFF, HSBC, DB, RBS: Large Inflows Detected at ETF
Tue, Apr 21, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: PFF, HSBC, DB, RBS Exchange traded funds (ETFs) trade just ...

UPRO, ACE, ADT, AES: Large Outflows Detected at ETF
Tue, Apr 21, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: UPRO, ACE, ADT, AES Exchange traded funds (ETFs) trade just ...

PowerShares High Yield Equity Dividend Achievers Portfolio Experiences Big Outflow
Tue, Apr 21, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: PEY, SO, PPL, GAS Exchange traded funds (ETFs) trade just ...

PIN Crosses Below Key Moving Average Level
Tue, Apr 21, 11:14 AM ET, by ETF Channel

In trading on Tuesday, shares of the PowerShares India Portfolio ETF (PIN) crossed below their ...

EWK: ETF Outflow Alert
Tue, Apr 21, 11:14 AM ET, by ETF Channel

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

ITB, LEN, PHM, TOL: Large Outflows Detected at ETF
Tue, Apr 21, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: ITB, LEN, PHM, TOL Exchange traded funds (ETFs) trade just ...

KRFT Named A Top Socially Responsible Dividend Stock
Tue, Apr 21, 8:14 AM ET, by ETF Channel

Kraft Foods Group Inc (KRFT) has been named a Top Socially Responsible Dividend Stock by ...

PPG Industries Achieves #43 Analyst Rank, Surpassing Royal Caribbean Cruises
Mon, Apr 20, 12:14 PM ET, by ETF Channel

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

iShares India 50 (INDY) Shares Cross Below 200 DMA
Mon, Apr 20, 12:14 PM ET, by ETF Channel

In trading on Monday, shares of the iShares India 50 ETF (INDY) crossed below their ...

QQQ, GOOG, INTC, GOOGL: ETF Inflow Alert
Mon, Apr 20, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: QQQ, GOOG, INTC, GOOGL Exchange traded funds (ETFs) trade just ...

ProShares Ultra Russell2000 Experiences Big Outflow
Mon, Apr 20, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: UWM, FLWS, SRCE, TWOU Exchange traded funds (ETFs) trade just ...

TIP: ETF Inflow Alert
Mon, Apr 20, 11:14 AM ET, by ETF Channel

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

Why Tanger Factory Outlet Centers is a Top 25 SAFE Dividend Stock (SKT)
Mon, Apr 20, 9:44 AM ET, by ETF Channel

Tanger Factory Outlet Centers, Inc. (SKT) has been named to the Dividend Channel ''S.A.F.E. ...

17.0% of XBI Holdings Seeing Recent Insider Buys
Mon, Apr 20, 9:44 AM ET, by ETF Channel

A look at the weighted underlying holdings of the SPDR S&P Biotech ETF (XBI) shows ...

  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.