What Are MLP ETFs and ETNs?

Master Limited Partnerships Funds and Notes

mlp etf
Invest in MLP ETFs.

Since early-to-mid 2010, MLP ETNs and ETFs have been gaining popularity. And even more so in 2011. But while they are starting to come out of the woodwork, many investors still are a little fuzzy on the details of what they are and how they work. I’m here to help…

What is a Master Limited Partnership?

Known as MLP’s, master limited partnerships are simply just that…partnerships. For tax purposes, they are structured as partnerships instead of corporations, but still trade on the stock exchange.

This partnership structure allows them to avoid paying federal or state income taxes.

The trend for MLPs is that they generally fall into the energy sector and are involved with the infrastructure of this industry. Also, they typically tend to be in North America, but both of these trends may change over time.

What are MLP ETNs and ETFs?

As of now there are more ETNs than ETFs for MLPs, but again, that is always subject to change. There also seems to be a low sensitivity or correlation to the market, but that isn’t always going to be the case. You may want to watch them in action for yourself and see if they are a good fit for your trading strategy

List of MLP ETFs and ETNs

  • AMJ - JP Morgan Alerian MLP Index ETN
  • AMLP - Alerian MLP ETF
  • ATMP - Barclays ETN+ Select MLP ETN
  • EMLP - First Trust North American Energy Infrastructure ETF
  • ENFR - Alerian Energy Infrastructure ETF
  • IMLP - iPath S&P MLP ETN
  • MLPA - Global X MLP ETF
  • MLPG - UBS E-TRACS Alerian Natural Gas MLP Index ETN
  • MLPI - UBS E-TRACS Alerian MLP Infrastructure Index ETN
  • MLPJ - Global X Junior MLP ETF
  • MLPN - Credit Suisse Cushing 30 MLP ETN
  • MLPS - UBS E-TRACS 1x Monthly Short Alerian MLP Infrastructure Total Return Index ETN
  • MLPX - Global X MLP & Energy Infrastructure ETF
  • MLPY - Morgan Stanley Cushing MLP High Income Index ETN
  • OSMS - Barclays OFI SteelPath MLP ETN
  • YMLI - Yorkville High Income Infrastructure MLP ETF
  • YMLP - Yorkville High Income MLP ETF
  • MLPC - C-Tracks M/H MLP ETN
  • YGRO - RBC Yorkville MLP ETN
  • AMZA -  InfraCap MLP ETF
  • MLPQ - Etracs 2x Monthly Leveraged Alerian MLP Infrastructure ETN Series B
  • MLPZ - Etracs 2x Monthly Leveraged S&P MLP Index ETN Series B

And while it is great to see a nice variety of choices for both MLP ETFs and MLP ETNs, we have lost some over the years. So in case you come across any of these funds or notes during your research process, please be aware that they are no longer trading on any active exchanges...

MLP ETFs That Have Been Delisted

  • MLPB - The Etracs Alerian MLP Infrastructure Index ETN Series B
  • AMUB - The Etracs Alerian MLP Index ETN Series B
  • MLPL - Etracs 2X Monthly Leveraged Long Alerian MLP Infrastructure ETN
  • MLPV - Etracs 2x Monthly Leveraged S&P MLP Index ETN

So hopefully you have a better understanding of master limited partnerships and how they relate to exchange traded products.

And now you also have some funds and notes to research as well. But please be sure to research each product before making any trades. These are complex investments, so it's very important to understand what you are buying (or selling). However, once you are confident in your decision, then good luck with your trading ventures!

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