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Choosing The Right MLP Fund As Oil Slides

TedTed
in Fund Discussions
FYI: The state of the energy market today is the best of times and the worst of times for master limited partnership ETFs.

MLPs are vehicles that pass the income earned in some form of partnership directly to investors. By design, they can only be used for businesses where 90 percent or more of the revenue is being generated from qualifying activities, such as managing natural gas pipelines or storing crude oil. These are industries that generate steady income streams, but that also require large investments in infrastructure that need to be depreciated over long periods of time.
Regards,
Ted
http://www.etf.com/sections/features-and-news/choosing-right-mlp-fund-oil-slides?nopaging=1

Comments

  • hawkmountain
    Usually MLPs are held in taxable accounts. Let's hope not too many held shares of KMP (KinderMorgan LP) which in morphing into KMI as a regular corporation left its taxable account shareholders hanging out to dry.
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