November 12, 2013

Alerian MLP ETF (AMLP): Investing in Energy Master Limited Partnership

Find investing info about Alerian MLP ETF (AMLP). This exchange traded fund invests in leading energy infrastructure Master Limited Partnership (MLPs).

Investment Idea

If you read a recent financial newspaper or magazine, you might find various Alerian MLP ETF ads. These ads provide one energy sector related exchange traded fund. This ETF is traded like stock and has high yield for income.

Whether this top ETF fund is suitable for your investment account or not, you should find out the details. Investing in your brokerage account, 401(k) account, and retirement account needs extensive research and study especially for long term investment. Find out the fund performance and details below.

The ads are as follow:

Version 1:
Alerian MLP ETF AdDid you know…
Your blood vessels are as long as the U.S. oil pipeline system 
The circulatory system measures 60,000 miles, compared to the 55,000 miles of U.S. trunk lines moving 5.6 million barrels of oil daily.
Just as the human heart is efficient, reliable, and essential to life, so is the network of U.S. pipelines efficient, reliable, and essential to the economy. Crude oil, refined products, and natural gas pipelines represent the heart of America’s energy infrastructure and play an integral role in our nation’s energy security. The Alerian MLP ETF
provides access to the 25 leading energy infrastructure Master Limited Partnership (MLPs) that operate these pipelines, in addition to storage facilities and processing plants, all without the burdens of K-1s or state filings. Now, that’s something worth getting pumped up about. 
ALERIAN 
NYSE ARCA: AMLP 
Visit us at ALERIANMLP.COM 
Invest in the heart of America’s energy security
Version 2:
Did you know… 
PIGs clean pipelines 
PIGs (pipeline inspection gauges) move within oil and gas pipelines to clean out contaminants and inspect for leaks and corrosion. 
Every day, hundreds of PIGs scurry around and keep the 450,000-mile network of energy pipelines in the United States clean and safe. These pipelines represent the backbone of American energy infrastructure and are responsible for moving our nation’s natural gas and crude oil from point to point… 
Invest in the pipelines that these PIGs clean.
Version 3:
Alerian MLP ETFDid you know… 
Cow flatulence is a major source of atmospheric methane 
Livestock generate 18% of the world’s greenhouse gas emissions, more than the 14% generated by vehicles and other transportation modes. 
Methane is one of the largest components of natural gas. The United States has at least 3.9 Tcf of natural gas storage capacity, primarily held underground in depleted gas and salt cavern reservoirs. These assets help meet seasonal needs for natural gas, especially during peak demand in cold winter months… 
Invest in the storage facilities that keep the smell in.

Alerian AMLP ETF Review

This Alerian AMLP ETF seeks to achieve price and yield performance of the Alerian MLP Infrastructure Index. It uses passive management or indexing in its investment strategy. It invests mainly in companies that are part of United States energy infrastructure Master Limited Partnership ("MLP"). MLPs are publicly traded partnerships engaged in the transportation, storage and processing of minerals and natural resources. The fund management team includes Tom Carter, and Michael Akins.

With current share price of $17.85, this exchange traded fund has a highest ranking from Morningstar with 5 stars. This ETF is popular among investors as well with $7.24 billion of total assets. It has high dividend yield of 5.88%. The annual expense ratio is only 0.85%.

Since it is an exchange traded fund, it is traded like stock. You can buy with as little as 1 share of this ETF from your brokerage or other investment account. If you have a retirement account or 401(k), please check whether you can buy or sell this AMLP fund as well.

This top ETF has returned 13.89% over the past 1 year, and 10.34% over the past 3 years. In 2013, it has a year-to-date return of 17.05%. The past 3 years performance is as follows:
  • Year 2013: 17.05% (YTD)
  • Year 2012: 1.92%
  • Year 2011: 10.12%
As of November 2013, the top 3 stocks in its portfolio are Enterprise Products Partners, Kinder Morgan Energy Partners, and Magellan Energy Partners LP. As an energy sector ETF, its top sector is energy (100%).

Last Words
  • This ETF provides high yield for income especially great for retiree or dividend-investors.
  • With top rating from Morningstar, the fund also managed to attract various investors due to its large assets
  • This equity sector fund may be more volatile than typical exchange traded fund
  • Using this ETF as part of diversification is suitable for long term investment

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