Dernières nouvelles pour Global X MLP ETF (ARCA:MLPA)

Global X MLP ETF

Energy

Utilities

Industrials

The Fund invests at least 80 percent of its total assets in the securities of the Solactive MLP Infrastructure Index (Underlying Index). Moreover, at least 80 percent of the Fund's total assets will be invested in securities that have economic characteristics of the Master Limited Partnership (MLP) asset class. The Fund's 80 percent investment policies are non-fundamental and require 60 days prior written notice to shareholders before they can be changed.

Sunoco, Lp

Energy Transfer Lp

Enterprise Products Partners Lp

Mplx Lp

Plains All American Pipeline Lp

Western Midstream Partners Lp

Enlink Midstream Llc

Hess Midstream Lp  Class A Common Stock

Cheniere Energy Partners Lp

Genesis Energy Lp

Oil prices fell 1% Tuesday with geopolitical change and economic uncertainty contributing to market expectations. 
<a href="https://www.benzinga.com/news/global/25/03/44384160/oil-prices-slip-energy-stocks-pause-as-trump-putin-call-signals-ukraine-ceasefire-progress">Diplomatic talks between</a> U.S. President Donald Trump and Russian President Vladimir Putin encouraged the prospect of a Ukraine ceasefire that might relax sanctions on Russian fuel exports, according to Reuters. But analysts warn it will take time for a meaningful recovery in Russian oil output. While this is, at least in part, due to the effects of Trump&#8217;s trade tariffs on energy demand, there are a number of other factors coming into play. These combine to create a complicated energy scenario, making <a href="https://www.benzinga.com/etfs">energy ETFs</a> a focal point of investor interest.
<h1 class="wp-block-heading">How Energy ETFs Fit Into The Picture</h1>
ETFs provide exposure to the energy sector with risk management against changing oil prices and geopolitical events. Here&#8217;s how various kinds of energy ETFs could be impacted:
Diversified Energy ETFs: These offer diversified exposure to exploration, production, refining and transport, enabling investors to control volatility. Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) and the iShares U.S. Energy ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYE#NYSE">IYE</a>) are options to consider, with expense ratios of 0.08% and 0.4%, respectively.
Exploration and Production (E&amp;P) ETFs: Concentrated on extracting oil and gas, these ETFs can experience volatility due to changes in supply and demand. Investors may look at the SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) and the iShares U.S. Oil &amp; Gas Exploration &amp; Production ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IEO#BATS">IEO</a>). The ETFs carry an expense ratio of 0.35% and 0.4%, respectively.
Midstream ETFs: Comprising less price-volatile components, these may be rewarded with higher oil transport and storage requirements. Examples include the Alerian MLP ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AMLP#NYSE">AMLP</a>) and the Global X MLP ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MLPA#NYSE">MLPA</a>), with expense ratios of 0.85% and 0.45%, respectively.
Also Read: <a href="https://www.benzinga.com/25/03/44217245/us-shale-industry-set-to-boost-oil-output-despite-falling-prices-says-energy-secretary-the-economics-of-shale-dont-work-says-expert">US Shale Industry Can Deliver Trump&#8217;s Pledge For &#8216;Drill, Baby, Drill&#8217; Despite Falling Prices, Says Energy Secretary: &#8216;The Economics Of Shale Don&#8217;t Work,&#8217; Says Expert</a>
<h1 class="wp-block-heading">Contributing Factors To Slowing Oil Prices</h1>
• If sanctions against Russia are relaxed, its crude output — presently at 9.2 million barrels per day (bpd), from 10.6 million bpd in 2016 — might rise. But significant supply shifts might not be immediate, per the Reuters report.
• Trump's tariffs are pressuring global growth. The OECD warns of slower growth, while Wood Mackenzie cut its 2025 Brent crude forecast by $7 to $73 per barrel, according to Reuters.
• OPEC+ is going ahead with its scheduled April output increase, pumping additional supply into the market.
• Middle East uncertainty is another underpinning factor in oil prices. Trump&#8217;s military intervention in support of Iran-aligned Houthis in Yemen and Israeli airstrikes on Gaza inject volatility into the global oil supply.
• Chinese and German economic stimulus may be able to sustain oil demand, offsetting some of the pressure on prices lower.
• This week, the American Petroleum Institute (API) and U.S. Energy Information Administration (EIA) will report on oil inventories. Reuters reported that a 0.9 million barrel build is expected by analysts, which may have an impact on short-term price action.
Oil prices continue to be very volatile based on geopolitical and economic reasons. Energy ETFs provide investors with the means to ride out these changes, managing risk while achieving opportunity. Monitoring worldwide trends and inventory reports will be paramount in making smart investment decisions.
Read Next: 
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<li><a href="https://www.benzinga.com/etfs/sector-etfs/25/03/44382780/3-best-performing-semiconductor-etfs-since-last-gtc-and-why-this-time-is-different">3 Best-Performing Semiconductor ETFs Since Last GTC And Why This Time Is Different</a></li>
</ul>
Photo: Shutterstock

Sector ETFs

Commodities

Global

ETFs

AMLP

iShares Dow Jones US Oil & Gas Exploration & Production Index Fund

iShares Dow Jones US Energy Sector Index Fund

MLPA

Oil Prices Ease: What It Means For Energy ETFs, Investors

EnLink Midstream (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ENLC#NYSE">ENLC</a>) shares are trading higher premarket Thursday after ONEOK, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OKE#NYSE">OKE</a>) agreed to acquire Global Infrastructure Partners&#8216; (GIP) 43% stake in the company <a href="https://www.benzinga.com/pressreleases/24/08/n40616439/oneok-to-acquire-medallion-and-controlling-interest-in-enlink-from-global-infrastructure-partners-" target="_blank" rel="noreferrer noopener">for $3 billion, or $14.90 per unit</a>.
The per unit price represents a 12.8% premium over EnLink&#8217;s closing market price as of Aug. 27, 2024.
The deal also includes 100% of the managing member&#8217;s interests for $300 million. This brings the total cash consideration to approximately $3.3 billion.
Separately, ONEOK will also acquire all equity interests in Medallion Midstream, LLC, for $2.6 billion in cash.
This acquisition, representing about 6.3 times the estimated 2025 EBITDA. It includes base case synergies, and pertains to Medallion&#8217;s extensive crude gathering and transportation system in the Permian&#8217;s Midland Basin.
The total transactions are valued at $5.9 billion.
The deals add 1.7 billion cubic feet per day to ONEOK&#8217;s Permian gas processing capacity and 1.6 million barrels per day of Permian crude gathering capacity. 
ONEOK plans to leverage its expanded platforms to enhance service offerings for producers in the Permian Basin.
The transactions are not cross-conditioned and are anticipated to close early in the fourth quarter of 2024.
Synergies: The transactions are expected to support ONEOK&#8217;s $2 billion share repurchase program.
Following these deals, ONEOK expects to achieve annual synergies of $250 million <a href="https://www.benzinga.com/calendars/guidance" target="_blank" rel="noreferrer noopener">to $450 million within three years</a>.
Following the transaction with GIP, EnLink will become a consolidated subsidiary of ONEOK for GAAP financial reporting.
Investors can gain exposure to ENLC via Global X MLP ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MLPA#NYSE">MLPA</a>) and Alerian MLP ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AMLP#NYSE">AMLP</a>).
Price Action: ENLC shares are up 13.22% at $14.90 premarket at the last check Thursday.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/news/23/08/33527138/exxon-mobil-top-stories-enlink-midstreams-sustainability-report-lithium-supply-chain-talks-and-globa" target="_blank" rel="noreferrer noopener">Exxon Mobil Top Stories: EnLink Midstream&#8217;s Sustainability Report, Lithium Supply Chain Talks and Global Lubricants Market Report</a></li>
</ul>
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Equities

Mid Cap

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ENLC

ONEOK Spends $3B On EnLink Midstream Stake, $2.6B On Medallion

Sunoco LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SUN#NYSE">SUN</a>) shares are trading higher after it reported&nbsp;second-quarter&nbsp;FY24 revenues&nbsp;of&nbsp;$6.17 billion, which&nbsp;exceeded <a target="_blank" href="https://www.benzinga.com/pressreleases/24/08/n40215377/sunoco-lp-reports-record-second-quarter-2024-financial-and-operating-results" rel="noreferrer noopener">the consensus of&nbsp;$5.82 billion</a>.
The partnership sold over 2.2 billion gallons of fuel (+5%&nbsp;Y/Y), with the fuel margin for all gallons sold at 11.8 cents per gallon (vs 11.9 cents per gallon in the prior year quarter).
Adjusted distributable cash flow of&nbsp;$295 million&nbsp;was higher than&nbsp;$175 million&nbsp;a year ago.
Adjusted EBITDA increased to&nbsp;$320 million&nbsp;from&nbsp;$250 million&nbsp;a year ago. EPS of&nbsp;$3.85&nbsp;surpassed&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">the consensus of&nbsp;$1.30</a>.
Total capital expenditures were&nbsp;$78 million, including&nbsp;$52 million for growth capital and&nbsp;$26 million for maintenance capital.
Distribution:&nbsp;On July 25, 2024, Sunoco&nbsp;declared a distribution of&nbsp;$0.8756 per unit, payable on August 19, to unitholders of record as of August 9.
As of June 30, 2024, the company had long-term debt of about $7.3 billion and approximately $1.4 billion in liquidity remaining on its $1.5 billion revolving credit facility.
Outlook: Sunoco reaffirmed FY24&nbsp;guidance&nbsp;for adjusted EBITDA of&nbsp;$1.46 billion to&nbsp;$1.52 billion, excluding <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">synergies and transaction-related expenses</a>.
The company expects NuStar&nbsp;deal to realize expense synergies of $200 million (vs. at least&nbsp;$150 million prior) and <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">financial synergies of $60 million</a>.
In July, Sunoco and Energy Transfer LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ET#NYSE">ET</a>) formed a joint venture to merge their crude oil and produced water-gathering assets in the <a target="_blank" href="https://www.benzinga.com/pressreleases/24/07/b39793150/energy-transfer-and-sunoco-announce-strategic-permian-basin-crude-oil-joint-venture" rel="noreferrer noopener">Permian Basin, effective July 1, 2024</a>.
Investors can gain exposure to the stock via&nbsp;InfraCap MLP ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AMZA#NYSE">AMZA</a>) and&nbsp;Global X MLP ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MLPA#NYSE">MLPA</a>).
Price Action: Sunoco shares are up 1.42% at $54.36 at the last check Wednesday.
Photo via Shutterstock
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/06/39231671/sunoco-looks-attractive-analyst-cites-pullback-upcoming-guidance-as-catalysts" target="_blank" rel="noreferrer noopener">Sunoco Looks Attractive: Analyst Cites Pullback, Upcoming Guidance As Catalysts</a></li>
</ul>

Earnings

AMZA

Sunoco's Increased Fuel Sale Boosts Q2 Results: Details

Stifel analyst Selman Akyol upgraded Sunoco LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SUN#NYSE">SUN</a>) to Buy from Hold and maintained a <a target="_blank" href="https://www.benzinga.com/quote/SUN/analyst-ratings" rel="noreferrer noopener">price target of $62.00</a>.
The analyst writes that Sunoco&#8217;s unit price has dropped by 13% since mid-February, presenting an attractive re-entry point.
Akyol notes that management&#8217;s upcoming guidance, expected around second-quarter FY24 earnings, could catalyze the unit price.
This guidance will likely offer a comprehensive update on the 2024 outlook for its legacy business, NuStar assets, and potential synergies, stated analyst.
While the analyst do not foresee changes to the IDR structure, they expect Sunoco to derive additional value from the NuStar assets, potentially with Energy Transfer as a partner.
Year to date, SUN units have declined by 9%, while the AMZ index has seen a 10% increase, writes the analyst.
Akyol estimates EBITDA of $1.48 billion in FY24 and $1.79 billion in FY25.
Investors can gain exposure to the stock via&nbsp;InfraCap MLP ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AMZA#NYSE">AMZA</a>)&nbsp;and&nbsp;Global X MLP ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MLPA#NYSE">MLPA</a>).
Also Read: <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/06/39163832/sunoco-nustar-acquisition-concerns-do-not-justify-stocks-underperformance-analyst" rel="noreferrer noopener">Sunoco, NuStar Acquisition Concerns &#8216;Do Not Justify Stock&#8217;s Underperformance&#8217;: Analyst</a>
Price Action: SUN shares are down 0.90% at $54.01 at the last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

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Trading Ideas

Sunoco Looks Attractive: Analyst Cites Pullback, Upcoming Guidance As Catalysts

Sunoco LP&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SUN#NYSE">SUN</a>) shares are trading higher after it reported&nbsp;first-quarter FY24 revenues&nbsp;of $5.50 billion, which&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/05/n38695506/sunoco-lp-announces-first-quarter-2024-financial-and-operating-results" rel="noreferrer noopener">exceeded the consensus of $5.23 billion</a>.
The partnership sold over 2.1 billion gallons of fuel (+9% Y/Y), with the fuel margin for all gallons sold at 11.7 cents per gallon (vs 12.9 cents per gallon in the prior year quarter).
Adjusted distributable cash flow of $176 million was higher than $160 million a year ago.
Adjusted EBITDA increased to $242 million from $221 million a year ago. EPS of $2.26 surpassed&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">the consensus of $1.22</a>.
Total capital expenditures were $41 million, including&nbsp;$27 million&nbsp;for growth capital and&nbsp;$14 million&nbsp;for maintenance capital.
Distribution:&nbsp;On May 3, Sunoco&nbsp;quarterly increased distribution by 4% to $0.8756&nbsp;per unit, payable on May 20 to unitholders of record as of May 13.
As of&nbsp;March-end, the company had a long-term debt of&nbsp;$3.8 billion. The partnership maintained liquidity of approximately&nbsp;$870 million&nbsp;at the end of the quarter under its&nbsp;$1.5 billion&nbsp;revolving credit facility.&nbsp;&nbsp;
Outlook: Sunoco revised FY24 guidance for adjusted EBITDA to $1.46 billion&nbsp;to&nbsp;$1.52 billion, reflecting NuStar and Zenith acquisitions and divestiture.
In January 2024, the company disclosed a deal&nbsp;for selling&nbsp;204 convenience stores to 7-Eleven for around $1 billion, including customary fuel and<a target="_blank" href="https://www.benzinga.com/markets/equities/24/01/36594233/sunocos-strategic-moves-1b-7-eleven-deal-european-terminals-acquisition-growth-focus" rel="noreferrer noopener">&nbsp;merchandise&nbsp;inventory adjustments</a>.&nbsp;
The NuStar&nbsp;deal is projected to boost Sunoco&#8217;s stability and credit profile and&nbsp;expects&nbsp;to realize at least&nbsp;$150 million&nbsp;in&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/05/n38612604/sunoco-lp-completes-acquisition-of-nustar-energy-l-p-announces-a-4-increase-in-quarterly-distribut" rel="noreferrer noopener">expenses and commercial synergies</a>.&nbsp;
Investors can gain exposure to the stock via&nbsp;InfraCap MLP ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AMZA#NYSE">AMZA</a>) and&nbsp;Global X MLP ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MLPA#NYSE">MLPA</a>).
Price Action: Sunoco shares are trading up by 0.22% at $55.71 at the last check Wednesday. 
Photo via Shutterstock

Sunoco Spills the Beans: Big Beat, Higher Payout, & Brighter Outlook

Interest rates have been rising, but they are still low from a historical viewpoint. Investors seeking income haven&rsquo;t had many options.
The Global X MLP ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mlpa#NYSE">MLPA</a>) may be worth considering for these investors. It currently has a yield that is above 9%.
See Also: <a href="https://www.benzinga.com/money/how-to-buy-etf/">How to Buy ETFs And What To Consider</a>
MLPA is designed to track the price and yield performance, before fees and expenses, of the Solactive Master Limited Partnership Infrastructure Index. MLPs are required to distribute all of their available cash to investors. This is why the yield is so high.
The ETF trades around $37.23 at publication time.
<img alt="mlpa_0.png" src="https://www.benzinga.com/files/u344550/mlpa_0.png" style="height:400px; width:640px" />

Long Ideas

Specialty ETFs

This ETF Has A 9% Dividend Yield

On <a href="https://www.cnbc.com/video/2018/01/11/final-trades-mastercard-jacobs-engineering-nrg-energy-delta-and-regional-banks.html">CNBC&#39;s &quot;Fast Money Halftime Report&quot;</a>, Josh Brown said Mastercard Inc (NYSE: <a class="ticker" href="/stock/ma#NYSE">MA</a>) continues to make new highs and it still has earnings growth. He likes the stock.
Stephen Weiss is a buyer of Jacobs Engineering Group Inc (NYSE: <a class="ticker" href="/stock/jec#NYSE">JEC</a>).
Jon Najarian bought NRG Energy Inc (NYSE: <a class="ticker" href="/stock/nrg#NYSE">NRG</a>) Thursday.
Rob Sechan wants to buy SPDR KBW Regional Banking (ETF) (NYSE: <a class="ticker" href="/stock/kre#NYSE">KRE</a>) and Global X Funds (NYSE: <a class="ticker" href="/stock/mlpa#NYSE">MLPA</a>).

Media

Jacobs Engineering, Mastercard, NRG Energy: 'Fast Money Halftime Report' Traders Share Their Picks

Exchange-traded funds dedicated to master limited partnerships are gradually joining the recent energy sector rally. For example, the popular Global X MLP ETF (NYSE: <a class="ticker" href="/stock/mlpa#NYSE">MLPA</a>) is higher by about 2 percent over the past month.
However, plenty of challenges remain for MLPs, an asset class previously beloved by income-starved investors. For its part, MLPA has become home to nearly $655 million in assets under management in just over five years on the market due in part to its tantalizing yield. MLPA has a trailing 12-month dividend yield of 5.8 percent.
&ldquo;MLPs suffered during earnings season because a few firms announced disappointing results, but the industry&rsquo;s earnings reports also provide reasons to be optimistic about longer term growth potential,&rdquo;<a href="https://www.globalxfunds.com/mlp-insights-q3-2017/"> said Global X</a> in a recent research piece. &ldquo;The dispersion of returns between midstream credit and MLP units provides useful information about the market&rsquo;s interpretation of the stability of the nation&rsquo;s energy infrastructure and its growth prospects.&rdquo;&nbsp;
<h3>
	More Details On MLPA</h3>
MLPA follows the Solactive MLP Infrastructure Index, which includes midstream pipeline and energy storage facilities operators. Historically, those types of MLPs have displayed less sensitivity to oil prices, but MLPA is down nearly 10 percent year to date. That performance is indicative of the energy sector&#39;s status as the worst-performing sector in the U.S. this year.
Although MLPs usually do not exhibit intimate correlations to oil prices, that does not mean volatility is low with this asset class. MLPA&#39;s annualized volatility of 24 percent is well above the 12.5 percent found on the S&amp;P 500.
At the end of the second quarter, the ETF held 23 stocks split among oil storage and transportation names, processing firms and natural gas storage and transportation partnerships.
<h3>
	Credit Has Been Better</h3>
Equity investors in MLPs are suffering this year while high-yield debt issued by these firms is performing well.
&ldquo;MLP units are down -11.45 percent year to date, while high yield midstream credit (high yield bonds issued by MLPs, General Partners of MLPs, or energy infrastructure corporations) is up 5.48 percent,&rdquo; according to Global X. &ldquo;High yield midstream credit performance is nearly in-line with the broader high yield debt space and has outperformed the broad high yield energy credit segment.&rdquo;
On the bright side, data suggest MLP revenue is improving and operating margins are at their best levels in over a year.
Related Links:
<a href="https://www.benzinga.com/trading-ideas/long-ideas/17/10/10143419/these-etfs-say-the-energy-rally-has-doubters">Energy ETFs Have Doubters</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/17/10/10149361/a-dynamic-avenue-for-long-term-asset-allocation">An Asset Allocation ETF</a>

Dividends

Markets

MLP ETFs Try To Master Momentum

The energy sector remains the worst-performing group in the S&amp;P 500 this year, a trend that is hampering master limited partnerships, or MLPs, and the related exchange traded funds, or ETFs. What that means: It&#39;s another low oil price environment where MLPs are being pinched.
For example, the Global X MLP &amp; Energy Infrastructure ETF&nbsp;(NYSE: <a class="ticker" href="/stock/mlpx#NYSE">MLPX</a>) is lower by nearly 13 percent year-to-date, while the Global X MLP ETF (NYSE: <a class="ticker" href="/stock/mlpa#NYSE">MLPA</a>) is down 15.3 percent. MLPX and MLPA are high-yielding ETFs with dividend yields of 5.8 percent and 7.4 percent, respectively.
MLPA holds 24 midstream pipeline and storage facilities MLPs and tracks the Solactive MLP Infrastructure Index. MLPX tracks the Solactive MLP &amp; Energy Infrastructure Index and has 40 holdings.
<h3>Macro Factors Affecting MLPs</h3>
As is the case with traditional energy equities, a spate of macro factors, including production news from the Organization of Petroleum Exporting Countries, affect MLPs.
&ldquo;As part of the OPEC meeting on July 25, the cartel announced two major pieces of news. Nigeria, previously exempt from the production cuts agreement, will now take part in the agreement and limit production to not exceed 1.8 million barrels a day (mb/d),&rdquo; <a href="https://www.globalxfunds.com/mlp-monthly-report-august-2017/">said Global X</a>. &ldquo;Current output stands at 1.6 mb/d. The second announcement was that Saudi Arabia will cut crude exports to 6.6 mb/d, lower than the 7.2 mb/d average from January to May this year.&rdquo;&nbsp;
Many MLPs and the ETFs holding them have been in prolonged slumps. Some of the major MLP ETFs are sporting three-year losses in the area of 30 percent, mostly inline with the almost 31-percent loss by the Energy Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xle#NYSE">XLE</a>) over the same stretch.
<h3>Checking MLP Valuations</h3>
With the energy sector slumping, there has been some talk of it being a value proposition, but that chatter has been met with resistance. As for MLPs, investors should check the valuations before rushing in.
&ldquo;The Enterprise Value to EBITDA ratio (EV-to-EBITDA), which seeks to provide more color on the valuations of MLPs, increased marginally in July compared to June, as higher oil prices helped MLP unit prices,&quot; GlobalX said. Since July 2016, the EV-to-EBITDA ratio has increased by about 14.60 percent, according to the research firm.&nbsp;
Year to date, investors have remained devoted to MLPA and MLPX, as the ETFs have seen inflows of $251.3 million and $182.8 million, respectively.
Related Links:
<a href="https://www.benzinga.com/analyst-ratings/analyst-color/17/08/9937111/looking-beyond-fees-with-etfs">Looking Beyond ETF Fees</a>
<a href="http:// https://www.benzinga.com/trading-ideas/long-ideas/17/08/9937235/where-smaller-is-better">Where Smaller Works</a>

MLPX

Oil Woes Still Plaguing MLP ETFs

Even with the benefit of a recent bounce, the United States Oil Fund LP (ETF) (NYSE: <a class="ticker" href="/stock/uso#NYSE">USO</a>), which tracks West Texas Intermediate futures, is lower 12.3 percent year-to-date. That underscores the point that oil is one of this year&#39;s worst-performing commodities, but not all energy-related investments are performing as poorly as oil itself.
<h3>The Difference: MLPs, Exchange Funds Tracking MPLs And Holdings</h3>
For example, some exchange funds tracking master limited partnerships (MLPs) are delivering performances that are significantly less bad than oil itself. The Global X MLP &amp; Energy Infrastructure ETF (NYSE: <a class="ticker" href="/stock/mlpx#NYSE">MLPX</a>) is down 4.1 percent this year, which is obviously nothing to brag about but is also obviously better than oil. The Global X MLP ETF (NYSE: <a class="ticker" href="/stock/mlpa#NYSE">MLPA</a>) is down just a tenth of a percent.
&ldquo;Midstream MLPs, as measured by the Solactive MLP Infrastructure Index, declined 1.20 percent last month partly due to lower oil prices. The index has gained 12.34 percent over the last one-year period,&rdquo; said Global X <a href="https://www.globalxfunds.com/mlp-monthly-report-may-2017/">in a recent note</a>.
<h3>Case In Point</h3>
Oil&#39;s bear market in 2014 and 2015 was an exception, but MLPs often prove resilient when oil prices slide because these companies merely <a href="https://www.benzinga.com/trading-ideas/long-ideas/16/10/8561950/checking-in-on-an-mlp-etf">transport the commodity</a>, not produce it.
The Solactive MLP Infrastructure Index is the benchmark tracked by the $593 million MLPA. The ETF holds 24 midstream pipeline and storage facilities MLPs. MLPA&#39;s dividend yield is nearly 7 percent, highlighting many income investors remain enthusiastic about MLPs.
&ldquo;The current yield on MLPs stands at 6.69 percent. MLP yields remained higher than the broad market benchmarks for High Yield Bonds (5.63 percent), Preferreds (5.38 percent), Emerging Market Bonds (5.35 percent), and REITs (3.97 percent). MLP yield spreads versus 10-year Treasuries currently stand at 4.40 percent, higher than the long-term average of 3.64 percent,&rdquo; according to Global X.
MLPA is a top heavy fund as its top 10 holdings combine for about two-thirds of its weight and its top 10 holdings combine for over 23 percent. Valuations are falling a bit on MLPs as well.
&ldquo;The Enterprise Value to EBITDA ratio (EV-to-EBITDA), which seeks to provide more color on the valuations of MLPs, decreased in April compared to March as MLP unit prices fell,&rdquo; said Global X. &ldquo;Since April 2016, the EV-to-EBITDA ratio has increased approximately 5.1 percent, as oil prices, and subsequently MLP equities, recovered from previous lows. In addition, from 2015 to 2016, MLP Debt to Adjusted EBITDA ratios fell -6.9 percent from 4.90x to 4.56x, as MLPs continue to make concerted efforts reduce leverage ratios.&rdquo;
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MLP ETFs: A Lot Less Bad Than Oil

Oil is one of this year&#39;s worst-performing commodities, but master limited partnerships have been somewhat sturdy in the face of falling crude prices. For example, the Global X MLP ETF (NYSE: <a class="ticker" href="/stock/mlpa#NYSE">MLPA</a>) is lower by just 0.35 percent compared to a year-to-date loss of 5 percent for the United States Oil Fund (NYSE: <a class="ticker" href="/stock/uso#NYSE">USO</a>).
<h3>What's Up With MLPs?</h3>
There was a time when many income investors scurried into MLPs and the corresponding exchange-traded funds searching for yield amid low U.S. interest rates. Part of their motivation was the belief that because most MLPs are not involved in the exploration and production of oil and natural gas, the asset class was somewhat immune to fluctuations in the prices of those commodities.
As oil prices plunged in 2014 and 2015, that belief proved ill-fated. MLPs and the ETFs that hold them were punished as well, with some seeing their dividend yields soar well into the double digits. While it remains to be seen how long the rally will last for, oil prices are rebounding and MLP ETFs are getting in on that move.
However, low yields on many fixed income investments are prompting investors to revisit ETFs like MLPA, which yields close to 7 percent and yield remains one of the primary catalysts luring investors to MLPs.
&ldquo;The current yield on MLPs stands at 6.85 percent MLP yields remained higher than the broad market benchmarks for High Yield Bonds (5.84 percent), Emerging Market Bonds (5.52 percent), Preferreds (5.44 percent) and REITs (4.28 percent),&rdquo; said Global X <a href="https://www.globalxfunds.com/mlp-monthly-april-2017/">in a recent note</a>. &ldquo;MLP yield spreads versus 10-year
Treasuries currently stand at 4.45 percent, higher than the long-term average of 3.63 percent.&rdquo;
<h3>Detailing MLPA</h3>
The $518.6 million MLPA tracks the Solactive MLP Infrastructure Index. The ETF &ldquo;invests in midstream pipelines and storage facilities that have less sensitivity to energy prices,&rdquo; <a href="https://www.globalxfunds.com/funds/mlpa/">according to Global X</a>.
MLPA holds 22 stocks and follows the Solactive MLP Infrastructure Index. MLPA has a beta of 0.96 against the S&amp;P 500, according to issuer data.
In its six years on the market, MLPA has outpaced actively managed competitors, but investors should dig deeper and examine fees and the broader MLP space&#39;s valuations.
&ldquo;The Enterprise Value to EBITDA ratio, which seeks to provide more color on the valuations of MLPs, increased in Q1 2017 compared to Q4 2016 as MLP unit prices appreciated,&rdquo; said Global X. &ldquo;Since Q1 2016, the EV-to-EBITDA ratio has increased approximately 6.6 percent, as oil prices recovered from previous lows. In addition, from 2015 to 2016, MLP Debt to Adjusted EBITDA ratios fell -6.9 percent from 4.90x to 4.56x, as MLPs continue to make concerted efforts reduce leverage ratios.&rdquo;
Related Links:
<a href="https://www.benzinga.com/trading-ideas/long-ideas/16/04/7838447/as-oil-rebounds-this-mlp-etf-blazes-a-comeback-trail">As Oil Rebounds, This MLP ETF Blazes A Comeback Trail</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/16/02/6246308/someones-gobbling-up-mlp-etfs">Someone's Gobbling Up MLP ETFs</a>

Checking In With A Popular MLP ETF

Oil is one of the fourth-quarter&#39;s best-performing asset classes. Just look at the United States Oil Fund LP (ETF) (NYSE: <a class="ticker" href="/stock/uso#NYSE">USO</a>), which is higher by more than 12 percent. That bullishness is having a positive effect on energy equities. The Energy Select Sector SPDR (ETF) (NYSE: <a class="ticker" href="/stock/xle#NYSE">XLE</a>) is up 13 percent over the past 90 days.
Some of that ebullience is trickling down to exchange-traded funds tracking master limited partnerships (MLPs), though not in significant fashion. For example, the Global X Funds (NYSE: <a class="ticker" href="/stock/mlpa#NYSE">MLPA</a>) and the Global X MLP &amp; Energy Infrastructure ETF (NYSE: <a class="ticker" href="/stock/mlpx#NYSE">MLPX</a>) are each up just over 3 percent over the past three months.
<h3>Focus On MLPX</h3>
MLPX one of the MLP ETFs that features general partner exposure. In an environment where MLPs are in favor, which was seen prior to oil&#39;s precipitous decline starting in 2014, general partners can shine. General partners have several advantages, including less tax complexity than MLPs and more dividend flexibility.
&ldquo;MLPX invests in midstream infrastructure entities such as pipelines and storage facilities that have less sensitivity to energy prices,&rdquo; <a href="https://www.globalxfunds.com/funds/mlpx/">according to Global X</a>.
The ETF holds 37 stocks and is home to more than $132 million in assets under management.
&ldquo;As expected, midstream MLPs have fared similarly to the storage and transportation sub-sector, with adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA &ndash; a preferable metric to proxy earnings for MLPs) being essentially flat year-over-year. For an apples-to-apples comparison, the broader energy sector has experienced a -22 percent decline in adjusted EBITDA over the same time frame,&rdquo; said Global X <a href="https://www.globalxfunds.com/mlp-insights-q4-2016/">in a recent research piece</a>.
<h3>MLPA In Focus</h3>
The aforementioned MLPA also invests in midstream pipelines and storage facilities. That $377.1 million ETF holds 22 stocks and its top 10 holdings combine for nearly two-thirds of its weight.
&ldquo;Another contributor to the strength of midstream MLP earnings has been the credit quality of counterparties with which they have entered into contracts to deliver&nbsp;storage or transportation services,&rdquo; added Global X. &ldquo;In limiting counterparties to those with strong credit quality, midstream MLPs can reduce the risks associated with a counterparty going bankrupt or reneging on a long term contract that has minimum volume requirements. In analyzing the credit quality of midstream MLPs counterparties, we found that over 3/4s had investment grade ratings.&rdquo;

A Fourth-Quarter Checkup On MLP ETFs

Although speculation that interest rates will soon rise is increasing, rate-sensitive master limited partnerships (MLPs) have recently been performing well. Just look at the Global X MLP ETF (Global X Funds (NYSE: <a class="ticker" href="/stock/mlpa#NYSE">MLPA</a>)), which has gained more than 4 percent over the past month.
<h3>MLPs, ETFs And Misunderstandings</h3>
There was a time when many income investors scurried into master limited partnerships (MLPs) and the corresponding exchange-traded funds searching for yield amid low U.S. interest rates. Part of their motivation was the belief that because most MLPs are not involved in the exploration and production of oil and natural gas, the asset class was somewhat immune to fluctuations in the prices of those commodities.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/16/10/8557085/a-conservative-approach-to-bond-etfs">A Conservative Approach To Bond ETFs</a></bzrelatedlink>
As oil prices plunged in 2014 and 2015, that belief proved ill-fated. MLPs and the ETFs that hold them were punished as well, with some seeing their dividend yields soar well into the double digits. While it remains to be seen how long the rally will last for, oil prices are rebounding and MLP ETFs are getting in on that move.
However, low yields on many fixed income investments are prompting investors to revisit ETFs like MLPA, which yields over 7 percent. Valuations are on the rise, though.
<h3>Putting It All Into Perspective</h3>
&ldquo;The price to adjusted EBITDA ratio, which seeks to provide more color on an MLP&rsquo;s prices relative to their earnings, has risen along with the recovery in prices over the past year. Since last September, the ratio has increased approximately 14.7 percent, which closely mirrors the 14.5 percent appreciation of the Solactive MLP Infrastructure Index, demonstrating the stability of midstream MLP earnings this year, despite low energy prices,&rdquo; <a href="https://www.globalxfunds.com/mlp-monthly-report-october-2016/">according to Global X research</a>.
The $331.7 million primarily holds midstream pipelines and storage facilities, which are historically less sensitive to swings in energy prices. MLPA, which is 4.5 years old, holds 21 stocks and follows the Solactive MLP Infrastructure Index. MLPA has a beta of 0.96 against the S&amp;P 500, according to issuer data.
Still, investors should be aware of the impact falling crude prices can have on MLPs. Predictably, the result is not positive.
&ldquo;Since the period of heightened volatility at the beginning of 2016, volatility has recently stabilized at just above 20 percent. Correlations with crude and energy stocks increased moderately over the last three months as oil fell below $45/barrel. <a href="https://www.globalxfunds.com/mlp-insights-q3-2016/">We have found</a> that when oil falls below $45/barrel, correlations between MLPs and crude rise significantly,&rdquo; added Global X.
<a href="https://pro.benzinga.com/?utm_source=Benzinga&amp;utm_medium=Benzinga%20Top%20of%20Article&amp;am%22%3">Full ratings data available on Benzinga Pro.</a>
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Checking In On An MLP ETF

Oil prices are rebounding this year, and interest rates are still near historic lows. The combination of those two scenarios is renewing investors&#39; enthusiasm for high-yielding master limited partnerships (MLPs) and the corresponding exchange-traded funds.
<h3>Getting Slick On Oil</h3>
Just look at the Global X MLP ETF (Global X Funds (NYSE: <a class="ticker" href="/stock/mlpa#NYSE">MLPA</a>)). MLPA, which tracks the Solactive MLP Infrastructure Index, sports a trailing 12-month dividend yield of almost 7.7 percent and is up nearly 11 percent year-to-date.
There was a time when many income investors scurried into MLPs and the corresponding ETFs searching for yield amid low U.S. interest rates. Part of their motivation was the belief that because most MLPs are not involved in the exploration and production of oil and natural gas, the asset class was somewhat immune to fluctuations in the prices of those commodities.
As oil prices plunged in 2014 and 2015, that belief proved ill-fated. MLPs and the ETFs that hold them were punished as well, with some seeing their dividend yields soar well into the double digits. While it remains to be seen how long the rally will last for, oil prices are rebounding and MLP ETFs are getting in on that move.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/analyst-ratings/analyst-color/16/08/8390790/morgan-stanley-lays-out-ardmore-shippings-bull-bear-case">Morgan Stanley Lays Out Ardmore Shipping's Bull, Bear Cases And Downgrades To Equal Weight</a></bzrelatedlink>
Data suggest MLPs are yet <a href="http://www.benzinga.com/analyst-ratings/analyst-color/16/08/8385116/passive-approach-can-serve-investors-well-with-junk-bond">another asset class </a>where passive management trumps active, at least in the case of the $309.6 million MLPA.
<h3>Drilling The Point Home</h3>
&ldquo;Looking back over the last year, however, we see that only one of the 16 mutual funds outperformed MLPA. On average, this group of funds returned -16.88 percent over the last year, with 31.71 percent volatility. By comparison, MLPA returned -8.02 percent, over 850 basis points better, with slightly lower than average volatility of 30.72 percent,&rdquo; <a href="http://www.globalxfunds.com/mlp-insights-q3-2016/">according to Global X research</a>.
Maximum drawdown further underscore MLPA&#39;s advantages against actively managed rivals as &ldquo;MLPA&rsquo;s maximum drawdown of -38.21 percent ranked it fourth best out of the group, with average mutual fund drawdowns amounting to -43.04 percent, and median drawdowns coming to 40.74 percent,&rdquo; according to Global X.
MLPA, which turned four years old in April, is home to 21 stocks, all of which are classified as midstream MLPs. The ETF&#39;s top 10 holdings combine for about 64 percent of its weight. MLPA&#39;s annualized volatility is 25.4 percent, according to issuer data.
&ldquo;The significant underperformance of actively managed MLP mutual funds and deep drawdowns over the last year, when compared to MLPA, demonstrates that MLP fund managers largely failed to navigate the markets during this difficult period. With the lack of transparency into mutual funds, it&rsquo;s difficult to pinpoint the reasons for this underperformance, but it is likely due to managers either reaching for yield by overexposing their portfolios to weaker upstream MLPs, or simply mis-timing trades amid the heightened volatility,&rdquo; added Global X.
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Intraday Update

Slick Oil Investors: Consider This MLP ETF Over Oil Funds

There was a time when many income investors scurried into master limited partnerships (MLPs) and the corresponding exchange-traded funds searching for yield amid low U.S. interest rates. Part of their motivation was the belief that because most MLPs are not involved in the exploration and production of oil and natural gas, the asset class was somewhat immune to fluctuations in the prices of those commodities.
As oil prices plunged in 2014 and 2015, that belief proved ill-fated. MLPs and the ETFs that hold them were punished as well, with some seeing their dividend yields soar well into the double digits. While it remains to be seen how long the rally will last for, oil prices are rebounding and MLP ETFs are getting in on that move.
<h3>Celebrating Oil's Rebound</h3>
For example, the Global X MLP ETF (Global X Funds (NYSE: <a class="ticker" href="/stock/mlpa#NYSE">MLPA</a>)) is up 12.6 percent over the past three months. The $240.6 million MLPA holds midstream pipelines and storage facilities, including Enterprise Products Partners L.P. (NYSE: <a class="ticker" href="/stock/epd#NYSE">EPD</a>), Magellan Midstream Partners, L.P. (NYSE: <a class="ticker" href="/stock/mmp#NYSE">MMP</a>) and Plains All American Pipeline, L.P. (NYSE: <a class="ticker" href="/stock/paa#NYSE">PAA</a>).
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/16/02/6246308/someones-gobbling-up-mlp-etfs">Someone's Gobbling Up MLP ETFs</a></bzrelatedlink>
After being bludgeoned, some MLPs got so inexpensive that some big-name professional investors just could not resist nibbling at the asset class.
&ldquo;In short, midstream MLPs got cheaper, while adjusted EBITDA and distributions grew. For value investors, these results are quite attractive and perhaps what led to value-hunting institutions like Berkshire Hathaway, Jana Partners, and Appaloosa Management all initiating positions in midstream infrastructure companies and MLPs in their latest 13f filings,&rdquo; according to a <a href="http://www.globalxfunds.com/mlp-insights-q2-2016/">Global X note</a>.
While investors clearly like MLP ETFs, many are not aware until it is too late of a nasty surprise with some MLP funds. That is these ETFs are structured as C-corporations, meaning issuers can ding investors with high fees well in excess of the ETF&#39;s stated expense ratio.
<h3>Delving Deeper Into MLPA</h3>
For its part, MLPA has a management fee of just 0.45 percent, one of the lowest among MLP ETFs, but its total expenses flirt with four percent. On the other hand, MLPA&#39;s yield of 9.2 percent might just be too tempting for some yield hunters to ignore.
Still, MLPs look like a better for most investors than oil futures and comparable investments.
&ldquo;While rising correlations are a source of frustration for many investors who invested in MLPs as a diversifier to other energy investments, it can also present new opportunities. For example, those looking for ways to bet on oil prices could either buy oil futures, which are currently in contango and have a &ndash;14 percent annual roll yield, or invest in MLPs yielding 9.2 percent. All else equal, in a flat oil market where neither the price of oil futures nor MLPs move, the MLPs would outperform the futures by 23 percent,&rdquo; added Global X.
Image Credit: <a href="https://pixabay.com/en/natural-gas-search-oil-rig-863224/">Public Domain</a>

As Oil Rebounds, This MLP ETF Blazes A Comeback Trail

Slumping oil prices and the startling decline in shares of Kinder Morgan Inc. (NYSE: <a class="ticker" href="/stock/kmi#NYSE">KMI</a>) are among the factors that have plagued master limited partnerships and the corresponding exchange traded funds this year, but data suggest some MLP funds are actually adding new assets in the midst of the oil market maelstrom.

	MLP exchange-traded funds and exchange-traded notes (ETNs) have defied the conventional wisdom that the asset class can remain sturdy even as oil prices slide.

	With the end of the year right around the corner, advisors and investors are considering tax-loss harvesting and selling. Perhaps some are considering which exchange traded products to move into after they ditch losing equity and fund positions.

	That could be the case with the Global X MLP ETF (NYSE: <a class="ticker" href="/stock/mlpa#NYSE">MLPA</a>). Home to $175.1 million in assets under management, the Global X MLP ETF is solid in terms of size as it easily surpasses the all-important $100 million threshold by which so many ETFs are judged. On the other hand, MLPA&#39;s current assets under management tally is a small percentage of the overall assets currently allocated to dedicated MLP exchange traded products.

	Today, there are more than 25 MLP ETFs on the market with more than $25 billion in combined assets under management.

	That makes the ETF&#39;s recent pace of asset gathering all the more impressive. Since the start of August, MLPA, which has a trailing 12-month dividend yield of 9.14 percent, has added $73.4 million in new assets. That works out to be a significant percentage of all the new assets that have flowed into MLP ETFs over that period.

	AMLP tracks the &ldquo;Solactive MLP Infrastructure Index, which is designed to give investors a means of tracking the overall performance of the United States master limited partnerships (MLP) asset class. MLPA is comprised of 30 MLPs engaged in the transportation, storage, processing, refining, marketing, exploration, production and mining of natural resources,&rdquo; <a href="http://www.globalxfunds.com/mlpaetf/">according to Global X</a>.

	Enterprise Products Partners L.P. (NYSE: <a class="ticker" href="/stock/epd#NYSE">EPD</a>), Energy Transfer Partners L.P. (NYSE: <a class="ticker" href="/stock/etp#NYSE">ETP</a>) and Magellan Midstream Partners L.P. (NYSE: <a class="ticker" href="/stock/mmp#NYSE">MMP</a>) combine for over 29 percent of MLPA&#39;s weight. The ETF&#39;s expense ratio of 0.45 percent is well below the industry average of 0.83 percent. MLPA&#39;s total annual fund operating expense is 3.99 percent. That is hefty, but still well below the total expenses associated with the ALPS Alerian MLP ETF (NYSE: <a class="ticker" href="/stock/amlp#NYSE">AMLP</a>), the <a href="http://seekingalpha.com/article/3741336-amlp-shareholders-beware">largest MLP ETF</a>.

Short Ideas

This MLP ETF Is Raking In New Assets

There was once a school of thought that master limited partnerships were not sensitive to oil prices, but few would beg to differ that this income-generating asset class is sensitive to fluctuations in interest rates.

	This year, the latter thesis is in tact while the former has been dealt a significant blow. Over the past 90 days, one of every nine of the worst-performing exchange traded products are MLP funds or exchange traded notes (ETNs). The goods news for disciples of this beloved income asset class is that, for patient investors, things could get better.
<h3>
	New Research</h3>

	As <a href="http://blogs.barrons.com/incomeinvesting/2015/08/11/credit-suisse-upgrades-mlp-sector-lists-top-picks/?mod=BOLBlog">Barron&#39;s</a> reports, new research from Credit Suisse notes that MLPs &ldquo;post gains in the year following points when the yield spread over the 10-year Treasury is more than 5 percentage points. It is just 3 basis points from that level now. He (analyst John Edwards) judges the index has 40% total return potential from &nbsp;here.&rdquo;&nbsp;

	There is no shortage of ways with which to play a potential MLP rebound with ETFs, but there are some funds with decent exposure to some of Credit Suisse&#39;s top picks, including Genesis Energy L.P. (NYSE: <a class="ticker" href="/stock/gel#NYSE">GEL</a>), Tallgrass Energy Partners (NYSE: <a class="ticker" href="/stock/tep#NYSE">TEP</a>) and Energy Transfer Equity (NYSE: <a class="ticker" href="/stock/ete#NYSE">ETE</a>). The bank also likes natural gas MLPs, including Spectra Energy Partners L.P. (NYSE: <a class="ticker" href="/stock/sep#NYSE">SEP</a>), Kinder Morgan Inc. (NYSE: <a class="ticker" href="/stock/kmi#NYSE">KMI</a>), ONEOK Partners (NYSE: <a class="ticker" href="/stock/oks#NYSE">OKS</a>) and Magellan Midstream Partners L.P. (NYSE: <a class="ticker" href="/stock/mmp#NYSE">MMP</a>).

	Related Link: <a href="http://www.benzinga.com/analyst-ratings/analyst-color/15/08/5755856/experts-disagree-over-mlps">Experts Disagree On MLPs</a>

	The JPMorgan Alerian MLP Index ETN (NYSE: <a class="ticker" href="/stock/amj#NYSE">AMJ</a>), which Benzinga<a href="http://www.benzinga.com/trading-ideas/long-ideas/15/07/5720715/a-popular-mlp-etn-tries-to-fend-off-oils-decline#ixzz3iZvXqTHG">&nbsp;highlighted in late July</a>, has combined 12.6 percent weight to Energy Transfer Equity, Magellean Midstream and ONEOK Partners.

	AMJ&#39;s tempting yield of 4.7 percent, which is more than double the yield on U.S. Treasurys, is far from a free lunch. The ETN has a standard deviation of almost 16.6 percent, which is close to double that of S&amp;P 500 ETFs. Plus, AMJ charges 0.85 percent per year, a high fee for a passively managed product.

	The Global X MLP ETF (NYSE: <a class="ticker" href="/stock/mlpa#NYSE">MLPA</a>) is down 14.6 percent over the past 90 days, but the fund has a combined of 22 percent to Energy Transfer Equity, Magellan Midstream, ONEOK Partners, Genesis Energy and Spectra Energy. Like rival MLP ETFs, MLPA tempts on yield. The fund&#39;s dividend yield of 6.74 percent is more than triple the closing yield for 10-year Treasurys on Tuesday.

	The Global X MLP &amp; Energy Infrastructure ETF (NYSE: MLPX) is another option to mull over. Several of the stocks mentioned by Credit Suisse combine for over 11 percent of the $104.7 million MLPX&#39;s weight. MLPX&#39;s dividend yield is less than 2.6 percent, but there is a good reason why and it is one investors should embrace.
<h3>
	A Nasty Surprise</h3>

	While investors clearly like MLP ETFs, many are not aware until it is too late of a nasty surprise with some MLP funds. That is these ETFs are structured as C-corporations, meaning issuers can ding investors with high fees well in excess of the ETF&#39;s stated expense ratio.

	MLPX charges 0.45 percent per year and that is what investors should expect to pay because the <a href="http://www.sec.gov/Archives/edgar/data/1432353/000114420413042792/v351810_497.htm">most recent prospectus</a> for the new ETF indicates the fund is registered under the Investment Company Act of 1940.

	Fund companies can register MLP ETFs under the Investment Company Act as long as the ETFs are <a href="http://www.benzinga.com/news/12/04/2509354/global-x-mlp-etf-undercuts-rivals-on-fees">not 100 percent comprised </a>of MLPs. MLPX will track the Solactive MLP &amp; Energy Infrastructure Index, which is home to MLPs and firms that are comparable, but structured as traditional corporations.

There Might Be Some Good News For MLP ETFs

Global X, the New York-based ETF issuer known primarily for its lineup of equity-based commodities and emerging markets ETFs, will introduce its third master limited partnership, or MLP, ETF today with the debut of the Global X MLP &amp; Energy Infrastructure ETF (NYSE: MLPX).

	MLPs have soared in popularity with income investors in recent years. The asset class is known not only for robust dividends and high yields, but also for a series of tax advantages not found with common stocks. Those traits have spurred investors to pour billions of dollars into funds such as the JPMorgan Alerian MLP Index ETN (NYSE: <a class="ticker" href="/stock/amj#NYSE">AMJ</a>) and the ALPS Alerian MLP ETF (NYSE: <a class="ticker" href="/stock/amlp#NYSE">AMLP</a>).

	Related: <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/01/2236947/five-mlp-etfs-your-broker-forgot-to-mention">Five MLP ETFs Your Broker Forgot to Mention</a>.

	While investors clearly like MLP ETFs, many are not aware until it is too late of a nasty surprise with some MLP funds. That is these ETFs are structured as C-corporations, meaning issuers can ding investors with high fees well in excess of the ETF's stated expense ratio.

	MLPX will charge 0.45 percent per year and that is what investors should expect to pay because the <a href="http://www.sec.gov/Archives/edgar/data/1432353/000114420413042792/v351810_497.htm">most recent prospectus</a> for the new ETF indicates the fund is registered under the Investment Company Act of 1940.

	Fund companies can register MLP ETFs under the Investment Company Act as long as the ETFs are <a href="http://www.benzinga.com/news/12/04/2509354/global-x-mlp-etf-undercuts-rivals-on-fees">not 100 percent comprised of MLPs</a>. MLPX will track the Solactive MLP &amp; Energy Infrastructure Index, which is home to <a href="http://www.benzinga.com/news/12/04/2509354/global-x-mlp-etf-undercuts-rivals-on-fees">MLPs and traditionally structured firms</a>.

	Index holdings include Access Midstream Partners (NYSE: <a class="ticker" href="/stock/acmp#NYSE">ACMP</a>), EQT Corp. (NYSE: <a class="ticker" href="/stock/eqt#NYSE">EQT</a>), Enterprise Products Partners (NYSE: <a class="ticker" href="/stock/epd#NYSE">EPD</a>) and Williams Cos. (NYSE: <a class="ticker" href="/stock/wmb#NYSE">WMB</a>). The strategy of an MLP ETF not entirely comprised of MLPs has worked. Just look at the First Trust North American Energy Infrastructure Fund (NYSE: <a class="ticker" href="/stock/emlp#NYSE">EMLP</a>). That fund is less than 14 months old and already has over $422 million in assets under management.

	Global X's other MLP ETFs are the Global X MLP ETF (NYSE: <a class="ticker" href="/stock/mlpa#NYSE">MLPA</a>) and the Global X Junior MLP ETF (NYSE: <a class="ticker" href="/stock/mlpj#NYSE">MLPJ</a>), which <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/01/3244756/global-x-junior-mlp-etf-debuts-today">debuted in January</a>. Combined, the two ETFs have nearly $79 million in AUM.

	For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

New ETFs

ACMP

EMLP

MLPJ

Global X Rolls Out Third MLP ETF

Direxion, the second-largest issuer of inverse and leveraged ETFs, could add to its suite of plain vanilla offerings with the introduction of a new ETF focusing on master limited partnerships.

	The firm has filed plans with the Securities and Exchange Commission to possibly introduce the Direxion Zacks High Income MLP Shares.

	The filing <a href="http://www.sec.gov/Archives/edgar/data/1424958/000119312513279593/d562168d485apos.htm">did not include a ticker for the new fund</a>, but did indicate the expense ratio will be 0.65 percent per year. The Direxion MLP ETF would track the Zacks MLP Index and be passively managed.

	Zacks "utilizes multi-factor proprietary selection rules to identify MLPs that may offer the greatest yield by assessing various factors, including yield, liquidity, relative value, and other factors. Each company is then sorted from highest to lowest based on its yield," according to the filing.

	Following that screening process, the universe of possible constituents is whittled down to 25 and each receives a weighting of four percent within the index.

	As investors have increasingly sought new avenues of yield, MLP ETFs and ETNs have soared in popularity. The largest MLP exchange traded products include Alerian MLP ETF (NYSE: <a class="ticker" href="/stock/amlp#NYSE">AMLP</a>) an the JPMorgan Alerian MLP Index ETN (NYSE: <a class="ticker" href="/stock/amj#NYSE">AMJ</a>). Others include the Global X MLP ETF (NYSE: <a class="ticker" href="/stock/mlpa#NYSE">MLPA</a>), the Yorkville High Income MLP ETF (NYSE: <a class="ticker" href="/stock/ymlp#NYSE">YMLP</a>) and the Yorkville High Income Infrastructure MLP ETF (NYSE: <a class="ticker" href="/stock/ymli#NYSE">YMLI</a>).

	Direxion's lineup of non-leveraged ETFs includes the Direxion NASDAQ-100 Equal-Weight Index Shares (NYSE: <a class="ticker" href="/stock/qqqe#NYSE">QQQE</a>) and the Direxion All-Cap Insider Sentiment Shares (NYSE: <a class="ticker" href="/stock/know#NYSE">KNOW</a>).

	For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

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Direxion Eyes MLP ETF 

Global X, the New York-based ETF sponsor known for its lineup of unique sector and commodities ETFs, added another fund focused on master limited partnerships Tuesday with the debut of the Global X Junior MLP ETF (NYSE: MLPJ).

The Global X Junior MLP ETF is the firm's second MLP ETF after the Global X MLP ETF (NYSE: <a class="ticker" href="/stock/mlpa#NYSE">MLPA</a>), which debuted in April 2012 and now has over $25.8 million in assets under management. 

MLPJ becomes the second MLP-related exchange product to debut this year. The iPath S&amp;P MLP ETN (NYSE: <a class="ticker" href="/stock/imlp#NYSE">IMLP</a>) has an inception date of January 3 and <a href="http://www.ipathetn.com/us/product/IMLP/">already has nearly $26 million in assets</a>. 

MLPJ, which has an annual expense ratio of 0.75 percent, will track the Solactive Junior MLP Index. That index is home to 25 stocks and devotes almost 44 percent of its weight to exploration and production names. Another 39.5 percent of its weight goes to energy transportation and storage firms while 13.4 percent is allocated to refining and distribution names, <a href="http://www.globalxfunds.com/MLPJ/FS">according to the ETF's fact sheet</a>.

Top holdings in the index include Suburban Propane Partners (NYSE: <a class="ticker" href="/stock/sph#NYSE">SPH</a>), newly public Northern Tier Energy (NYSE: <a class="ticker" href="/stock/nti#NYSE">NTI</a>), Alliance Resource Partners (NASDAQ: <a class="ticker" href="/stock/arlp#NASDAQ">ARLP</a>), TC PipeLines (NYSE: <a class="ticker" href="/stock/tcp#NYSE">TCP</a>) and Natural Resource Partners (NYSE: <a class="ticker" href="/stock/nrp#NYSE">NRP</a>).

MLP exchanged traded products include the JPMorgan Alerian MLP ETN (NYSE: <a class="ticker" href="/stock/amj#NYSE">AMJ</a>), the Alerian MLP ETF (NYSE: <a class="ticker" href="/stock/amlp#NYSE">AMLP</a>) and the Yorkville High Income MLP ETF (NYSE: <a class="ticker" href="/stock/ymlp#NYSE">YMLP</a>) have been embraced by income-hungry investors. AMLP had almost $4.8 billion in assets as of January 14 while YMLP has raked in almost $107 million in AUM in just 10 months of trading.

MLPJ will likely carry on the tradition of high-yielding MLP exchange-trade products as its top holdings sport some impressive yields. For example, Suburban Propane yields 8.2 percent while Northern Tier currently yields a whopping 24.1 percent. Alliance Resources and Natural Resource Partners yield 6.8 percent and 10.5 percent, respectively.

MLPJ will pay quarterly income distributions and is eligible to be included in retirement accounts such as IRAs and 401(k) plans. 

Investors should note an an often overlooked aspect to MLP exchange-traded products. That being tax treatment of these funds can lead to increased expenses. ETFs such as AMLP and YMLP are structured as C-corporations, meaning investors are subject to the <a href="http://investwithanedge.com/mlpa-another-c-corp-double-taxation-etf">35 percent corporate federal income tax</a>, plus some state taxes. 

Traditional ETFs do not expose investors to entity-level tax liabilities, but the structure of some MLP funds means investors face higher expenses than just the stated expense ratio. For example, <a href="http://www.alerianmlp.com/performance.php">AMLP's web site</a> shows a management fee of 0.85 percent for that fund, but total operating expenses of 4.86 percent, which is extremely high by the standards of ETFs.

For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

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