MLP ETF

A list of ETFs for Aug 2021

MLP ETFs are great investment options for those who seek a steady stream of income. It provides exposure to the equity of companies with master limited partnership structures. If you want to consider MLPs as a way to invest, MLP ETFs are an option to consider.

But what exactly is an MLP ETF? Let's get into it!

What is an MLP ETF?

MLP ETF is an ETF that invests in company structures as master limited partnerships. Thus, these companies receive income from qualifying sources. The usual sources are exploration, mining, extraction, and oil and gas refining.

MLPs are business ventures that exist in a publicly traded limited partnership. They combine the tax benefits of private associations. Thus, profits get taxed when investors receive distributions.

What is the best MLP ETF?

The market has an array of MLP ETFs to choose from if you plan on investing in this ETF. There's no telling which is the best, but the list below filters out your best options if you plan on going for this ETF.

  • First Trust North American Energy Infrastructure Fund (EMLP)
  • Global X MLP ETF (MLPA)
  • Global X MLP & Energy Infrastructure ETF( MLPX)
  • ETRACS Alerian MLP Infrastructure Index ETN (MLPB)

As always, the list filters out the best performing MLP ETFs around. In the end, it would be on you to choose the MLP ETFs.

Is MLP ETF a good investment?

MLP ETFs are a great investment opportunity for many reasons. Since you invest through ETFs, you'll experience low risks, unlike individual investments. Moreover, as an MLP, you provide capital to the venture, and you'll receive a reward from ongoing operations. Thus, it works well for anyone looking for a consistent income stream.

As always, it would be your decision whether you would pursue such an investment. Still, MLP ETFs provide an excellent opportunity for those who seek consistency in income.