Income investors that have sought out alternatives to traditional dividend paying equities and fixed-income have largely been rewarded this year. The combination of higher yields and non-correlated returns within the context of a diversified portfolio are attractive qualities for asset classes such as MLPs, REITs, and preferred stocks.
Most investors tend to flock to the oldest and largest ETFs in these respective categories. This is probably because the funds are well known and have been used successfully in the past or they represent the most diversified mix of underlying securities. They are also usually the most heavily traded, which provides excellent liquidity and execution when buying or selling.
However, in researching these areas I came across several smaller ETFs that have surpassed their more established peers in 2014 and may warrant a second look if you are considering alternative income sources.
Master Limited Partnerships
In the world of master
With changes in unit prices that range from a loss of 45% to a gain of 24%, the changes in midstream MLPs (Master Limited Partnerships) prices can appear all too random. But there are patterns in the numbers. Smart investors are those who can see those patterns - and learn from those lessons. This article shows the data for midstream MLPs from Q1-14 - and covers some of the lessons one can hear when listening to the numbers. If you have read my prior articles on MLPs here at Seeking Alpha, then the lessons will already be familiar to you. On the other hand, I like it when the numbers tell the same story quarter after quarter and year after year. It is easier to win at this investing task when the keys to the game are not constantly shifting. I can find comfort in the redundancy of the story
The first of last year I decided to start sharing my personal income portfolio with my readers. As part of this article series I decided that I would write quarterly follow up articles so that my readers can view my portfolio changes and progress. You can view my first article here and my previous quarterly updates Q1, Q2, Q3, and Q4 from 2013 in the provided links. These articles will show you on a quarter by quarter basis how I am managing my income seeking portfolio.
The stock market Q1 performance was a rather tumultuous one. Q1 has seen its share of ups and downs but has still trended slightly higher. The Federal Reserve has officially started QE tapering operations as well as appointing a new Federal Reserve Chief. Janet Yellen is now in charge of directing the central banks actions. I