Income investors love MLPs because they offer exposure to energy related limited partnerships with juicy yields. Many yield more than 5% making them enticing to both retirement age and younger investors looking for regular (although not necessarily monthly) income from their portfolios. A new MLP ETF has just entered the marketplace within the last month, but this one's just a little different from the rest.
The InfraCap MLP ETF (NYSEARCA:AMZA) is the first actively managed ETF that will be a pure play on MLPs. By "pure" I mean that the fund will focus on investing in midstream energy master limited partnerships and their related general partnerships. Whereas many ETFs in the MLP space simply look to match a predetermined index, this ETF will look to move in and out of positions within the portfolio where the managers believe that valuation, management or return potential warrant an overweight position.
By Karyl Patredis
I often hear of the Marshall Islands in connection with MLPs. Where are the Marshall Islands?
The Marshall Islands are located in the Pacific Ocean, east of the Philippines. Most shipping MLPs are considered foreign private issuers and are organized as Marshall Islands LPs.
Which MLPs are organized under the laws of the Republic of the Marshall Islands?
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Why are so many marine transportation MLPs organized in the Marshall Islands?
The Marshall Islands act as a flag of convenience for shipping companies throughout the world. So although all shipping MLPs are organized here, the Marshall Islands have a stronger connection to the maritime industry in general than to the MLP space specifically. The reason for this is that a company which does not actually conduct business in the Marshall Islands is exempt from taxes on income and assets. Shipping vessels transporting