Which MLP ETF Is the Better Buy: Global X's MLPX or Alerian's AMLP?
AMLP's yield looks attractive on the surface, but a hidden tax structure has been costing long-term investors far more than they may realize.
Overview
The choice between Global X - MLP & Energy Infrastructure ETF (NYSEMKT:MLPX) and Alerian MLP ETF (NYSEMKT:AMLP) centers on whether investors prioritize a higher immediate dividend yield or lower operating costs and broader diversification.
Investors looking for exposure to North American energy infrastructure often compare these two midstream Master Limited Partnership (MLP) funds. While both target the infrastructure required to transport and store energy commodities, their underlying index methodologies result in distinct concentration levels and cost structures that may affect long-term results for income seekers.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.