Morningstar Rating

ETF Research and Analysis

by Abby Woodham
Suitability
JPMorgan Alerian MLP Index ETN AMJ was our pick for investing in master limited partnerships until J.P. Morgan capped creations in June 2012. We think J.P. Morgan likely decided to stop creating new AMJ notes because the   Read more 

Bull Case

MLPs are stable, relatively high-yielding companies. Most have an economic moat.
One long-term driver for MLP growth is U.S. energy production, which has increased strongly over the past two years.
Owning MLPs through an ETN allows investors to avoid the complicated tax-filing process of direct MLP ownership. Read more 

Bear Case

AMJ closed creations last year, so it can trade at a significant premium to net asset value. New investors should consider other offerings before buying this note at a premium.
AMJ's distributions are not tax-deferred like the distributions from the MLPs it tracks.
ETNs are subject to the credit risk of their issuer. If JP Morgan goes bankrupt, AMJ's owners will receive nothing. Read more 

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