Morningstar Rating

ETF Research and Analysis

by Robert Goldsborough
JPMorgan Alerian MLP Index ETN AMJ tracks the performance of a basket of energy-oriented master limited partnerships. Yield-hungry investors have been drawn to MLPs and to exchange-traded products that track baskets of   Read more 

Bull Case

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

Bear Case

AMJ stopped issuing new shares in 2012, so it can trade at a significant premium to NAV. 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 J.P. Morgan goes bankrupt, AMJ's owners will receive nothing. Read more 

Tap Into Unloved MLPs Using Exchange-Traded Notes 
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