UBS E-TRACS Alerian MLP Infrastrctr ETNMLPI

Morningstar Rating

ETF Research and Analysis

by Abby Woodham
Suitability
Master limited partnerships, or MLPs, have traditionally only been in the portfolios of risk-friendly income-seekers, but the quest for yield has drawn newcomers. UBS E-TRACS Alerian MLP Infrastructure ETN MLPI played   Read more 

Bull Case

As a historically high-yielding asset class, MLPs are a good source of income in a yield-parched environment. This product is currently yielding almost 5%.
Filing multiple K-1 forms for MLPs during tax season is a headache circumvented by the structure of this fund. Returns will be reported on a single 1099 instead.
MLPs have some diversification benefit, as they are currently only modestly correlated with the market and are not included in major market indexes. Read more 

Bear Case

Because MLPI is an ETN, it is exposed to the credit risk of issuer UBS.
MLPs will suffer if gas and oil volume demand falls or if interest rates rise.
This product's path-dependent fees can cause expenses to be higher than expected. Read more 

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