Morningstar Rating

ETF Research and Analysis

by Abby Woodham
UBS E-TRACS Alerian MLP Infrastructure ETN MLPI has finally emerged from the shadow of sector giant JPMorgan Alerian MLP Index ETN AMJ after AMJ capped creations in June 2010. MLPI has since attracted assets at a significantly   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

MLPI'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 UBS goes bankrupt, AMJ's owners will receive nothing.
This product's path-dependent fees can cause expenses to be higher than expected. Read more 

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