Morningstar Rating

ETF Research and Analysis

by Robert Goldsborough
Suitability
UBS E-TRACS Alerian MLP Infrastructure ETN MLPI offers investors exposure to the performance of a basket of energy-oriented master limited partnerships. In recent years, yield-hungry investors have been drawn to MLPs and   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 over the past few 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, MLPI's owners will receive nothing.
This product's path-dependent fees can cause expenses to be higher than expected. Read more 

Online Giants in a Single Fund 
Watch more 

Premium Membership

View all of our analyst reports with a free trial to Morningstar.com Premium.