ETF Research and Analysis

by Robert Goldsborough
UBS ETRACS Alerian MLP Infrastructure ETN MLPI 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   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

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 

Making the Momentum Effect Work for Your Portfolio 
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