The Alerian MLP ETF (NYSE ARCA: AMLP) is an investment fund that typically allocates at least 90% of its assets to securities that make up the underlying index. This index is composed of energy infrastructure Master Limited Partnerships (MLPs) that generate most of their cash flow from the transportation, storage, and processing of energy commodities such as oil, natural gas, and refined products.
These energy infrastructure MLPs play a crucial role in the energy supply chain, providing the necessary infrastructure to transport and store energy resources from production sites to refineries, and ultimately to end-users. By investing in these MLPs, the fund offers exposure to the energy sector while providing a potential source of income through dividend distributions.
As a non-diversified fund, the Alerian MLP ETF may invest a larger portion of its assets in a smaller number of securities, which can increase its exposure to specific risks. However, this approach can also allow the fund to focus on its investment strategy and potentially benefit from the performance of its targeted energy infrastructure MLPs.
The fund is domiciled in the United States and is managed by ALPS, a leading provider of ETFs and other investment products. For more information about the fund, investors can visit the ALPS website at http://www.alpsfunds.com.