(AMLP) Alerian MLP - Ratings and Ratios

The Alerian MLP ETF (AMLP) is designed to track the performance of the Alerian MLP Infrastructure Index, which focuses on energy infrastructure master limited partnerships (MLPs). These MLPs primarily generate their cash flow from the transportation, storage, and processing of energy commodities. The fund invests at least 90% of its total assets in securities from the underlying index, providing exposure to a concentrated portfolio of energy infrastructure companies. AMLP is non-diversified, meaning it can have significant exposure to a smaller number of issuers, which may increase risk but also allows for targeted investment in the MLP sector.

As one of the largest ETFs in the energy MLP space, AMLP offers a liquid way to access this unique asset class. MLPs are pass-through entities, often providing tax-efficient income to investors. The fund is sponsored by ALPS Advisors, a well-known issuer of niche ETFs, and tracks the Alerian MLP Infrastructure Index, a widely followed benchmark for MLP performance. With over $10 billion in assets under management, AMLP is a significant player in the energy ETF landscape, appealing to investors seeking exposure to North American energy infrastructure without directly investing in individual MLPs.

For investors and fund managers, AMLP is notable for its focus on infrastructure MLPs, which are often less volatile than upstream energy companies. The fund’s structure allows it to capture the cash flow stability associated with energy transportation and storage assets. However, it’s important to understand the unique tax implications of MLPs, as well as the potential for high concentration in a few large MLPs within the portfolio. AMLP is listed on the NYSE ARCA under the ticker AMLP and is domiciled in the United States.