Dow up better than a 100. MLP index up 3 as the rally gains a head of steam today. EV Partners (EVEP) is up more than 2 today. The stock sold off a little on earnings yesterday but its back over 32. Also we have Alliance Resource (ARLP) up 1.10. Markwest (MWE) and Oneok(OKS) are both up over 1 point. Nice fractional gains among most issues.
Energy Transfer Partners (ETP) is down over 1 dollar as the standout loser today. Otherwise just a handful of issues are off a few cents or so.
Market has the bit in the teeth and it looks like last week's 10 percent ish correction..was...just that and nothing more.
New MLP fund is out there. They indicate no leverage and low fees, obviously in contrast to popular CEF's like KYN, TYG, and others:
ReplyDeletehttp://www.steelpath.com
And no UBTI if you put it in an IRA. I put the link up.
ReplyDeleteGood on the no UBTI and no K-1; however, I have to disagree on the "low fees." From the link provided, there are several mutual funds offered. The Class A shares carry a 5.75% front load, expense ratios of 0.85% to 1.25%, and 12b-1fees. The Class I shares appear to be no-load and carry no 12b-1 fees, but do carry expense ratios around 1%. My opinion, for what its worth: I think the exchange traded products AMJ and MLPI are better deals, and just purchasing units of the MLPs you like are better yet.
ReplyDeleteThanks for the info; it is always good to learn about new products.
JCarroll
Yep, I goofed on the low fees. I bought into their advertising before reading the fine print. The 12b-1 fees are a particular abomination.
ReplyDeleteIt seems the closest thing we have to a low-cost, non-managed MLP index fund is JP Morgan's exchange traded note AMJ, but I'm not thrilled with the idea having it 100% backed by the long-term health of JPM.
Well, in the MLP ETN universe there's now actually 3 to look at: AMJ, MLPI, and MLPN. An interesting overview here:
ReplyDeletehttp://seekingalpha.com/article/198788-credit-suisse-s-cushing-30-mlp-index-etn-now-trading
Thanks, Mike, for the MLPN reminder. I apologize if I came across as a heavy; it was not intended. Too bad all of the products you and I mentioned are all Exchange Traded Notes, rather than Exchange Traded Funds; as ETNs carry the credit risks associated with their sponsors. Also, all of the ETNs we mentioned carry, from memory, expense ratios around 0.85%. If/when someone puts out an MLP ETF with an expense ratio of 0.50% or less, that would be a product I would be interested in.
ReplyDeleteThanks again for your comments and follow-up. And, thanks Joe, for this blog and the opportunities it provides us to share information.
JCarroll